Join        Login             Stock Quote

Frisch's Restaurants (FRS) 2Q Earnings Drop 28.3 Pct

 January 16, 2013 09:26 AM

(By Balaseshan) Frisch's Restaurants Inc. (NYSEAMEX: FRS) reported a 28.3% drop in quarterly earnings due to higher taxes and discontinued operations. Sales declined 2.8% due to closure of underperforming Big Boy restaurants.

Earnings from continuing operations for the second quarter were $2.0 million or $0.39 per share, down from $2.06 million or $0.42 per share last year.

Sales declined 2.8% to $48.52 million, as a result of last fiscal year's closures of underperforming Big Boy restaurants offset in part by new restaurant openings.

Same store sales from continuing operations were down 1.7% in the latest quarter.

[Related -7 Stocks Providing Positive Feedback With Higher Dividends]

Gross profit from continuing operations increased 2.7%, resulting from lower food and payroll costs as a percentage of revenues combined with menu price increases. Gross margin rose to 12.3% from 11.7%.

At the corporate level, administrative and advertising expense decreased 2.6% primarily as a result of lower head count resulting from cost cutting measures implemented in fiscal 2013.

"Our second quarter showed mixed results as lower customer counts adversely affected same store sales while our food and payroll costs, as a percentage of sales, declined from the prior year resulting in higher gross margin," said Craig Maier, President and Chief Executive Officer.

In addition, the company said it has reduced its costs and personnel in the corporate headquarters to better match overhead structure with business after the sale of Golden Corral.

[Related -Dividend Roundup: AEO, PM, DVN, LHO, CLX, FRS, HUB.A]

Frisch's currently operates 94 company-owned Big Boy restaurants and there are an additional 25 franchised Big Boy restaurants operated by licensees.

On November 30, 2012, the company's board of directors declared a $0.16 per share quarterly dividend payable December 21, 2012 to shareholders of record at the close of business on December 12, 2012. This represents the 208th consecutive quarterly dividend paid by Frisch's.

FRS closed Tuesday's regular session at $17.87. The stock has been trading between $16.50 and $33.50 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageHow the Chinese Slowdown Will Impact Your Investments

Most countries would find a quarterly growth rate of 7.3% a cause for a read on...

article imageHow To Profit From Foreign Investment In Real Estate

Though investors don't always capitalize on it, history has a way of repeating itself. In fact, when I saw read on...

article imageAnother Round Of Upbeat US Macro Reports

The US economy grew faster than expected in this year’s third quarter, according to this morning’s read on...

article imageDistinguishing The Fed's Securities Purchases From Monetary Expansion

There has been a bit of confusion about what today's FOMC announcement means with respect to Quantitative read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.