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): August 23, 2011
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 2.06. | Material Impairments. |
On August 25, 2011, the Company issued a news release announcing that it had permanently closed six underperforming Golden Corral restaurants on August 23, 2011, resulting in a material impairment. The news release, filed herewith as Exhibit 99.1, provides the disclosures required by Item 2.06.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits |
Exhibit 99.1 – News release issued by the Company on August 25, 2011 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 | August 26, 2011 |
|||||||
| BY | /s/ Mark R. Lanning | |||||||
| Mark R. Lanning Vice President and Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer | ||||||||
Exhibit 99.1
Company Contact:
Mark R. Lanning
Vice President and Chief Financial Officer
Frisch’s Restaurants, Inc.
(513) 559 – 5200
Frisch’s Closes Six Golden Corral Restaurants
FOR IMMEDIATE RELEASE
CINCINNATI, Ohio – August 25, 2011, Frisch’s Restaurants, Inc. (NYSE Amex: FRS) announced today that it closed six of its 35 Golden Corral restaurants at the close of business on August 23, 2011. Four of the six underperforming restaurants – Western Hills, Ridge Road, Lawrenceburg and Hamilton – were operated in the greater Cincinnati area and the remaining two were operated in West Akron and Medina, Ohio.
The Company will record an asset impairment charge (with related closing costs) against its pretax earnings in the first quarter (ending September 20, 2011) of fiscal year 2012, currently estimated between $3.9 million and $4.1 million. The closures are expected to result in a reduction in net earnings per diluted share for the first quarter of fiscal year 2012 between $0.57 and $0.60. All of the six locations are owned in fee simple and will soon be offered for sale through commercial real estate brokers.
Craig F. Maier, President and Chief Executive Officer of the Company, commented, “Looking ahead, we believe this decision will eliminate store level pretax losses of approximately $750,000 to $800,000 per year, positioning us for continued success with improved bottom line performance. Revenue generated by the six restaurants in fiscal year 2011 approximated $12.1 million.
“All of the affected employees are being offered similar positions in our other Golden Corral restaurants or in nearby Big Boy restaurants,” added Mr. Maier. “For our affected loyal Golden Corral customers, we apologize for any inconvenience and hope to welcome them soon at one of our remaining locations,” Mr. Maier concluded.
About Frisch’s Restaurants, Inc.
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 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.