Bob Evans Farms Inc. has no plans to spin off Mimi’s Café, its struggling casual-dining brand, company officials told securities analysts during its second-quarter earnings call Wednesday.
Mimi’s is hoping for a turnaround based on menu initiatives similar to those implemented at Bob Evans’ namesake family-dining chain, chief executive Steve Davis said.
“There’s no deadline, but we’re very rigorous about all our assets,” Davis said. “We have to see improvements, and the Mimi’s team has a chance to drive some improvements.
“We have lunch, dinner, the bar and carryout covered. We’re going to shoot the cannons and see where it takes us,” he said.
For the second quarter of fiscal 2012 ended Oct. 28, Bob Evans’ net income declined to $14.1 million, or 47 cents per share, compared with $17 million, or 56 cents per share, a year earlier. The company attributed much of the decline in profitability to lower restaurant sales, as well as higher sow costs and increased marketing expenses for its packaged-foods business.
Revenue from the company’s restaurant segment decreased 2.7 percent to $328.9 million from $338.1 million a year earlier. Same-store sales fell 2.4 percent at the company’s restaurants, reflecting declines of 1.5 percent at Bob Evans and 4.8 percent at Mimi’s Café.