Morton’s Offers Profit Warning, Looks to Sell

Morton’s Restaurant Group Inc. said it expects the weakening economy and reduced business travel to crimp earnings and disclosed that its board is looking at selling the upscale steak-and-seafood restaurant chain. “The board has directed its financial advisor, Greenhill & Co., to assist the company in exploring its strategic alternatives, including evaluating a potential sale of the company,” said Allen Bernstein, chairman, president and chief executive. On May 1, Morton’s received a takeover offer from BFMA, a Florida-based company with backing from financier Carl Icahn, and hopes to jump-start an auction for the restaurant chain. The New Hyde Park, N.Y.-based company operates Morton’s of Chicago Steakhouses and Bertilini’s Authentic Trattorias. Analysts on average were expecting earnings of 42 cents in the second quarter, according to First Call/Thomson Financial. The company earned 43 cents in the year-earlier period. Shares of Morton’s closed off 5 cents at $25.75 in New York Stock Exchange. Morton’s made its announcement after the markets closed.

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