Frisch's Reports Fiscal 2010 Third Quarter Results

CINCINNATI, April 13 /PRNewswire-FirstCall/ -- Frisch's Restaurants, Inc. (NYSE Amex: FRS) reported lower earnings for its 12-week fiscal third quarter ended March 9, 2010.   Net earnings for the quarter decreased 40.6% to $2,023,710 compared to $3,409,754 last year.  Diluted earnings per share declined to $.39 per share, from $.66 per share last year. Last year's third quarter included a credit of $889,579 (before taxes) for the final settlement of a long-running legal issue.  Sales declined 4.2% to $64,872,608 from $67,684,513 in last year's third quarter.  

For the first three quarters of fiscal 2010, sales were $221,753,296 falling 2.2% from $226,659,205 for the first three quarters of last year.  Earnings decreased to $7,380,592 from $7,800,601.  Diluted earnings per share fell to $1.42 from $1.51 last year.  

Craig F. Maier, President and Chief Executive Officer, said, "Same store sales at our Big Boy Restaurants decreased 3.4% in the third quarter. Record snowfalls for February hit our primary markets, driving down customer traffic in our restaurants."  

Maier added, "Our Golden Corral restaurants posted a same store sales decline of 6.4% during the third quarter.  The severe winter weather had an even stronger negative impact on our Golden Corral sales. Despite the lower sales, our Golden Corrals managed to post their fifth straight quarter of positive earnings."

Excluding the settlement of last year's legal issue, the decrease in normal operating earnings for the quarter can mostly be attributed to the decline in sales.  Restaurant management did a very good job of reducing the impact of the weather by closely watching food and payroll costs during the heavy snows.

While the Company did not open any Big Boy restaurants in the third quarter, construction began or was ongoing on three new restaurants during the twelve weeks.  Frisch's operates 89 company-owned Big Boy restaurants and there are an additional 25 franchised Big Boy restaurants operated by licensees.  The Company also operates 35 Golden Corral restaurants.

Frisch's Restaurants, Inc. is a regional company that operates full service family-style restaurants under the name "Frisch's Big Boy."  The Company also operates grill buffet style restaurants under the name "Golden Corral" pursuant to certain licensing agreements.  All Big Boy restaurants are currently located in various regions of Ohio, Kentucky and Indiana. Golden Corral restaurants currently operate primarily in the greater metropolitan areas of Cincinnati, Cleveland, Columbus, Dayton and Toledo, Ohio, Louisville, Kentucky and Pittsburgh, Pennsylvania.  

The Company owns the trademark "Frisch's" and has exclusive, irrevocable ownership of the rights to the "Big Boy" trademark, trade name and service marks in the states of Kentucky and Indiana, and in most of Ohio and Tennessee.  All of the Frisch's Big Boy restaurants also offer "drive-thru" service.  The Company also licenses Big Boy restaurants to other operators, currently in certain parts of Ohio, Kentucky and Indiana.

The Company has reported a profit every year since going public in 1960, and paid cash dividends to shareholders every quarter over the same period.

Statements contained in this press release which are not historical facts are forward looking statements as that item is defined in the Private Securities Litigation Act of 1995. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission.

SOURCE Frisch's Restaurants, Inc.