Restaurateur Einstein Noah Restaurant Group Inc. (BAGL) recently declared the appointment of John Coletta as chief financial officer (:CFO). Coletta will replace Manny Hilario who was appointed chief operations officer in July. Coletta, currently CFO at Quiznos, a restaurant company with 3,000 units across 33 countries, will take over the reins from Oct 21.
Coletta has donned many important roles in his illustrious career. He was the president at the food division of Quiznos. Previously, he held the position of CFO at Real Goods Solar, a leading publicly traded U.S. solar integration company with retail consumer facing operations; at Cartridge World, a global franchising retail company operating in more than 63 countries and at Rock Bottom Restaurants, Inc., a formerly public, national restaurant company that owns Old Chicago, Rock Bottom, Chophouse, Sing Sing and Boulder Beer brands.
Considering Coletta’s acumen in financial management and his 25-year long managerial experience in restaurants, hospitality, retail & development, he can easily be labeled as a veteran in the sector. We believe, he will likely provide meaningful support to Einstein Noah’ growth and profitability, going forward.
Lakewood, Colo.-based Einstein Group's performance has been faltering over the last few quarters. Its revenue performance in the second quarter remained choppy, falling short of the Zacks Consensus Estimate for the seventh straight quarter. Though earnings grew more than 11% year over year, due to improved margin performance and a narrower rate of transaction decline, the company still has a long way to go to match other industry players.
Hence, we believe, Coletta’s new role entrusts him with additional responsibility to give a boost to the company’s performance, which has so far been sluggish. Einstein Noah currently carries a Zacks Rank #3 (Hold). Other players in the industry, which are better placed include AFC Enterprises Inc. (AFCE), CEC Entertainment Inc. (CEC) and Burger King Worldwide Inc. (BKW), all carrying a Zacks Rank #2 (Buy).