DALLAS  (Restaurant News Release)  Dave & Buster’s, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its second quarter ended August 1, 2010.

Total revenues decreased 2.7% to $127.9 million in the second quarter of 2010, compared to $131.5 million in the second quarter of 2009. The year-over-year revenue decline was driven by a 4.8% decline in comparable store sales and the loss of $2.5 million in revenues associated with the flood-related closure of the Company’s store in Nashville, Tennessee. These revenue declines were partially offset by a $4.8 million increase in revenues from non-comparable operations and other revenue sources. Total Food and Beverage revenues decreased 3.1%, while revenues from Amusements and Other decreased 2.4%.

Adjusted EBITDA decreased 5.4% to $18.2 million versus $19.3 million in the second quarter of fiscal 2009.

Total revenues for the 26-week period decreased 0.2% to $269.5 million from $270.0 million for the comparable period last year. This revenue reduction was comprised of a 3.7% decline in comparable store sales and the loss of $2.6 million in revenues associated with the flood-related closure of the Company’s store in Nashville, Tennessee. These revenue declines were partially offset by an $11.4 million increase in revenues from non-comparable operations and other revenue sources. Total Food and Beverage revenues decreased 1.2%, while revenues from Amusements and Other increased 1.0%.

Adjusted EBITDA for the 26-week period decreased 3.4% to $45.2 million versus $46.8 million for the comparable period last year.

“Our second quarter sales performance slowed compared with the first quarter, which is consistent with the overall economy and many other companies,” said Steve King, Chief Executive Officer. “Our top priority is to build profitable sales in our existing stores. We continue to use the various promotional levers at our disposal and our recent trends are encouraging.”

Non-GAAP Financial Measures

A reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the attachment to this release.

The Company will hold a conference call to discuss second quarter results on Wednesday, October 13, 2010, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). To participate in the conference call, please dial (866) 765-2661 a few minutes prior to the start time and reference code #11095523. Additionally, a live and archived webcast of the conference call will be available on the Company’s Web site, www.daveandbusters.com.

Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster’s is the premier national owner and operator of 57 high-volume venues that offer interactive entertainment options for adults and families, such as skill/sports-oriented redemption games and technologically advanced video and simulation games, combined with a full menu of high quality food and beverages. Dave & Buster’s currently has stores in 24 states and Canada. For additional information on Dave & Buster’s, please visit www.daveandbusters.com.

The statements contained in this release that are not historical facts are forward-looking statements. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by our level of indebtedness, general business and economic conditions, the impact of competition, the seasonality of the company’s business, adverse weather conditions, future commodity prices, guest and employee complaints and litigation, fuel and utility costs, labor costs and availability, changes in consumer and corporate spending, changes in demographic trends, changes in governmental regulations, unfavorable publicity, our ability to open new stores, and acts of God.

NOTE

(1) The number of stores open at August 1, 2010 includes our stores in Roseville, California, Wauwatosa, Wisconsin and Columbus, Ohio which opened on May 3, 2010, March 1, 2010 and October 12, 2009, respectively.

(2) EBITDA, a non-GAAP measure, is defined as net income (loss) before income tax expense (benefit), interest expense (net) and depreciation and amortization. Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA plus share-based compensation expense, pre-opening costs, Affiliate expense reimbursement, loss on asset disposal and other non-cash or non-recurring charges. The company believes that EBITDA and Adjusted EBITDA (collectively, “EBITDA – Based Measures”) provide useful information to debt holders regarding the Company’s operating performance and its capacity to incur and service debt and fund capital expenditures. The Company believes that the EBITDA – Based Measures are used by many investors, analysts and rating agencies as a measure of performance. In addition, Adjusted EBITDA is approximately equal to “Consolidated EBITDA” as defined in our Senior Credit Facility and indentures relating to the Company’s senior notes. Neither of the EBITDA – Based Measures is defined by GAAP and neither should be considered in isolation or as an alternative to other financial data prepared in accordance with GAAP or as an indicator of the Company’s operating performance. EBITDA and Adjusted EBITDA as defined in this release may differ from similarly titled measures presented by other companies.

WINSTON-SALEM, N.C.  (RestaurantNewsRelease.com)  Krispy Kreme Doughnuts, Inc. (NYSE: KKD) (the “Company”) today reported financial results for the second quarter of fiscal 2011, ended August 1, 2010.  The Company also raised its earnings outlook for fiscal 2011 as a whole.

Second Quarter Fiscal 2011 Highlights Compared to the Year-Ago Period:

• Revenues increased 6.3% to $87.9 million from $82.7 million
• Excluding the effects of refranchising Company stores, revenues rose 8.2%
• Company same store sales rose 5.7%, the seventh consecutive quarterly increase
• Operating income increased 41.2% to $4.2 million from $2.9 million
• Net income was $2.2 million, or $0.03 per share diluted, compared to a net loss of $157,000, or nil per share, in the second quarter last year

The Company ended the second quarter of fiscal 2011 with a total of 633 Krispy Kreme stores systemwide, a net increase of 17 shops during the quarter.  As of August 1, 2010, there were 84 Company stores and 549 franchise locations.

“Our financial results improved from the year ago period, as we realized revenue growth in all business segments, increased our consolidated operating income by roughly half, and delivered positive net income for the third consecutive quarter.  We are encouraged by the same store sales momentum at our Company stores, but also recognize that we must strengthen our execution so that top-line performance can more directly impact bottom-line profitability,” said Jim Morgan, the Company’s President and Chief Executive Officer.

Fiscal 2011 Outlook

“In our first quarter earnings release on June 3, we indicated that we expected operating income, exclusive of impairment charges and lease termination costs, to range from $11 million to $15 million for fiscal 2011.  Based on our results for the first half of the year, which exceeded our expectations, and other current information, we are raising that outlook.  We now estimate that fiscal 2011 operating income, exclusive of impairment charges and lease termination costs, will range from $13 million to $17 million,” Morgan continued.

“As we look ahead, we will continue working diligently to implement our strategic initiatives with the intention of maximizing shareholder value.  Our transition is an ongoing process, and we are confident we can build an even stronger foundation for the future by continuing to both invest in our businesses and support our domestic and international franchisees.  These steps are critical to accelerating long-term growth in both revenues and earnings.  We believe that we are only beginning to unlock the potential of the Krispy Kreme brand for our guests, customers, franchisees, team members and shareholders,” Morgan concluded.

Second Quarter Fiscal 2011 Results

Consolidated Results

For the second quarter ended August 1, 2010, revenues increased 6.3% to $87.9 million from $82.7 million.  Year-over-year revenue increases were generated in all four business segments.

Direct operating expenses increased to $76.9 million from $71.3 million, and as a percentage of total revenues, increased to 87.5% from 86.1%.  General and administrative expenses were $4.9 million compared to $4.8 million in the same period last year and, as a percentage of total revenues, decreased to 5.6% from 5.8%.  General and administrative expenses in the year-ago period included a non-recurring credit of $1.1 million from additional insurance proceeds related to litigation settled in October 2006.  Impairment charges and lease termination costs were a credit of $216,000 compared to a charge of $1.5 million in the year-ago period.  

Operating income increased 41.2% to $4.2 million from $2.9 million.  

Interest expense decreased to $1.6 million from $2.3 million, principally reflecting the Company’s reduced level of indebtedness.

Net income was $2.2 million, or $0.03 per diluted share, compared to a net loss of $157,000, or nil per share, in the second quarter of last year.

Segment Results

Company Stores revenues were essentially flat at approximately $60 million.  Higher same store sales and off-premises sales to grocers/mass merchants were offset by locations that were either closed or refranchised along with lower off-premises sales to convenience stores.  Excluding the effects of refranchising, Company Stores revenues rose 4.0%.  Same store sales at Company stores rose 5.7%, the seventh consecutive quarterly increase.

Domestic Franchise revenues increased 15.1% to $2.1 million, reflecting an 8.8% rise in sales by domestic franchisees.  Excluding the effects of refranchising, sales by domestic franchisees rose 4.2%.  Same store sales rose 5.0% at domestic franchise stores.  The Domestic Franchise segment generated operating income of $1.0 million compared to $434,000 last year.  

International Franchise revenues increased 5.3% to $4.0 million, reflecting higher royalties from increased sales by international franchise stores.  A decline in international franchise same store sales was offset by new store openings.  Adjusted to eliminate the effects of changes in foreign exchange rates, International Franchise same store sales fell 14.3%, reflecting waning honeymoon effects from the 313 stores opened internationally in the past three years, as well as anticipated cannibalization as markets develop.  The International Franchise segment generated operating income of $2.5 million compared to $1.9 million last year.  International franchisees continued to expand, with a net increase of 16 locations in the second quarter.  

Total KK Supply Chain revenues (including sales to Company stores) rose 18.9% to $44.9 million, driven by selling price increases in major product categories and by higher unit volumes.  External KK Supply Chain revenues rose 26.7% to $21.9 million compared to $17.3 million in the second quarter last year.  KK Supply Chain generated operating income of $7.3 million compared to $5.7 million in the second quarter last year reflecting, among other things, higher revenues as well as lower freight and other distribution costs.

Conference Call

Management will host a conference call to review second quarter results as well as management’s outlook for the balance of fiscal 2011 this afternoon at 4:30 p.m. (ET).  A live webcast of the conference call will be available at the Company’s website at www.KrispyKreme.com.  The call also can be accessed live by dialing (888) 215-6918 or, for international callers, by dialing (913) 312-0934.  A replay will be available after the call and can be accessed by dialing (888) 203-1112 and entering the passcode 5687421.  International callers may access the replay by dialing (719) 457-0820 and entering passcode 5687421.  The audio replay will be available through September 9, 2010.  A transcript of the conference call also will be available at the Company’s website.

Investor Conference Presentation

The Company will be presenting at the 8th Annual C.L. King Best Ideas Conference 2010 at The Omni Berkshire Place Hotel in New York City on Thursday, September 16, 2010.  The presentation is scheduled to begin at 1:45 p.m. (ET) and will be webcast from the Company’s website.

About Krispy Kreme

Krispy Kreme is a leading branded specialty retailer and wholesaler of premium quality sweet treats and complementary products, including its signature Original Glazed® doughnut.  Headquartered in Winston-Salem, NC, the Company has offered the highest quality doughnuts and great tasting coffee since it was founded in 1937.  Today, Krispy Kreme shops can be found in over 630 locations in 19 countries around the world.  Visit us at www.KrispyKreme.com.

Information contained in this press release, other than historical information, should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are based on management’s beliefs, assumptions and expectations of our future economic performance, considering the information currently available to management.  These statements are not statements of historical fact.  Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements.  The words “believe,” “may,” “could,” “will,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive” or similar words, or the negative of these words, identify forward-looking statements.  Factors that could contribute to these differences include, but are not limited to: the quality of Company and franchise store operations; our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans; our relationships with our franchisees; our ability to implement our international growth strategy; our ability to implement our new domestic operating model; currency, economic, political and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients; compliance with government regulations relating to food products and franchising; our relationships with off-premises customers; our ability to protect our trademarks and trade secrets; restrictions on our operations and compliance with covenants contained in our secured credit facilities; changes in customer preferences and perceptions; and risks associated with competition. These and other risks and uncertainties, which are described in more detail in the Company’s most recent Annual Report on Form 10-K and other reports and statements filed with the United States Securities and Exchange Commission, are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond the Company’s control, and could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.  New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company.  Any forward-looking statement speaks only as of the date on which such statement is made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

The Company believes that adjusted total revenues exclusive of the effects of refranchising, a non-GAAP measure, is a useful measure because it enables comparisons of the Company’s revenues that are unaffected by the Company’s decisions to sell operating Krispy Kreme stores to franchisees instead of continuing to operate the stores as Company locations.  In addition, this comparison is one of the performance metrics adopted by the compensation committee of the Company’s board of directors to determine the amount of incentive compensation potentially payable to the Company’s executive officers for fiscal 2011.

WINSTON-SALEM, N.C.  (RestaurantNewsRelease.com)  Krispy Kreme Doughnuts, Inc. (NYSE: KKD) plans to release its financial results for the second quarter of fiscal 2011 on Thursday, September 2, 2010, shortly after the market closes.  The Company plans to host a conference call to review the results and management’s outlook for the balance of fiscal 2011 at 4:30 p.m. (ET) that day.

A live webcast of the conference call will be available at www.KrispyKreme.com.  The conference call also can be accessed over the phone by dialing (888) 215-6918 or, for international callers, by dialing (913) 312-0934.  To access an archived audio replay of the call, dial (888) 203-1112, or (719) 457-0820 for international callers; the passcode is 5687421.  The audio replay will be available through September 9, 2010. A transcript of the conference call will also be available at the Company website.

About Krispy Kreme

Krispy Kreme is a leading branded specialty retailer and wholesaler of premium-quality sweet treats, including its signature Original Glazed(R) doughnut.  Headquartered in Winston-Salem, N.C., the Company has offered the highest-quality doughnuts and great-tasting coffee since it was founded in 1937.  Today, Krispy Kreme can be found in over 600 locations around the world.  Visit us at www.KrispyKreme.com.

NASHVILLE, Tenn.  (RestaurantNewsRelease.com)  J. Alexander’s Corporation (NASDAQ: JAX) today reported operating results for the second quarter and first half of fiscal 2010 ended July 4, 2010.

A summary of the second quarter of 2010 compared to the second quarter of 2009 follows:

• Net sales increased 4.7% to $36,336,000 from $34,710,000.
• Average weekly same store sales per restaurant advanced 4.7%.
• The loss before income taxes was $357,000 compared to a loss before income taxes of $1,431,000 in the second quarter of 2009.
• An income tax benefit of $383,000 was recorded for the second quarter of 2010 compared to a benefit of $635,000 in the second quarter of 2009.
• Net income was $26,000 compared to a net loss of $796,000 in the second quarter of 2009, and the diluted earnings per share were $.00 compared to a loss per share of $.12 in the second quarter of 2009.

Commenting on results for the second quarter of 2010, Lonnie J. Stout II, Chairman, President and CEO, said, “We are pleased with the continued upward trend in same store sales which was responsible for much of the improvement in our performance. Our sales gains were somewhat ahead of our expectations and were broad-based with most of our restaurants posting increases. We are encouraged with these results, but very mindful that we still have a way to go before returning to our pre-recession sales and profit levels.”

For the second quarter of 2010, J. Alexander’s Corporation recorded average weekly same store sales per restaurant of $84,700, up from $80,900 in the corresponding quarter a year earlier. The Company’s average weekly sales per restaurant for the second period of 2010 were $84,800, an increase from $80,900 achieved in the second quarter of 2009. Same store sales calculations are based on 32 restaurants open for more than 18 months.

J. Alexander’s Corporation reported an increase of 2.6% in average guest counts on a same store sales basis from the comparable period of 2009. The average guest check, including alcoholic beverage sales for the quarter, rose 2.2% to approximately $25.00. The effect of menu price increases for the quarter just ended was approximately 1.3% compared to the same period a year earlier.

“In a still uncertain economy, we believe our sales performance and increases in guest counts indicate that our guests continue to appreciate the quality and service J. Alexander’s offers,” Stout observed.

The Company’s increases in same store sales contributed to lower labor and related costs and other restaurant operating expenses as percentages of net sales during the second quarter of the current year. Total labor and related costs decreased from 35.5% of net sales to 34.5% of net sales. Other restaurant operating expenses decreased to 22.5% of net sales from 23.5% of net sales. Depreciation and amortization of restaurant property and equipment decreased to 4.1% of net sales for the second quarter of 2010 from 4.8% for the second quarter of 2009 because asset impairment charges recorded at the end of 2009 significantly lowered the depreciable basis for the assets of two restaurants and because of the increase in same store sales.

Cost of sales for the second quarter of 2010 increased to 32.4% of net sales from 31.2% of net sales in the corresponding quarter of the previous year.

“Our cost of sales climbed in the second quarter of 2010 largely due to higher prices paid by the Company for beef and certain other food commodities,” Stout pointed out. “This took our cost of sales above our targeted level and we are implementing some very modest menu price increases to offset some of these higher food costs.”

For the second quarter of 2010, J. Alexander’s Corporation’s restaurant operating margins (net sales minus total restaurant operating expenses divided by net sales) increased to 6.6% from 5.1% in the same period of 2009.

General and administrative expenses for the second quarter of 2010 decreased by approximately $450,000, or 16.5%, largely due to charges included in the second quarter of 2009 related to litigation pending at that time. Stout added that the Company had done a good job of managing other general and administrative expenses as well and that expenses were down versus the prior year quarter in most categories.

For the first six months of 2010, J. Alexander’s Corporation recorded net sales of $75,061,000, up from $72,775,000 reported in the first two quarters of 2009. The Company recorded net income of $823,000, or $.14 per diluted share, compared to a net loss of $344,000, or $.05 per share, posted in the comparable two periods of 2009.

J. Alexander’s Corporation had average weekly same store sales per restaurant of $88,000 in the first six months of 2010, up 3.2% from $85,300 recorded in the first two quarters of 2009. The Company’s average weekly sales per restaurant for the first two periods of 2010 were $87,500, up 3.2% from $84,800 reported in the corresponding period of 2009.

The Company’s average guest counts for the first six months of 2010 increased 1.9% on a same store basis from the comparable six months of 2009. The average guest check, including alcoholic beverage sales, increased 1.5% to $25.13. The effect of menu price increases for the first two quarters of 2010 was approximately 0.9% compared to the same period of the prior year.

Total cost of sales for the first six months of 2010 was 31.9%, up from 31.3% in the comparable six month period of 2009. Restaurant labor and related costs for the first two quarters of the current year decreased to 33.8% of net sales from 34.4% of net sales in the same two periods of 2009, and other restaurant operating expenses decreased to 22.1% of net sales for the first half of 2010 compared to 22.8% for the first half of 2009. For the first six months of 2010, J. Alexander’s Corporation had restaurant operating margins of 8.1%, up from 6.9% in the first two quarters of 2009.

Stout said that the outlook for the balance of the year is generally favorable, but with questions remaining about the strength of the recovery and consumer confidence.

“We are seeing signs of recovery in the upscale segment of the restaurant industry. Our goal is to make sure we have our fair share of the business.

“Our outlook is considerably brighter than at this point a year ago. We enter the final half of 2010 with a very positive pace of sales momentum. We are confident in our ability to continue to improve the performance of our restaurants even in a fragile economic recovery.”

J. Alexander’s Corporation operates 33 J. Alexander’s restaurant in thirteen states: Alabama, Arizona, Colorado, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Michigan, Ohio, Tennessee and Texas. The Company’s menu features a wide selection of American classics, including steaks, prime rib of beef and fresh seafood, as well as a large assortment of interesting salads, sandwiches and desserts. J. Alexander’s also has a full-service bar that features an outstanding selection of wines by the glass and bottle.

J. Alexander’s Corporation is headquartered in Nashville, Tennessee.

This press release contains forward-looking statements that involve risks and uncertainties. Actual results, performance or developments could differ materially from those expressed or implied by those forward-looking statements as a result of known or unknown risks, uncertainties and other factors. These risks, uncertainties and factors include the Company’s ability to maintain satisfactory guest count levels and maintain or increase sales and operating margins in its restaurants under weak economic conditions, which may continue indefinitely and which could worsen, potentially resulting in additional asset impairment charges and/or restaurant closures and charges associated therewith; fluctuations in the Company’s operating results which could affect compliance with its debt covenants and ability to borrow funds; conditions in the U.S. credit markets and the availability of bank financing on acceptable terms; changes in business or economic conditions, including rising food costs and product shortages as well as mandated increases in the minimum wage the Company is required to pay; the effect of higher gasoline prices or commodity prices, unemployment and other economic factors on consumer demand; availability of qualified employees; increased cost of utilities, insurance and other restaurant operating expenses; potential fluctuations of quarterly operating results due to seasonality and other factors; the effect of hurricanes and other weather disturbances which are beyond the control of the Company; the number and timing of new restaurant openings and the Company’s ability to operate them profitably; competition within the casual dining industry, which is very intense; competition by the Company’s new restaurants with its existing restaurants in the same vicinity; changes in consumer spending, consumer tastes, and consumer attitudes toward nutrition and health; the potential impact of mandated food content labeling and disclosure legislation; expenses incurred if the Company is the subject of claims or litigation or increased governmental regulation; the impact associated with recently passed federal health care reform legislation, including the operating costs necessary to comply with applicable health care benefit requirements; changes in accounting standards, which may affect the Company’s reported results of operations; and expenses the Company may incur in order to comply with changing corporate governance and public disclosure requirements of the Securities and Exchange Commission and The NASDAQ Stock Market. These as well as other factors are discussed in detail in the Company’s filings made with the Securities and Exchange Commission and other communications.

MELVILLE, N.Y.  (RestaurantNewsRelease.com)  Sbarro, Inc. (the “Company”) announced results of operations for the second quarter and six months ended June 27, 2010. The Company’s detailed results are included in its Quarterly Report on Form 10-Q, which was filed with the SEC on August 11, 2010.

Second Quarter Financial Results

Revenues were $76.1 million for the quarter ended June 27, 2010 as compared to revenues of $80.1 million for the quarter ended June 28, 2009. The decrease in sales is due to a decrease in comparable-unit sales of $4.5 million or 6.2% in our QSR restaurants and lost sales from stores strategically closed of $1.4 million, partially offset by sales generated by new stores opened, remodeled or relocated in 2010 and 2009 of $1.9 million. Domestic franchise restaurants performed better than company-owned restaurants with a comparable-unit sales decline of 0.9%, mainly due to shifts in the university semesters as compared to the prior year. The decrease in company-owned and domestic franchise comparable-unit sales primarily reflects continued reduced consumer spending throughout the United States as a result of the current economic environment. Without consideration for foreign currency fluctuations, international franchise comparable-unit sales increased 4.1%. The valuation of the U.S. Dollar relative to foreign currencies added an additional 3.9% increase in international franchise comparable-unit sales.

EBITDA, as calculated in accordance with the terms of the Company’s bank credit agreements, was $6.3 million for the quarter ended June 27, 2010 as compared to $8.2 million for the quarter ended June 28, 2009. The decline was primarily the result of the decline in company-owned comparable-unit sales and an increase in commodity costs during the quarter, specifically cheese, partially offset by payroll and other cost savings initiatives.

As discussed in Exhibit A, EBITDA is a non-GAAP financial measure that management believes is an important metric for us to report to our investors, as we consider it a helpful additional indicator of our ability to meet future debt obligations and to comply with certain covenants in our borrowing agreements which are tied to this metric. Exhibit A includes a reconciliation of EBITDA to net loss, which is the most directly comparable financial measure under United States Generally Accepted Accounting Principles (“GAAP”). Exhibit A also identifies adjustments to EBITDA that are provided for under the Company’s bank credit agreements.

Year to Date Financial Results

Revenues were $155.1 million for the six months ended June 27, 2010 as compared to revenues of $159.7 million for the six months ended June 28, 2009. The decrease in sales is due to a decrease in comparable-unit sales of $5.4 million or 3.7% in our QSR restaurants and lost sales from stores strategically closed of $3.6 million, partially offset by sales generated by new stores opened, remodeled or relocated in 2010 and 2009 of $3.9 million. Domestic franchise comparable-unit sales declined 3.0%. The decrease in company-owned and domestic franchise comparable-unit sales primarily reflects continued reduced consumer spending throughout the United States as a result of the current economic environment. Without consideration for foreign currency fluctuations, international franchise comparable-unit sales increased 5.8%. The valuation of the U.S. Dollar relative to foreign currencies added an additional 7.0% increase in international franchise comparable-unit sales.

EBITDA, as calculated in accordance with the terms of the Company’s bank credit agreements, was $14.3 million for the six months ended June 27, 2010 as compared to $17.3 million for the six months ended June 28, 2009. The decline was primarily the result of the decline in company-owned comparable-unit sales and an increase in commodity costs, specifically cheese, partially offset by cost savings initiatives.

The Company was in compliance with all covenants as calculated in accordance with the terms of the Company’s bank credit agreement at June 27, 2010.

Nicholas McGrane, Interim President and Chief Executive Officer of Sbarro, Inc. commented, “Our results for the second quarter of 2010 continued to be impacted by the general economic slowdown still present in our operating environment. We are focusing on top line performance to strengthen results in the months ahead while continuing to balance our cost control initiatives.”

Conference Call Scheduled

Sbarro, Inc. will host a conference call on August 19, 2010 at 9:30 AM Eastern Time to discuss results of operations for the second quarter and six months ended June 27, 2010. There are two ways to participate in the conference call-via conference call or webcast. Domestic callers may dial in at 1-877-941-8601. International callers may dial in at 1-480-629-9810. Request to be connected to the Sbarro, Inc. Q2 Fiscal 2010 Earnings Conference Call, confirmation number 4349740. Callers should dial in five to ten minutes before the scheduled start time. You may also access the conference call via webcast by visiting Sbarro Inc.’s website (http://www.sbarro.com), selecting Investors, and going to Investor Presentations.

An archived copy of the call will be available for one week to replay beginning at 12:30 PM (ET) on August 19, 2010. Domestic callers may dial 1-877-870-5176 and International callers may dial 1-858-384-5517. The replay PIN number is 4349740. An archived copy of the call will also be available by accessing Sbarro, Inc.’s homepage.

About the Company

Based in Melville, New York, we are the world’s leading Italian quick service restaurant concept and the largest shopping mall-focused restaurant concept in the world. We have more than 1,000 restaurants in 41 countries. Sbarro restaurants feature a menu of popular Italian food, including pizza, a selection of pasta dishes and other hot and cold Italian entrees, salads, sandwiches, drinks and desserts. Additional information is available at http://www.sbarro.com.

Forward-Looking Statement Disclosure

This press release contains “forward-looking statements,” as such term is used in the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements about non-historical matters and often are identified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” and similar expressions. These forward-looking statements include statements about anticipated future store openings and growth and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of Sbarro and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include: (1) general economic, inflation, national security, weather and business conditions; (2) decrease in mall traffic, and other events arising from the downturn in the economy; (3) the availability of suitable restaurant sites in appropriate regional shopping malls and other locations on reasonable rental terms; (4) changes in consumer tastes; (5) changes in population and traffic patterns, including the effects that military action and terrorism or other events may have on the willingness of consumers to frequent malls, airports or downtown areas which are the predominant areas in which our restaurants are located; (6) our ability to continue to attract franchisees; (7) the success of our present, and any future, joint ventures and other expansion opportunities; (8) changes in commodity and commodity related prices (particularly cheese and flour), beverage and paper products; (9) our ability to pass along cost increases to our customers; (10) increases in the Federal minimum wage; (11) the continuity of services of members of our senior management team; (12) our ability to attract and retain competent restaurant and executive managerial personnel; (13) competition; (14) the level of, and our ability to comply with, government regulations; (15) our ability to generate sufficient cash flow to make interest payments under our borrowing agreements; (16) our ability to comply with financial covenants and ratios and the effects the restrictions imposed by those financial covenants and ratios may have on our ability to operate our business; (17) our ability to repurchase and/or repay amounts under our borrowing agreements to the extent required in the event of certain circumstances as defined in our borrowing agreements; and (18) other factors discussed in our filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

[Financial schedules to follow]

Our calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since all companies do not calculate this non-GAAP measure in the same manner. Our EBITDA calculations are not intended to represent cash provided by (used in) operating activities since they do not include interest and taxes and changes in operating assets and liabilities, nor are they intended to represent a net increase in cash since they do not include cash provided by (used in) investing and financing activities. The calculation of EBITDA under our bank credit agreements and under the indenture governing our Senior Notes may differ, because of differences in the definitions contained in those two documents. We provide a calculation of EBITDA under our bank credit agreements because we are required to satisfy a quarterly financial measurement that uses EBITDA as a compliance metric. Our indenture does not include a similar quarterly compliance covenant.

The following tables reconcile net loss attributable to Sbarro, Inc. for the following periods in 2010 and 2009, respectively, to EBITDA as defined in the Company’s bank credit agreements for the same periods. We believe that net loss is the most directly comparable GAAP financial measure to EBITDA. All amounts below are in thousands.

COSTA MESA, Calif.  (RestaurantNewsRelease.com)  EPL Intermediate, Inc. (“El Pollo Loco” or the “Company”), parent company of El Pollo Loco, Inc., today reported results for the 13-week second quarter and 26 weeks ended June 30, 2010.

El Pollo Loco reported total operating revenue for the 13-week period ended June 30, 2010 of $71.2 million, which is a decrease of $1.4 million, or 2.0%, compared to total operating revenue for the 13-week period ended July 1, 2009 of $72.7 million. Total operating revenue includes restaurant sales from company-operated stores and franchise revenue.

The decrease in total operating revenue was primarily attributed to a 4.9% decrease in system-wide same-store sales for the 13-week second quarter of 2010 compared to the 13-week second quarter of 2009. Restaurants enter the comparable restaurant base for same-store sales the first full week after that restaurant’s 15-month anniversary.

Commenting on results for the second quarter of 2010, Stephen E. Carley, president and CEO of El Pollo Loco, Inc. said, “Our sales continue to be negatively impacted by the high rate of unemployment in our core markets and the increased frugality we continue to observe among consumers dining out. We expect the adverse economic conditions to continue through the second half of 2010 and possibly into 2011.”

“Our marketing initiatives during the second quarter included our ‘Free $5.00 Loco Cash Card with the Purchase of Any Family Meal’ promotion which began in mid-March and helped to drive more families into our restaurants. In May, we continued our commitment to bold flavor and flame-grilling with the introduction of two premium flame-grilled chicken sandwiches, our Guacamole Chicken Sandwich and a Jalapeno Chicken Sandwich. Together, these quality whole muscle breast fillet sandwiches exceeded our sales mix expectations.”

Operating income increased $3.1 million, or 74.9%, to $7.2 million for the 13 weeks ended June 30, 2010 from $4.1 million for the same period of 2009. This increase in operating income was mainly due to a decrease in legal settlements of $3.0 million and a decrease in product cost of $1.4 million, which were partially offset by the lower revenue mentioned above and a $1.3 million asset impairment charge for one underperforming restaurant that will continue to operate.

Interest expense, net of interest income, increased $0.8 million, or 10.3%, to $9.2 million for the second quarter of 2010 from $8.4 million for the second quarter of 2009. This increase was mainly due to the May of 2009 issuance of $132.5 million aggregate principal amount of 11¾% senior secured notes.

Despite having a loss for the thirteen weeks ended June 30, 2010, we had an income tax provision of $0.03 million primarily related to the effect of changes in our deferred taxes and the related effect of maintaining a full valuation allowance against certain of our deferred tax assets as of June 30, 2010. For the thirteen weeks ended July 1, 2009, we had an income tax provision of $19.6 million as we recorded a valuation allowance against our deferred tax assets.

As a result of the factors cited above, there was a net loss for the 13 weeks ended June 30, 2010 of $2.0 million compared to a net loss of $24.5 million for the same 13 weeks of 2009.

Total operating revenue for the 26 weeks ended June 30, 2010 was $139.2 million, which was a decrease of $4.1 million, or 2.8%, from total operating revenue for the 26 weeks ended July 1, 2009 of $143.3 million. The decrease was primarily due to a decrease in same-store sales for the system of 5.7% for the 26 weeks ended June 30, 2010 compared to the corresponding period of 2009.

Operating income increased $3.4 million, or 41.7%, to $11.6 million for the 26 weeks ended June 30, 2010 from $8.2 million for the same period of 2009. This increase in operating income was primarily due to a decrease in legal settlements of $2.9 million and a decrease in product cost of $2.6 million, which was partially offset by the lower revenue discussed above.

Despite having a loss for the 26 weeks ended June 30, 2010, we had an income tax provision of $0.8 million, primarily related to the effect of changes in our deferred taxes and the related effect of maintaining a full valuation allowance against certain of our deferred tax assets as of June 30, 2010. For the 26 weeks ended July 1, 2009, we had an income tax provision of $19.5 million as we recorded a valuation allowance against our deferred tax assets.

As a result of the factors noted above, the company had a net loss for the 26 weeks ended June 30, 2010 of $7.7 million compared to a net loss of $25.8 million for the 26 weeks ended July 1, 2009.

Commenting on the remainder of 2010, Carley said, “While the economy continues to pose challenges, we are not standing by waiting for conditions to improve. We are aligning our entire team around our grills as our point of differentiation and sharpening our focus on providing value to our guests while protecting profitability with: new menu items that leverage our flame-grilling expertise; greater choice now that we serve both chicken and steak; our Loco Value Menu; and compelling family meal offers.”

El Pollo Loco’s restaurant count changes for the 13 weeks ended June 30, 2010 are as follows:

Addressing the Company’s plans, Mr. Carley said, “As we shared earlier this year, we expect to open fewer restaurants this year than last, due in part to the continued difficulty franchisees are having securing financing in this tough environment and the impact that the challenging economy has had on our franchisees, several of whom have delayed or reduced the number of new restaurants they plan to open. One new franchise restaurant opened in Big Bear, CA during the second quarter of 2010 and one franchise restaurant in Santa Cruz, CA closed during this timeframe. Since the close of the second quarter, one additional new franchise restaurant opened in San Diego, CA.

“We plan to open two company stores later this and expect our franchisees to open one more restaurant before the end of the year. These restaurants will be located in areas where El Pollo Loco already has a presence.”

System-wide Sales

Included above is system-wide same-store sales information. System-wide sales are a financial measure that includes sales at all company-owned stores and franchise-owned stores, as reported by franchisees. Management uses system-wide sales information internally in connection with store development decisions, planning and budgeting analyses. Management believes system-wide sales information is useful in assessing consumer acceptance of the Company’s brand and facilitates an understanding of financial performance as the Company’s franchisees pay royalties and contribute to advertising pools based on a percentage of their sales.

Safe Harbor Statement

This news release may be deemed to contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company intends that all such statements be subject to the safe harbor provisions contained in those sections. Forward-looking statements are statements that do not relate solely to historical fact. They include, but are not limited to, statements such as “we expect the adverse economic conditions to continue through the second half of 2010 and possibly into 2011,” “we expect to open fewer restaurants this year than last,” and “we plan to open two company stores later this year and expect our franchisees to open one more restaurant before the end of the year,” and any other statements that may predict, forecast, indicate or imply future results, performance, achievements or events. Forward-looking statements generally contain words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” “will,” “should,” “may,” “could” or words or phrases of similar meaning. Forward-looking statements reflect management’s current expectations regarding future results, performance, achievements or events that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and many important factors, including factors outside of the control of the Company, could cause actual results, performance, achievements or events to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include but are not limited to: the adverse impact of economic conditions on our operating results and financial condition, on our ability to comply with the terms and covenants of our debt agreements, and on our ability to pay or to refinance our existing debt or to obtain additional financing; our substantial level of indebtedness; food-borne-illness incidents; negative publicity, whether or not valid; increases in the cost of chicken; our dependence upon frequent deliveries of food and other supplies; our vulnerability to changes in consumer preferences and economic conditions; our sensitivity to events and conditions in the Southern California area, our largest market; our ability to compete successfully with other quick service and fast casual restaurants; our ability to expand into new markets; our reliance on our franchisees, who have also been adversely impacted by the recession; matters relating to labor laws and the adverse impact of related litigation, including wage and hour class actions; our ability to support our franchise system; our ability to renew leases at the end of their term; the impact of applicable federal, state or local government regulations; our ability to protect our name and logo and other proprietary information; litigation we face in connection with our operations; and other risk factors listed from time to time in the Company’s reports filed with the Securities and Exchange Commission. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, the Company cannot assure the reader that the results, performance, achievements or events contemplated by the forward-looking statements will be realized in the timeframe anticipated or at all. In light of the significant uncertainties inherent in forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s objectives or plans will be achieved. Accordingly, readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as the result of new information, future events or otherwise. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, as each may be amended from time to time. Statements about the Company’s past performance are not necessarily indicative of its future results.

About the Company

El Pollo Loco® is the nation’s leading restaurant concept specializing in flame-grilled chicken. Headquartered in Costa Mesa, California, El Pollo Loco, Inc. operates a restaurant system comprised of 171 company-operated and 241 franchised restaurants (as of June 30, 2010) located primarily in California, with additional restaurants in Arizona, Colorado, Connecticut, Georgia, Illinois, Missouri, Nevada, New Jersey, Oregon, Texas, Utah and Virginia. El Pollo Loco’s menu features the Company’s signature citrus-marinated, flame-grilled chicken in individual and family-size meals served with a choice of corn or flour tortillas, freshly-prepared salsas and an assortment of side orders. El Pollo Loco also serves a variety of contemporary, Mexican-inspired entrees featuring the chain’s citrus-marinated, flame-grilled chicken and Carne Asada-style Sirloin steak, including Pollo Bowl® entrees, pollo salads, grilled burritos, tacos, quesadillas and more. For more information about the Company, visit www.elpolloloco.com.

(1) General and administrative expenses as a percent of total operating revenue for the 13 weeks ended July 1, 2009 was 11.8% and 9.9% for the 13 weeks ended June 30, 2010.

(2) General and administrative expenses as a percent of total operating revenue for the 26 weeks ended July 1, 2009 was 12.3% and 10.1% for the 26 weeks ended June 30, 2010.

NASHVILLE, Tenn.  (RestaurantNewsRelease.com)  O’Charley’s Inc. (Nasdaq: CHUX) today reported operating results for the 12-week period ended July 11, 2010, and filed its Form 10-Q for the second quarter of 2010.

Financial and Operating Highlights

• Revenue for the second quarter of fiscal 2010 decreased by 5.9 percent to $194.1 million from $206.2 million in the second quarter of fiscal 2009. Second quarter same-store sales at O’Charley’s company-operated restaurants declined by 7.9 percent, on a 5.7 percent decline in guest counts and a 2.4 percent decline in average check. Same-store sales at Ninety Nine declined by 0.5 percent, as a 0.4 percent increase in guest counts was offset by a 0.9 percent decline in average check. Same store sales at Stoney River Legendary Steaks declined by 0.7 percent, as a 7.8 percent increase in guest counts was offset by an 8.0 percent decline in average check.
• Restaurant-level margins, which the Company defines as restaurant sales less cost of food and beverage, payroll and benefits costs, and restaurant operating costs, decreased to 14.1 percent of restaurant sales from 16.4 percent in the prior year quarter, with year-over-year margin improvement at Stoney River offset by margin declines at O’Charley’s and Ninety Nine.
• General and administrative expenses for the quarter were $10.2 million, or 5.3 percent of revenue, and included severance and other charges of $2.4 million, or 1.2 percent of revenues relating to organizational changes in the quarter. General and administrative expenses in the prior year quarter were $8.1 million, or 3.9 percent of revenues.
• Including the severance charges, loss from operations in the quarter was $0.5 million, or 0.3 percent of revenues, compared to income from operations of $5.2 million, or 2.5 percent of revenues in the prior year quarter. Results for the prior year quarter included impairment charges of $1.5 million. Adjusted EBITDA in the quarter was $12.4 million, or 6.4 percent of revenues, compared to $18.9 million, or 9.2 percent of revenues in the prior year quarter. Adjusted EBITDA is a non-GAAP supplemental financial measure that the Company believes may be useful for understanding its financial performance. A reconciliation of adjusted EBITDA to income from operations is provided later in this release.
• Results for the quarter include interest expense of $2.9 million, and an income tax benefit of $0.9 million, resulting in a net loss attributable to common shareholders of $2.5 million, or $0.12 per diluted share. In comparison, net earnings available to common shareholders in the prior year quarter were $2.8 million, or $0.13 per diluted share.
• Capital investment during the quarter was $4.7 million, compared to $4.5 million in the prior year quarter. At quarter end, the Company had a cash balance of $25.9 million, and had no drawings on its revolving line of credit.

“Although the economic environment continues to be challenging for casual dining companies, two of our three concepts, Ninety Nine and Stoney River, experienced a positive shift in momentum in the second quarter,” said Philip J. Hickey, Jr., chairman of the board of directors and interim chief executive officer of O’Charley’s Inc. “Ninety Nine outperformed its relevant Knapp-Track averages in the quarter, and had its first quarter of positive guest count growth in more than four years. Our guests continue to respond favorably to our ‘Nine Real-Sized Entrees for $9.99’ offering, and we hope to continue this momentum at Ninety Nine in the second half of the year. It appears that the repositioning of the Stoney River concept continues to show progress. Same store sales were better than the trends of the past three years, guest counts have been positive in the high single digits for three consecutive quarters, and restaurant operating margin in the quarter improved by 530 basis points compared to the prior year quarter.

“While we were disappointed with the second quarter financial performance of the O’Charley’s concept, we believe that enhanced focus on innovative food offerings, service improvements and value will lead to a shift in sales trends later this year. We believe that improving guest counts is the first step toward improving the sales and profitability of the concept. In this regard, we recently re-introduced ‘2 Meals for $14.99’ featuring our proven favorites combined with value-priced appetizer, beverage, and full-meal offerings. As we announced last week, David Head will be joining us soon as President and Chief Executive Officer and a member of our Board of Directors. I look forward to working closely with David to continue our pursuit of positive momentum.”

Outlook for the Third Quarter of 2010

Given the current uncertainty in the general economic outlook and the outlook for consumer spending, the Company does not believe that it has sufficient visibility to offer a projection of its full-year 2010 financial performance. For the third quarter of 2010, the Company is forecasting total revenue of between $186 million and $192 million, and a loss from operations of between $1 million and $4 million. The Company projects adjusted EBITDA of between $7 million and $10 million in the third quarter, based upon estimated depreciation and amortization expense of approximately $10 million, and estimated stock compensation expense of approximately $1 million.

Investor Conference Call and Web Simulcast

O’Charley’s Inc. will conduct a conference call on its 2010 second quarter results on August 12, 2010, at 11:00 a.m. Eastern. The number to call for this interactive teleconference is (877) 941-8631, and the confirmation passcode is 4343186. Please dial in 10 minutes prior to the beginning of the call. A replay of the conference call will be available through August 26, 2010, by dialing (800) 406-7325 and entering passcode 4343186.

The live broadcast of O’Charley’s conference call will be available online: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=82565&eventID=3270686

If you are unable to participate during the live Webcast, the call will be archived on the Company’s Web site at www.ocharleysinc.com, as well as www.streetevents.com and www.earnings.com, and be available through August 26, 2010.

About O’Charley’s Inc.

O’Charley’s Inc., headquartered in Nashville, Tenn., is a multi-concept restaurant company that operates or franchises a total of 367 restaurants under three brands: O’Charley’s, Ninety Nine Restaurant, and Stoney River Legendary Steaks. The O’Charley’s concept includes 243 restaurants in 19 states in the Southeast and Midwest, including 234 company-operated O’Charley’s restaurants, and 9 restaurants operated by franchisees. The menu, with an emphasis on fresh preparation, features several specialty items, such as hand-cut and aged USDA choice steaks, a variety of seafood and chicken, freshly baked yeast rolls, fresh salads with special-recipe salad dressings and signature caramel pie. The company operates Ninety Nine restaurants in 113 locations throughout New England and the Mid-Atlantic states. Ninety Nine has earned a strong reputation as a friendly, comfortable place to gather and enjoy great American food and drink at a terrific price. The menu features a wide selection of appetizers, salads, sandwiches, burgers, entrees and desserts. The company operates 11 Stoney River Legendary Steaks restaurants in six states in the East, Southeast and Midwest. The steakhouse concept appeals to both upscale casual-dining and fine-dining guests by offering high-quality food and attentive customer service typical of high-end steakhouses, but at more moderate prices.

Forward Looking Statement

The forward looking statements in this press release and statements made by or on behalf of the Company relating hereto, including those containing words like “forecast,” “expect,” “project,” “believe,” “may,” “could,” “anticipate,” and “estimate,” are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be affected by certain risks and uncertainties, including, but not limited to, the continued deterioration in the United States economy and the related adverse effect on our sales of decreases in consumer spending; the Company’s ability to comply with the terms and conditions of its financing agreements; the Company’s ability to maintain or increase operating margins and same-store sales at its restaurants; the effect that increases in food, labor, energy, interest costs and other expenses have on our results; the effect of increased competition; the Company’s ability to sell closed restaurants and other surplus assets; and the other risks described in the Company’s filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included herein, you should not regard the inclusion of such information as a representation by us that our objectives, plans and projected results of operations will be achieved and the Company’s actual results could differ materially from such forward-looking statements. The Company does not undertake any obligation to publicly release any revisions to the forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.