Accounting issues in Bob Evans Farms
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bobevansreportsfiscal2017first-quarterresultsandraisesfiscal2017epsguidance_nasdaq_bobe__1.pdf
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 1/12
Aug 31, 2016
Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance
Q1 2017 net sales total $306.3 million; GAAP net income of $0.46 per diluted share, nonGAAP net income(1) of $0.48 per diluted share BEF Foods reports Q1 sidedish and sausage volume growth of 12.5 percent and 4.9 percent, respectively. Sidedish manufacturing facility expansion complete and ready to support continued volume gains, particularly in West Coast growth markets Bob Evans Restaurants' Q1 samestore sales decline 4.3 percent, Q2 todate samestore sales declines through August 29, moderate to 2.0 percent, following hospitality and food quality improvements. Comprehensive menu redesign launches systemwide September 1 Company raises fiscal year 2017 diluted EPS guidance range to $2.00 to $2.17 on a GAAP basis, and $2.05 to $2.20 on a nonGAAP basis Quarterly dividend of $0.34 per share payable on September 19, 2016, to stockholders of record at the close of business on September 5, 2016
NEW ALBANY, Ohio, Aug. 31, 2016 (GLOBE NEWSWIRE) Bob Evans Farms, Inc. (NASDAQ:BOBE) today announced its financial results for the fiscal 2017 first quarter ended Friday, July 29, 2016. On a GAAP basis, the Company reported net income of $9.2 million, or $0.46 per diluted share, compared with net income of $4.3 million, or $0.19 per diluted share, in the corresponding period last year. On a nonGAAP basis, net income was $9.6 million, or $0.48 per diluted share, compared with net income of $11.7 million, or $0.51 per diluted share, in the corresponding period last year.
Firstquarter fiscal 2017 commentary President and Chief Executive Officer Saed Mohseni said, "BEF Foods began fiscal 2017 with continued strong volume growth during the first quarter. Additionally,
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 2/12
BEF Foods achieved market share gains in both its key sidedish and sausage product categories. We have completed the expansion of our Lima, Ohio, refrigerated sidedish plant and are now gearing up to meet peak holiday production which begins during the back half of the second quarter. The Lima plant expansion provides the added production capacity that is critical to our ongoing efforts to gain additional points of distribution, particularly in West Coast growth markets.
"While Bob Evans Restaurant sales remained challenged during the first quarter, we are encouraged by the moderating sales trend that began in July and continued into the second quarter, with quartertodate samestore sales of 2.0 percent through August 29. We believe our efforts to enhance the guest experience through improved hospitality and food quality are gaining the attention of guests and improving our sales trend. Positive guest comments increased 24 percent during the first quarter, while negative comments declined substantially; a trend we believe will contribute to future sales improvements. Our focus during the second quarter will be the systemwide launch of our exciting new valueoriented, guestfriendly menu along with relentless attention to improving the guest experience."
Firstquarter fiscal 2017 Bob Evans Restaurants segment summary Bob Evans Restaurants' net sales were $220.4 million, a decline of $18.3 million, or 7.7 percent, compared to net sales of $238.7 million in the corresponding period last year. Samestore sales declined 4.3 percent with the balance of the net sales decline due to net restaurant closures during the past year. Five restaurants were closed and no new restaurants opened during the quarter. At the end of the quarter, the Company operated 522 restaurants.
SameStore Sales (SSS) Restaurants May June July 1Q FY '17
521 2.8% 6.1% 4.1% 4.3%
Bob Evans Restaurants' GAAP operating income was $11.6 million, compared to GAAP operating income of $9.8 million in the corresponding period last year. Bob Evans Restaurants' nonGAAP operating income was $12.1 million, compared to $20.3 million in the corresponding period last year, a decline of $8.2 million. The decline in nonGAAP operating income was due primarily to lower sales and incremental investment in labor hours to support efforts to improve guest hospitality along with increased hourly wage rates as a result of minimum wage increases, partially offset by lower commodity costs, reduced discounting, and lower healthcare costs. Additionally, the April 2016 saleleaseback transaction of 143 restaurant properties reduced operating income by approximately $0.4 million due to a $2.7 million increase in rent, partially offset by a $2.3 decline in depreciation compared to the prior year period.
Firstquarter fiscal 2017 BEF Foods segment summary BEF Foods' net sales were $85.9 million, an increase of $2.9 million, or 3.5 percent,
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 3/12
compared to $83.0 million in the corresponding period last year. Pounds sold increased 6.4 percent while average net selling price per pound declined 2.7 percent compared to the corresponding period last year. The decline in average net selling price reflects an increased sales mix of lowerpriced, although highermargin, side dish products relative to sausage, as well as reduced net sausage pricing through increased trade spending. From a net sales perspective, a 12.5 percent increase in sidedish pounds sold and a 4.9 percent increase in sausage pounds sold were partially offset by a $2.2 million increase in trade spending (reduces net sales), a 9.9 percent decline in food service pounds sold, and a 7.6 decline in frozen product pounds sold compared to the corresponding period last year.
BEF Foods' GAAP and nonGAAP operating income was $15.4 million, compared to $15.9 million in the corresponding period last year, a decline of $0.5 million. The decline was due primarily to $2.1 million of increased sow cost, $2.2 million of increased trade spending, and a planned $1.2 million increase in advertising; largely offset by increased volume, favorable sales mix, and lower SG&A costs. Additionally, the October 2015 saleleaseback transaction of two industrial properties reduced operating income by approximately $0.4 million due to a $1.0 million increase in rent, partially offset by a $0.6 decline in depreciation compared to the prior year period.
Firstquarter fiscal 2017 Corporate and Other summary Corporate and Other GAAP and nonGAAP operating costs were $13.3 million, compared to $17.4 million in the corresponding period last year, a decline of $4.1 million. The decline was due primarily to lower legal and professional fees and lower compensation costs; partially offset by increased depreciation and amortization resulting from technologyrelated capital expenditures.
Firstquarter fiscal 2017 taxes The Company's provision for income taxes is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items. The Company recognized GAAP tax expense of 22.4 percent for the quarter, compared to 24.3 percent in the corresponding period last year. The decrease in the tax rate was driven primarily by the impact of yearly variances in the forecasted annual rate related to wage credits, the domestic productions activities deduction, and officers' life insurance. For nonGAAP items, the tax rate was 22.6 percent, reflecting the Company's annual nonGAAP estimated tax rate adjusted for the impact of first quarter discrete items.
Firstquarter fiscal 2017 balance sheet highlights The Company's cash balance and outstanding debt at the end of the quarter were $4.4 million and $364.6 million, respectively, compared to $6.1 million and $491.1 million at the end of the corresponding period last year. The Company was in compliance with its debt covenants at the end of the quarter. The decrease in borrowings was primarily the result of the use of proceeds from recent real estate monetization transactions and
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 4/12
operating cash flow to reduce debt, partially offset by share repurchases, capital expenditures, and dividend payments. On a proforma basis, assuming the 2016 saleleaseback transactions occurred at the beginning of fiscal 2016, the Company's quarterend leverage ratio was 3.24.
Fiscal year 2017 outlook Chief Administrative and Chief Financial Officer Mark Hood said, "We have adjusted our fiscal 2017 outlook to reflect underlying changes in certain of our assumptions and are increasing our GAAP diluted EPS guidance range to $2.00 to $2.17, from $1.95 to $2.12. Likewise, our nonGAAP diluted EPS guidance range has been raised to $2.05 to $2.20, from $2.00 to $2.15 previously.
"At Bob Evans Restaurants, we continue to expect fullyear negative lowsingle digit to flat samestore sales and a neutral to slightly positive commodity cost environment. Additionally, we will continue to invest in improving the guest experience to drive sales. As for BEF Foods, we have lowered our sow cost forecast to reflect current expectations for the remainder of the fiscal year. At the corporate level, we have lowered our interest expense guidance to reflect a lower than anticipated interest rate environment this year and we will maintain our focus on lowering corporate and other costs required to support our businesses."
Guidance Metric FY ‘17 Consolidated net sales $1.28 to $1.33 billion Bob Evans Restaurants samestore sales negative lowsingle digit to flat Bob Evans Restaurants commodity pricing approximately flat BEF Foods net sales $400 to $420 million BEF Foods sow cost (per hundredweight) $50$53 Capital expenditures $75 to $80 million Depreciation and amortization $71 to $75 million Net interest expense $10 to $12 million Tax rate 23.5% to 24.5% Diluted weightedaverage share count approximately 20 million shares Remaining share repurchase authorization $78.5 million GAAP diluted earnings per share $2.00 to $2.17 NonGAAP diluted earnings per share $2.05 to $2.20
This outlook is subject to a number of factors beyond the Company's control, including the risk factors discussed in the Company's fiscal 2016 Annual Report on Form 10‑K and its other subsequent filings with the Securities and Exchange Commission.
Investor Conference Call The Company will host a conference call to discuss its firstquarter fiscal 2017 results at 8:30 a.m. (ET) on Wednesday, August 31, 2016. The dialin number for the conference call is (855) 4680551, access code 60710233. A replay will be available at (800) 5858367, access code 60710233.
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 5/12
A simultaneous webcast will be available at http://investors.bobevans.com/events.cfm. The archived webcast will also be available on the Web site.
(1)NonGAAP Financial Measures The Company uses nonGAAP financial measures to monitor and evaluate the ongoing performance of the Company. The Company believes the additional measures are useful to investors for financial analysis. Excluding these items reflects operating results that are more indicative of the Company's ongoing operating performance and improve comparability to prior periods. However, non GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Reconciliations to the applicable GAAP financial measures are included in the attached schedules.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Certain statements in this news release that are not historical facts are forward looking statements. Forwardlooking statements involve various important assumptions, risks and uncertainties. Actual results may differ materially from those predicted by the forwardlooking statements because of various factors and possible events. We discuss these factors and events, along with certain other risks, uncertainties and assumptions, under the heading "Risk Factors" in Item 1A of our Annual Report on Form 10K for the fiscal year ended April 29, 2016, and in our other filings with the Securities and Exchange Commission. We note these factors for investors as contemplated by the Private Securities Litigation Reform Act of 1995. Predicting or identifying all such risk factors is impossible. Consequently, investors should not consider any such list to be a complete set of all potential risks and uncertainties. Any strategic transaction with respect to our restaurant real estate remains subject to closing conditions and there can be no assurance of such a closing. Forwardlooking statements speak only as of the date on which they are made, and we undertake no obligation to update any forwardlooking statement to reflect circumstances or events that occur after the date of the statement to reflect unanticipated events. All subsequent written and oral forwardlooking statements attributable to us or any person acting on behalf of the Company are qualified by the cautionary statements in this section.
About Bob Evans Farms, Inc. Bob Evans Farms, Inc. owns and operates fullservice restaurants under the Bob Evans Restaurants brand name. At the end of the first fiscal quarter (July 29, 2016), Bob Evans Restaurants owned and operated 522 family restaurants in 18 states, primarily in the Midwest, midAtlantic and Southeast regions of the United States. Bob Evans Farms, Inc., through its BEF Foods segment, is also a leading producer and distributor of refrigerated side dishes, pork sausage and a variety of refrigerated
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 6/12
and frozen convenience food items under the Bob Evans and Owens brand names. For more information about Bob Evans Farms, Inc., visit www.bobevans.com.
BOBEE
Bob Evans Farms, Inc. Earnings Release Fact Sheet (unaudited) First quarter Fiscal 2017, Three months ended July 29, 2016 compared to the corresponding period a year ago: (in thousands, except per share amounts) Basic EPS Diluted EPS Three Months Ended Three Months Ended Three Months Ended
July 29, 2016
July 24, 2015
July 29, 2016
July 24, 2015
July 29, 2016
July 24, 2015
Operating Income (Loss) as Reported Bob Evans Restaurants $ 11,602 $ 9,796 BEF Foods 15,387 15,851 Corporate and Other (13,291) (17,385)
Operating Income 13,698 8,262 Net interest expense 1,893 2,606
Income Before Income Taxes 11,805 5,656 Provision (benefit) for income taxes 2,643 1,376
Net Income as reported 9,162 4,280 $ 0.46 $ 0.19 $ 0.46 $ 0.19
Adjustments Bob Evans Restaurants
Store closure costs 807 Litigation Reserves (278) 10,500
529 10,500 Total adjustments
Store closure costs 807 — Litigation Reserves (278) 10,500
529 10,500 NonGAAP operating income (loss)
Bob Evans Restaurants 12,131 20,296 BEF Foods 15,387 15,851 Corporate and Other (13,291) (17,385)
Total nonGAAP operating income 14,227 18,762 Adjustments to net interest expense — —
NonGAAP net interest expense 1,893 2,606 NonGAAP Income Before Taxes 12,334 16,156
Adjustments to income tax provision (benefit) 141 3,076 NonGAAP Provision for Income Taxes 2,784 4,452 NonGAAP Net Income $ 9,550 $ 11,704 $ 0.48 $ 0.51 $ 0.48 $ 0.51
Weighted Average Shares Outstanding 19,792 22,733 19,964 22,881
First quarter Fiscal 2017, Three months ended July 29, 2016 compared to the corresponding period a year ago: (in thousands) Three Months Ended Consolidated Results Bob Evans Restaurants
July 29, 2016
% of Sales
July 24, 2015
% of Sales
July 29, 2016
% of Sales
July 24, 2015
% of Sales
Operating income as reported
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 7/12
Net Sales $306,317 $321,713 $220,376 $238,669 Cost of sales 93,250 30.4% 96,322 29.9% 55,236 25.1% 61,469 25.8% Operating wage and fringe benefit expenses 100,698 32.9% 104,959 32.6% 91,515 41.5% 95,465 40.0% Other operating expenses 55,642 18.2% 51,589 16.0% 42,544 19.3 % 39,935 16.7% Selling, general and administrative expenses 25,455 8.3 % 40,428 12.6% 8,404 3.8% 18,524 7.8% Depreciation and amortization expense 17,574 5.7% 20,153 6.3 % 11,075 5.0% 13,480 5.6% Total as reported 13,698 4.5% 8,262 2.6% 11,602 5.3 % 9,796 4.1%
Adjustments
Net Sales — — — — Cost of sales — — — — Operating wage and fringe benefit expenses — — — — Other operating expenses (340) — (340) — Selling, general and administrative expenses (189) (10,500) (189) (10,500) Depreciation and amortization expense — — — — Total Adjustments 529 10,500 529 10,500
NonGAAP operating income Net Sales 306,317 321,713 220,376 238,669
Cost of sales 93,250 30.4% 96,322 29.9% 55,236 25.1% 61,469 25.8% Operating wage and fringe benefit expenses 100,698 32.9% 104,959 32.6% 91,515 41.5% 95,465 40.0% Other operating expenses 55,302 18.1% 51,589 16.0% 42,204 19.2% 39,935 16.7% Selling, general and administrative expenses 25,266 8.3 % 29,928 9.4% 8,215 3.7% 8,024 3.4% Depreciation and amortization expense 17,574 5.7% 20,153 6.3 % 11,075 5.0% 13,480 5.6% Total nonGAAP operating income $ 14,227 4.6% $ 18,762 5.8% $ 12,131 5.5% $ 20,296 8.5%
(in thousands) Three Months Ended BEF Foods Corporate and Other
July 29, 2016
% of Sales
July 24, 2015
% of Sales July 29, 2016 July 24, 2015
Operating income (loss) as reported
Net Sales $85,941 $83,044 $ — $ — Cost of sales 38,014 44.2% 34,853 42.0% — — Operating wage and fringe benefit expenses 9,184 10.7% 9,494 11.4% — — Other operating expenses 13,098 15.2% 11,654 14.0% — — Selling, general and administrative expenses 6,464 7.6% 6,795 8.2% 10,586 15,109 Depreciation and amortization expense 3,794 4.4% 4,397 5.3 % 2,705 2,276 Total as Reported 15,387 17.9% 15,851 19.1% (13,291) (17,385)
Adjustments
Net Sales — — — — Cost of sales — — — — Operating wage and fringe benefit expenses — — — — Other operating expenses — — — — Selling, general and administrative expenses — — — — Depreciation and amortization expense — — — — Total adjustments — — — —
NonGAAP operating income (loss)
Net Sales 85,941 83,044 — —
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 8/12
Cost of sales 38,014 44.2% 34,853 42.0% — — Operating wage and fringe benefit expenses 9,184 10.7% 9,494 11.4% — — Other operating expenses 13,098 15.2% 11,654 14.0% — — Selling, general and administrative expenses 6,464 7.6% 6,795 8.2% 10,586 15,109 Depreciation and amortization expense 3,794 4.4% 4,397 5.3 % 2,705 2,276 Total nonGAAP operating income (loss) $ 15,387 17.9% $ 15,851 19.1% $ (13,291) $ (17,385)
(in thousands, except per share amounts) Three Months Ended
July 29, 2016
% of Sales
July 24, 2015
% of Sales
Net Sales $306,317 $321,713 Cost of sales 93,250 30.4% 96,322 29.9% Operating wage and fringe benefit expenses 100,698 32.9% 104,959 32.6% Other operating expenses 55,642 18.2% 51,589 16.0% Selling, general and administrative expenses 25,455 8.3 % 40,428 12.6% Depreciation and amortization expense 17,574 5.7% 20,153 6.3 % Operating Income 13,698 4.5% 8,262 2.6% Net interest expense 1,893 0.6% 2,606 0.8% Income Before Income Taxes 11,805 3.9% 5,656 1.8%
Provision (Benefit) for income taxes 2,643 0.9% 1,376 0.4% Net Income $ 9,162 3.0%$ 4,280 1.3 % Earnings Per Share — Net Income Basic $ 0.46 $ 0.19 Diluted $ 0.46 $ 0.19 Cash Dividends Paid Per Share $ 0.34 $ 0.31 Weighted Average Shares Outstanding Basic 19,792 22,733 Dilutive shares 172 148 Diluted 19,964 22,881 Shares outstanding at quarter end 19,764 22,352
Consolidated Balance Sheets
(in thousands, except par values) July 29, 2016
April 29, 2016
Assets Current Assets Cash and equivalents $ 4,402 $ 12,896 Accounts receivable, net 30,023 28,893 Inventories 25,843 24,997 Federal and state income taxes receivable 4,431 — Prepaid expenses and other current assets 11,391 9,307 Current assets held for sale 30,539 31,644
Total Current Assets 106,629 107,737 Property, plant and equipment 1,276,861 1,263,413 Less accumulated depreciation 678,912 665,777
Net Property, Plant and Equipment 597,949 597,636 Other Assets Deposits and other 4,449 4,622 Notes receivable 21,564 20,886
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 9/12
Rabbi trust assets 20,943 20,662 Goodwill and other intangible assets 19,790 19,829 Noncurrent deferred tax assets 28,818 29,002
Total Other Assets 95,564 95,001 Total Assets $ 800,142 $ 800,374
Liabilities and Stockholders' Equity Current Liabilities Current portion of longterm debt $ 3,421 $ 3,419 Accounts payable 37,599 37,518 Accrued property, plant and equipment purchases 6,186 5,308 Accrued nonincome taxes 14,433 15,696 Accrued wages and related liabilities 16,202 26,358 Selfinsurance reserves 19,639 20,169 Deferred gift card revenue 12,793 14,147 Current taxes payable 589 9,473 Current reserve for uncertain tax provision 1,481 1,481 Other accrued expenses 26,225 31,988
Total Current Liabilities 138,568 165,557 LongTerm Liabilities Deferred compensation 18,143 17,761 Reserve for uncertain tax positions 2,547 2,752 Deferred rent and other 6,153 5,851 Longterm deferred gain 55,571 56,371 Credit facility borrowings and other longterm debt 361,134 335,638
Total LongTerm Liabilities 443,548 418,373 Stockholders' Equity Common stock, $.01 par value; authorized 100,000 shares; issued 42,638 shares at July 29, 2016, and April 29, 2016 426
426
Capital in excess of par value 243,758 244,304 Retained earnings 834,676 832,323 Treasury stock, 22,874 shares at July 29, 2016, and 22,881 shares at April 29, 2016, at cost (860,834) (860,609)
Total Stockholders' Equity 218,026 216,444 Total Liabilities and Stockholders' Equity $ 800,142 $ 800,374
Consolidated Statements of Cash Flows Three Months Ended July 29, 2016 July 24, 2015 Operating activities: Net income $ 9,162 $ 4,280 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 17,574 20,153 Loss (Gain) on disposal of fixed assets 276 (701) (Gain) Loss on rabbi trust assets (281) 169 Loss (Gain) on deferred compensation 279 (138) Sharebased compensation 1,440 2,048 Accretion on longterm note receivable (558) (499) Deferred income taxes 184 — Amortization of deferred financing costs 406 418 Cash provided by (used for) assets and liabilities: Accounts receivable (1,130) 664 Inventories (846) (2,095) Prepaid expenses and other current assets (2,084) (1,048) Accounts payable 81 7,726 Federal and state income taxes (13,520) 8,935 Accrued wages and related liabilities (10,156) (7,160)
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 10/12
Selfinsurance (530) 2,392 Accrued nonincome taxes (1,263 ) 562 Deferred revenue (1,354) (1,185) Other assets and liabilities (5,584) 5,624
Net cash (used in) provided by operating activities (7,904) 40,145 Investing activities: Purchase of property, plant and equipment (18,985) (12,264) Proceeds from sale of property, plant and equipment 2,109 1,597 Deposits and other (206) (98)
Net cash used in investing activities (17,082) (10,765) Financing activities: Cash dividends paid (6,724) (7,028) Gross proceeds from credit facility borrowings and other longterm debt 97,272 170,739 Gross repayments of credit facility borrowings and other longterm debt (71,784) (130,768) Payments of debt issuance costs — (1,705) Purchase of treasury stock — (60,564) Proceeds from sharebased compensation — 165 Cash paid for taxes on sharebased compensation (640) (617) Excess tax benefits from sharebased compensation (1,632) 104
Net cash provided by (used in) financing activities 16,492 (29,674) Net decrease in cash and equivalents (8,494) (294) Cash and equivalents at the beginning of the period 12,896 6,358 Cash and equivalents at the end of the period $ 4,402 $ 6,064
Bob Evans Restaurants samestore sales analysis (18month core; 521 restaurants) Fiscal 2017 Fiscal 2016 Total Pricing / Mix Transactions Total Pricing / Mix Transactions May (2.8)% 1.2% (4.0)% (0.3)% 3.9% (4.2)% June (6.1)% 1.2% (7.3)% (0.9)% 4.4% (5.3)% July (4.1)% 1.1% (5.2)% 0.3% 5.8% (5.5)% Q1 (4.3)% 1.2% (5.5)% (0.3)% 4.8% (5.0)% August (1.3)% 3.3% (4.6)% September (3.8)% 2.9% (6.6)% October (4.4)% 1.5% (5.8)% Q2 (3.2)% 2.5% (5.7)% November (3.2)% 2.5% (5.6)% December (4.3)% 3.4% (7.7)% January (3.4)% 3.1% (6.5)% Q3 (3.6)% 2.9% (6.5)% February (1.1)% 0.9% (2.0)% March (2.3)% 2.2% (4.5)% April (4.9)% 1.4% (6.3)% Q4 (3.0)% 1.5% (4.4)% Fiscal Year (4.3)% 1.2% (5.5)% (2.5)% 2.9% (5.4)%
* Prior year data presentation reflects Company's current samestore sales methodology.
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 11/12
Bob Evans Restaurants samestore sales day part performance Firstquarter Fiscal 2017 SSS% Day Part Performance Total Chain Day Part OnPremises OffPremises Total Breakfast (2.0)% 5.8% (1.2)% Lunch (3.6)% (3.8)% (3.6)% Dinner (8.6)% (7.2)% (8.4)% Total (4.5)% (3.2)% (4.3)%
Bob Evans Restaurants key restaurant sales data Bob Evans Restaurants Average annual store sales ($) FY16 $1.7 million Q1 FY2017 day part mix (%):
Breakfast 34% Lunch 36% Dinner 30%
Q1 FY2017 dinein check average per guest ($):
Breakfast $ 9.51 Lunch $ 9.93 Dinner $ 10.09
Q1 FY2017 dinein check average per guest ($): $ 9.82 Q1 FY2017 dinein check average per ticket ($): $ 19.23 Q1 FY2017 carryout check average per ticket ($):$ 16.59
BEF Foods total pounds sold, by category Fiscal 2017 Category Q1 Q2 Q3 Q4 YTD Sides 51.4% 51.4% Sausage 21.2% 21.2% Food Service External 11.6% 11.6% Food Service Intersegment 8.3% 8.3% Frozen 3.9% 3.9% Other 3.6% 3.6% Fiscal 2016 Category Q1 Q2 Q3 Q4 FY 2016 Sides 49.6% 50.7% 50.9% 51.4% 50.7% Sausage 22.0% 22.3% 26.6% 21.7% 23.3% Food Service External 14.1% 12.5% 10.4% 11.4% 11.9% Food Service Intersegment 6.2% 6.6% 6.0% 8.1% 6.7% Frozen 4.6% 4.5% 3.1% 3.9% 4.0% Other 3.5% 3.4% 3.0% 3.5% 3.4%
Contact:
Scott C. Taggart
9/22/2016 Bob Evans Reports Fiscal 2017 FirstQuarter Results and Raises Fiscal 2017 EPS Guidance (NASDAQ:BOBE)
http://investors.bobevans.com/releasedetail.cfm?ReleaseID=987198 12/12
Vice President, Investor Relations
(614) 492‐4954
Source: Bob Evans Farms, Inc.
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