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Economy, weather hurt Max & Erma's 2Q results

By Associated Press
June 18, 2008 | Comments (0)

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Restaurant chain operator Max & Erma's Restaurants Inc. on Wednesday said its second-quarter loss widened, as same-store sales slumped amid a March blizzard and a weak economy.

Losses for the quarter ended May 11 totaled $1.6 million, or 64 cents per share, compared with a loss of $101,813, or 4 cents per share, last year.

Revenue fell 3 percent to $40 million from $41.1 million last year.

The company said a blizzard in March and the economic slowdown drove sales in restaurants open at least one year, a key indicator of restaurant performance, down 6.7 percent.

In April, Max & Erma's Restaurants Inc. agreed to be bought out by private-equity company G&R Acquisition Inc. for about $10.2 million. The company had been exploring strategic alternatives, including a sale.

Shareholders are expected to approve the buyout at a meeting on July 8.

Max & Erma's shares rose 2 cents to $3.90 during morning trading.

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