Frisch’s Reports Higher Earnings in the Second Quarter of Fiscal 2010

Frisch’s Restaurants, Inc. (NYSE Amex: FRS) reported higher earnings for its 12-week fiscal second quarter ended December 15, 2009. Net earnings for the quarter increased 6.9% to $2,369,217 compared to $2,215,787 last year. Diluted earnings per share increased to $.46 per share, from $.43 per share last year. Sales declined 1.7% to $67,898,586 from $69,093,061 in last year’s second quarter.

For the first half of fiscal 2010, sales were $156,880,688 falling 1.3% from $158,974,692 for the first half of last year. Earnings increased 22% to $5,356,882 from $4,390,847. Diluted earnings per share rose to $1.03 from $.85 last year.

Craig F. Maier, President and Chief Executive Officer, said, “Same store sales at our Big Boy Restaurants decreased a modest 0.4% in the second quarter. The sluggish economy and continuing high unemployment have driven down customer traffic in our restaurants.”

Maier added, “Our Golden Corral restaurants posted a same store sales decline of 3.6% during the second quarter. The recession in the Midwest has had an even stronger negative impact on the sales of our Golden Corrals. Despite the lower sales, our Golden Corrals managed to post their fourth straight quarter of positive earnings.”

The increase in earnings for the quarter in both concepts can mostly be attributed to a drop in food cost. Earnings were also helped by lower utility costs, offset to a degree by rises in pension and medical plan expenses.

The Company opened two new Big Boy restaurants in the second quarter, one of which replaced an older facility on a superior nearby site. Frisch’s operates 89 company-owned Big Boy restaurants and there are an additional 25 franchised Big Boy restaurants operated by licensees. The Company also operates 35 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, 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 marks 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.

                    Frisch's Restaurants, Inc. and Subsidiaries
                  CONSOLIDATED STATEMENT OF EARNINGS (unaudited)
                       (In thousands, except per share data)


                         Twenty-eight weeks
                                ended                Twelve weeks ended
                         ------------------      ------------------
                     December       December   December       December
                        15,            16,        15,            16,
                          2009           2008       2009           2008
                          ----           ----       ----           ----

  Sales               $156,881       $158,975    $67,899        $69,093
  Cost of sales
    Food and paper      53,076         57,747     22,802         24,473
    Payroll and
     related            52,485         52,148     22,781         22,551
    Other operating
     costs              35,203         35,870     15,186         15,431
                        ------         ------     ------         ------
                       140,764        145,765     60,769         62,455
  Gross profit          16,117         13,210      7,130          6,638
    Administrative
     and advertising     7,962          7,746      3,507          3,308
    Franchise fees
     and other
     revenue              (688)          (692)      (296)          (291)
    Gains on sale of
     assets                  -         (1,116)         -              -
                           ---         ------        ---            ---
  Operating profit       8,843          7,272      3,919          3,621
    Interest expense       965          1,087        434            499
                           ---          -----        ---            ---
  Earnings before
   income tax            7,878          6,185      3,485          3,122
  Income taxes           2,521          1,794      1,116            906
                         -----          -----      -----            ---
  NET EARNINGS          $5,357         $4,391     $2,369         $2,216
                        ======         ======     ======         ======

  Earnings per
   share (EPS) of
   common stock:
    Basic net
     earnings per
     share               $1.05           $.86       $.46           $.43
                         =====           ====       ====           ====
    Diluted net
     earnings per
     share               $1.03           $.85       $.46           $.43
                         =====           ====       ====           ====

  Diluted average
   shares
   outstanding           5,211          5,166      5,196          5,144
                         =====          =====      =====          =====
  Depreciation
   included above       $7,436         $7,265     $3,215         $3,180
                        ======         ======     ======         ======
  Opening expense
   included above         $226           $531       $212           $202
                          ====           ====       ====           ====




                Frisch's Restaurants, Inc. and Subsidiaries
                        CONSOLIDATED BALANCE SHEET
                         (In thousands of dollars)

                                              December
                                                 15,         June 2,
                                                    2009         2009
                                             (unaudited)
                                             -----------
  Assets
    Current assets
      Cash and equivalents                        $1,638         $899
      Receivables                                  1,427        1,549
      Inventories                                  5,201        6,531
      Other current assets                         3,357        2,480
                                                   -----        -----
                                                  11,623       11,459
    Property and equipment                       161,678      157,638
    Other assets
      Goodwill & other intangible assets           1,502        1,548
      Property held for sale and land
       investments                                 3,675        3,218
      Deferred income taxes and other              3,898        3,113
                                                   -----        -----
                                                   9,075        7,879
                                                   -----        -----

                                                $182,376     $176,976
                                                ========     ========

  Liabilities and shareholders' equity
    Current liabilities
      Accounts payable                           $11,273       $8,038
      Accrued expenses                             9,250       11,555
      Other                                        8,740        8,418
                                                   -----        -----
                                                  29,263       28,011

    Long-term obligations
      Long-term debt                              21,458       21,962
      Other long-term obligations                 13,217       12,626
                                                  ------       ------
                                                  34,675       34,588

    Shareholders' equity                         118,438      114,377
                                                 -------      -------

                                                $182,376     $176,976
                                                ========     ========