CINCINNATTI Frisch’s Restaurants Inc., the operator of Frisch’s Big Boys and franchised Golden Corral restaurants, said Tuesday its third-quarter earnings jumped 65.1 percent from a year ago on stronger sales from the Golden Corral buffet chain, decreased food costs and a favorable legal settlement.
For the 12 weeks ended March 10, earnings totaled $3.4 million, or 66 cents per share, compared with $2.1 million, or 40 cents a share, in last year’s third quarter.
In the latest quarter, corporate sales rose 1.6 percent to $67.7 million. Same-store sales at Big Boy units increased 0.7 percent, and at Golden Corral restaurants rose 2.3 percent. The company attributes the turnaround to new marketing campaigns for both concepts, which improved customer counts. At Golden Corral a new national TV campaign debuted in January.
Earnings were also improved by an $890,000 litigation settlement from defective construction of a Golden Corral restaurant in Canton, Ohio, which was built in 2001 and demolished the following year.
Frisch’s also said its earnings were aided by a dip in food costs. Interest expense also was down, about 10 percent for the quarter.
This week, Frisch’s Big Boy also introduced four smaller sandwiches, available April 15 for a limited time. The “Just Right Favorites” snack menu features a double-decker hamburger called the junior Big Boy, for $1.85, a fish sandwich for $3.30, a chicken filet sandwich for $1.95, and a mini hot fudge cake priced at $1.50.
Frisch’s Restaurants owns 35 Golden Corral restaurants and 89 Big Boys. In addition, it is the franchisor of 26 Big Boys.
Its Big Boy restaurants are in Ohio, Kentucky and Indiana. Its Golden Corral units are primarily in Cincinnati, Cleveland, Columbus, Dayton and Toledo, Ohio, Louisville, Ky., and Pittsburgh.
Corporate sales for the nine months ended March 10 rose 0.6 percent to $226.7 million. Earnings increased 16.7 percent to $7.8 million, or $1.51 per share.
Contact Bret Thorn at [email protected].
