Perkins & Marie Callender's Inc. Reports Results for the Quarter Ended April 19, 2009

Perkins & Marie Callender's Inc. is reporting today the financial results for its quarter ended April 19, 2009.

Highlights for the first quarter of 2009 as compared to the first quarter of 2008 were:

• Restaurant segment income increased by $0.9 million, or 10.8%, due to lower commodity costs, menu price increases and operational efficiencies. Foxtail segment income increased by $0.2 million due to higher sales prices and lower commodity costs. Overall, adjusted EBITDA, as defined below, increased by $1.0 million.

• Total revenues were down 7.2% to $169.3 million in the first quarter of 2009, primarily due to decreases in comparable sales at Perkins and Marie Callender's restaurants, resulting from decreased comparable guest counts due to unfavorable economic conditions. Comparable sales for the first quarter of 2009 decreased by 4.9% at Perkins Company-operated restaurants and 6.9% at Marie Callender's Company-operated restaurants.

• Since the first quarter of 2008, the Company has opened one new Perkins restaurant and closed one Perkins restaurant. One Company-operated Marie Callender's restaurant has closed since the first quarter of 2008. One Perkins franchised restaurant opened since the first quarter of 2008, and four Perkins franchised restaurants were closed.

J. Trungale, President and Chief Executive Officer of Perkins & Marie Callender's Inc., commented, "We are satisfied that both Perkins and Marie Callender's have reacted appropriately in response to the economic pressures facing our segment. Our restaurants continue to deliver quality service and products at a strong price/value ratio, and are working continually to gain the long-term loyalty of our guests. We have been able to manage our restaurant operations well, particularly in terms of operational efficiency and cost controls, and will continue to be vigilant in our review of administrative costs, streamlining and seeking efficiencies whenever possible without impacting our guests' experience."

First Quarter of 2009 Financial Results

Revenues in the first quarter of 2009 decreased 7.2% to $169.3 million from $182.4 million in the first quarter of 2008. The decrease resulted from a $9.8 million decrease in sales in the restaurant segment, a $0.5 million decrease in revenues in the franchise segment and a $2.8 million decrease in sales in the Foxtail segment.

Food cost for the first quarter of 2009 decreased to 26.7% of food sales from 29.1% in the first quarter of 2008. Restaurant segment food cost was down by 1.1% to 26.0% of food sales in the first quarter of 2009 due to menu price increases and decreased commodity costs, particularly eggs, dairy products and oils. In the Foxtail segment, food cost decreased to 57.7% of food sales in the first quarter of 2009 from 63.8% in the first quarter of 2008, due to higher sales prices and lower commodity costs, particularly eggs and dairy products.

Labor and benefits costs, as a percentage of total revenues, increased by 0.1% to 32.7% in the first quarter of 2009 compared to the first quarter of 2008. In the first quarter of 2009, a 0.3% decrease in the restaurant segment resulting from more efficient hourly labor management was offset by increases resulting from decreased food sales in the Foxtail segment.

Operating expenses for the first quarter of 2009 were $45.7 million, or 27.0% of total revenues, compared to $47.0 million, or 25.7% of total revenues in the first quarter of 2008. Restaurant segment operating expenses increased by 0.6% to 28.8% of restaurant sales in the first quarter of 2009 due primarily to the decrease in revenues relative to fixed costs and increases in advertising expense for increased regional marketing efforts, partially offset by lower utilities costs. Operating expenses in the Foxtail segment increased by $0.7 million to 12.7% of segment food sales due primarily to higher custodial service costs and higher plant supervision wages.

General and administrative expenses were 8.3% of total revenues, an increase of 0.1% from the first quarter of 2008.

Depreciation and amortization was 4.3% and 4.2% of revenues in the first quarters of 2009 and 2008, respectively.

Interest, net was 8.0% of revenues in the first quarter of 2009, compared to 5.6% in the prior year's first quarter. The 240 basis point increase resulted mainly from an increase in the average effective interest rate on the Company's debt to 11.6% following the refinancing in the third quarter of 2008 from 9.9% during the first quarter of 2008 and an approximate $14.3 million increase in the average debt outstanding during the first quarter of 2009 compared to the first quarter of 2008.

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