Morton's Restaurant Group has reported a 7.9% drop in Q1 revenues year on year, to US$61.1m. Net income for Q1 was US$2.2m, which includes a pretax gain on insurance proceeds of US$1.3m and pretax costs of US$1.2m, associated with the company's evaluation of strategic alternatives. This is down on the net income posted in Q1 2001, which was US$2.7m.