Frisch's flat on Q4 profit decline
Shares of Cincinnati, Ohio-based Frisch’s Restaurants Inc. (AMEX: FRS) are little changed on news that net income declined in the fourth quarter but improved for the fiscal year.
The net income for the fourth quarter ended May 29 was $2.3 million, or $0.43 per share, compared with a net income of $2.7 million, $0.52 per share, during the final three months of the previous fiscal year, the operator of full-service family restaurants reported before the start of trading. Analyst estimates were not available.
The company runs family restaurants under the name “Frisch’s Big Boy,” in addition to grill buffet style restaurants under the name “Golden Corral.”
Profit for the fiscal year ended May 29 edged up 1% to $9.27 million, or $1.78 per share, compared with a profit of $9.16 million, or $1.78 per share, a year earlier.
“The higher earnings for the year can be attributed to a strong first half,” president and CEO Craig Maier said. However, Maier added that the momentum did not carry over into the second half of the fiscal year, when harsh winter weather, higher gasoline prices and an increase in the Ohio minimum wage all worked against Frisch’s.
Still, same-store sales at Big Boy restaurants increased for the tenth consecutive year, while annual same-store sales passed the $2 million mark for the first time in the company’s history.
Frisch’s operates 34 Golden Corral restaurants and 87 company-owned Big Boy restaurants, and has an additional 28 franchised Big Boy restaurants operated by licensees. It has reported a profit every year since going public in 1960.
At 1:11 p.m. ET the stock was up $0.26, or 1%, to $30.80. The 52-week high of $38.32 was established on April 9. The 52-week low of $22.70 was set on Aug. 21, 2006.
