Frisch's Reports Higher Sales in First QuarterCINCINNATI  (Restaurant News Release)  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.

Frisch’s Restaurants, Inc. and Subsidiaries  
CONSOLIDATED STATEMENT OF EARNINGS (unaudited)  
(In thousands, except per share data)  
             
     Sixteen Weeks ended    
    Sept. 21,   Sept. 22,    
    2010   2009    
Sales $   92,926   $   88,982    
Cost of sales          
  Food and paper 31,980   30,274    
  Payroll and related 30,765   29,705    
  Other operating costs 21,263   20,017    
    84,008   79,996    
Gross profit 8,918   8,986    
  Administrative and advertising 4,812   4,454    
  Franchise fees and other revenue (399)   (392)    
Operating profit 4,505   4,924    
  Interest expense 474   531    
Earnings before income tax 4,031   4,393    
Income taxes 1,290   1,405    
NET EARNINGS $     2,741   $     2,988    
             
Earnings per share (EPS) of common stock:          
  Basic net earnings per share $.54   $.59    
  Diluted net earnings per share $.54   $.57    
Diluted average shares outstanding 5,122   5,224    
Depreciation included above $     4,562   $     4,221    
Opening expense included above $       548   $         14    
             
           
Frisch’s Restaurants, Inc. and Subsidiaries  
CONSOLIDATED BALANCE SHEET  
(In thousands of dollars)  
      September 21,   June 1,    
      2010   2010    
      (unaudited)        
Assets          
  Current assets          
    Cash and equivalents $     1,025   $       647    
    Receivables 1,599   1,534    
    Inventories 5,662   5,959    
    Other current assets 2,726   2,249    
      11,012   10,389    
  Property and equipment 170,658   168,699    
  Other assets          
    Goodwill & other intangible assets 1,432   1,459    
    Property held for sale and land investments 3,769   3,682    
    Deferred income taxes and other 4,706   5,024    
      9,907   10,165    
               
      $ 191,577   $ 189,253    
               
Liabilities and shareholders’ equity          
  Current liabilities          
    Accounts payable $   11,750   $   10,558    
    Accrued expenses 9,522   9,641    
    Other 8,835   8,342    
      30,107   28,541    
               
  Long-term obligations          
    Long-term debt 22,444   23,795    
    Other long-term obligations 17,454   16,823    
      39,898   40,618    
               
  Shareholders’ equity 121,572   120,094    
               
      $ 191,577   $ 189,253