The Pantry reported a wider net loss in the second quarter as the convenience store chain was hurt by higher gasoline prices.

The company had a loss of $9.7 million, or 43 cents, a share, compared with a loss of $300,000, or 1 cent a share, during the second quarter of 2011.

After excluding impairment charges and loss on extinguishment of debt, the company's net loss was $6.7 million, or 30 cents per share, compared to a gain of 1 cent per share in the prior year.

That was better than the 37 cents a share loss that Wall Street analysts predicted.

The Pantry has more than 1,600 stores throughout the Southeast, primarily under the Kangaroo Express brand.

Comparable store merchandise sales at those stores increased 4.8 percent in the quarter and total merchandise gross profit for the quarter was $145.4 million, up $400,000 from the second quarter a year ago.

While The Pantry sold about the same amount of fuel in the quarter as the year prior, its fuel gross profit decreased 30 percent in the quarter. Retail fuel margin per gallon fell to $0.096 from $0.137 a year ago.

The average retail fuel price per gallon was about 20 percent higher in the second quarter than in the same period in 2011.

"We were pleased with our positive comparable store merchandise sales and fuel gallon trends within the quarter," CEO Dennis Hatchell said in a statement.

"Fuel gross profit was negatively impacted by consistently rising wholesale fuel costs, which was partially offset by our ongoing expense management efforts."

He added that the company continues to reduce its debt, having repaid $94 million this year.

The Pantry announced Friday that its chief financial officer, Mark Bierley, is resigning effective May 25.

Bierley has accepted a position near his home in Michigan, the company said. The position wasn't disclosed.

Berry Epley, the company's corporate controller, will handle Bierley's responsibilities while The Pantry searches for a permanent replacement.

In February, the Cary-based convenience store chain named Dennis G. Hatchell as its new president and CEO. He began his job on March 5.

Hatchell replaced Terrance Marks, who resigned in October to become the CEO of the Hooters restaurant chain.

Hatchell was previously vice chairman of Alex Lee, a North Carolina-based holding company for Lowe's Food Stores, Merchants Distributors and Institution Food House.

The Pantry has more than 1,600 stores throughout the Southeast, primarily under the Kangaroo Express brand.

The Pantry's new CEO, Dennis G. Hatchell, will receive an initial starting salary of $750,000 and shares of restricted stock that is currently worth $436,000.

The Cary-based convenience store chain detailed Hatchell's pay package in a regulatory filing this week.

Hatchell will also receive shares of performance-based restricted stock and a signing bonus of $46,100. For fiscal year 2012, he will receive a cash bonus equal to either $475,500 or the amount he would receive under the company's bonus plan for senior executives if that number is greater.

Hatchell will receive a $3,000 a month living allowance for two months and will be paid $150,000 when he purchases a residence in Cary. He'll also receive up to $25,000 for legal expenses related to the negotiation of the agreement.

Hatchell, 62, starts his new job March 5.

Cary-based convenience store chain The Pantry announced this morning that it has named Dennis G. Hatchell to be its new president and CEO effective March 5.

Hatchell was previously vice chairman of Alex Lee, a holding company for Lowe's Food Stores, Merchants Distributors and Institution Food House.

He will take over from Edwin Holman, who has been the interim CEO since Terrance Marks resigned in October to become the CEO of the Hooters restaurant chain.

Holman will remain chairman of the board. Hatchell also joins the board.
 

The Pantry reported a net loss of $2.9 million, or 13 cents a share, in the first quarter this morning.

That was a smaller loss than the $12.2 million, or 54 cents a share that the Cary-based convenience store chain reported in last year's first quarter.

Excluding impairment charges and loss on extinguishment of debt, the net loss for the first quarter of fiscal 2012 was $2.6 million or $0.11 per share.

Interim CEO Edwin Holman said in a release that the company benefited from lower expenses and a better pricing environment.

"As we continue revising our pricing strategy to position the company for the longer term, we remain focused on improving our sales trends, expense management, and debt reduction.”

The Pantry has more than 1,600 stores throughout the Southeast, primarily under the Kangaroo Express brand. Merchandise sales at those stores increased 2 percent in the first quarter.

The Pantry reported fourth quarter results this morning that were below analyst expectations, as the Cary convenience store chain continued to face sluggish merchandise sales at its stores.

Excluding one-time charges, the Cary convenience store chain reported net income of $8.4 million, or 37 cents a share, compared to 43 cents a share during the same period a year ago.

Net income for the fiscal year 2011 was $17.5 million  or $0.78 per share, compared to earnings per share of $0.97 in the prior year.

That was below 99 cents per share, the consensus among analysts who follow the company.

The Pantry has more than 1,600 stores throughout the Southeast, primarily under the Kangaroo Express brand. Merchandise sales at those stores decreased .8 percent in the fourth quarter, compared to a 7.7 percent increase during the same period a year ago.

For the year, merchandise sales were down .2 percent.

In a statement, interim CEO Edwin Holman said next year would be a transitional period for the company and that actions are needed to improve comparable store sales.

He also said the company would focus on a pricing strategy that is intended to both improve merchandise sales and align gasoline volumes with industry trends.

Edwin J. Holman, who takes over as interim CEO of The Pantry on Oct. 5, will be paid an annual salary of $700,000 a year, the Cary convenience-store chain disclosed in a regulatory filing Tuesday.

Holman is taking over for Terrance Marks, who announced last month that he was leaving The Pantry to become CEO of the Hooters restaurant chain in Atlanta. Marks received $1.5 million in compensation last year.

Holman has been a member of The Pantry's board of directors since October 2005. He took over as chairman of the board shortly after Marks was named CEO in September 2009.

Holman will also receive a restricted stock grant valued at $100,000.

The Pantry CEO Terrance Marks is leaving the Cary convenience store chain to take the same position with Hooters of America, the restaurant chain known for its Hooter Girls waitresses.

The Pantry announced Monday that Marks would depart within 60 days. Monday's release said Marks was returning to Atlanta to be closer to his family but did not disclose his new job.

In today's release put out by Hooters, Marks said the opportunity to contribute to a great brand like Hooters "is extremely energizing to me." Take that Kangaroo Express.

Hooters is the franchisor and operator of 435 restaurants in 44 states and 28 foreign countries.

Terrance M. Marks, The Pantry CEO whose has led the convenience-store chain’s aggressive turnaround strategy in recent years, is resigning to take a position in Atlanta.

The Cary-based company said in a release that Marks will depart within the next 60 days and be replaced on an interim basis by Edwin Holman, chairman of The Pantry’s Board of Directors.

Since taking over as CEO in September 2009, Marks had gotten generally high marks for his efforts to remodel some of The Pantry’s stores and add more fresh foods to its product offerings.

It will be important for The Pantry to find a replacement who can maintain that momentum, said Ben Brownlow, an analyst with Morgan Keegan.

“I think it does create some uncertainty,” Brownlow said. “Departing now isn’t the ideal time.”

Pantry officials declined to comment today beyond what was in the release.

Stung by high gasoline prices and high unemployment in many of its markets, The Pantry reported third quarter earnings Tuesday that missed Wall Street estimates.

The Cary-based convenience store chain, which has more than 1,600 stores throughout the Southeast, reported net income, excluding one-time charges, of $21 million, or 93 cents per share, compared to 89 cents per share during the same period a year ago.

That was below the consensus among analysts who follow the company of $1.22 per share.

Merchandise sales at Pantry stores decrease 1.5 percent, compared to a 7.7 percent increase during the same period a year ago.

Rising oil prices have been driving up the cost of gas, and consumers have responded by spending less on other things.