Benihana Inc. Reports Fiscal Fourth Quarter & Full Year 2009 Results

-Conference Call to be Held Today at 5:00 PM ET-
MIAMI--(Business Wire)--
Benihana Inc. (NASDAQ: BNHNA; BNHN), operator of the nation`s largest chain of
Japanese theme and sushi restaurants, today reported results for its 12-week
fiscal fourth quarter and full year ended March 29, 2009.

Highlights for the Company's 12-week fiscal fourth quarter 2009 relative to the
12-week fiscal fourth quarter 2008 include:

* Total restaurant sales increased 5.4% to $73.6 million
* Opened 2 Benihana teppanyaki restaurants in Coral Springs, Florida and
Columbus, Ohio
* Restaurant operating profit of $11.4 million, or 15.6% of restaurant sales,
compared to $9.7 million, or 13.9% of restaurant sales
* Diluted earnings per share of $0.06, which included a $0.12 per diluted share
compensation charge, net of tax, related to the retirement of the Company`s
former Chief Executive Officer, compared to diluted earnings per share of $0.17.
Exclusive of this compensation charge, diluted earnings per share totaled
$0.18.

Highlights for the Company's full year 2009 relative to the full year 2008
include:

* Total restaurant sales increased 2.9% to $303.9 million
* Opened 4 Benihana teppanyaki restaurants and 4 RA Sushi restaurants
* Restaurant operating profit of $42.3 million, or 13.9% of restaurant sales,
compared to $47.4 million, or 16.0% of restaurant sales
* Diluted loss per share of $0.40, which included $0.95 per diluted share, net
of tax, related to an impairment charge on the carrying value of its RA Sushi
goodwill, impairment charges on the carrying value of its property and equipment
at five restaurant locations and a compensation charge for the retirement of the
Company`s former Chief Executive Officer, compared to diluted earnings per share
of $0.75. Exclusive of these charges, diluted earnings per share totaled $0.55.

Richard C. Stockinger, Chief Executive Officer, said, "Despite the macro
slowdown and its ongoing effect on consumer discretionary spending, our
quarterly performance met expectations. While Company-wide comparable sales
improved only modestly on a sequential basis, we generated our highest
restaurant operating profit margin of fiscal year 2009, along with a 170 basis
point improvement over the same quarter last year. We have been effectively
managing controllable expenses throughout the organization."

Mr. Stockinger continued, "Currently, we are in the midst of reevaluating the
overall Benihana teppanyaki experience. Over the next several months, we will be
implementing initiatives focused on reaching out to our guests in a more unique
and personal way, elevating the offerings of our food and beverages, and raising
the level of our service standards. These steps will enable us to maximize
market share, build stronger, lasting relationships with our guests, and enhance
our business model. Our greatest opportunities are rooted in taking care of our
guests in the best manner possible. We look forward to providing details on
these initiatives towards the end of the summer. Overall, we are focused on
enhancing shareholder value as well as the financial strength of the Company by
putting our guests first, and we are confident that we will be well positioned
to capitalize on the eventual economic recovery."

Fiscal Fourth Quarter 2009 Results

For fiscal fourth quarter of 2009, total revenues increased 5.3% to $74.0
million, compared to $70.2 million in fiscal fourth quarter 2008. Total
restaurant sales increased 5.4% to $73.6 million in the fourth fiscal quarter
2009 from $69.8 million in the fourth fiscal quarter 2008.

On a comparable basis, Company-wide comparable restaurant sales were (10.4%),
including (12.1%) at Benihana teppanyaki, (1.2%) at RA Sushi, and (12.6%) at
Haru. There were a total of 1,131 store-operating weeks in the fourth fiscal
quarter of 2009 compared to 971 store-operating weeks in the fourth fiscal
quarter of 2008. During the period, Benihana teppanyaki represented
approximately 68.4% of consolidated restaurant sales, while RA Sushi and Haru
accounted for 21.4% and 10.2% of consolidated restaurant sales, respectively.

Restaurant operating profit for the fiscal fourth quarter of 2009 was $11.4
million, or 15.6% of restaurant sales, compared to $9.7 million, or 13.9% of
restaurant sales a year-ago.

Marketing, general and administrative expenses for the fiscal fourth quarter of
2009 totaled $9.7 million, or 13.2% of restaurant sales, compared to $6.8
million, or 9.8% of restaurant sales in the same period last year. During the
fiscal fourth quarter of 2009, the Company incurred charges totaling $3.2
million ($1.9 million, net of tax), or a $0.12 impact to diluted earnings per
share, related to the retirement of the Company`s former Chief Executive
Officer.

Inclusive of the aforementioned charges, income from operations was $1.7 million
for the fiscal fourth quarter of 2009, compared to income from operations of
$2.6 million in the prior year quarter.

Net income for the fiscal fourth quarter of 2009 was $1.2 million, or $0.06 in
diluted earnings per share, compared to net income of $2.9 million, or $0.17 in
diluted earnings per share in the same quarter last year. Net income for the
fiscal fourth quarter of 2009, exclusive of the charges related to the former
CEO`s retirement, was $3.1 million, or $0.18 in diluted earnings per share.

In the fourth fiscal quarter of 2009, the Company reopened the Benihana
teppanyaki restaurant in Memphis, Tennessee which was previously destroyed by a
fire. In addition, the Company opened Benihana teppanyaki restaurants in Coral
Springs, Florida and Columbus, Ohio.

Full Year 2009 Results

Total revenues for the 52-week fiscal year 2009 increased 2.9% to $305.6
million, compared to $296.9 million in the 52-week fiscal year 2008. Total
restaurant sales increased 2.9% to $303.9 million from $295.2 million.

For fiscal year 2009, Company-wide comparable restaurant sales decreased (8.0%),
including (7.7%) at Benihana teppanyaki, (7.5%) at RA Sushi, and (10.6%) at
Haru. Benihana teppanyaki represented approximately 68.1% of consolidated
restaurant sales, while RA Sushi and Haru accounted for 20.2% and 11.7% of
consolidated restaurant sales, respectively. There were a total of 4,603
store-operating weeks in fiscal year 2009 compared to 4,115 store-operating
weeks in fiscal year 2008.

Net loss for fiscal year 2009 was $5.1 million, or a $0.40 diluted loss per
share, compared to net income of $12.8 million, or $0.75 in diluted earnings per
share in fiscal year 2008. Fiscal year 2009 includes a non-cash impairment
charge of $9.6 million, ($5.7 million, net of tax), or $0.37 impact on diluted
loss per share, related to five restaurant locations which remain open, a
non-cash impairment charge of $11.9 million, ($7.0 million, net of tax), or
$0.46 impact on diluted loss per share, related to our RA Sushi goodwill, along
with charges related to the retirement of the Company`s former Chief Executive
Officer of $3.2 million, ($1.9 million, net of tax), or $0.12 impact on diluted
loss per share. Net income for fiscal 2009, exclusive of these charges, was $9.5
million, or $0.55 in diluted earnings per share.

Fiscal Year 2010 Guidance

The Company is providing the following guidance for fiscal year 2010:

* Total restaurant sales of $305 million to $310 million. Total restaurant
operating weeks are estimated to be between 5,000 and 5,075;
* The opening of four new restaurants, including one Benihana teppanyaki and
three RA Sushi restaurants, all in the first half of the fiscal year. The RA
Sushi in Atlanta, Georgia and the new Benihana teppanyaki in Orlando, Florida,
have already opened;
* Cost of sales are expected to remain favorable on a percentage basis with the
prior fiscal year through the first quarter of fiscal 2010. However, cost of
sales as a percentage of sales will revert to fiscal 2009 levels with the
rollout of enhanced menu items at Benihana teppyanyaki, beginning in the second
fiscal quarter;
* Capital expenditures of approximately $15 million;
* Reduction in outstanding debt by approximately $6 million, resulting in an
outstanding balance of approximately $27.5 million;
* Diluted earnings per share of $0.40 to $0.45. Diluted common shares
outstanding are estimated to be approximately 18.7 million shares.

There is currently one additional Benihana teppanyaki restaurant under
development in East Rutherford (Meadowlands), New Jersey. There is also one
additional RA Sushi restaurant under development in Orlando, Florida. The
Company elected to terminate the leases for the Benihana teppanyaki restaurants
that were planned for Chicago, Illinois and Westwood (Boston), Massachusetts, as
well as the lease for the RA Sushi restaurant that was planned for Westwood
(Boston), Massachusetts.

The above discussion contains certain non-GAAP financial measures as defined
under SEC rules, such as net (loss) income and diluted (loss) earnings per
share, adjusted in each case to exclude certain items disclosed above. The
Company believes that each of the foregoing non-GAAP financial measures improves
the transparency of the Company`s disclosure, provides a meaningful presentation
of the Company`s results from its ongoing operations excluding the impact of
items not related to the Company`s ongoing operations, and improves the
period-to-period comparability of the Company`s results from its ongoing
operations.

Conference Call Today

The Company will hold a conference call to discuss its fiscal fourth quarter and
full year 2009 results today at 5:00 PM ET.

The conference call can be accessed live over the phone by dialing
1-888-228-5193, or for international callers, 1-913-981-5526. A replay will be
available one hour after the call through July 6, 2009 and can be accessed by
dialing 1-888-203-1112, or for international callers, 1-719-457-0820; the
conference ID is 2672841. The call will also be webcast live from the investor
relations portion of the Company's website at www.benihana.com.

About Benihana

Benihana Inc. (Nasdaq: BNHNA) (Nasdaq: BNHN) operates 97 restaurants nationwide,
including 65 Benihana teppanyaki restaurants, nine Haru sushi restaurants, and
23 RA Sushi Bar restaurants. Under development at present are four restaurants
-- one Benihana teppanyaki restaurants and three RA Sushi restaurants. In
addition, 22 franchised Benihana teppanyaki restaurants are operating in the
U.S., Latin America and the Caribbean.

To learn more about the Company and its three Japanese theme and sushi
restaurant concepts, please view the corporate video at
www.benihana.com/about/video

Benihana Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)

(in thousands except per share data)
Three Periods Ended
29-Mar-09 30-Mar-08 $ Change % Change

Revenues
Restaurant sales $ 73,578 $ 69,796 $ 3,782 5.4 %
Franchise fees and royalties 375 432 (57 ) -13.2 %
Total revenues 73,953 70,228 3,725 5.3 %

Costs and Expenses
Cost of food and beverage sales 17,122 16,686 436 2.6 %
Restaurant operating expenses 45,011 43,406 1,605 3.7 %
Restaurant opening costs 427 752 (325 ) -43.2 %
Marketing, general and administrative expenses 9,717 6,818 2,899 42.5 %
Total operating expenses 72,277 67,662 4,615 6.8 %

Income from operations 1,676 2,566 (890 ) -34.7 %
Interest (expense) income, net (337 ) 12 (349 ) -2908.3 %

Income before income taxes 1,339 2,578 (1,239 ) -48.1 %
Income tax expense (benefit) 175 (329 ) 504 -153.2 %

Net income 1,164 2,907 (1,743 ) -60.0 %
Less: accretion of preferred stock issuance costs and preferred stock dividends 251 250 1 0.4 %

Net income attributable to common stockholders $ 913 $ 2,657 $ (1,744 ) -65.6 %

Earnings Per Share
Basic earnings per common share $ 0.06 $ 0.17 $ (0.11 ) -64.7 %
Diluted earnings per common share $ 0.06 $ 0.17 $ (0.11 ) -64.7 %

Weighted Average Shares Outstanding
Basic 15,297 15,258 39 0.3 %
Diluted 15,297 17,252 (1,955 ) -11.3 %

Benihana Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)

(in thousands except per share data)
Thirteen Periods Ended
29-Mar-09 30-Mar-08 $ Change % Change

Revenues
Restaurant sales $ 303,868 $ 295,190 $ 8,678 2.9 %
Franchise fees and royalties 1,739 1,756 (17 ) -1.0 %
Total revenues 305,607 296,946 8,661 2.9 %

Costs and Expenses
Cost of food and beverage sales 72,646 69,727 2,919 4.2 %
Restaurant operating expenses 188,922 178,099 10,823 6.1 %
Restaurant opening costs 2,165 3,440 (1,275 ) -37.1 %
Marketing, general and administrative expenses 30,289 28,092 2,197 7.8 %
Impairment charges 21,505 - 21,505 100.0 %
Total operating expenses 315,527 279,358 36,169 12.9 %

(Loss) income from operations (9,920 ) 17,588 (27,508 ) -156.4 %
Interest (expense) income, net (848 ) 270 (1,118 ) -414.1 %

(Loss) income before income taxes (10,768 ) 17,858 (28,626 ) -160.3 %
Income tax (benefit) provision (5,703 ) 5,065 (10,768 ) -212.6 %

Net (loss) income (5,065 ) 12,793 (17,858 ) -139.6 %
Less: accretion of preferred stock issuance costs and preferred stock dividends 1,087 1,084 3 0.3 %

Net (loss) income attributable to common stockholders $ (6,152 ) $ 11,709 $ (17,861 ) -152.5 %

(Loss) Earnings Per Share
Basic (loss) earnings per common share ($0.40 ) $0.77 ($1.17 ) -151.9 %
Diluted (loss) earnings per common share ($0.40 ) $0.75 ($1.15 ) -153.3 %

Weighted Average Shares Outstanding
Basic 15,289 15,173 116 0.8 %
Diluted 15,289 17,169 (1,880 ) -10.9 %

Benihana Inc. and Subsidiaries
Sales by Concept
(Unaudited)

(in thousands)
Three Periods Ended
29-Mar-09 30-Mar-08 $ Change % Change

Total restaurant sales by concept:
Benihana $ 50,330 $ 49,565 $ 765 1.5 %
Haru 7,472 8,553 (1,081 ) -12.6 %
RA Sushi 15,776 11,678 4,098 35.1 %
Total restaurant sales $ 73,578 $ 69,796 $ 3,782 5.4 %

Comparable restaurant sales by concept:
Benihana $ 43,367 $ 49,363 $ (5,996 ) -12.1 %
Haru 7,471 8,552 (1,081 ) -12.6 %
RA Sushi 11,540 11,678 (138 ) -1.2 %
Total comparable restaurant sales $ 62,378 $ 69,593 $ (7,215 ) -10.4 %

Benihana Inc. and Subsidiaries
Sales by Concept
(Unaudited)

(in thousands)
Thirteen Periods Ended
29-Mar-09 30-Mar-08 $ Change % Change

Total restaurant sales by concept:
Benihana $ 206,970 $ 215,716 $ (8,746 ) -4.1 %
Haru 35,628 34,509 1,119 3.2 %
RA Sushi 61,270 44,965 16,305 36.3 %
Total restaurant sales $ 303,868 $ 295,190 $ 8,678 2.9 %

Comparable restaurant sales by concept:
Benihana $ 189,165 $ 204,969 $ (15,804 ) -7.7 %
Haru 30,853 34,509 (3,656 ) -10.6 %
RA Sushi 41,500 44,886 (3,386 ) -7.5 %
Total comparable restaurant sales $ 261,518 $ 284,364 $ (22,846 ) -8.0 %

Benihana Inc. and Subsidiaries
Restaurant Operating Profit
(Unaudited)

(in thousands)
Three Periods Ended
29-Mar-09 30-Mar-08 $ Change % Change

Restaurant sales $ 73,578 $ 69,796 $ 3,782 5.4 %
Cost of food & beverage sales 17,122 16,686 436 2.6 %
Gross profit 56,456 53,110 3,346 6.3 %

Restaurant operating expenses:
Labor and related costs 23,934 24,195 (261 ) -1.1 %
Restaurant supplies 1,796 1,674 122 7.3 %
Credit card discounts 1,359 1,311 48 3.7 %
Utilities 2,175 2,008 167 8.3 %
Occupancy costs 5,068 4,236 832 19.6 %
Depreciation and amortization 4,382 4,118 264 6.4 %
Other restaurant operating expenses 6,297 5,864 433 7.4 %
Total restaurant operating expenses 45,011 43,406 1,605 3.7 %

Restaurant operating profit $ 11,445 $ 9,704 $ 1,741 17.9 %

Benihana Inc. and Subsidiaries
Restaurant Operating Profit
(Unaudited)

(in thousands)
Thirteen Periods Ended
29-Mar-09 30-Mar-08 $ Change % Change

Restaurant sales $ 303,868 $ 295,190 $ 8,678 2.9 %
Cost of food & beverage sales 72,646 69,727 2,919 4.2 %
Gross profit 231,222 225,463 5,759 2.6 %

Restaurant operating expenses:
Labor and related costs 104,174 100,655 3,519 3.5 %
Restaurant supplies 7,339 6,841 498 7.3 %
Credit card discounts 5,787 5,592 195 3.5 %
Utilities 9,293 7,926 1,367 17.2 %
Occupancy costs 19,727 17,620 2,107 12.0 %
Depreciation and amortization 18,121 16,595 1,526 9.2 %
Other restaurant operating expenses 24,481 22,870 1,611 7.0 %
Total restaurant operating expenses 188,922 178,099 10,823 6.1 %

Restaurant operating profit $ 42,300 $ 47,364 $ (5,064 ) -10.7 %

Benihana Inc. and Subsidiaries
Restaurant Operating Margins
(Unaudited)

Three Periods Ended
29-Mar-09 30-Mar-08

Restaurant sales 100.00 % 100.00 %
Cost of food and beverage sales 23.27 % 23.91 %
Gross profit margin 76.73 % 76.09 %

Restaurant operating expenses:
Labor and related costs 32.53 % 34.67 %
Restaurant supplies 2.44 % 2.40 %
Credit card discounts 1.85 % 1.88 %
Utilities 2.96 % 2.88 %
Occupancy costs 6.89 % 6.07 %
Depreciation and amortization 5.96 % 5.90 %
Other restaurant operating expenses 8.56 % 8.40 %
Total restaurant operating expenses 61.17 % 62.19 %

Restaurant operating profit margin 15.55 % 13.90 %

Benihana Inc. and Subsidiaries
Restaurant Operating Margins
(Unaudited)

Thirteen Periods Ended
29-Mar-09 30-Mar-08

Restaurant sales 100.00 % 100.00 %
Cost of food and beverage sales 23.91 % 23.62 %
Gross profit margin 76.09 % 76.38 %

Restaurant operating expenses:
Labor and related costs 34.28 % 34.10 %
Restaurant supplies 2.42 % 2.32 %
Credit card discounts 1.90 % 1.89 %
Utilities 3.06 % 2.69 %
Occupancy costs 6.49 % 5.97 %
Depreciation and amortization 5.96 % 5.62 %
Other restaurant operating expenses 8.06 % 7.75 %
Total restaurant operating expenses 62.17 % 60.33 %

Restaurant operating profit margin 13.92 % 16.05 %

Benihana Inc. and Subsidiaries
Balance Sheet Data
(Unaudited)

(in thousands)
29-Mar-09 30-Mar-08

Assets
Cash and cash equivalents $ 3,891 $ 1,718
Other current assets 13,621 17,897
Total current assets 17,512 19,615

Property and equipment, net 203,299 184,176
Goodwill 18,020 29,900
Other assets 18,296 7,963

$ 257,127 $ 241,654

Liabilities and Stockholders` Equity
Other current liabilities $ 36,566 $ 35,102
Total current liabilities 36,566 35,102

Long-term debt-bank 33,351 17,422
Other liabilities 15,237 12,065
Total liabilities 85,154 64,589

Convertible preferred stock 19,536 19,449
Total stockholders` equity 152,437 157,616

$ 257,127 $ 241,654

ICR
Raphael Gross or Tom Ryan, 203-682-8200

Copyright Business Wire 2009