Frisch's Restaurants Inc. reported decreased profit and sales for its fourth quarter and fiscal 2010, including the first negative annual same-store sales result at its Big Boy chain in 12 years.
For the quarter ended June 1, Frisch's net income totaled $2.6 million, or 51 cents per share, compared with net income of $2.9 million, or 56 cents a share, in the year-ago quarter. Latest quarter revenue was essentially flat, dropping 0.1 percent to $71.1 million.
Same-store sales fell 2.7 percent at Frisch's Big Boy chain, but rose 0.7 percent at the company's Golden Corral units.
For the full fiscal 2010, Frisch's net income declined 6.7 percent to $10.0 million, or $1.93 per share, compared with year-ago earnings of $10.7 million, or $2.08 per share. Full-year revenue fell 1.7 percent to $292.9 million.
Same-stores were down 2.9 percent for the year at Golden Corral and dropped 1.6 percent at Big Boy, ending a 12-year run of annual same-store sales growth at that brand.
President and chief executive Craig Maier said low commodity prices in the first half of fiscal 2010 were offset by bad weather and a rise in food costs in the second half of the year.
Decreased sales and higher commodity prices remain challenges in the current fiscal year, he said.
As of June 1, Cincinnati-based Frisch’s operated 35 Golden Corral restaurants and 91 Big Boys, while franchisees operated an additional 25 Big Boys. The company opened four Big Boy restaurants during the fiscal year, one of which replaced an older unit.
Contact Bret Thorn at [email protected].
