Landry’s 3Q loss blamed on Joe’s Crab Shack

After selling most of its Joe’s Crab Shack restaurants, Landry's Restaurants Inc. announced a net income loss of almost $30 million (€23 million) for the third quarter ended Sept. 30. That’s a 288 percent decrease from the same three-month period last year, when the company posted a net profit of $16 million (€12 million).

Third-quarter shares dropped from $0.43 (€0.34) in 2005 to $0.16 (€0.12) per share this year -- a 63 percent decrease.

Earlier this month, Landry’s, one of the nation's largest casual dining chains, sold 120 of its 143 Joe’s Crab Shack restaurants to a private equity firm. Landry’s officials cited weak same-store third-quarter sales as proof of difficulties associated with casual dining. Instead, Landry decided to focus on higher-end chain restaurants.

Overall, revenues for the third quarter totaled $290 million (€226 million), compared to $220 million (€172 million) in 2005's third quarter.

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Landry’s 3Q loss blamed on Joe’s Crab Shack