Frisch’s Reports Fiscal 2010 Results

CINCINNATI  (RestaurantNewsRelease.com)  Frisch’s Restaurants, Inc. (NYSE Amex: FRS) reported sales of $292,872,174 for the fiscal year ended June 1, 2010.  Revenues declined $4,988,777, or 1.7%.  Net earnings for the year declined 6.7% to $9,998,931 compared to $10,720,855 last year.  Diluted earnings per share decreased to $1.93 per share, from $2.08 per share last year.  

For the fourth quarter of fiscal 2010, revenue declined 0.1% to $71,118,878 from $71,201,746 for the fourth quarter of last year.  Net earnings declined 10.3% to $2,618,339 compared to $2,920,254 in last year’s fourth quarter.  Earnings per share were $.51 compared to $.56 last year.  

Craig F. Maier, President and Chief Executive Officer, said, “Same store sales at our Big Boy Restaurants declined 1.6%, marking the end of a twelve year consecutive run of same store sales increases.  For the fourth quarter, Big Boy same store sales declined 2.7%.”  

Maier added, “Our Golden Corral restaurants posted a same store sales decrease of 2.9% during the year despite a sales improvement of 0.7% in the last quarter of the year.”

During the first half of the fiscal year, low commodity prices provided unusually low food costs, and as a result, even with reduced sales, earnings were up versus the prior year.  As the Company entered calendar 2010, the combination of inclement weather and the return of more normal costs for food had a negative impact on results for the second half of the year.  The decreases in same store sales in both concepts, along with higher commodity pricing, are challenges as the new fiscal year begins.  

During the year, the Company opened four new Big Boy restaurants, one of which replaced an older facility.  As of June 1, 2010, Frisch’s operated 35 Golden Corral restaurants and 91 company-owned Big Boy restaurants, and there were an additional 25 franchised Big Boy restaurants operated by licensees.  

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.