The Habit Restaurants, Inc. (HABT)

[MiamiGent]

Habit Restaurants Sales Up Sharply in First Post-IPO Qtrly Report

BY Dow Jones & Company, Inc. — 4:51 PM ET 03/10/2015

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Habit Restaurants Inc. (HABT), in its first earnings report after its November initial public offering, said fourth-quarter sales rose sharply, while net income declined slightly amid higher expenses.

Comparable-restaurant sales rose 13.2% for the 13 weeks ended Dec. 30. Growth is expected to be slower this year, with comparable-restaurant sales projected to increase 2.5% to 3% in 2015.

Habit's IPO priced above expectations at $18 and shares more than doubled on their first trading day. In late trading Tuesday, the stock was down 4% to $34.15.

Habit expects revenue of $216 million to $219 million this year. Analysts polled by Thomson Reuters expect $215 million.

Habit's burger was listed in first place in a Consumer Reports reader survey released in July. The company is part of a wave of newer chains like Smashburger and Five Guys that have threatened fast-food icons like McDonald's Corp., which said Monday that U.S. same-store sales fell 4%.

Shake Shack Inc., which had a successful IPO in January, is rapidly expanding in the U.S. and recently detailed plans to open locations in Japan.

Habit has more than 100 restaurants. Its first location opened in Santa Barbara, Calif., in 1969, and it made its east-coast debut last year with a Fair Lawn, N.J., site. In January, Habit announced a franchise agreement with Food Quest Restaurant Management to develop up to 50 restaurants in six Middle East countries, marking Habit's first overseas agreement.

For the quarter ended Dec. 30, Habit earned $644,000, or break-even on a per-share basis, compared with a year-earlier profit of $1.4 million. Revenue rose to $48.4 million from $35.5 million. The latest quarter included 13 weeks, while the year-earlier period had 14 weeks.

Pro forma earnings in both quarters were two cents a share.

Analysts polled by Thomson Reuters expected break-even per-share results on revenue of $45 million.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires
03-10-15 1651ET