Frisch's Reports Higher Sales and Earnings In Second Quarter of Fiscal 2012

CINCINNATI, Jan. 10, 2012 /PRNewswire/ -- Frisch's Restaurants, Inc. (NYSE Amex: FRS) reported higher earnings and revenue for its 12-week fiscal second quarter ended December 13, 2011.  Net earnings for the quarter increased 12.2 percent to $2,788,106 compared to $2,484,877 last year, largely the result of a lower effective tax rate. Diluted net earnings per share increased 14.3 percent to $0.56 per share, from $0.49 per share last year.  Revenue increased modestly to $70,741,753 from $70,651,447 in last year's second quarter.  However, negatively affecting the revenue comparison is the closure of six underperforming Golden Corral units on August 23, 2011. Excluding the impact of these closures, revenue increased 4.0 percent in the quarter on solid growth in the Golden Corral segment. Year-to-date revenue was $162,469,942 versus $163,577,281 in the prior year.  Excluding the impact of the Golden Corral closures, year-to-date revenue grew 1.7 percent over the same period in fiscal 2011.

In our Big Boy segment, same store sales were up 0.4 percent while overall sales increased 2.3 percent as a result of new store openings.  Gross profit in the Big Boy segment declined 6.6 percent in the quarter versus prior year primarily as a result of higher food and paper costs and depreciation expense.  Higher food costs continue to reflect industry trends driven by increased costs of beef and other raw materials. 

Same store sales in our Golden Corral segment increased 7.8 percent.  Gross profit in the Golden Corral segment increased 39.1 percent in the quarter versus prior year as a result of increased same store revenue combined with the elimination of losses generated by the closed stores. 

Craig F. Maier, President and Chief Executive Officer, commented on the results, "Although the restaurant industry continues to suffer from declining customer counts and over capacity driven by the soft economy, the strength of our company's brands allowed us to deliver solid results in the quarter.  Our Golden Corral restaurants posted a strong same store sales increase during the quarter as the national marketing campaigns of Golden Corral drove revenue gains along with the migration of some customers from our six closed restaurants to nearby locations."   

The company opened one new Big Boy restaurant in July in our first quarter and a second restaurant in October in our second quarter.  Frisch's currently operates 95 company-owned Big Boy restaurants and there are an additional 25 franchised Big Boy restaurants operated by licensees.  The company also operates 29 Golden Corral restaurants. 

[See attached Financial Statements]

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.

SOURCE Frisch's Restaurants, Inc.