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358% Q3 Net Income Readies Deli Owner's Growth Plan

AUSTIN-Schlotsky's, an Austin-based sandwich shop operator, says it's time to focus on systemwide growth. The focus comes with a 358% in third quarter net income growth and 155% jump in revenue. The chain has 692 locations, of which 29 are company owned.

By Tim Green | Updated on October 30, 2001

AUSTIN-Schlotzsky’s Inc., the Austin-based operator and franchiser of sandwich shops, reported strong third-quarter net income growth of 358%, which it attributed to an improved overhead structure and increased recurring sales. The results, the company said, gives it a strong base from which resume growth in systemwide sales.

The company has freestanding restaurants, usually in a shopping area, and units that are designed into shopping centers. It has 692 stores, of which 29 are company owned.The company posted net income of $659,000, 9 cents per share, in the quarter ending Sept. 30, up from $144,000, 2 cents per share, for the same quarter in 2000. Revenues increased 155% to $15.5 million from $15.1 million.

Some of the extra profit came the improved overhead structure with a 14.4% decrease in general and administrative expenses. The company said recurring revenue from royalties, brand contributions and store sales accounted for 95% of total revenue.

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