Frisch’s Restaurants Inc. said costs associated with the building and opening of new Big Boy outlets combined with higher food costs drove profits down in the company’s first quarter ended Sept. 21.
The Cincinnati-based company, which operates Big Boy and Golden Corral restaurants, said net income for the quarter fell 8.2 percent to $2.74 million compared with nearly $2.99 million for the same period last year.
Diluted earnings per share dipped to 54 cents per share from 57 cents per share last year.
The company said the decline was a result chiefly of expenses incurred in the opening of two new Big Boy restaurants during the quarter and the construction of two more units, which are scheduled to open in the second quarter.
Higher food costs and expenses related to maintenance and pensions also contributed to the decline, president and chief executive Craig Maier said.
Frisch’s revenue rose 4.4 percent, to $92.93 million, from $88.9 million in last year’s first quarter, a result of the new store openings.
The opening of the two new Big Boy units resulted in a total sales increase for that division of 4.5 percent, although same-store sales for stores open at least a year dipped 0.8 percent.
Golden Corral comp-store sales rose 4.4 percent, for which Maier credited “an effective marketing campaign during the first quarter.”
Frisch’s Restaurants operates or franchises 118 Big Boy restaurants and 35 Golden Corrals.
Contact Bret Thorn at [email protected].
