Kona Grill Reports Solid Same-Store Sales

SCOTTSDALE, AZ-The small but growing Kona Grill American grill and sushi bar chain prevailed over tough economic conditions to boost earnings in the second quarter and plan expansion for the rest of the year, the company reported Monday in its quarterly earnings conference call with financial analysts. Kona, which operates 16 restaurants after opening two new locations in the second quarter ended June 30, anticipates opening an additional two new restaurants in fiscal year 2007 in Baton Rouge, LA and Stamford, CT during the fourth quarter.

Despite what Kona’s CEO Marcus E. Jundt called “a challenging economic environment,” the company posted a 5% same-store sales increase in the second quarter and earned five cents per share for net income of $313,000 against a loss of five cents a share in the same quarter last year.

Kona reported that its same store sale increase reflected increased customer traffic coupled with higher menu prices. Total sales climbed 62.7% to $19.3 million.