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 16, 2007

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 16, 2007, the Company issued a press release announcing its financial results for the quarter ended December 12, 2006.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit 99.1 – Press release issued by the Company on January 16, 2007 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 16, 2007
	BY	/s/ Donald H. Walker
		Donald H. Walker
		Vice President - Finance and
		Principal Financial Office

EX-99.1

Exhibit 99.1

Company Contact:

Donald H. Walker

Vice President-Finance and CFO

Frisch’s Restaurants, Inc.

(513) 559-5202

Frisch’s Reports Record Sales and Earnings in the Second Quarter of Fiscal 2007

FOR IMMEDIATE RELEASE

Cincinnati, OH—January 16, 2007, Frisch’s Restaurants, Inc. (Amex: FRS) reported record sales for its 12-week fiscal second quarter ended December 12, 2006. Revenues rose 2.0% to $68,268,449 from $66,953,103 for last year’s second quarter. Net earnings for the quarter increased 66.9% to a record $2,808,026 compared to $1,682,771 last year. Diluted earnings per share increased to $.54 per share, from $.33 per share last year.

For the first half of fiscal 2007, revenue also rose 2% to $156,516,874 from $153,485,878 for the first half of last year. Earnings increased 18.6% to $5,080,226 from $4,284,802. Diluted earnings per share rose to $.98 from $.83 last year.

Craig F. Maier, President and Chief Executive Officer, said, “Same store sales at our Big Boy Restaurants increased 0.9% in the second quarter. We continue to see the same modest improvements that we experienced in the first quarter, and the mild winter weather thus far has produced additional gains in the early weeks of the third quarter.”

Maier added, “I am very happy to report our Golden Corral restaurants posted a same store sales increase of 0.6% during the second quarter. This ends a string of quarterly same store sales declines for our Golden Corral restaurants.”

During the quarter, the Company relocated one Big Boy restaurant in the greater Cincinnati market. No Golden Corral restaurants were opened during the quarter. Frisch’s operates 34 Golden Corral restaurants and 90 company-owned Big Boy restaurants, and there are an additional 28 franchised Big Boy restaurants operated by licensees.

The higher earnings for the quarter can be attributed to modest sales increases and lower food cost in both Big Boy and Golden Corral operations, and to lower payroll costs in the Golden Corral restaurants.

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 (unaudited)

(In thousands, except per share data)

	Twenty-eight weeks ended						Twelve weeks ended
	Dec. 12, 2006			Dec.11, 2005			Dec. 12, 2006			Dec.11, 2005
Sales	$	156,517		$	153,486		$	68,268		$	66,953
Cost of sales
Food and paper		54,389			53,615			23,384			23,510
Payroll and related		51,493			50,752			22,412			22,200
Other operating costs		34,759			33,928			14,727			15,042
		140,641			138,295			60,523			60,752
Gross profit		15,876			15,191			7,745			6,201
Administrative and advertising		7,689			7,923			3,426			3,342
Franchise fees and other revenue		(690	)		(662	)		(296	)		(290	)
(Gains) losses on sale of assets		(250	)		—			(250	)		—
Operating profit		9,127			7,930			4,865			3,149
Interest expense		1,430			1,439			611			657
Earnings before income tax		7,697			6,491			4,254			2,492
Income taxes		2,617			2,206			1,446			809
NET EARNINGS	$	5,080		$	4,285		$	2,808		$	1,683
Earnings per share (EPS) of common stock:
Basic net earnings per share	$	1.00		$	.85		$	.55		$	.33
Diluted net earnings per share	$	.98		$	.83		$	.54		$	.33
Diluted average shares outstanding		5,174			5,162			5,183			5,162
Depreciation included above	$	7,164		$	6,861		$	3,087		$	3,014
Opening expense included above	$	241		$	1,131		$	111		$	370

Frisch’s Restaurants, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEET

(In thousands of dollars)

	Dec. 12, 2006		May 30, 2006
	(unaudited)
Assets
Current assets
Cash and equivalents	$	488	$	815
Receivables		1,261		1,538
Inventories		4,690		4,792
Other current assets		4,864		4,918
		11,303		12,063
Property and equipment		156,252		154,370
Other assets
Goodwill & other intangible assets		2,076		2,125
Property held for sale and land investments		2,627		3,078
Other		2,869		3,647
		7,572		8,850
	$	175,127	$	175,283
Liabilities and shareholders’ equity
Current liabilities
Accounts payable	$	10,036	$	10,330
Accrued expenses		9,037		9,640
Other		13,795		10,613
		32,868		30,583
Long-term obligations
Long-term debt		26,911		30,992
Other long-term obligations		10,607		13,027
		37,518		44,019
Shareholders’ equity		104,741		100,681
	$	175,127	$	175,283