Rubio’s Rebounds to Post Profit

Rubio’s Restaurants Inc. reported Tuesday that its new menu, stronger sales and operational improvements helped it post a second-quarter profit, reversing a year-earlier loss.

The Carlsbad, Calif.-based chain of 151 Mexican grill restaurants best known for fish tacos earned $1.2 million, or 13 cents a share, contrasted with a loss of $3.1 million, or 35 cents, a year earlier.

Analysts had forecast 9 cents a share, according to a survey by Thomson First Call.

Total revenue rose 11% to $35 million, while sales at restaurants open at least a year climbed 5.7%.

Sheri Miksa, Rubio’s president and chief operating officer, said the gains were attributable to the company’s focus on restaurant operations and rollout of the Fresh & Affordable menu.

“It looks like they’re getting some nice leverage on their sales gains,” said Anton Brenner, an analyst at Roth Capital Partners.

Stephen Spence, an analyst with Longbow Research, cited the company’s ability to control food costs as a contributing factor in Rubio’s swing to a profit.

“This has been a very difficult quarter for restaurants in general, but Rubio’s seems to have really been in control of their costs,” Spence said.

Rubio’s shares rose 38 cents to $8.35 on Nasdaq.