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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): FEBRUARY 26, 1996
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UNO RESTAURANT CORPORATION
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(Exact name of registrant as specified in its charter)
DELAWARE
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(State or other jurisdiction of incorporation)
1-9573 04-2953702
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(Commission File Number) (I.R.S. Employer Identification No.)
100 CHARLES PARK ROAD, WEST ROXBURY, MASSACHUSETTS 02132
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617) 323-9200
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
Uno Restaurant Corporation (the "Company") announced on February 26,
1996 that it will adopt Financial Accounting Standard No. 121 "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of" (FAS 121) in the second fiscal quarter ending March 31, 1996. The Company
is not required to adopt FAS 121 until fiscal 1997.
The Company expects to incur a FAS 121 after-tax charge in the amount
of $2.5 million for the write-down of three "Uno Pizza Takery's," a quick-serve
concept which has been under test for 18 months, the partial write-down of its
investment, including trademarks and goodwill, in three Bay Street Grill
restaurants acquired in December 1994, and the write-down of a full-service
Pizzeria Uno restaurant. As a result of the FAS 121 charge, the Company
expects to report a net loss in the second fiscal quarter ending March 31,
1996. For the second fiscal quarter last year, the Company reported net income
of $1,242,000, or $.11 per share.
In making the announcement, Aaron D. Spencer, Chairman and Chief
Executive Officer, stated "Uno's early adoption of FAS 121 is consistent with
our overall strategy to focus management attention and resources on our core
business, full-service `Pizzeria Uno...Chicago Bar & Grill' restaurants. Our
efforts over the past 18 months to develop and test the `Uno Pizza Takery'
concept and to explore the expansion potential of the Bay Street seafood
restaurant concept did not generate sufficient returns to warrant further
expansion at this time. Although, we will continue to operate these businesses
for the foreseeable future, we believe that no future write-downs associated
with these assets will be necessary. On the other hand, because we have
substantial operating leverage in our 80 company-owned full-service Pizzeria
Uno restaurants, we believe we can more readily improve the Company's financial
performance and enhance shareholder value by focusing on our core business,
Pizzeria Uno...Chicago Bar & Grill. The casual dining segment of the
restaurant industry has grown increasingly competitive, while at the same time
consumers have become more discriminating and value-driven. During the past
several months, we have sought to strengthen all major elements of the Pizzeria
Uno concept, including value perception, concept differentiation, menu
development, design improvements and advertising initiatives with one object in
mind...to increase customer traffic. We believe the success of these efforts
will become more apparent to our customers and shareholders beginning in the
second half of fiscal 1996."
This discussion includes forward-looking statements based on current
management expectations. Factors that could cause future results to differ
from these expectations include the following: the Company's ability to open
new restaurants and operate new and existing restaurants profitably; economic
conditions in the areas in which the Company's restaurants are concentrated;
the ability of the Company's franchisees to operate and develop their Pizzeria
Uno restaurants; the Company's ability to compete in an industry in which
competition is increasingly intense; changes in consumer tastes and eating
habits; changes in local, regional and national economic conditions; inclement
weather; demographic trends and traffic patterns and the types, number and
location of competing restaurants; the Company's ability to anticipate and
react to increases in food, labor, employee benefits and similar costs; the
impact of licensing and regulation by a number of government authorities,
including alcohol beverage control, health, safety, sanitation, building and
fire agencies; and dependence upon key executive employees.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
UNO RESTAURANT CORPORATION
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(Registrant)
Dated: March 4, 1996 /s/ Craig S. Miller
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Craig S. Miller, President