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 15, 2008

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 15, 2008, the Company issued a press release announcing its financial results for the quarter ended December 11, 2007.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

Exhibit 99.1 – Press release issued by the Company on January 15, 2008 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 15, 2008
	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

Vice President-Finance and CFO

Frisch’s Restaurants, Inc.

(513) 559-5202

Frisch’s Reports Record Sales in the Second Quarter of Fiscal 2008

FOR IMMEDIATE RELEASE

Cincinnati, OH—January 15, 2008, Frisch’s Restaurants, Inc. (Amex: FRS) reported record sales for its 12-week fiscal second quarter ended December 11, 2007. Revenues rose 1.4% to $69,213,384 from $68,268,449 for last year’s second quarter. Net earnings for the quarter decreased 22.8% to $2,168,015 compared to $2,808,026 last year. Diluted earnings per share decreased to $.41 per share, from $.54 per share last year.

For the first half of fiscal 2008, revenue also rose 1.4% to $158,739,828 from $156,516,874 for the first half of last year. Earnings decreased 9.1% to $4,618,500 from $5,080,226. Diluted earnings per share declined to $.88 from $.98 last year.

Craig F. Maier, President and Chief Executive Officer, said, “Same store sales at our Big Boy Restaurants increased a modest 0.4% in the second quarter. Higher gasoline costs and the sluggish Midwest economy continue to impact our customers.”

Maier added, “Our Golden Corral restaurants posted another same store sales decline of 1.8% during the second quarter. While the recent quarterly declines are less than previous years, we are still looking for the key to reverse the sales trends in Golden Corral.”

No new restaurants opened during the second quarter. During the first quarter, the Company opened two new Big Boy restaurants and replaced an older unit that was closed in April 2007. Also, a new Golden Corral restaurant was opened during the first quarter. Frisch’s operates 35 Golden Corral restaurants and 89 company-owned Big Boy restaurants, and there are an additional 28 franchised Big Boy restaurants operated by licensees.

The lower earnings for the quarter can be attributed to the modest sales changes coupled with higher food cost in both Big Boy and Golden Corral operations.

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, Cleveland, Columbus, Dayton and Toledo, Ohio, Louisville, Kentucky and Pittsburgh, Pennsylvania. The Company has development rights to expand the Golden Corral operation into markets in 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. 11, 2007			Dec. 12, 2006			Dec. 11, 2007			Dec. 12, 2006
Sales	$	158,740		$	156,517		$	69,213		$	68,268
Cost of sales
Food and paper		55,952			54,389			24,355			23,384
Payroll and related		52,490			51,493			22,711			22,412
Other operating costs		35,559			34,759			15,198			14,726
		144,001			140,641			62,264			60,522
Gross profit		14,739			15,876			6,949			7,746
Administrative and advertising		7,830			7,689			3,483			3,426
Franchise fees and other revenue		(679	)		(690	)		(301	)		(295	)
Gains on sale of assets		(525	)		(250	)		—			(250	)
Operating profit		8,113			9,127			3,767			4,865
Interest expense		1,320			1,430			578			611
Earnings before income tax		6,793			7,697			3,189			4,254
Income taxes		2,174			2,617			1,021			1,446
NET EARNINGS	$	4,619		$	5,080		$	2,168		$	2,808
Earnings per share (EPS) of common stock:
Basic net earnings per share	$	.90		$	1.00		$	.42		$	.55
Diluted net earnings per share	$	.88		$	.98		$	.41		$	.54
Diluted average shares outstanding		5,253			5,174			5,253			5,183
Depreciation included above	$	7,492		$	7,164		$	3,264		$	3,087
Opening expense included above	$	605		$	241		$	20		$	111

Frisch’s Restaurants, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEET

(In thousands of dollars)

	Dec. 11, 2007		May 29, 2007
	(unaudited)
Assets
Current assets
Cash and equivalents	$	1,354	$	321
Receivables		1,434		1,406
Inventories		5,497		6,376
Other current assets		3,650		2,915
		11,935		11,018
Property and equipment		158,495		159,287
Other assets
Goodwill & other intangible assets		1,922		1,957
Property held for sale and land investments		3,006		3,721
Other		2,785		3,276
		7,713		8,954
	$	178,143	$	179,259
Liabilities and shareholders’ equity
Current liabilities
Accounts payable	$	11,189	$	12,354
Accrued expenses		8,939		9,235
Other		14,172		15,262
		34,300		36,851
Long-term obligations
Long-term debt		23,953		25,009
Other long-term obligations		8,601		9,529
		32,554		34,538
Shareholders’ equity		111,289		107,870
	$	178,143	$	179,259