Profile: Bob Evans Farms Inc (BOBE.O)

Bob Evans Farms, Inc. (Bob Evans), incorporated in 1985, is a full-service restaurant company that operates two restaurant concepts: Bob Evans Restaurants and Mimi’s Cafes. The Company is also a producer and distributor of pork sausage and complementary homestyle convenience food items. As of April 24, 2009, Bob Evans Restaurants (including Bob Evans Restaurants & General Stores) were located in 18 states, primarily in the Midwest, mid-Atlantic and Southeast, and Mimi’s Cafes were located in 24 states, primarily in California and other western states. Bob Evans offers a variety of quality, homestyle food products to retail and foodservice customers. It sells its retail food products under the Bob Evans and Owens brand names. The Company’s food products include approximately 45 varieties of fresh, smoked and fully cooked pork sausage and hickory-smoked bacon products. It also offers approximately 65 complementary, convenience food items in the refrigerated and frozen areas of grocery stores, such as mashed potatoes, macaroni and cheese, microwaveable sandwiches and slow-roasted main dish entrees.

Bob Evans Restaurants

The Bob Evans Restaurants feature a variety of foods, such as Bob Evans sausage gravy and slow-roasted turkey breast. Breakfast entrees are served all day and feature traditional favorites, such as sausage, bacon, eggs and hotcakes, as well as specialty offerings like crepes and stuffed French toast. It also offers a variety of lunch and dinner entrees, including a full line-up of Big Farm Salads and signature dinner items, such as country fried steak and slow-roasted turkey. During the fiscal year ended April 24, 2009 (fiscal 2009), Bob Evans added a number of items to its menu, including two varieties of its BoBurrito (egg omelets rolled in grilled tortillas) and its Country Caesar Salad.

Most traditional Bob Evans Restaurants range in size from approximately 3,600 to 6,500 square feet while its larger Bob Evans Restaurants & General Stores are approximately 9,800 square feet. Bob Evans Restaurants are generally open from 6 ante meridiem (a.m.) or 7 a.m. until 9 post meridiem (p.m.) or 10 p.m. Sunday through Thursday, with extended closing hours on Friday and Saturday at some locations. During fiscal 2009, breakfast, lunch and dinner accounted for 32 %, 37 % and 31 %, respectively, of total Bob Evans Restaurant revenue. Sales on Saturday and Sunday accounted for approximately 39 % of a typical week’s revenue during fiscal 2009.

The Company offers retail gifts, food items and other novelties for sale on a limited basis in the Corner Cupboard areas located inside most of its traditional Bob Evans Restaurants and on a much larger scale in its seven Bob Evans Restaurants & General Stores. During fiscal 2009, retail sales accounted for 2 % of sales at Bob Evans Restaurants.

Mimi’s Cafes

Mimi’s Cafe is a casual dining concept positioned as the all day fresh cafe. Mimi’s Cafe offers customers a place to relax and connect while enjoying freshly prepared meals. The concept combines elements of an upscale casual experience with everyday appeal. More than 100 breakfast, lunch and dinner items are featured. Mimi’s Cafes feature American and ethnic cuisine served with Southern European cafe charm, such as its Chicken Pot Pie, Fresh from the Oven Pot Roast, Pasta Jambalaya and Flamed Broiled Hibachi Salmon. During fiscal 2009, it added distilled spirits to its beer and wine service at 18 existing and 12 new Mimi’s Cafes. During fiscal 2009, 81 Mimi’s Cafes featured expanded alcoholic beverage service compared to 63 stores that featured beer and wine only. It owns and operates SWH Custom Foods, an approximately 25,000 square-foot prep kitchen in Fullerton, California, that prepares signature muffin mixes, dressings, sauces and soups for Mimi’s Cafes and third-party restaurants.

Carryout Business

During fiscal 2009, carryout business in Bob Evans Restaurants accounted for 7.9 % of the concept’s total revenues. Carryout at Mimi’s Cafés accounted for 4 % of the concept’s total revenues in fiscal 2009.

Food Products Operations

Bob Evans offers a variety of quality, homestyle food products to retail and foodservice customers. It sells its retail food products under the Bob Evans and Owens brand names. Its food products include approximately 45 varieties of fresh, smoked and fully cooked pork sausage and hickory-smoked bacon products. It also offers approximately 65 complementary, convenience food items in the refrigerated and frozen areas of grocery stores, such as mashed potatoes, macaroni and cheese, microwaveable sandwiches and slow-roasted main dish entrees. During fiscal 2009, the Company refined its product pipeline and introduced nine new foodservice products and 12 new retail food products, including family-size macaroni and cheese and mashed potatoes; broccoli cheese casserole; sweet creamed corn, and a five-item line of smoked dinner sausage.

The Company produces food products in its seven manufacturing facilities. It produces sausage products at its plants located in Galva, Illinois, Hillsdale, Michigan and Xenia, Ohio. Its Bidwell, Ohio and Richardson, Texas plants produce both fresh and fully cooked sausage products. Its Sulphur Springs, Texas and Springfield, Ohio plants produce ready-to-eat products, such as sandwiches, soups and gravies. It also operates a distribution center in Springfield, Ohio.