Benihana 1Q profit falls 52 percent as costs grow

In the three months ended July 20, Benihana's profit declined to $1.9 million, or 12 cents per share, from $3.9 million, or 25 cents per share, in the first quarter of fiscal 2008. Revenue rose 5 percent to $94.5 million from $89.9 million, but expenses climbed 9 percent.

On average, analysts expected a profit of 16 cents per share on $92.7 million in revenue, according to Thomson Reuters.

Benihana reported greater expenses for restaurant openings and increased price of food and drinks.

Same-restaurant sales, or sales at locations open at least a year, fell 4.9 percent. Same-restaurant sales fell 3.4 percent at Benihana's namesake locations, 9.1 percent at RA Sushi restaurants and 7.7 percent at the company's Haru restaurants.

Overall, revenue at RA Sushi and Haru jumped, but revenue from Benihana's namesake restaurants dipped. A little more than two-thirds of the company's revenue comes from the Benihana restaurants.

The company also backed its fiscal 2009 profit and revenue forecasts. Benihana expects to earn between 60 cents and 65 cents per share on $313 million to $318 million in revenue. It cut its planned capital spending to $47 million from $60 million, delaying previously planned renovations to cut costs.

Shares of Benihana fell 55 cents, or 8.3 percent, to $6.12 shortly after the market opened Thursday. The stock has traded in a 52-week range of $5.60 to $19.49.