Landry's Sees Sales Slip

2Q income dropped to $8.3 million, compared to $14.0 million last year
Posted July 22, 2009

Landry's Restaurants Inc. (Houston) announced same-store sales for the company's restaurants dropped 8 percent for the second quarter ended June 30, 2009. The company’s revenues from continuing operations also declined to $282.0 million, down from $308.1 million for the same period last year.

The company operates under the trade names Landry's Seafood House, Chart House, Rainforest Cafe, and Saltgrass Steak House, as well as other businesses including hotels, marinas, amusements, retail and the Golden Nugget Hotels and Casinos in Las Vegas and Laughlin, Nevada.

"We remain encouraged with the restaurant and hospitality division results given the difficult economic circumstances,” says Rick Liem, executive vp and cfo. “However, gaming division results continued to deteriorate through the second quarter, with no signs of improvement in July, as we battle an increasingly competitive marketplace in Las Vegas."

For the six months ended June 30, 2009, the company’s restaurant and hospitality revenues were $425.8 million compared to $464.1 million for the year prior. Revenues from gaming operations declined 15.1 percent for the quarter, while the average daily rate for hotel rooms in the quarter decreased approximately 23 percent. The company points  to increased competition for declining visitor stays, reduced room rates and a drop in spending by visitors as reasons for sales drop.