Profit Plunges at Jerry’s Deli as Revenues Jump

Jerry’s Famous Deli Inc. posted a big drop in earnings in its third quarter despite a 59% jump in revenues because of its expansion program.

In the period that ended Sept. 30, the restaurant chain posted net income of $9,000 compared to a $291,000 profit a year ago. Revenues in the quarter were $10.9 million, compared to $6.9 million last year.

The Studio City-based concern owns eight restaurants in California and one in Miami.

An outlet in Woodland Hills is closed for renovation, and a planned one in Costa Mesa is under construction and will open early next year.

The company said it also raised $12 million through the sale of preferred stock.

For the nine months, Jerry’s saw its net income fall 26% to $420,000, compared to a $569,000 profit a year ago.

Nine-month revenues climbed 28% to $26.7 million, from $20.9 million.