Bob Evans Farms To Close 27 Restaurants

Bob Evans Farms Inc. said Monday that it is closing a total of 27 restaurants - 21 owned, six leased - after a performance review. The owned locations were closed April 23 and April 24 while the remaining locations will close during fiscal 2017. The company owned and operated 548 restaurants at the end of the fiscal third quarter. Bob Evans expects $20 million in proceeds from the sale of owned properties, with annual operating income expected to rise $1 million. The company expects to incur between $7.5 million and $8 million in expenses, with $6.5 million to $7 million expected to be non-cash charges. Expenses will be reported in the fiscal 2016 fourth-quarter earnings, coming June 2016. Bob Evans also expects to incur $1.5 million to $2.5 million in pre-tax charges in fiscal 2017. Bob Evans shares are inactive in premarket trading, and up 21.1% for the year so far. The S&P 500 is up 2.3% for the year to date.

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