Mar 01, 2013 06:36 PM EST
Einstein Noah Restaurant Group Plans To Increase Sales After Experiencing a 4% Decrease in Earnings

Einstein Noah Restaurant group experienced a 4% decrease in annual earnings according to Food Business Reviews. The bagel company's common stock ended at 75 cents per share in 2011 that same share was 79 cents.

Jeffrey J. O'Neill stated in a conference, "Our free cash flow increased by 50% despite having one fewer operating week in 2012 versus 2011.  He believes the future of the company in 2013 is in good hands. He went on to explain the different alternative methods they will be using to increase stock sales. He stated, "We've, of course, also completed a review of strategic alternatives by recapitalizing the company and declaring a one-time special dividend to shareholders of $4 per share".

The company is planning on making their company "the best at bagels, win at coffee, and compete at lunch". They are extremely focused on increasing their lunch sales and utilizing search engine marketing to raise awareness about the brand. They are also experimenting with directional billboards and a TV media test.

Emanuel P.N. Hilario, the Chief Financial Officer explained people must keep in mind that the fourth quarter of 2012 was a 13-week period, the fourth quarter in 2011 lasted 14- weeks. He explained that the extra week added in the fourth quarter in 2011, aided to increase the total margin by approximately 100 points. The price of the goods at this particular time was 220 basis points lower at 27% of restaurant sales. He also explained that the cost of rent in 2012 increased from 2011 along with the labor costs.

O'Neill went on to describe how excited he is to introduce their new products to consumers and how 2013 will be a successful year for the company. He suggested the company did quite well during breakfast hours however their sales tend to decline throughout lunch. This year Einstein Noah, will be focusing heavily on bringing consumers in to the door for lunch. They also want to make lunch more affordable with their new value meals; he said they are currently having $3.99 and $5.99 combos. The company seems to know how to increase their sales, let's hope their new marketing strategies work for their sales.

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