Over the past nine months, the company opened 11 new restaurants, bringing its total to 83. Pompano Beach is 32 miles north of Downtown Miami.
The decision to scale back its expansion plans comes as the company reported a net loss of $14.4 million, or $1.49 a share, on revenue of $123 million for the nine months ended Jan. 28, compared with a net gain of $225,000, or two cents per diluted share, on revenue of $104 million for the same period ended in 2000.
"Given the current outlook of the general economy, we intend to shift our focus from growth in the number of restaurants to increasing revenues for each restaurant and decreasing expenses," Ayman Sabi, Roadhouse Grill president and chief executive officer, says in a prepared statement. "We took a big bite at market share and the company had a lot to swallow at once, but we are confident that we are over the hump and can return to the record-setting profitability we enjoyed in the recent past."
Most of the Roadhouse Grill restaurants are free-standing buildings constructed on leased land, according to shareholder reports the publicly traded company files with the Securities and Exchange Commission. All but 14 of 72 restaurants operating as of the year ended April 30, 2000, leased space through contracts ranging from five to 20 years.
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