Dairy Mart Convenience Stores Inc has posted disappointing financial results for the fourth quarter of 2000 (ending 3 February), with a loss of US$22.5m, or US$4.51 a share.

Revenue during Q4 rose 16% to US$174.2m but the 550-strong chain, based in Hudson, Ohio, said that it would now have to sell about 200 of its outlets because they do not meet the internal profitability criteria.

Dairy Mart revealed that the Q4 results had been hit hard by lower gasoline profit margins, increasing store operating expenses and labour costs, and falling gross profit margins on merchandise.