Rusty Pelican Restaurants Inc. Reports Rise in Net Earnings

Apparently on the road to recovery, Rusty Pelican Restaurants Inc. reported net earnings of $261,000 for the third quarter of its fiscal 1987, an 8.2% increase from $13.8 million posted a year earlier. Revenues for the quarter ended April 12 were $261,000, compared with a net loss of $512,000 the prior year.

The results mark the first positive earnings comparison since July 1985 for the Irvine-based dinner-house chain.

Nine-month earnings climbed to $401,000, from a loss of $327,000 the prior year. Revenue for the period totaled $40.5 million, down 1% from $40.9 million.

Greg Dollarhyde, chief financial officer, attributed the improved results to greater sales and profits from two new restaurants that have opened since the beginning of the fiscal year in August. Sales at Rusty Pelican stores which have been open more than 18 months were off about 5% in the quarter, Dollarhyde said.

“Given the environment, our focus is on slower new unit growth, cost containment and sales promotions designed to capture greater share within existing markets,” said Randy Howatt, company president.

Rusty Pelican owns and operates 21 Rusty Pelican and Ancient Mariner Restaurants in seven states.