8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 20, 2006

FRISCH’S RESTAURANTS, INC.

(Exact name of registrant as specified in its charter)

OHIO	001-07323	31-0523213
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

2800 GILBERT AVENUE, CINCINNATI, OHIO	45206
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code 513-961-2660

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Disclosure.

On January 20, 2006, the Company issued a press release announcing its financial results for the quarter ended December 11, 2005.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit 99.1 – Press release issued by the Company on January 20, 2006 is filed herewith.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	FRISCH’S RESTAURANTS, INC.
	(registrant)
DATE January 20, 2006
	BY	/s/ Donald H. Walker
		Donald H. Walker
		Vice President - Finance and
		Principal Financial Officer

EX-99.1

Exhibit 99.1

Company Contact:
	Donald H. Walker	Bill Roberts, CTC
	Vice President-Finance and CFO	(937) 434-2700
	Frisch’s Restaurants, Inc.	Wayne Buckhout, CTC
	(513) 559-5202	(937) 434-2700

Frisch’s Reports Record Sales in Second Quarter and First Half

of Fiscal 2006

FOR IMMEDIATE RELEASE

Cincinnati, OH—January 20, 2006, Frisch’s Restaurants, Inc. (Amex: FRS) reported record sales for the 12-week second quarter ended December 11, 2005. Revenues rose .3% to $66,953,103 from $66,747,477 for last year’s second quarter. Earnings for the quarter declined 40% to $1,682,771 compared to $2,785,987 last year. Diluted earnings per share decreased to $.33 per share from $.54 per share last year.

For the first half of the fiscal year, revenue rose 1.8% to $153,485,878 from $150,809,640 for the first half of last year. Earnings declined 25.4% to $4,284,802 from $5,740,906. Diluted earnings per share were $.83 for the first half of fiscal 2006 versus $1.11 per share last year.

Craig F. Maier, President and Chief Executive Officer, said, “Same store sales in the second quarter at our Big Boy restaurants decreased 1.8%, and they fell 1.2% during the first half of the year. We have now had three straight quarters of slight declines in our Big Boy same store sales. We believe that sharply higher energy prices and the soft Midwest economy have had a big impact on our sales.

“Same store sales for our Golden Corral restaurants declined 10.7% for the quarter and 10.5% year to date. The quarterly decline is the ninth consecutive decrease for our Golden Corral restaurants. To combat these declines, we have implemented a new marketing strategy that highlights a different dinner theme each night of the week. Further, we believe operational execution at our restaurants needs improvement, so we are going back to fundamentals. We now have thirty-four Golden Corrals in operation.”

Lower earnings in the quarter and first half can be attributed primarily to the same store sales declines, and also to higher operating expenses.

Net earnings for the second quarter and first half of last year have been restated for amounts the Company deems immaterial resulting from an error in the actuarial determination of pension cost that overstated the pension expense reported in prior years.

Frisch’s Restaurants, Inc. is a regional company that operates full service family-style restaurants under the name “Frisch’s Big Boy.” The Company also operates grill buffet style restaurants under the name “Golden Corral” pursuant to certain licensing agreements. All Big Boy restaurants are currently located in various regions of Ohio, Kentucky and Indiana. Golden Corral restaurants currently operate primarily in the greater metropolitan areas of Cincinnati, Dayton, Toledo and Cleveland, Ohio, Louisville, Kentucky and Pittsburgh, Pennsylvania. Plans are in place to expand the Golden Corral operation into markets in Columbus, Ohio, northern Indiana and southern Michigan.

The Company owns the trademark “Frisch’s” and has exclusive, irrevocable ownership of the rights to the “Big Boy” trademark, trade name and service mark in the states of Kentucky and Indiana, and in most of Ohio and Tennessee. All of the Frisch’s Big Boy restaurants also offer “drive-thru” service. The Company also licenses Big Boy restaurants to other operators, currently in certain parts of Ohio, Kentucky and Indiana.

The Company has reported a profit every year since going public in 1960, and paid cash dividends to shareholders every quarter over the same period.

Statements contained in this press release which are not historical facts are forward looking statements as that item is defined in the Private Securities Litigation Act of 1995. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company’s filings with the Securities and Exchange Commission.

Frisch’s Restaurants, Inc. and Subsidiaries

CONSOLIDATED STATEMENT OF EARNINGS

(In thousands, except per share data)

	Twenty-eight weeks ended						Twelve weeks ended
	Dec. 11, 2005			Dec. 12, 2004 (restated)			Dec. 11, 2005			Dec. 12, 2004 (restated)
Sales	$	153,486		$	150,810		$	66,953		$	66,747
Cost of sales
Food and paper		53,615			52,753			23,510			23,338
Payroll and related		50,752			50,043			22,200			22,136
Other operating costs		33,928			30,758			15,042			13,204
		138,295			133,554			60,752			58,678
Gross profit		15,191			17,256			6,201			8,069
Administrative and advertising		7,923			7,665			3,342			3,341
Franchise fees and other revenue		(662	)		(733	)		(290	)		(311	)
(Gains) losses on sale of assets		—			(89	)		—			(89	)
Operating profit		7,930			10,413			3,149			5,128
Interest expense		1,439			1,447			657			640
Earnings before income tax		6,491			8,966			2,492			4,488
Income taxes		2,206			3,225			809			1,702
NET EARNINGS		4,285			5,741			1,683			2,786
Earnings per share (EPS) of common stock:
Basic net earnings per share	$	.85		$	1.14		$	.33		$	.55
Diluted net earnings per share	$	.83		$	1.11		$	.33		$	.54
Diluted average shares outstanding		5,162			5,153			5,162			5,144
Depreciation included above	$	6,861		$	6,230		$	3,014		$	2,741
Opening expense included above	$	1,131		$	1,050		$	370		$	327

Frisch’s Restaurants, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEET

(In thousands of dollars)

	Dec. 11, 2005 (unaudited)		May 29, 2005 (Note) (restated)
Assets
Current assets
Cash and equivalents	$	323	$	306
Receivables		1,733		1,390
Inventories		4,654		4,592
Other current assets		4,022		3,762
		10,732		10,050
Property and equipment		155,912		148,202
Other assets
Goodwill & other intangible assets		2,181		2,141
Property held for sale and land investments		2,864		2,832
Other		4,209		4,240
		9,254		9,213
	$	175,898	$	167,465
Liabilities and shareholders’ equity
Current liabilities
Accounts payable	$	14,723	$	12,799
Accrued expenses		8,908		8,764
Other		10,299		9,399
		33,930		30,962
Long-term obligations
Long-term debt		32,424		29,570
Other long-term obligations		13,180		13,532
		45,604		43,102
Shareholders’ equity		96,364		93,401
	$	175,898	$	167,465

Note: The balance sheet at May 29, 2005 was derived from the audited consolidated financial statements at that date. Certain amounts, however, have been restated to correct an error in actuarial pension calculations.