Restaurant operator and food distributor Bob Evans Farms (BOBE) is having a bad day.
When the company’s earnings outlook failed to meet Wall Street’s expectations, MarketWatch writes, shares began to drop. They fell sharply after closing at $44.74 on Tuesday evening and opening on Wednesday at $41.09. At the time of writing, shares are down by more than 10%.
Earlier this year Fortune reported that Bob Evans decided to close 27 of its restaurants that CEO Saed Mohseni said were “not meeting expectations.” The move came after the company reported weak profits for 2015. It immediately shut down 21 locations, and the remaining six will be closed throughout fiscal 2017.
Despite this unfortunate news, the Columbus Dispatch reports that Bob Evans remains hopeful about its chain of restaurants. It will debut new lunch and dinner menus in August that are said to feature better quality ingredients and revamped recipes. However, simply changing the menu likely won’t help to significantly increase sales and traffic at a time when fast casual dining concepts are eating into the demand for casual dining chains.
Bob Evans has declined to comment.