Frisch's Reports Higher Sales in First Quarter

CINCINNATI, Oct. 19 /PRNewswire-FirstCall/ -- Frisch's Restaurants, Inc. (NYSE Amex: FRS) reported higher sales for its 16-week fiscal first quarter ended September 21, 2010.   Revenues rose 4.4% to $92,925,834 from $88,982,102 for last year's first quarter. Net earnings for the quarter declined 8.2% to $2,741,279 compared to $2,987,665 last year.  Diluted earnings per share decreased to $.54 per share, from $.57 per share last year.  

Craig F. Maier, President and Chief Executive Officer, said, "Total Big Boy sales increased 4.5%, driven by new store openings.  Same store sales at our Big Boy restaurants decreased 0.8% during the quarter."  

Maier added, "Our Golden Corral restaurants posted their second straight quarter of higher same store sales, rising 4.4% over last year. An effective marketing campaign during the first quarter contributed significantly to the sales improvement."  

The decrease in earnings for the quarter can mostly be attributed to expenses associated with opening new Big Boy restaurants.  Higher food cost in both segments also contributed to the overall earnings decline. In addition, maintenance expense and pension expense both rose in comparison to the prior year.

The Company opened two new Big Boy restaurants in the first quarter, and there were also two new Big Boy restaurants under construction, both of which are scheduled to open in the second quarter.  Frisch's currently operates 93 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.