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Frisch's Reports Record Sales in First Quarter |
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Frisch's Restaurants, Inc. (NYSE Alternext US: FRS) reported record sales for its 16-week fiscal first quarter ended September 23, 2008. Revenues rose 0.4% to $89,881,631 from $89,526,444 for last year's first quarter. |
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Net earnings for the quarter decreased 11.2% to $2,175,060 compared to $2,450,485 last year. Diluted earnings per share decreased to $.42 per share, from $.47 per share last year.
Craig F. Maier, President and Chief Executive Officer, said, "Same store sales at our Big Boy Restaurants increased 0.2% in our fiscal first quarter. We believe the high cost of gasoline and the softness in the economy have contributed to the slowdown in our same store sales at Big Boy."
Maier added, "On the brighter side, our Golden Corral restaurants posted a same store sales increase of 1.2% during the first quarter. The value of our all-you-can-eat buffet has slowed the decline in customer counts in our Golden Corrals."
During the quarter, the Company opened one new Big Boy restaurant and reopened another in a brand new facility. Frisch's operates 89 company-owned Big Boy restaurants and there are an additional 27 franchised Big Boy restaurants operated by licensees. The Company also operates 35 Golden Corral restaurants.
The decline in earnings for the quarter can mostly be attributed to the rise in food cost that has been driven by higher commodity prices. The earnings decline was partially offset by larger gains on the sale of assets, principally closed restaurant properties.
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.
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