Investing.com -- Shares in Fogo De Chao Inc (NASDAQ:FOGO) edged up by 2% in after-hours trading after one of the world's most popular Brazilian Steakhouse chain restaurants posted stronger than expected second quarter results on Tuesday.
While Fogo de Chao's quarterly revenues inched down on a year-over-year basis from $68.5 million in the second quarter of 2014 to $68.2 million last quarter, the company attributed the reduction to the surge in sales during last summer's FIFA World Cup held in Brazil. When the restaurant chain calculated its adjusted earnings, discounting the effects of the tournament as well as the negative impacts of a stronger dollar, it saw its revenues grow by approximately 11% on the quarter. Fogo de Chao's earnings of $7.3 million or 0.25 per diluted share beat analysts' forecasts of per share earnings of 0.22. For the 13-week period that ended in late June, analysts also expected the company to earn revenues of $65 million.
During the quarter, the restaurant also saw its adjusted U.S. sales increase by 4.2% while its company-owned same-restaurant sales spiked by 3.2%, minus its revenues from the World Cup. Fogo de Chao is currently preparing for next summer's 2016 Rio Summer Olympics, where construction is under way on a new restaurant near the Olympic Village.
"We are pleased with our strong second quarter results, particularly our comparable restaurant sales growth in the U.S. of 4.2%, and the strength of our development pipeline," said Larry Johnson, Chief Executive Officer of Fogo de Chão, Inc. "Total sales growth was 11.0% for the quarter when you adjust for foreign currency and lapping the 2014 World Cup in Brazil."
For the fiscal year 2015 as a whole, Fogo de Chao plans on opening a total of five new company-owned restaurants while earning projected revenues of $273 million.
"We believe that our dedication to serving high-quality Brazilian cuisine, our differentiated service model, combined with our disciplined focus on restaurant operations, drives strong financial results and positions us well for growth in the future," Johnson added.
Shares in Fogo de Chao gained 0.45 or 2.30 in after-hours trading to $20.00.