Pizza Inn Profits Decline

According to the Dallas Business Journal, “North Texas-based Pizza Inn Inc. this week reported a profit of $1.2 million for the year ended June 28 — less than half of what it was at the same time last year.”

“Last year at this time, the company’s annual profit was $2.8 million. Revenue fell from $49.5 million in 2008 to $43.8 million this year. Company leaders said the drop in profits is partly the result of tax expenses and legal settlements — Pizza Inn (NASDAQCM: PZZI) reported a tax expenditure of $500,000 over the past year, as opposed to a tax benefit of $100,000 a year earlier. The pizza buffet restaurant has opened its second corporate store in Denton and its third in Fort Worth last week. President and CEO Charlie Morrison said more corporate-operated locations are planned, as well as new franchises.”

“‘Despite the tough economic conditions, we are seeing positive results from the changes we have made to the Pizza Inn concept,’ he said. ‘Comparable buffet restaurant sales have trended ahead of pizza segment averages, which is encouraging for the continued momentum of the brand.’”