Sale of Franchises Boosts Profit at Hudson’s Grill
Hudson’s Grill of America Inc., a Ventura-based restaurant operator, said a one-time gain from the sale of assets lifted its second-quarter profit sharply higher despite a 33% drop in sales.
The company said its net income in the quarter ended June 30 rose to $3.14 million from $235,162 a year earlier, thanks to a $3.2-million after-tax gain from the sale of 11 Wendy’s fast-food franchises. Hudson’s sold the restaurants to focus on its remaining 15 Hudson’s Grill restaurants and two specialty restaurants.
Without the one-time gain, however, Hudson’s would have reported a small loss in the latest quarter. That’s because the company’s operating costs are being spread over fewer restaurants, and Hudson’s is working to lower its expenses, the company said.
The fewer outlets also led to a drop in Hudson’s second-quarter sales, to $4.83 million from $7.21 million a year earlier.
For the first half of 1991, Hudson’s earned $3.17 million, compared with $328,778 a year earlier, and its six-month sales fell 12%, to $12.4 million from $14.1 million.