Ignite Restaurant’s (NASDAQ:IRG)
Ignite Restaurant Shares Plunged Amid Falling Financials
Ignite Restaurant’s (NASDAQ:IRG) share price plunged massively in the last twelvemonths amid declining financial performance. The company’s share plunged from above 4 a share in early this year to 0.51 a share at present. This is a massive decline for any company and its shareholders. Its market capitalization is around 13.41mmillion, while average daily share volume is at 23,029.
Ignite Restaurant Group, Inc., headquartered in Houston, Texas, operates a portfolio of restaurant concepts, including Joe’s Crab Shack and Brick House Tavern + Tap, in a diverse set of markets across the United States. Each brand offers a variety of high-quality food in a distinctive, casual, high-energy atmosphere
In the latest quarter, its total revenues declined to $130.8 million compared to the revenue of $143.2 million in the same period last year. Comparable restaurant sales also declined 6.7% on a consolidated basis, contained a decline of a 6.8% at Joe’s Crab Shack and a 6.3% decrease at Brick House Tavern + Tap.
The company’s profit also turned into loses. In the latest quarter, its loss from continuing operations stood around $10.4 million or $0.40 per share, relative to income of $1.7 million, or $0.07 per diluted share in the second quarter of 2015.
Robert S. Merritt, Chief Executive Officer of Ignite Restaurant Group, stated, ”The sales environment for casual dining has remained extremely challenging and even more so in the Texas market. Significant discounting last year also negatively impacted our comparable restaurant sales in both brands during the current quarter. Our primary focus for both brands continues to be increasing sales and margins through improved operational and menu execution. We have made good progress, but there is still more work to be done.”