Restaurant operator Chanticleer Holdings Inc. missed analyst estimates for third quarter revenues, according to a filing Monday with the Securities and Exchange Commission.
Chanticleer revenue decreased 2.3 percent to $10.7 million in the quarter ending on Sept. 30, 2017, as opposed to $11 million in the second quarter of 2017.
Wall Street analysts predicted revenues of $10.84 million.
Cost of sales as a percentage of restaurant sales was 34.4 percent compared to 33.1 percent in third quarter last year, due to higher beef, chicken and distribution costs. General and administrative expense as a percentage of total revenue decreased to 8.3 percent from 12.3 percent this time last year.
“We are continuing to accelerate growth of our Little Big Burger Concept,” said Mike Pruitt, chairman and chief executive officer of Chanticleer.
“We have just started the growth phase for Little Big Burger and have a robust pipeline of locations to support future growth,” he said. “We currently expect to open 8-12 new stores annually going forward, with upside to those expectations as new franchisee partners come on line.”
The Charlotte-based company owns, operates and franchises fast-casual and full service restaurant brands such as American Burger Company, BGR – Burgers Grilled Right, Little Big Burgers, Just Fresh and Hooters.
Pruitt has been the chairman and chief executive officer of Chanticleer since 2005. Prior to that, he was president of Avenel Financial Group Inc., since 1998. He graduated with a B.A. in business and commerce from Coastal Carolina University in 1984.
Effective today, Nov. 14, common shares of Chanticleer will begin to trade on the NASDAQ capital market as “BURG,” rather than “HOTR.”
Chanticleer stock is at $2.20, up 10 cents, in Tuesday morning trading.