McCormick & Schmick's Seafood Restaurants, Inc. Reports Second Quarter 2009 Financial Results

McCormick & Schmick's Seafood Restaurants, Inc. (Nasdaq: MSSR) today reported financial results for its second quarter ended June 27, 2009.

Financial results for the second quarter 2009 compared to the second quarter 2008:

• Revenues decreased 7.0% to $92.7 million from $99.7 million

• Comparable restaurant sales decreased 17.3%

• Net income of $1.2 million, or $0.08 per diluted share, compared to net income of $2.4 million, or $0.16 per diluted share

• Pro forma net income was $1.3 million, or $0.09 per diluted share, excluding impairment, restructuring and other charges (see attached reconciliation to GAAP)

Revenues for the second quarter of 2009 decreased 7.0% to $92.7 million from $99.7 million in the second quarter of 2008. The decrease in revenues is primarily attributable to the decline in comparable restaurant sales, partially offset by revenue from new restaurants not in the comparable restaurant base. The decrease in comparable restaurant sales of 17.3% was a result of a 16.7% decrease in traffic, which was coupled with a decrease in net pricing of 0.6%.

Bill Freeman, Chief Executive Officer said, 'While the challenging economic environment resulted in a decrease in comparable sales for the quarter, we are pleased with the impact our cost savings initiatives have had on our operating results. Throughout the second quarter we remained focused on our efforts to contain costs while introducing new revenue building initiatives for the future. I am encouraged by the evolution of our marketing strategy as we focus on communicating to a broader audience to strengthen our connectivity to our guests.'

2009 Outlook

The Company reaffirms its annual guidance of approximately $370.0 million in revenues and diluted earnings per share of $0.25-$0.30.

The Company expects its annualized effective tax rate to be between 5% to 10% due to the projection of modest taxable income for the year in certain taxing jurisdictions and the change in net deferred tax assets will be insignificant.

The Company opened two new restaurants in the first quarter and did not open any restaurants in the second quarter of 2009. The Company does not plan to open any additional restaurants in 2009. Capital expenditures for 2009 are expected to be approximately $8.0 million.

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