"We're focused on curb appeal," says Ryan's CFO FredGrant. "We're improving the lighting and landscaping,which is designed to make our restaurants more visibleto our customers and get their attention – hopefullyto get them into the restaurants."
Grants says that the restaurant owner and operatorplans to remodel its high volume restaurants andcomplete exterior upgrades. Moreover, the company isplanning to improve landscaping and lighting for allof its restaurants.
By bringing more people into its restaurants, Ryan'shopes to reverse the negative same stores sales andearnings trends it experienced during 2004, Grantsays. During the fourth quarter 2004, the company sawtotal restaurant sales decease by 2% and same-storesales decrease by 4%. It reported sales of $193.5million compared to $197.6 million during the samequarter of 2003. Net earnings were $9.2 million forthe fourth quarter 2004 versus $12.4 million for thefourth quarter 2003.
With the investment in upgrading the curb appeal ofthe restaurants, Grant forecasts that Ryan's saleswill improve during the second quarter 2005. Some ofthe sales growth will also come from new restaurantsand conversions to the Fire Mountain concept. Thecompany plans to build 17 to 21 new restaurants and toconvert 20 to 25 existing restaurants to the FireMountain brand. However, by the end of the secondquarter, revenues from franchise agreements will nolonger contribute to the company's top line since the relationship with the franchisees is ending.
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