During fiscal 2005, Morton's opened four new steakhouses, bringing the total to 69 Morton's in 60 cities. This year the chain plans to open new Morton's Steakhouse restaurants in Anaheim, CA; Coral Gables, FL; Ft. Lauderdale, FL; Houston; Northbrook, IL and Troy, MI.
For the most recent quarter, revenues increased 9% to $83.6 million, while comp-store sales increased 2.9%. Morton's saw its margins squeezed during the quarter, as food and beverage costs increased $1.6 million to $27.3 million, representing 32.6% of revenue, from $25.7 million, or 33.5% of revenues, for the fourth quarter of fiscal 2004.
Similarly, restaurant operating expenses increased $5.3 million, or 16.9%, to $36.9 million, 44.1% of revenues, for the fourth quarter of fiscal 2005 compared to $31.5 million, 41.1% of revenues, for the same period in 2004.
Morton's went public last month, selling 9.5 million shares at $17 per share, more than its initial target of $14 per share to $16 per share. Rival steakhouse chain Ruth's Chris Steak House Inc., based in Heathrow, FL, went public in August 2005.
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