Frisch's Reports Higher Earnings in the Second Quarter of Fiscal 2009

CINCINNATI, Jan. 20  /PRNewswire-FirstCall/ -- Frisch's Restaurants, Inc. (NYSE Alternext US: FRS) reported higher earnings for its 12-week fiscal second quarter ended December 16, 2008.   Net earnings for the quarter increased 2.2% to $2,215,787 compared to $2,168,015 last year.  Diluted earnings per share increased to $.43 per share, from $.41 per share last year. Sales declined a modest 0.2% to $69,093,061 from $69,213,384 for last year's second quarter.

For the first half of fiscal 2009, sales were a record $158,974,692 rising 0.1% from $158,739,828 for the first half of last year.  Earnings decreased 4.9% to $4,390,847 from $4,618,500.  Diluted earnings per share declined to $.85 from $.88 last year.

Craig F. Maier, President and Chief Executive Officer, said, "Same store sales at our Big Boy Restaurants increased a modest 0.6% in the second quarter. The sluggish Midwest economy continues to drive down customer traffic in our restaurants."

Maier added, "Our Golden Corral restaurants posted a same store sales decline of 2.2% during the second quarter.  The recession in the Midwest has had an even stronger negative impact on the sales of our Golden Corrals."

One new Big Boy restaurant opened during the second quarter.  No Golden Corral restaurants were opened during the second quarter. Frisch's operates 35 Golden Corral restaurants and 89 company-owned Big Boy restaurants, and there are an additional 26 franchised Big Boy restaurants operated by licensees.

The lower earnings for the first half of the year can be attributed to higher food cost in the Big Boy restaurants and lower sales in the Golden Corral operations.

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.

               Frisch's Restaurants, Inc. and Subsidiaries
              CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
                  (In thousands, except per share data)

                               Twenty-eight weeks ended  Twelve weeks ended
                                  December   December   December   December
                                      16,       11,        16,        11,
                                     2008      2007       2008       2007

  Sales                            $158,975  $158,740   $69,093   $69,213

  Cost of sales
    Food and paper                   57,747    55,952    24,473    24,355
    Payroll and related              52,148    52,490    22,551    22,711
    Other operating costs            35,870    35,559    15,431    15,198
                                    145,765   144,001    62,455    62,264
  Gross profit                       13,210    14,739     6,638     6,949
    Administrative and advertising    7,746     7,830     3,308     3,483
    Franchise fees and other revenue   (692)     (679)     (291)     (301)
    Gains on sale of assets          (1,116)     (525)        -         -

  Operating profit                    7,272     8,113     3,621     3,767
    Interest expense                  1,087     1,320       499       578
  Earnings before income tax          6,185     6,793     3,122     3,189
  Income taxes                        1,794     2,174       906     1,021
  NET EARNINGS                       $4,391    $4,619    $2,216    $2,168

  Earnings per share (EPS) of
   common stock:
    Basic net earnings per share       $.86      $.90      $.43      $.42
    Diluted net earnings per share     $.85      $.88      $.43      $.41

  Diluted average shares outstanding  5,166     5,253     5,144     5,253
  Depreciation included above        $7,265    $7,492    $3,180    $3,264
  Opening expense included above       $531      $605      $202       $20




                   Frisch's Restaurants, Inc. and Subsidiaries
                            CONSOLIDATED BALANCE SHEET
                            (In thousands of dollars)

                                                   December 16,   June 3,
                                                      2008         2008
                                                   (unaudited)

   Assets
     Current assets
       Cash and equivalents                            $332         $801
       Receivables                                    1,449        1,448
       Inventories                                    6,064        5,648
       Other current assets                           3,122        2,797
                                                     10,967       10,694

     Property and equipment                         158,584      153,839

     Other assets
       Goodwill & other intangible assets             1,587        1,633
       Property held for sale and land investments    2,743        3,870
       Other                                          1,685        2,024
                                                      6,015        7,527

                                                   $175,566     $172,060

   Liabilities and shareholders' equity
     Current liabilities
       Accounts payable                             $11,331      $10,281
       Accrued expenses                              10,867       10,675
       Other                                          9,401        9,880
                                                     31,599       30,836

     Long-term obligations
       Long-term debt                                25,005       24,217
       Other long-term obligations                    5,686        6,292
                                                     30,691       30,509

     Shareholders' equity                           113,276      110,715

                                                   $175,566     $172,060


DATASOURCE: Frisch's Restaurants, Inc.



CONTACT:  Donald H. Walker, Vice President-Finance and CFO, Frisch's

Restaurants, Inc., [phone]



Web Site:  http://www.frischs.com/ 

Copyright