McCormick & Schmick's Seafood Restaurant sinks after lowering Q3 guidance
McCormick & Schmick's Seafood Restaurant (Nasdaq: MSSR) said before the opening that it expects third-quarter earnings below expectations. The Portland, Ore.-based company now expects earnings of $0.16 per share on revenue of $88 million. The restaurant operator previously expected earnings in the range of $0.21 to $0.23 on revenue of between $90 million and $91 million for the three months ending Sept. 30.
McCormick blamed the lower guidance on weak September traffic.
"Our updated third quarter outlook reflects weakness in September traffic, which we attribute primarily to less demand from our aspirational guests, as a result of economic pressures currently affecting this segment of the U.S. consumer base,” CEO Doug Schmick said in a statement. “While we are certainly disappointed with the revision in our guidance, we are confident that we can weather the current softness in our business."
In morning trading, MSSR shares are plummeting 20.47%, or $5.13, at $19.93. Over the last 52 weeks, shares of the small cap have ranged between $19.25 and $30.98.
