Benihana loses $1.1M in 2Q, withdraws '10 guidance

MIAMI – Restaurant abettor Benihana Inc. said Tuesday it confused to a accident in the additional quarter, and it withdrew its antecedent anticipation for 2010 profit.

Benihana, which operates the nation's better alternation of sushi and Japanese-theme restaurants, is disturbing like abounding restaurant companies as consumers absorb beneath on bistro out.

The company, based in Miami, additionally said it had breached a leverage-ratio claim beneath a band of acclaim issued by Wachovia NA, which has agreed to alter the agreement of the accommodation by blurred the accessible balance.

To abode its liquidity, Benihana said a lath board has accustomed affairs new shares for up to a absolute of $30 million. It will additionally seek added financing.

In accession to Benihana restaurants, the aggregation runs the Haru and RA Sushi chains.

Last ages the aggregation abeyant its 2010 accumulation advice afterwards advertisement that second-quarter sales at food accessible at atomic a year fell 10 percent. Sales at locations accessible at atomic a year are a key indicator of stores' and restaurants' banking bloom because they barometer absolute locations and exclude the aftereffect of aperture and closing stores.

CEO Richard Stockinger said, "We accomplished a lower-than-expected comparable-sales trend, which pressured our operating margins."

Benihana withdrew its anticipation for anniversary accumulation on Tuesday. It had said it would acquire 40 cents to 45 cents per allotment in budgetary 2010, KeyBanc Capital Markets analyst Brad Ludington said in October.

The aggregation absent $1.1 million, or 7 cents per share, in the division that concluded Oct. 11. That compares with a accumulation of $1.7 million, or 11 cents per share, a year earlier.

Analysts had accepted the aggregation to acquire 5 cents per share.

Revenue fell beneath than 1 percent to $69.3 actor from $70 million.

Benihana shares fell 2 cents to abutting Tuesday at $5.19.