The weak performance was inline with expectations, said the chain's president and CEO Peter Dunn during the quarterly earnings conference call. "We delivered solid results for first quarter fiscal 2006," he noted, pointing out that same-store sales decrease follows same-store sales increases of 7.8% and 11.2% in the first quarter of fiscal 2005 and 2004, respectively. He added that the chain expects same-store sales to reach 1% during the course of the year as consumer's regain their lost confidence.

During the quarter, total revenues increased 9.7% to $138.7 million and diluted earnings per share were 17 cents. Net earnings for the fiscal first quarter 2006 were $4.7 million, or 17 cents per share, compared to $5.1 million, or 18 cents per share, in the same quarter last year.

The chain, which operates 454 restaurants in 20 states, opened six units during the quarter, double the amount of store openings in same period in the previous year. During fiscal 2006, the chain plans to accelerate new store expansion, opening at least 26 new restaurants, representing a 37% increase in store openings from the prior year.