Thursday March 26, 5:01 pm Eastern Time
Company Press Release
Chicago Pizza & Brewery, Inc. Announces 31.8%
Increase in Revenues, 8.7% Increase in Same Store Sales
at Its BJ's Restaurants in 1997 as Compared to the Prior
Year
MISSION VIEJO, Calif.--(BUSINESS WIRE)--March 26, 1998--Chicago Pizza & Brewery,
Inc. (NASDAQ:CHGO - news; NASDAQ:CHGOW - news) released results for the fourth
quarter and year ended December 31, 1997.
Total revenues increased 18.2% for the fourth quarter and 31.8% for the year compared with the
same periods in 1996. Revenues totaled $6,558,000 for the fourth quarter and $26,200,000 for
the year of 1997. The increase in revenues for 1997 was the result of a variety of factors,
including, most significantly, the effect of a full year's operations of the 18 Pietro's restaurants in the
Pacific Northwest purchased in March 1996, the opening of a restaurant in Boulder, Colorado in
February 1997, same store sales increases at the BJ's restaurants open for all of 1996 and 1997
and sales increases at the Pietro's restaurants converted to BJ's in 1997. The increase in revenue
was achieved despite a decrease in comparable store sales of 5.1% at the Pietro's restaurants not
yet converted as of the end of 1997.
The Company's net loss for 1997 was $315,000 as compared to a net loss of $2,300,000 for
1996. Cash flow from operations (income from operations plus depreciation and amortization)
increased to $989,000 in 1997 from a $383,000 deficit for the prior year. The net loss for the
fourth quarter of 1997 was $284,000 as compared to a loss of $906,000 for the fourth quarter of
1996. The fourth quarter 1997 loss included a non-recurring charge of $107,000 related to a
lease settlement on a location which had been closed in 1995. The losses for the fourth quarter
1996 and the 1996 year also included certain non-recurring charges which are more fully
described in the Company's Form 10-KSB for that year.
Paul Motenko, Chief Executive Officer, stated that, ''We believe the same store sales increases at
the BJ's restaurants operated for all of 1996 and 1997 is continued evidence of the enthusiastic
customer acceptance of the expanded BJ's concept and menu. Since the completion of the major
enhancement of the BJ's concept in 1996, we have experienced same store sales increases of
13.3% and an additional 8.7% for 1997.''
Even more dramatic have been the revenue increases from the Pietro's restaurants converted to
BJ's. The five units which were converted during 1997 experienced revenue increases averaging
104% over the revenues achieved as Pietro's restaurants during the comparable periods of the
prior year. ''We are very pleased with the reception the people in the Northwest have given BJ's,''
stated Jerry Hennessy, President. ''From a revenue perspective, the initial results have exceeded
our expectations. Our challenge now is to produce the economic efficiencies in the converted
stores that we have achieved in our Southern California restaurants.''
In the first quarter of 1998, the Company completed the conversion of two additional Pietro's
restaurants: one in The Dalles, Oregon on February 10th and the other in Gresham, Oregon on
March 17th. The initial results from both of these restaurants continue the trend of substantial sales
increases.
CHICAGO PIZZA & BREWERY, INC. owns eight restaurants in Southern California, one in
Boulder, Colorado and one in Lahaina, Maui, Hawaii, which operate under either the names ''BJ's
Pizza & Grill'' or ''BJ's Pizza, Grill & Brewery.'' The Company also owns 18 Pietro's Pizza
locations in Oregon and Washington, seven of which have been converted to the popular,
upgraded BJ's format, while the other eleven await conversion within the next year. BJ's
restaurants offer customers moderate prices on a popular menu that includes deep-dish, Chicago
style pizza, as well as sandwiches, salads, pastas, unique desserts, critically acclaimed
hand-crafted beers and more. Visit Chicago Pizza & Brewery, Inc. on the web at
bjsbrewhouse.com
The information presented herein contains certain forward-looking statements. The Company's
results may differ significantly from the results indicated by such forward-looking statements.
Factors that might cause such differences include, but are not limited to: (1) the Company's ability
to finance or fund it's business plan, (2) the Company's ability to manage growth and conversions,
(3) construction delays, (4) restaurant and brewery industry competition and other such industry
considerations, (5) marketing and other limitations based on the Company's historic concentration
in Southern California and current concentration in the Northwest, (6) consumer trends, (7)
increased food costs and wages, including without limitation, the recent increase in the minimum
wage, and (8) other general economic and regulatory conditions.
Chicago Pizza & Brewery, Inc.
Consolidated Financial Data
(in thousands, except pershare data)
For The years ended For the three-months
December 31, ended December 31,
1997 1996 1997 1996
___________________ ____________________
Statement of Operations
Data:
Revenues $26,191 $19,865 $ 6,558 $ 5,547
Gross Profit $18,459 $13,683 $ 4,652 $ 3,837
Costs and expenses $18,859 $15,103 $ 4,903 $ 4,508
Other income (expense) $97 ($887) ($30) ($263)
Net loss ($315) ($2,289) ($284) ($906)
Basic net loss per
common share ($0.05) ($0.52) ($0.04) ($0.15)
December 31, 1997 December 31, 1996
___________________ ____________________
Balance Sheet Data
(end of period):
Working capital $232 $3,329
Total assets $17,842 $18,914
Total long-term debt
(including current portion) $3,543 $3,964
Shareholders' equity $11,808 $12,123
Contact:
I3 Communications
Brenda Eames, 310/796-0229
or
Chicago Pizza & Brewery, Inc.
Paul Motenko, 714/367-8616 ext. 2 |
