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McCormick & Schmick's Seafood Restaurants, Inc. Updates Fourth Quarter and Fiscal 2007 Financial Guidance

Posted on: Friday, 21 December 2007, 09:00 CST

McCormick & Schmick's Seafood Restaurants, Inc. (Nasdaq: MSSR) today updated its financial guidance for the fourth quarter and fiscal 2007.

The Company now anticipates revenues between $98.0 million and $99.0 million and a comparable sales decrease between 1.5 % and 1.8% for the fourth quarter. This compares to previous guidance of $100.0 million to $102.0 million in revenues and an increase in comparable sales of 1.0% to 2.0%. The Company no longer expects to achieve its previously issued diluted earnings per share guidance of $0.31 to $0.34. Based on the revised expectations, the Company expects fiscal year 2007 revenues to be between $357.0 million and $358.0 million and a comparable sales increase between 0.7% and 1.0%. This compares to previous guidance of $359.0 million to $361.0 million in revenues, an increase in comparable sales of 1.3% to 1.8%. The Company no longer expects to achieve its previously issued diluted earnings per share guidance of $0.97 to $1.00.

"Our updated fourth quarter outlook reflects weaker than expected traffic, which we attribute primarily to a very challenging U.S. macro economic environment. We are reviewing our financial plans for fiscal 2008 and we now expect that issues currently impacting guest traffic continuing at least through the first half of next year. While we are certainly disappointed with our performance, we are focused on managing our recently launched new program initiatives, managing costs, and are confident that we can effectively manage the challenges presented by the current environment," said Doug Schmick, Chairman and Chief Executive Officer of the Company.

During the fourth quarter of 2007, the Company opened five restaurants including one The Boathouse restaurant in Port Moody, Vancouver B.C. and four McCormick and Schmick's restaurants in Annapolis, Maryland; Virginia Beach, Virginia; Skokie, Illinois; and Pittsburgh, Pennsylvania. The Company has opened a total of eleven domestic McCormick & Schmick's Seafood restaurants and one The Boathouse restaurant in fiscal 2007. In fiscal year 2008, the Company intends to open twelve domestic McCormick & Schmick's restaurants.

About McCormick & Schmick's Seafood Restaurants, Inc.

McCormick & Schmick's Seafood Restaurants, Inc. is a leading seafood restaurant operator in the affordable upscale dining segment. The Company now operates 82 restaurants, including 76 restaurants in the United States and six restaurants in Canada under The Boathouse brand. McCormick & Schmick's has successfully grown over the past 35 years by focusing on serving a broad selection of fresh seafood. McCormick & Schmick's inviting atmosphere and high quality, diverse menu offering and compelling price-value proposition appeals to a diverse base of casual diners, families, travelers and the business community.

Forward-Looking Statements

The financial guidance we provide for our fourth quarter and fiscal 2007 and the number of restaurants we intend to open in fiscal 2008 are forward-looking statements. These forward-looking statements are based on information available to us on the date of this release and we assume no obligation to update these forward-looking statements for any reason. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, the following: factors that could affect our ability to achieve and manage our planned expansion, such as the availability of qualified employees and the availability of a sufficient number of suitable new restaurant sites; changes in the availability and costs of food; potential fluctuation in our quarterly operating results due to seasonality and other factors; the continued service of key management personnel; our ability to protect our name and logo and other proprietary information; changes in consumer preferences, general economic conditions or consumer discretionary spending; health concerns about our food products; the impact of federal, state or local government regulations relating to our employees and the sale of food or alcoholic beverages; the impact of litigation; the potential effects of inclement weather or terrorist attacks; the effect of competition in the restaurant industry; cost and availability of capital; and other risk factors described from time to time in SEC reports filed by McCormick & Schmick's Seafood Restaurants, Inc.

Source: Business Wire

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