Revenue during the quarter grew 10.89 percent to $76.36 million from $68.86 million in the previous year period. Gross margin for the quarter contracted 249 basis points over the previous year period to 27.76 percent. Total expenses were 89.64 percent of quarterly revenues, up from 86.42 percent for the same period last year. That has resulted in a contraction of 322 basis points in operating margin to 10.36 percent.

Operating income for the quarter was $7.91 million, compared with $9.35 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $14.28 million compared with $14.09 million in the prior year period. At the same time, adjusted EBITDA margin contracted 177 basis points in the quarter to 18.70 percent from 20.47 percent in the last year period.

“Fogo delivered solid results with revenue growth on a constant currency basis of 7.9% and U.S. comparable sales growth during the quarter of 0.9%,” said Larry Johnson, Chief Executive Officer of Fogo de Chão, Inc. “We believe the positive traffic this quarter and over the last three years is a result of the strategic initiatives we have put in place, designed to increase awareness while driving trial and frequency.”

For fiscal year 2017, Fogo de Chao, Inc expects revenue to be in the range of $315 million to $320 million and its expects diluted earnings per share to be in the range of $0.92 to $0.95.