Fogo de Chao, Inc (FOGO) has reported 40.51 percent plunge in profit for the quarter ended Jan. 01, 2017. The company has earned $7.70 million, or $0.27 a share in the quarter, compared with $12.94 million, or $0.45 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $8.02 million, or $0.28 a share compared with $8.34 million or $0.29 a share, a year ago. 

Revenue during the quarter grew 4.36 percent to $80.88 million from $77.50 million in the previous year period. Gross margin for the quarter contracted 269 basis points over the previous year period to 31.43 percent. Total expenses were 85.04 percent of quarterly revenues, up from 82.91 percent for the same period last year. That has resulted in a contraction of 213 basis points in operating margin to 14.96 percent.

Operating income for the quarter was $12.10 million, compared with $13.24 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $18.27 million compared with $19.37 million in the prior year period. At the same time, adjusted EBITDA margin contracted 240 basis points in the quarter to 22.59 percent from 24.99 percent in the last year period.  

"We are pleased to post our third consecutive year of positive U.S. comparable traffic gains. The initiatives in place around daypart expansion and price optionality are helping to drive these gains with further revenue growth coming from our company-owned restaurant development," said Larry Johnson, chief executive officer of Fogo de Chão, Inc. "We plan to grow our restaurant base during 2017- opening up to seven locations in 2017, including up to two international joint venture locations, as well as driving our comparable restaurant sales by continuous innovation on our strategic platforms."

For financial year 2017, Fogo de Chao projects revenue to be in the range of $315 million to $320 million.  The company forecasts diluted earnings per share to be in the range of $0.92 to $0.95 on adjusted basis.