Restaurant chain Bob Evans Farms is closing 27 underperforming locations and laying off 1,100 workers in attempt to boost profits.
Of the 27 restaurants, 21 were company-owned and closed last week. The remaining six are leased and expected to close in fiscal 2017.
The company says it expects to get $20 million for the owned properties, translating to a $1 million gain in annual operating income. The New Albany, Ohio-company estimates expenses near $8 million related to the closures, most of which it expects to be non-cash charges. It expects to offer laid-off workers jobs in nearby restaurants when possible.
The company said it will update the estimated expenses related to the sale when it reports fourth-quarter results in June.
Bob Evans Farms Inc. operates more than 500 Bob Evans restaurants in 18 states across the Midwest, Mid-Atlantic and Southeast U.S. regions.
Shares in Bob Evans fell less than half of 1 percent in midday trading today, but are up more than 20 percent in 2016 and more than 3 percent during the past year.
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