Apr 25

Bob Evans to close 27 restaurants, layoff 1,100:

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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