Revenue Growth - Total revenue for the thirteen weeks ended June 29, 2024, increased by 3,730,000or8.2249,102,000 from 45,372,000forthesameperiodin2023[65]−Totalrevenueforthethirty−nineweeksendedJune29,2024increasedby11,275,000 or 8.60% to 142,311,000,drivenbyincreasedpackageliquorstoreandrestaurantsales[79]−TotalrevenueforthethirteenweeksendedJune29,2024increasedby4,143,000 or 9.71% to 46,815,000from42,672,000 for the same period in 2023[69] Sales Performance - Restaurant food sales totaled 30,471,000forthethirteenweeksendedJune29,2024,comparedto28,126,000 for the same period in 2023, reflecting an increase of 2,345,000[66]−Packagestoresalesincreasedby1,501,000 to 10,292,000forthethirteenweeksendedJune29,2024,comparedto8,791,000 for the same period in 2023, driven by increased traffic[68] - Revenue from package liquor store sales totaled 31,034,000forthethirty−nineweeksendedJune29,2024,anincreaseof4,181,000 from the previous year[82] Profitability - Gross profit for food and bar sales increased to 24,944,000from24,078,000, with a gross profit margin of 65.56% compared to 67.23% in the prior year[70] - Gross profit for food and bar sales for the thirty-nine weeks ended June 29, 2024 increased to 71,817,000from68,211,000, with a gross profit margin of 65.91% compared to 66.90% in the previous year[84] - Net income for the thirteen weeks ended June 29, 2024 decreased by 609,000or25.261,802,000, with a net income margin of 3.67% compared to 5.31% in the prior year[77] Costs and Expenses - Payroll and related costs increased by 703,000or4.8215,301,000, representing 31.16% of total revenue, down from 32.17% in the previous year[72] - Operating expenses rose by 260,000or4.336,268,000, primarily due to inflation and the opening of a new restaurant[73] - Costs and expenses for the thirty-nine weeks ended June 29, 2024 increased by 12,119,000or9.74136,547,000, with costs as a percentage of total revenue rising to approximately 95.95%[83] Cash and Debt Management - Cash and cash equivalents decreased to approximately 22,123,000asofJune29,2024,downfrom25,532,000 as of September 30, 2023[94] - Long-term debt decreased to 22,221,000asofJune29,2024,comparedto23,128,000 as of September 30, 2023[101] - Current assets were 33,302,000andcurrentliabilitieswere21,264,000, resulting in working capital of 12,038,000asofJune29,2024[108]InterestRateandFinancialInstruments−Thecompanyisexposedtointerestratefluctuationsonborrowings,utilizinginterestrateswapagreementstomanagetheserisks[113]−Theoutstandingvariableratedebtinstrumenthasaninterestrateequaltothelender′sBSBYScreenRateplus1.508.90M Term Loan Swap requires the company to pay a fixed interest rate of 4.90% for 15 years on an initial notional principal amount of $8.9 million[115] Future Outlook - The company anticipates continued increases in costs and expenses throughout fiscal year 2024 due to various factors including higher food costs and inflation[69] - There is no assurance that interest rates will increase or decrease over the next fiscal year, which could materially affect operations[116]
