Restaurant operators statewide still aren’t feeling optimistic about the economy, a new study released by the Olympia- based Washington Restaurant Association shows.

The association, which collected feedback from about 60 restaurant owners for its January survey, found that 58 percent of the operators reduced staff member hours from January 2009 to January 2010. It also found:

• Eighty-two percent expect to remain at reduced staffing levels or to cut more jobs.

• Sixty-three percent said sales fell last month compared with January 2009.

• Fifty-seven percent of restaurants nationally also reported that sales fell in the same period.

“The fact that this many operators are still down was not a welcoming sign for me,” Washington Restaurant Association President and Chief Executive Anthony Anton said.

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Restaurant operators gained confidence about future economic and business conditions in the first month of this year, according to the National Restaurant Association’s comprehensive index of restaurant activity. As a result of softening sales and traffic results in January, however, the Restaurant Performance Index (RPI) backed off slightly from December’s 22-month high.

The Association’s RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 98.3 in January, down 0.3 percent from December’s level.

“Although the current situation indicators remained soft in January, the Expectations Index rose above 100 for the first time in 9 months,” said Hudson Riehle, senior vice president of Research and Knowledge Group for the National Restaurant Association. “Restaurant operators are relatively optimistic about improving sales growth and economic conditions in the months ahead, and their capital spending plans rose to the highest level in five months.”

The RPI is based on the responses to the National Restaurant Association’s Restaurant Industry Tracking Survey, which is fielded monthly among restaurant operators nationwide on a variety of indicators including sales, traffic, labor and capital expenditures. The Index consists of two components – the Current Situation Index and the Expectations Index. January’s mark of 98.3 represents the 27th consecutive month of an index below 100, which signifies contraction in the index of key industry indicators. The full report is available online: www.restaurant.org/pdfs/research/index/201001.pdf.

The RPI is constructed so that the health of the restaurant industry is measured in relation to a steady-state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction for key industry indicators.

The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 96.6 in January – down 0.8 percent from December. In addition, January represented the 29th consecutive month below 100, which signifies contraction in the current situation indicators.

After posting a moderate improvement in December, restaurant operators reported a softening in sales results in January. Twenty-seven percent of restaurant operators reported a same-store sales gain between January 2009 and January 2010, down from 35 percent of operators who reported higher sales in December. Fifty-seven percent of operators reported a same-store sales decline in January, up from 49 percent who reported negative sales in December.

Restaurant operators also reported softer customer traffic results in January. Twenty-six percent of restaurant operators reported an increase in customer traffic between January 2009 and January 2010, down from 30 percent who reported higher customer traffic in December. Fifty-four percent of operators reported a traffic decline in January, up from 47 percent who reported lower traffic in December.

Capital spending activity in the restaurant industry held relatively steady in recent months. Thirty-two percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the past three months, roughly on par with the levels reported by operators in the previous two months.

The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 100.1 in January – up 0.2 percent from December and its third gain in the past four months. In addition, the Expectations Index crossed above the 100 level for the first time in 9 months, which signifies expansion in the forward-looking indicators.

Restaurant operators remain relatively optimistic about sales growth in the months ahead. Thirty-three percent of restaurant operators expect to have higher sales in six months (compared with the same period in the previous year), compared with 35 percent who reported similarly last month. In comparison, 22 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, and 21 percent reported similarly last month.

Restaurant operators are also cautiously optimistic about the direction of the economy in the months ahead. Twenty-nine percent of restaurant operators said they expect economic conditions to improve in six months, and 18 percent expect economic conditions to worsen during the next six months. Last month, 34 percent of operators said they expected the economy to improve in six months, and 18 percent expected economic conditions to deteriorate.

With a relatively optimistic outlook for sales and the economy, restaurant operators’ plans for capital expenditures ticked upward this month. Forty-three percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, up from 39 percent who reported similarly last month.

The RPI is released on the last business day of each month, and more detailed data and analysis can be found on Restaurant TrendMapper (www.restaurant.org/trendmapper), the Association’s subscription-based service that provides detailed analysis of restaurant industry trends.

Also find the National Restaurant Association on Twitter (http://twitter.com/WeRRestaurants) and Facebook (http://www.facebook.com/NationalRestaurantAssociation).

Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 945,000 restaurant and foodservice outlets and a work force of 12.7 million employees. Together with the National Restaurant Association Educational Foundation, the Association works to lead America’s restaurant industry into a new era of prosperity, prominence, and participation, enhancing the quality of life for all we serve. For more information, visit our Web site at www.restaurant.org.

Carrols Restaurant Group, Inc. (Nasdaq: TAST), the parent company of Carrols Corporation, today announced financial results for the fourth quarter and full year ended January 3, 2010.

Highlights for the 14-week fourth quarter of 2009 versus the 13-week fourth quarter of 2008 include:

• Net income of $4.1 million, or $0.19 per diluted share (after impairment charges of $0.07 per diluted share, after tax), compared to net income of $4.4 million, or $0.20 per diluted share (including non-recurring gains and impairment charges, which in the aggregate reduced earnings by approximately $0.02 per diluted share, after tax);
• Total revenues increased 4.4% to $209.7 million from $200.8 million, including a 5.8% increase for the Company’s Hispanic Brands;
• Comparable restaurant sales (on a comparable 13 week basis) increased 0.3% at Pollo Tropical®, decreased 4.5% at Taco Cabana® and decreased 3.0% at Burger King®;

Highlights for the 53-week full year 2009 versus the 52-week full year 2008 include:

• Net income of $21.8 million, or $1.00 per diluted share, (including non-recurring gains and impairment charges, which in the aggregate reduced earnings by approximately $0.06 per diluted share, after tax), compared to net income of $12.8 million, or $0.59 per diluted share (including non-recurring gains and impairment charges, which in the aggregate reduced earnings by approximately $0.02 per diluted share, after tax);
• Total revenues were $816.1 million compared to $816.3 million, including a 1.7% increase for the Company’s Hispanic Brands;
• Comparable restaurant sales (on a comparable 52 week basis) decreased 1.3% at Pollo Tropical, decreased 3.7% at Taco Cabana and decreased 2.6% at Burger King;
• Total outstanding indebtedness was reduced $33.1 million for the full year to $283.1 million as of January 3, 2010.

As of January 3, 2010, the Company owned and operated 559 restaurants, including 312 Burger King, 91 Pollo Tropical and 156 Taco Cabana restaurants.

Alan Vituli, Chairman and Chief Executive Officer of Carrols Restaurant Group, Inc. commented, “We were able to significantly increase earnings in 2009 despite ongoing challenges to top-line growth caused by the difficult consumer environment. The 2009 earnings improvements were brought about by our effective management of controllable expenses, favorable commodity and utility costs, and a decrease in interest expense, all of which more than offset fixed cost deleveraging caused by the decline in comparable restaurant sales. The increase in net income, combined with relatively modest capital expenditures, enabled the Company to reduce outstanding indebtedness by $33.1 million in 2009 which further improved our leverage ratios.”

Vituli continued, “Looking ahead, strengthening our top-line is our greatest opportunity but remains a challenge in the current environment. To stimulate guest traffic at our Hispanic Brands, we continue to focus on our pipeline of new products and compelling promotional offers, supported through television, radio and direct mail advertising. We continue to emphasize the attributes that most differentiate our brands within the quick-casual segment: freshly-made food, distinct flavor profiles and a strong value proposition for the consumer. The Burger King system, on the other hand, has increasingly focused on the customers’ need for extreme affordability with very aggressive price-pointed promotional activities. We remain cautious about sales expectations for our Burger King restaurants in light of recent trends, the competitive environment and continuing pressures on consumer spending.”

Fourth Quarter 2009 Results

Total revenues increased 4.4% to $209.7 million from $200.8 million during the fourth quarter of 2009 compared to the fourth quarter of 2008, while revenues from the Company’s Hispanic Brands increased 5.8% to $109.8 million from $103.8 million. These year-over-year increases were mostly due to one additional week in the fourth quarter of 2009.

Pollo Tropical revenues increased 7.4% to $45.1 million during the fourth quarter of 2009 compared to $42.0 million in the fourth quarter of 2008, mostly due to the additional week in 2009. Pollo Tropical comparable restaurant sales (on a comparable 13 week basis) increased 0.3%.

Taco Cabana revenues increased 4.7% to $64.7 million during the fourth quarter of 2009 compared to $61.8 million in the fourth quarter of 2008 due to the additional week in 2009. Taco Cabana comparable restaurant sales (on a comparable 13 week basis) decreased 4.5%. The Company opened one Taco Cabana restaurant in the fourth quarter of 2009.

Burger King revenues increased 2.9% to $99.9 million during the fourth quarter of 2009 compared to $97.0 million in the fourth quarter of 2008 due to the additional week in the fiscal period. Burger King comparable restaurant sales (on a comparable 13 week basis) decreased 3.0%. The Company opened one Burger King restaurant (a relocation of an existing unit) and closed three restaurants in the fourth quarter of 2009 (including the unit closed in conjunction with the relocation).

General and administrative expenses were $13.2 million in the fourth quarter of 2009 compared to $13.1 million in the fourth quarter of 2008, and as a percentage of total revenues, decreased to 6.3% from 6.5%.

Income from operations increased to $11.2 million in the fourth quarter of 2009 from $9.5 million in the fourth quarter of 2008, and as a percentage of total revenues, improved to 5.4% from 4.7%. Impairment charges and non-recurring losses (gains), in the net, reduced income from operations by $2.5 million in 2009 and $4.9 million in 2008. The effect of one additional week in the fourth quarter of 2009 contributed approximately $2.9 million to income from operations.

Interest expense was $4.7 million in the fourth quarter of 2009 and $1.9 million lower than the fourth quarter of 2008 due to debt reductions and lower interest rates. During the fourth quarter of 2009, the Company reduced its outstanding indebtedness by $8.1 million to $283.1 million.

Net income for the fourth quarter of 2009 was $4.1 million, or $0.19 per diluted share, compared to net income for the fourth quarter of 2008 of $4.4 million, or $0.20 per diluted share. The fourth quarter of 2009 included impairment charges of approximately $2.4 million, or $0.07 per diluted share, after tax. The Company estimates that the additional week in 2009 increased earnings by approximately $0.07 per diluted share, after tax. The fourth quarter of 2008 included non-recurring gains and impairment charges, which in the aggregate reduced earnings by approximately $0.02 per diluted share, after tax.

Full-Year 2009 Results

For the year ended January 3, 2010 (which contained 53 weeks), total revenues were essentially flat at $816.1 million compared to $816.3 million in fiscal 2008 (which contained 52 weeks). Income from operations increased to $54.1 million from $44.0 million, and as a percentage of total revenues, improved to 6.6% from 5.4%. Net income increased to $21.8 million in 2009, or $1.00 per diluted share, from $12.8 million in 2008, or $0.59 per diluted share. The full year 2009 results included non-recurring gains and impairment charges, which in the aggregate reduced earnings by approximately $0.06 per diluted share, after tax. The full year 2008 results also included non-recurring gains and impairment charges, which in the aggregate reduced earnings by approximately $0.02 per diluted share, after tax.

Outlook

The Company is not providing specific earnings guidance for 2010 given the continuing uncertainties with regard to the overall economy and consumer spending, and in particular, a lack of visibility regarding the key drivers of comparable sales for its Burger King restaurants. The Company does expect to see continuing improvement in sales trends for its Hispanic Brands. However, uncertainty regarding the impact of Burger King new product introductions and its promotional and discounting tactics make predicting sales and earnings difficult in the current environment.

The Company is providing the following information for 2010:

• The 2010 fiscal year has one less week than 2009, the effect of which is estimated to negatively impact revenues by approximately $13.6 million and earnings by $0.07 per diluted share compared to 2009;
• Comparable restaurant sales for Pollo Tropical are expected to increase 0% to 3%. Taco Cabana comparable restaurant sales are expected to be somewhat soft early in the year, improving as the year progresses and to be flat or slightly positive for the full year;
• Commodity costs are expected to decrease 1% to 2% for Pollo Tropical, to be flat to down 1% for Taco Cabana and to increase 3% to 4% for Burger King;
• Amortization of unearned purchase discounts, which are recognized as a reduction of cost of sales, will decrease $2.2 million for our Burger King restaurants in 2010 since the funds received in 2000 from the Coca-Cola Company and Dr. Pepper/Seven-Up, Inc. became fully amortized at the end of 2009;
• The Company anticipates the opening of four to six new Hispanic Brand restaurants, the net closing of seven Burger King restaurants and the closing of two Taco Cabana restaurants;
• Total capital expenditures are expected to be $40 million to $45 million, increasing from 2009 due to some additional remodeling at the Hispanic Brands;
• Depreciation expense is expected to increase approximately 5% reflecting 2009 capital equipment additions, 2010 new units and increases in reimaging expenditures;
• General and administrative expense is expected to increase 2% to 3%; and
• The Company’s estimated annual effective tax rate is expected to be 37.0% to 37.5%.

Vituli concluded, “All things considered, 2009 results were solid recognizing that earnings growth was driven mainly by lower costs. Earnings in 2010 will be more challenging as improvements in sales will be critical. There remains considerable uncertainty, though, regarding the timing of the economic recovery and improvements in consumer spending. We believe that our Hispanic Brands are well-positioned, resilient and have attractive long-term growth potential. Nonetheless, we have limited new unit growth in the near-term to continue to maximize free cash flow and pay down debt. We would anticipate more aggressive expansion of our Hispanic Brands beyond 2010 as the economy improves. Because we have far less control of the sales at our Burger King restaurants, we remain cautious at this time regarding their 2010 results.”

About the Company

Carrols Restaurant Group, Inc., operating through its subsidiaries, including Carrols Corporation, is one of the largest restaurant companies in the United States. The Company operates three restaurant brands in the quick-casual and quick-service restaurant segments with 559 company-owned and operated restaurants in 17 states as of January 3, 2010, and 32 franchised restaurants in the United States, Puerto Rico, Ecuador, Honduras and the Bahamas. Carrols Restaurant Group owns and operates two Hispanic Brand restaurants, Pollo Tropical and Taco Cabana. It is also the largest Burger King franchisee, based on number of restaurants, and has operated Burger King restaurants since 1976.

Einstein Noah Restaurant Group, Inc. (NASDAQ: BAGL), a leader in the quick-casual segment of the restaurant industry operating under the Einstein Bros.® Bagels, Noah’s New York Bagels®, and Manhattan Bagel® brands, today reported financial results for the fourth quarter and full year ended December 29, 2009.

Selected Highlights for the Fourth Quarter 2009 Compared to the Fourth Quarter 2008:

• Total revenues were virtually flat at $103.7 million vs. $103.9 million.
• System-wide comparable store sales decreased (1.4%), a 130 basis point improvement over the third quarter trend.
• Total gross margin improved to 21.0% compared with 20.7%, due to strong cost controls as well as a substantial improvement in manufacturing & commissary profitability.
• Adjusted EBITDA improved $1.0 million to $12.7 million compared to $11.7 million.
• Redeemed an incremental $2.0 million in Series Z Preferred Stock on December 29, 2009, for a total redemption of approximately $5.0 million.

Selected Highlights for 2009 Compared to 2008:

• Total revenues declined modestly to $408.6 million from $413.5 million
• System-wide comparable store sales decreased (2.4%), while transactions decreased (2.3%).
• Total gross margin was 19.0% compared to 19.8%.
• Adjusted EBITDA was virtually flat at $42.3 million compared to $42.2 in 2008.
• Maintained an unrestricted cash balance of $9.9 million after making payments of approximately $25.0 million and $8.1 million on the Series Z and term loan respectively.

Jeff O’Neill, Chief Executive Officer and President of Einstein Noah, stated, “The results we reported today underscore the progress we’ve made in building a platform for sustainable long-term growth. Our comparable store sales, transaction performance, and gross margins were the highest of the year in the fourth quarter, and demonstrate the continued build from our marketing and merchandising initiatives, as well as our disciplined approach to execution and cost control. Even in today’s economic environment, I am gratified that we can create equity for our brand, generate substantial cash flow and meet our financial goals.”

O’Neill continued, “Our key strategies for 2010 are straightforward and build upon our prior-year accomplishments. We intend to drive transaction growth by increasing brand trial through our core bagel/breakfast offerings, rebuild gross margins through our focus on supply chain, manufacturing and operational efficiency, and accelerate unit growth primarily through franchise and license expansion. With a committed team and results-oriented culture, I am confident that we can succeed in all of these areas to maximize shareholder value.”

Fourth Quarter 2009 Financial Results

For the fourth quarter ended December 29, 2009, system-wide comparable store sales, which include Company-owned, franchised, and licensed locations, decreased (1.4%). Total revenues were virtually flat at $103.7 million vs. $103.9 million in the fourth quarter of 2008. Company-owned restaurant sales decreased (0.7%) to $93.7 million from $94.3 million, mostly as a result of a (1.7%) decrease in comparable store sales, which was partially offset by a net increase of two additional company-owned restaurants since December 30, 2008.

The Company’s on-going investments in marketing initiatives to build traffic and drive awareness of its brands yielded a modest decline of (1.5%) in transactions during the fourth quarter and a significant build on trends coming into 2009, when transactions were declining in the (8%) to (9%) range. Marketing initiatives and trial generating incentives increased $0.7 million and $0.4 million, respectively, compared to the prior-year period. Company-owned restaurant gross profit was $18.5 million, or 19.7% of restaurant sales in the fourth quarter of 2009, compared to $18.9 million, or 20.0% of restaurant sales, in the fourth quarter of 2008.

As a percentage of company-owned restaurant sales, cost of goods sold were favorable by 130 basis points in the fourth quarter of 2009 compared to last year. Labor costs, as a percentage of company-owned restaurant sales, rose 100 basis points in the fourth quarter of 2009 compared to the prior-year period due largely to higher health benefits costs, along with continued investments in the Company’s catering business.

New Units and Development

The Company benefitted from a net increase of six additional franchise restaurants and 26 license restaurants since December 30, 2008. The effect of the new locations helped drive franchise and license related revenues up 17.1% to $2.2 million in the fourth quarter of 2009 from $1.9 million in the prior-year period.

Restaurant openings during the fourth quarter of 2009 consisted of 15 outlets, including four Einstein Bros. company-owned restaurants, two Manhattan Bagel franchise restaurants, and nine Einstein Bros. licensed restaurants. Three licensed outlets were also closed during the period.

Other Operating Items

Manufacturing and commissary revenues increased modestly to $7.8 million in the fourth quarter of 2009 vs. $7.7 million, while gross profit grew 58.3% to $1.1 million, compared to $0.7 million in the fourth quarter of 2008. The substantial improvement in gross profit was attributed to lower raw ingredient costs as well as production and labor efficiencies at the Company’s bagel manufacturing facility.

Adjusted EBITDA increased $1.0 million to $12.7 million in the fourth quarter of 2009, compared to $11.7 million in 2008. The 8.5% increase in adjusted EBITDA is attributable to the improvements previously mentioned.

In the third quarter, the Company reversed the valuation allowance on its deferred tax asset. Accordingly, 2009 now includes a charge of $2.9 million for incomes taxes compared to $0.5 million in 2008. The Company also reported $0.7 million of accrued additional redemption costs on the unredeemed portion of the Series Z Preferred Stock. The 2008 results include minimal income tax expense and no charge for the Series Z Preferred Stock.

Taking the aforementioned charges into account, net income was $2.8 million in the fourth quarter of 2009, or $0.17 per diluted share, compared to net income of $5.8 million, or $0.36 per diluted share, in the fourth quarter of 2008.

2009 Financial Results

For the full year ended December 29, 2009, system-wide comparable store sales, which include Company-owned, franchised, and licensed locations, decreased (2.4%). Total revenues declined modestly to $408.6 million from $413.5 million last year.

Company-owned restaurant sales decreased (1.7%) to $370.4 million from $376.7 million, inclusive of a comparable store sales decline of (3.4%). Company-owned restaurant gross profit was $66.2 million, or 17.9% of restaurant sales, compared to $73.5 million, or 19.5% of restaurant sales, in 2008.

Franchise and license related revenues increased 17.1% to $7.5 million in 2009, compared to $6.4 million last year. The Company benefitted from a net increase of 32 franchise and license locations, along with a comparable store sales increase of 1.1%.

Manufacturing and commissary revenues increased to $30.6 million, compared to $30.4 million last year, while gross profit grew 125.5% to $4.1 million, vs. $1.8 million in 2008.

Adjusted EBITDA was virtually flat at $42.3 million in 2009, compared to $42.2 million in 2008.

In the third quarter, the Company reversed the valuation allowance on its deferred tax asset. Therefore, income tax expenses for both periods are not comparable. Additionally, the Company recorded a charge of approximately $1.5 million of accrued additional redemption costs on the unredeemed portion of the Series Z Preferred Stock. The 2008 results did not have this charge.

Net income was $72.0 million for 2009, or $4.36 per diluted share, compared to net income of $21.1 million, or $1.29 per diluted share for 2008.

Rick Dutkiewicz, chief financial officer of Einstein Noah, added, “We substantially improved the quality of our asset base this past year, while investing in projects that generate significant returns on our capital. Inclusive of the 45 locations that were upgraded in 2009, approximately 50% of our Company-owned restaurants were built or remodeled in the last four years. Our balance sheet also improved in 2009. It remains well-capitalized, and we paid down a total of $8.1 million of long-term debt and redeemed nearly $25.0 million of Series Z Preferred Stock throughout the year. In addition, our valuable deferred tax asset will minimize our cash taxes paid for the next several years. We will utilize this asset to continue to reduce our indebtedness as well as provide sufficient capital to grow our business. We will continue to accelerate our franchise and licensing development in 2010 and have an asset light business model that sets the stage for strong free cash flow. Together, these items are an important part of driving returns for our shareholders.”

2010 Outlook

The Company anticipates the opening of 10-12 new Einstein Bros. Bagels company-owned restaurants, 12-16 new Einstein Bros. Bagels franchised restaurants, and 35-45 Einstein Bros. Bagels licensed restaurants.

The Company currently has 14 signed development agreements for Einstein Bros. Bagels franchises. This coupled with the efforts to sign additional development agreements in 2010 is expected to ultimately yield an ending pipeline of 90-100 additional franchise openings.

The Company has secured contract pricing on approximately 50% of all major agricultural commodities that will result in favorable prices compared to 2009, with an option to benefit from further reductions in the market.

About Einstein Noah Restaurant Group

Einstein Noah Restaurant Group is a leading company in the quick casual restaurant industry that operates locations primarily under the Einstein Bros.® Bagels and Noah’s New York Bagels® brands and primarily franchises locations under the Manhattan Bagel® brand. The company’s retail system consists of more than 680 restaurants, including more than 175 license locations, in 36 states plus the District of Columbia. It also operates a dough production facility. The company’s stock is traded under the symbol BAGL.

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In a special report issued today, Fitch Ratings says that modest improvement in sales trends are expected for the U.S. restaurant industry during the second half of this year. The special report on the 2010 outlook for U.S. restaurants provides supporting data and commentary to the conclusions listed in Fitch’s outlook press release issued on Nov. 18, 2009, titled ‘Fitch 2010 U.S. Restaurant Outlook: Modest Improvement in Sales Anticipated by Late 2010.’

According to the report, increases in restaurant traffic will be driven by an improving employment situation and continued economic growth resulting in higher personal consumption expenditures for food-away-from-home during 2010. In the near term, restaurants will likely maintain their currently cautious stance on pricing because consumer spending remains weak and the environment remains extremely competitive. ‘We believe weak U.S. traffic trends among the national quick-service chains is a signal that sales declines have bottomed for the entire restaurant industry,’ said Director Carla Norfleet Taylor. ‘While we are not predicting a rapid upturn in same-store sales growth, we do anticipate modest improvement by the second half of 2010.’

Adequate liquidity and positive free cash flow will continue to support a stable credit environment for the large chain restaurants in 2010. ‘Given limited near-term same-store sales visibility, a higher than normal degree of financial discipline is expected,’ said Senior Director Wesley E. Moultrie. ‘However, once top-line trends improve, a return of share repurchase activity is definitely possible.’

Modest food cost inflation, particularly for beef and dairy products, is anticipated, despite recent food cost deflation for many operators. As such, controlling cost will remain a priority. Moderate increases in capital expenditures are possible but a ramp-up in new U.S. unit development is not anticipated.

The full report, ‘U.S. Restaurant/Foodservice Outlook: Modest Improvement in Sales Expected by Late 2010; Stable Credit Environment Anticipated’ is available at ‘www.fitchratings.com‘ under the header ‘Corporate Finance’.

McCormick & Schmick’s Seafood Restaurants, Inc. (Nasdaq: MSSR) today reported financial results for its fourth quarter and fiscal year ended December 26, 2009.

Financial results for the fourth quarter 2009 compared to the fourth quarter 2008:

• Revenues decreased 9.7% to $89.2 million from $98.8 million
• Comparable restaurant sales decreased 12.9%
• Comparable restaurant traffic decreased 7.0%
• Total restaurant operating costs were 86.1% of revenues compared to 86.7%
• In the fourth quarter of 2009, a significant non-cash item in operating loss included an impairment of $19.8 million related to long lived assets that included eight of our restaurants. In the fourth quarter of 2008, significant non-cash items in operating loss included a $54.4 million charge related to the impairment of trademarks and tradenames, a $26.2 million charge related to the impairment of goodwill, a $2.8 million charge related to the impairment of long lived assets of two restaurants, and a $0.4 million write-off of a portion of previously capitalized transaction costs related to the Company’s credit agreement
• Net loss of $16.1 million, or $1.09 per basic and diluted share, compared to net loss of $73.4 million, or $4.99 per basic and diluted share
• Pro forma net income of $2.8 million, or $0.19 per diluted share (see attached reconciliation to GAAP), compared to a pro forma net income of $2.4 million, or $0.16 per diluted share

Financial results for fiscal year 2009 compared to fiscal year 2008:

• Revenues decreased 7.8% to $360.1 million from $390.7 million
• Comparable restaurant sales decreased 15.7%
• Comparable restaurant traffic decreased 14.0%
• Total restaurant operating costs were 87.6% of revenues compared to 87.5%
• In fiscal 2009, significant non-cash items in operating loss included impairment, restructuring, and other charges of $20.4 million and includes the impairment of long-lived assets at eight restaurants in the fourth quarter and restructuring charges recorded in the first three quarters of 2009. In fiscal 2008, significant non-cash items in operating loss included impairment and restructuring charges of $83.9 million, the impairment of trademarks and tradenames, goodwill, long-lived assets at two restaurants, and the write-off of a portion of previously capitalized transaction costs related to the Company’s credit agreement
• Net loss of $14.7 million, or $1.00 per basic and diluted share, compared to net loss of $69.6 million, or $4.73 per basic and diluted share
• Pro forma net income of $4.8 million, or $0.32 per diluted share (see attached reconciliation to GAAP), compared to a pro forma net income of $6.7 million, or $0.45 per diluted share

Bill Freeman, Chief Executive Officer, said, “I am pleased with our team’s performance in the fourth quarter. In light of a continuing difficult economic environment, our team was able to deliver better than expected operating results while achieving further improvement on our overall guest satisfaction scores. I am also encouraged by the positive response from our guests to the new strategic initiatives that we launched in 2009. Our results for 2009 reflect accounting related non-cash impairment charges that include the impairment of long lived assets at eight of our restaurants. We are continuing to focus on proactively improving our business at all of our restaurants, and have no plans to close any of the impaired restaurants.”

Outlook and 2010 Financial Guidance

Based on the Company’s revenue in 2009 and expectations that the economy will continue to be challenged for 2010, the Company expects its annual revenue for 2010 to be between $355.0 million and $365.0 million, and estimates earnings of $0.40 to $0.45 per fully diluted share.

The Company expects its annualized effective tax rate to be between 5.0% and 10.0% due to its projection of modest taxable income for the year in certain taxing jurisdictions and an insignificant change in net deferred tax assets.

The Company also expects 2010 depreciation and amortization of approximately $16.0 million, and general and administrative expenses to be between $20.0 million and $21.0 million.

In 2010, the Company plans to open two restaurants, the first in West Palm Beach, Florida, which opened in February and the second in Houston, Texas which is planned to open in the second quarter. Based on capital availability and depending on economic conditions, the Company may open additional restaurants in 2010.

About McCormick & Schmick’s Seafood Restaurants, Inc.

McCormick & Schmick’s Seafood Restaurants, Inc. is a leading seafood restaurant operator in the affordable upscale dining segment. The Company operates 94 restaurants, including 88 restaurants in the United States and six restaurants in Canada under The Boathouse brand. McCormick & Schmick’s has successfully grown over the past 38 years by focusing on serving a broad selection of fresh seafood. McCormick & Schmick’s inviting atmosphere and high quality, diverse menu offering and compelling price-value proposition appeals to a diverse base of casual diners, families, travelers and the business community.

Definition of Comparable Restaurant Sales

Comparable restaurant sales represent sales at all the restaurants owned by the Company in operation at least eighteen months from the beginning of the year being discussed. Comparable restaurant sales exclude the impact of currency translation. Management reviews the increase or decrease in comparable restaurant sales with the same period in the prior year to assess business trends.

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Caribou Coffee Company, Inc. (NASDAQ:CBOU), the second largest company-owned gourmet coffeehouse operator in the United States based on the number of coffeehouses, today reported financial results for the fourth quarter and fiscal 2009 (period ended January 3, 2010). Fiscal year 2009 includes 53 weeks and the Company’s fourth quarter includes 14 weeks compared to 52 weeks and 13 weeks, respectively for 2008.

HIGHLIGHTS FOR THE FOURTH QUARTER OF 2009:

• Net sales increased 12.4% compared to the fourth quarter of 2008. On a comparative 13-week basis, net sales increased 4.8% compared to the fourth quarter of 2008.
• Comparable coffeehouse store sales for the quarter were up 0.2% compared to the same period in the prior year.
• Commercial sales for the quarter increased 76.6% compared to the fourth quarter of 2008. On a comparative 13-week basis, commercial sales increased 64.3% compared to the prior year quarter.
• Net income was $3.0 million in the quarter compared to $1.3 million in the fourth quarter of 2008.
• Earnings per diluted share were $0.15 for the fourth quarter compared to $0.07 per share in the fourth quarter of 2008.

HIGHLIGHTS FOR FISCAL 2009:

• Net sales increased 3.4% to $262.5 million in fiscal 2009 compared to $253.9 million in fiscal 2008.
• Net income was $5.1 million compared to a loss of $16.3 million in fiscal 2008.
• Earnings per diluted share were $0.26 compared to a loss of $0.84 in fiscal 2008.

Speaking on behalf of the Company, Michael Tattersfield, the Company’s President and CEO commented, “This quarter concludes a successful year of positive revenue and earnings growth for Caribou Coffee. These results highlight our strategy to diversify and strengthen our business model by expanding beyond our retail coffeehouse business into a multi-channel branded coffee company. With a successful growth strategy in place, strong cash flow and secure financial position, we are confident in our ability to deliver shareholder value for our investors and rewarding experiences for our team members and customers.”

FOURTH QUARTER 2009 RESULTS

Net sales increased $8.4 million, or 12.4%, to $76.5 million for the quarter ended January 3, 2010 from $68.0 million for the quarter ended December 28, 2008. When calculated on a comparative 13-week basis, consolidated sales increased 4.8% compared to the fourth quarter of 2008.

• Coffeehouse sales were $64.6 million in the fourth quarter 2009 compared to $60.5 million in the fourth quarter of 2008, an increase of 6.8%. Comparable coffeehouse sales in the fourth quarter of 2009 were up 0.2% compared to the same period in fiscal 2008.
• Commercial sales were $9.6 million in the fourth quarter of 2009 compared to $5.4 million in the fourth quarter of 2008, an increase of 76.6% as a result of higher sales to existing and new customers. When calculated on a comparative 13-week basis, commercial sales increased 64.3% compared to the fourth quarter of 2008.
• Franchise sales were $2.3 million in the fourth quarter of 2009 compared to $2.1 million in the fourth quarter of 2008. When calculated on a comparative 13-week basis, franchise sales were flat compared to the fourth quarter of 2008.

Cost of sales and related occupancy costs in the fourth quarter of 2009 was $34.4 million. As a percentage of sales, cost of sales and related occupancy costs were 45.1% in the fourth quarter of 2009 compared to 43.2% in the fourth quarter of 2008. This increase is due to an overall mix change with a higher percentage of sales coming from our commercial segment.

Operating expenses in the fourth quarter of 2009 were $28.0 million. As a percentage of revenue, operating costs were 36.6%, up from 36.0% in the same period of the prior year. This increase was the result of higher investments being made in product innovation, marketing and brand building initiatives.

General and administrative expenses were $7.4 million during the fourth quarter of 2009. As a percentage of sales, general and administrative expenses were 9.7% in the fourth quarter of 2009 compared to 11.7% in the fourth quarter of 2008. The decrease is the result of lowering the cost structure while leveraging across the higher sales volumes.

EBITDA was $6.8 million during the fourth quarter of 2009, compared to EBITDA of $6.1 million during the same period in 2008, an improvement of 10.8%. The year-over-year EBITDA increase was primarily due to improved performance within our retail coffeehouses and continued growth in the commercial and franchise segments. (EBITDA is a non-GAAP measure. See EBITDA reconciliation at the end of this release).

Depreciation and amortization decreased $0.8 million, or 20.0%, to $3.3 million during the fourth quarter of 2009, from $4.2 million during the same period in the prior year. This was due to a lower depreciable asset base resulting from reduced capital spending in the current year.

The net income attributable to Caribou Coffee Company for the fourth quarter of 2009 was $3.0 million or $0.15 per diluted share compared to a net income of $1.3 million or $0.07 per share for the same period in 2008. The additional week in the period accounted for approximately $0.02 per share in 2009. The company ended the quarter with $23.6 million in cash and cash equivalents and no long term debt. The company recently entered into a new $25 million credit facility, which includes a $15 million commitment with an option to increase the commitment by another $10 million under terms to be mutually agreed.

STOCK BUYBACK PROGRAM

The Company’s Board of Directors has authorized a stock buyback program. The current authorization is to repurchase up to $10 million of its outstanding ordinary shares. Stock purchases can be made from time to time in open market transactions depending upon market conditions. The company anticipates funding the repurchase of shares with available cash on hand.

About Caribou Coffee

Caribou Coffee Company, Inc., founded in 1992 and headquartered in Minneapolis, Minnesota, is the second largest company-owned gourmet coffeehouse operator in the United States based on the number of coffeehouses. As of January 3, 2010, Caribou Coffee had 535 coffeehouses, which includes 122 franchised and licensed locations. Caribou Coffee offers its customers high-quality gourmet coffee and espresso-based beverages, as well as specialty teas, baked goods, whole bean coffee, branded merchandise and related products. In addition, Caribou Coffee sells products to club stores, grocery stores, mass merchandisers, office coffee providers, airlines, hotels, sports and entertainment venues, college campuses and online customers. Caribou Coffee focuses on creating a unique experience for customers through a combination of high-quality products, a comfortable and welcoming coffeehouse environment and a unique style of customer service.

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Cracker Barrel Old Country Store, Inc. (“Cracker Barrel,” or the “Company”) (Nasdaq: CBRL):

• Fully diluted income per share was $1.09 for the second quarter of fiscal 2010, an increase of 35%
  compared with the prior-year quarter
• Operating income margin in the second quarter was 7.8% of total revenue compared with 6.2% in the prior-year quarter
• Revenue for the second quarter increased 0.4% to $632.6 million
• Comparable store restaurant traffic outpaced the Knapp-Track™ Traffic Index for the fourteenth consecutive quarter
• Comparable store restaurant and retail sales decreased 0.2% and 3.0%, respectively
• Net cash flow from operating activities for the first six months of fiscal 2010 increased $36.4 million to $86.3 million compared with the prior-year comparable period
• Reduced long-term debt by $41.4 million in the second quarter
• Repurchased 205,000 shares in the second quarter

Cracker Barrel Old Country Store, Inc. (“Cracker Barrel,” or the “Company”) (Nasdaq: CBRL) today reported net income per diluted share of $1.09 for the second quarter of fiscal 2010, compared with $0.81 in the second quarter of fiscal 2009, an increase of 34.6%. Net income was $25.4 million compared with $18.4 million in the second quarter of fiscal 2009.

Second-Quarter Fiscal 2010 Results

Revenue from continuing operations

In the second quarter of fiscal 2010, total revenue of $632.6 million increased 0.4% from the second quarter of fiscal 2009. Comparable store restaurant sales for the period decreased 0.2%, including a 2.1% higher average check. The average menu price increase for the quarter was approximately 2.4%. Comparable store retail sales were down 3.0% for the quarter. During the quarter, the Company opened two new Cracker Barrel Old Country Store units, after having opened three in the first quarter. Since the end of the second quarter, the Company has opened one additional store.

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Benihana Inc. (NASDAQ: BNHNA; BNHN), operator of the nation’s largest chain of Japanese theme and sushi restaurants, today announced the results of its Special Meeting of Shareholders, which was held yesterday on February 22, 2010 at The Westin Hotel in Fort Lauderdale, Florida.

The Company’s shareholders voted in favor of the proposed merger by and between Benihana Inc. and its wholly-owned subsidiary BHI Mergersub, Inc. The Company is the surviving corporation in the merger, the sole purpose of which was to effect an amendment to the Certificate of Incorporation of the Company to increase by 12,500,000 the number of shares of Class A common stock which the Company is authorized to issue.

Darwin C. Dornbush, Chairman of the Board of Directors, said, “On behalf of the entire board of directors, we thank our shareholders for their support and share their confidence in the future of our Company. As we have stated repeatedly, the increase in the authorized shares is one step in a series of actions being taken to ensure that the Company has the flexibility and capability to take advantage of opportunities and to respond to rapidly changing economic conditions and credit markets.”

About Benihana

Benihana Inc. (Nasdaq: BNHNA – News) (Nasdaq: BNHN – News) operates 98 restaurants nationwide, including 64 Benihana teppanyaki restaurants, nine Haru sushi restaurants, and 25 RA Sushi Bar restaurants. Under development is one Benihana teppanyaki restaurant. In addition, 23 franchised Benihana teppanyaki restaurants are operating in the U.S., Latin America and the Caribbean.

To learn more about the Company and its three Japanese theme and sushi restaurant concepts, please view the corporate video at www.benihana.com/about/video.

• Fourth quarter earnings per diluted share of $0.49 in 2009 vs. $0.46 in 2008 and full-year earnings per diluted share of $2.06 in 2009 vs. $1.30 in 2008
• Fourth quarter earnings per diluted share, excluding noted items, were $0.41 in 2009 vs. $0.48 in 2008 and full-year earnings per diluted share, excluding noted items, were $1.50 in 2009 vs. $1.68 in 2008
• Domestic system-wide comparable sales decreased 0.5% for the quarter and were even for the year
• International franchise system sales increased 18% for the quarter (13% excluding the impact of foreign currency exchange rates) and 14% for the year (24% excluding the impact of foreign currency exchange rates)
• 11 net Papa John’s worldwide unit openings during the quarter and 89 net openings during the year
• Earnings guidance for 2010 reaffirmed at a range of $1.70 to $1.90 per diluted share, excluding the impact of consolidating BIBP

Papa John’s International, Inc. (NASDAQ: PZZA) today announced revenues of $280.5 million for the fourth quarter of 2009, compared to revenues of $279.6 million in 2008. Net income for the fourth quarter of 2009 was $13.7 million, or $0.49 per diluted share (including after-tax income of $1.3 million, or $0.05 per diluted share, from the consolidation of the results of the franchisee-owned cheese purchasing company, BIBP Commodities, Inc. (“BIBP”), a variable interest entity, and a gain of $1.0 million, or $0.03 per diluted share, from the finalization of certain income tax issues), compared to 2008 fourth quarter net income of $12.8 million, or $0.46 per diluted share (including after-tax income of $600,000, or $0.02 per diluted share, from the consolidation of BIBP, a gain of $1.2 million, or $0.04 per diluted share, from the finalization of certain income tax issues and an after-tax charge of $2.2 million, or $0.08 per diluted share, related to restaurant impairment and disposition losses).

Consolidated revenues for 2009 were $1.11 billion, representing a decrease of 2.3% from revenues of $1.13 billion for 2008. Net income for 2009 was $57.5 million, or $2.06 per diluted share (including after-tax income of $14.6 million, or $0.52 per diluted share, from the consolidation of BIBP and a gain of $1.0 million, or $0.04 per diluted share, from the finalization of certain income tax issues), compared to net income of $36.8 million, or $1.30 per diluted share, for 2008 (including a net loss of $6.9 million, or $0.24 per diluted share, from the consolidation of BIBP, a gain of $1.7 million or $0.06 per diluted share from the finalization of certain income tax issues and an after-tax charge of $5.5 million, or $0.20 per diluted share, related to restaurant impairment and disposition losses).

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Tavern on the Green, the now-closed tourist magnet restaurant in New York’s Central Park, should have its case converted to liquidation from a reorganization, unsecured creditors told a judge.

“Pervasive pernicious conduct” by New York City has run creditors’ payment efforts “into a brick wall,” the motion filed in U.S. Bankruptcy Court in New York City said today. The only asset of value is the entity’s name, the document said. New York City is disputing ownership of the name with Tavern on the Green LP and LeRoy Adventures Inc., representing the family that operated the restaurant.

The restaurant, operated by the LeRoy family through Tavern on the Green LP and LeRoy Adventures Inc., filed for bankruptcy in September. Tavern on the Green LP has said it owns the name and valued it at about $19 million in court papers. The city, which says it holds the rights to the name, doesn’t want the LeRoy family to use or license the name for other restaurants outside of Central Park.

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The nation’s high unemployment rate has thrown millions of people out of work, scared shoppers away from stores and threatened the economic recovery. Now it’s taking a bite out of breakfast.

Breakfast sales had grown at a ravenous pace during the boom years as busy workers scarfed down sausage biscuits on the way to the office, fueling a $57 billion business and accounting for as much as a quarter of sales at some fast-food chains. Chains opened earlier and expanded their morning menus to accommodate the traffic as lunch and dinner sales flatlined.

But as the jobless rate hit 26-year highs fewer people headed to work, and even those who did worried about their spending. So they poured bowls of cereal at home or simply slept in, putting breakfast on the back burner.

“Typically, if you’re unemployed, you’re not getting up at six and not going through the drive-thru,” said Jeffrey Bernstein, an analyst at Barclays Capital. “There is a direct correlation between unemployment and breakfast sales.”

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Darden Restaurants Inc., the operator of Red Lobster, Olive Garden and Longhorn Steakhouse eateries, is considering expansion into Mexico and Persian Gulf states.

The Orlando-based restaurant chain, which held an analysts and investors meeting in New York City Feb. 18, announced it is in discussions to open restaurants overseas, a news report said. The restaurants, which Chairman and Chief Executive Office Clarence Otis described as “joint venture type of approach,” wouldn’t open before 2012, the report said.

Darden also forecast earnings per share of 91 to 93 cents for the fiscal third quarter ending Feb. 28 and estimated blended U.S. same-restaurant sales for the Red Lobster, Olive Garden and LongHorn Steakhouse brands to be anywhere from 5 percent higher to 5 percent lower than the same period a year prior, said a release issued prior to the meeting. The results include an impact in the Thanksgiving holiday weekend’s move from fiscal third-quarter last year to fiscal second-quarter this year.

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Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) today reported unaudited financial results for its fourth quarter ended December 27, 2009.

Highlights for the fourth quarter of 2009 compared to the fourth quarter of 2008 were as follows:

• Total revenue decreased 9.9% to $87.4 million compared to $96.9 million in the fourth quarter of 2008.
• Net loss of $2.7 million, or $0.11 per diluted share, compared to net loss of $60.7 million or $2.59 per diluted share in the fourth quarter of 2008. Excluding charges in both periods and on a tax adjusted basis, net income was $0.11 per diluted share in the fourth quarter of 2009 compared to $0.04 per diluted share in the fourth quarter of 2008. (See attached reconciliation).
• Company-owned comparable restaurant sales for Ruth’s Chris Steak House decreased 11.2%. Company-owned comparable restaurant sales for Mitchell’s Fish Market decreased 2.5%.
• Food and beverage costs, as a percentage of restaurant sales, decreased 340 basis points to 29.1%, which was primarily driven by favorable beef costs.
• Restaurant operating expenses, as a percentage of restaurant sales, increased 70 basis points to 52.7%, as a result of the effect of fixed costs related to lower sales volumes.
• General and administrative expenses increased by $1.6 million to $7.3 million compared to $5.7 million in the fourth quarter of 2008. The increase was driven by an additional $1.5 million in incentive compensation.
• Depreciation and amortization expenses, as a percentage of total revenues, increased 20 basis points to 4.7%.
• Interest expense decreased by $1.7 million to $1.7 million in the fourth quarter of 2009.
• At the end of the fourth quarter of 2009, the Company had $125.5 million in debt outstanding under its senior credit agreement. This represents a reduction of $34.8 million from December 28, 2008, including a $23.0 million pay down during the quarter.

Michael P. O’Donnell, President and Chief Executive Officer of Ruth’s Hospitality Group, Inc., stated, “During the fourth quarter, relatively stable comparable restaurant sales and continued expense control allowed us to generate positive earnings per diluted share compared to last year’s fourth quarter, excluding certain charges. We continued to benefit from favorable beef costs, sustainable cost-savings, and a year-over-year reduction in interest expense due to lower debt levels. To that point, we made significant progress reducing our outstanding debt in 2009, and will further improve our position with funds generated by the recently completed rights offering and subsequent investment by Bruckmann, Rosser, Sherrill & Co.”

O’Donnell continued, “Over the past 18 months, our priorities have centered on expense management and balance sheet improvement and given our recent progress, we are now focused on reenergizing sales. Ultimately, we have two great brands in our portfolio, experienced management in place, and with some stability in the economy, we look forward to continuing our progress in 2010.”

Review of Operating Results

Total revenues, which include Company-owned restaurant sales, franchise income, and other operating income, decreased 9.9% to $87.4 million in the fourth quarter of 2009 compared to $96.9 million in the fourth quarter of 2008.

Company-owned restaurant sales declined 10.5% to $83.8 million for the fourth quarter of 2009 from $93.5 million in the same quarter last year. Total operating weeks decreased 1.8% to 1,118 from 1,138.

Average weekly sales for Ruth’s Chris Steak House were $79.2 thousand in the fourth quarter of 2009 compared to $88.2 thousand in the fourth quarter of 2008. Average weekly sales at Mitchell’s Fish Market were $63.9 thousand compared to $65.5 thousand in the prior year fourth quarter.

For the fourth quarter of 2009, Company-owned comparable restaurant sales at Ruth’s Chris Steak House decreased 11.2%, which consisted of an average check decrease of 2.5% and an entrée reduction of 8.9%, offset by product mix shifts. Company-owned comparable restaurant sales at Mitchell’s Fish Market decreased 2.5%, which consisted of an average check decrease of 3.4% and an entrée increase of 0.9%.

Franchise income was $3.0 million in both periods. Blended comparable franchise-owned restaurant sales decreased 7.2%.

Operating loss was $4.3 million in the fourth quarter of 2009 and $82.1 million in the prior year fourth quarter.

Net loss was $2.7 million in the fourth quarter of 2009, or $0.11 per diluted share, compared to a net loss of $60.7 million, or $2.59 per diluted share, in the fourth quarter of 2008.

Net loss for the fourth quarter of 2009 included $8.3 million in non-cash impairment costs, a $0.8 million loss on the sale of the Company’s corporate headquarters, $0.4 million in severance costs, and a recovery of $0.4 million on a previously written down lease. Excluding these charges, on a tax adjusted basis, net income for the fourth quarter of 2009 was $2.5 million, or $0.11 per diluted share.

Net loss for the fourth quarter of 2008 included $90.2 million in non-cash impairments and restructuring costs, including severance. Additionally, the Company recorded a $0.9 million charge for a mark to market adjustment related to the interest rate swap agreements, and a net of tax benefit of $0.5 million for discontinued operations. Excluding these charges, on a tax adjusted basis, net income for the fourth quarter of 2008 was $0.8 million, or $0.04 per diluted share.

Financial Outlook

Based on current information, Ruth’s Hospitality Group, Inc. is providing the following outlook for 2010:

• Cost of goods sold of 29% to 30% of restaurant sales
• General and administrative expenses of $22 million to $24 million
• Effective tax rate of 20% to 25%
• One Company-owned Mitchell’s Fish Market opening
• One to three franchised Ruth’s Chris Steak House openings
• Capital expenditures of $7 million to $8 million

About Ruth’s Hospitality Group, Inc.

Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) is a leading restaurant company focused exclusively on the upscale dining segment. The Company owns the Ruth’s Chris Steak House, Mitchell’s Fish Market, Mitchell’s Steakhouse and Cameron’s Steakhouse concepts. With more than 150 Company- and franchisee-owned locations worldwide, Ruth’s Hospitality Group, Inc. was founded in 1965 and is headquartered in Heathrow, Fla.

For further information about our restaurants, to make reservations, or to purchase gift cards, please visit: www.RuthsChris.com, www.MitchellsFishMarket.com, www.MitchellsSteakhouse.com and www.Camerons-Steakhouse.com. For more information about Ruth’s Hospitality Group, Inc., please visit www.rhgi.com.

McCormick & Schmick’s Seafood Restaurants, Inc. (Nasdaq: MSSR) today announced that it will host a conference call to discuss fourth quarter and fiscal year 2009 financial results on Wednesday, February 24, 2010 at 5:00 PM ET. Hosting the call will be William Freeman, Chief Executive Officer, and Michelle Lantow, Chief Financial Officer. A press release with fourth quarter and fiscal year 2009 financial results will be issued after the market close that same day.

The conference call can be accessed live over the phone by dialing (888) 427-9376, or for international callers (719) 325-2246. A replay will be available one hour after the call and can be accessed by dialing (888) 203-1112 or (719) 457-0820 for international callers; the conference ID is 1904485. The replay will be available until Wednesday, March 10, 2010.

The call will be webcast live from the Company’s website at www.McCormickandSchmicks.com under the investor relations section.

About McCormick & Schmick’s Seafood Restaurants

McCormick & Schmick’s Seafood Restaurants, Inc. is a leading seafood restaurant operator in the affordable upscale dining segment. The Company now operates 94 restaurants, including 88 restaurants in the United States and six restaurants in Canada under The Boathouse brand. McCormick & Schmick’s has successfully grown over the past 37 years by focusing on serving a broad selection of fresh seafood. McCormick & Schmick’s inviting atmosphere and high quality, diverse menu offering and compelling price-value proposition appeals to a diverse base of casual diners, families, travelers and the business community.

Benihana Inc. (NASDAQ: BNHNA)(NASDAQ: BNHN), operator of the nation’s largest chain of Japanese theme and sushi restaurants, today responded to public statements made by certain shareholders concerning the forthcoming special meeting of shareholders to consider and act upon a proposed merger (the “Merger”) the sole purpose of which is to increase the authorized number of shares of the Company’s Class A Common Stock by 12,500,000.

Richard C. Stockinger, President and Chief Executive Officer, said, “The increase in the authorized shares was one step in a series of actions being taken to ensure that the Company had the flexibility and capability to take advantage of opportunities and or to respond to rapidly changing economic conditions and credit markets. Although the Company’s sales and earnings have been softer than management would have hoped over the past year, we are confident that our recently implemented Renewal Program will help to mitigate or reverse these trends. Still, we remain vulnerable to fluctuations in the larger economy and other risks.”

As previously announced, one result of last year’s sales was the Company’s failure to meet required ratios under its credit agreement with Wachovia Bank, N.A. as at the end of the second quarter of the current fiscal year. That in turn led to amendments to the credit line which will materially reduce the funds available to the Company — what began as a maximum availability of $60 million has been reduced to $40.5 million, will be further reduced to $37.5 million effective July 18, 2010, and further reduced to $32.5 million effective January 2, 2011, with the outstanding balance under the line becoming due and payable in full on March 15, 2011. In addition, the Company expects the judge hearing the Company’s long running litigation with the former minority owners of the Company’s Haru segment to issue a decision in the case shortly which will require the Company to make a payment of at least $3.7 million (the amount offered by the Company) and as much as $10 million (the amount sought by the former minority owners). And while the Company has substantially reduced its capital expenditures allocated to new projects, it continues to have significant capital requirements to maintain its extensive property and equipment and to execute upon its renewal plan.

In the face of these developments, the Board does not believe it would be prudent to do nothing and accordingly has taken a series of steps (all of which have been previously publicly announced) to ensure that the Company is in the strongest possible position to meet any unanticipated challenges it may face.

The Company has detailed in its periodic filings the broad range of operational changes that have been and continue to be made to improve efficiency and increase sales. At the same time, and in support of these operational changes, the Company has taken a series of steps in support of the Company’s financial condition. These included forming a special committee of independent directors (which has retained its own investment bankers and attorneys) to undertake an analysis of the Company’s capital requirements and to evaluate the various alternatives (in the form of both debt and equity) for meeting those requirements. That analysis is ongoing. The Committee has made no recommendation, and the Board has made no decision with respect to the Company’s future capital needs or the best manner of satisfying them. The Company also filed a “generic” registration covering a broad range of alternative financing options (again, both debt and equity) so that, if it determined to do so, it would be in a position to quickly effect a capital raise, and it moved to increase the authorized number of shares of Class A Common Stock for the same reason.

The Board is very much aware of concerns with respect to potential dilution raised by various shareholders and those concerns will certainly be seriously considered in the decision making process. But the Board believes it would be foolhardy not to take the actions it has taken which are designed to give management flexibility in responding to changing circumstances, continue to execute against its renewal plan and have the ability to take advantage of selective growth opportunities as they arise. For these reasons, the Board continues to unanimously urge all shareholders to vote in favor of the proposed Merger.

As to the reasons for the proposed merger (as opposed to a simple amendment to the Certificate of Incorporation): Section 242(b) of the Delaware General Corporation law provides that a class vote is ordinarily required to approve an increase in the authorized number of shares of that class. This would mean that an increase in the Class A stock would require a vote of the holders of Class A stock and an increase in Common stock would require a vote of the holders of Common stock. Delaware law permits a company to “opt out” of this class vote requirement by so providing in its Certificate of Incorporation, and the Company has done just that. Thus, to approve an amendment to increase either the authorized Class A or the authorized Common stock, the Company’s Certificate of Incorporation requires the affirmative vote of a majority of the votes cast by all of the holders of the Company’s common equity. The Certificate of Incorporation was adopted at a time when no other voting securities of the Company were outstanding, and although the Series B Preferred Stock generally votes on an as if converted basis together with the Common Stock, the Certificate of Incorporation does not expressly deal with the voting rights of the Series B Preferred Stock in the context of the “opt out” provision relating to amendments to increase authorized stock. Accordingly, and because the Board believed this was an issue as to which the holders of the Series B Preferred Stock had an interest and as to which they should be entitled to vote, it unanimously elected to proceed under the merger provisions of the Delaware statute rather than the amendment provisions in order to avoid any possible ambiguity.

About Benihana

Benihana Inc. (Nasdaq: BNHNA) (Nasdaq: BNHN) operates 98 restaurants nationwide, including 64 Benihana teppanyaki restaurants, nine Haru sushi restaurants, and 25 RA Sushi Bar restaurants. Under development is one Benihana teppanyaki restaurant. In addition, 23 franchised Benihana teppanyaki restaurants are operating in the U.S., Latin America and the Caribbean.

To learn more about the Company and its three Japanese theme and sushi restaurant concepts, please view the corporate video at www.benihana.com/about/video.

Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL) today announced that it will release its fourth quarter 2009 financial results after the market close on Thursday, February 25, 2010. A conference call will follow at 3:00 p.m. Mountain Time (5:00 p.m. Eastern Time) and will be webcast live from Einstein Noah’s website at www.einsteinnoah.com. Hosting the call will be Jeff O’Neill, chief executive officer and president, and Rick Dutkiewicz, chief financial officer.

The dial-in numbers for the conference call are 1-877-407-0784 for domestic toll-free calls and 1-201-689-8560 for international. The conference ID is 343638. A telephone replay will be available through March 4, 2010, and may be accessed by dialing 1-877-660-6853 for domestic toll-free calls or 1-201-612-7415 for international. Participants must enter account 3055 and conference ID 343638.

About Einstein Noah Restaurant Group

Einstein Noah Restaurant Group is a leading company in the quick casual restaurant industry that operates locations primarily under the Einstein Bros.® Bagels and Noah’s New York Bagels® brands and primarily franchises locations under the Manhattan Bagel® brand. The company’s retail system consists of more than 680 restaurants, including more than 175 license locations, in 36 states plus the District of Columbia. It also operates a dough production facility. The company’s stock is traded under the symbol BAGL. Visit www.einsteinnoah.com for additional information.

California Pizza Kitchen, Inc. (Nasdaq: CPKI) today reported revenues and net income for the fourth quarter and the fiscal year 2009 ending January 3, 2010.

Highlights for the 14-week fourth quarter of 2009 relative to the 13-week fourth quarter of 2008 were as follows:

• Total revenues increased 3.8% to $167.8 million
• Full service comparable restaurant sales decreased 5.8%
• Net loss of $9.9 million, or negative $0.41 per diluted share, including the effects of the non-cash impairment write-down of 13 full service restaurants and the related tax benefits.
• Net income of $4.1 million, or $0.17 per diluted share, excluding the effects of the non-cash impairment write-down of 13 full service restaurants and the related tax benefits (please refer to the reconciliation table).

Highlights for the 53-week fiscal year 2009 relative to the 52-week fiscal year 2008 were as follows:

• Total revenues decreased 1.8% to $664.7 million
• Full service comparable restaurant sales decreased 6.6%
• Net income of $4.6 million, or $0.19 per diluted share, including the effects of the non-cash impairment write-down of 13 full service restaurants and the related tax benefits.
• Net income of $18.6 million, or $0.77 per diluted share, excluding the effects of the non-cash impairment write-down of 13 full service restaurants and the related tax benefits (please refer to reconciliation table).

Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, Inc., stated, “Despite sales challenges for new restaurants in the high unemployment states of California, Michigan and Florida, we were very pleased that our fourth quarter comparable sales and proforma earnings results were within our previously guided ranges. While the quarter benefited from easier comparisons, the year-over-year and sequential quarter improvements mark what we believe may be the first signs of a comp turnaround. Comparable sales improvements were widespread across our dine-in, take-out, and delivery channels, and we credit the turnaround to the successful launch of our wine, call center, and catering programs along with November’s new menu rollout. Looking towards 2010, we are cautiously optimistic that these programs and other new revenue initiatives such as our ‘Small Cravings Menu’ will continue to drive guest traffic and comparable sales.”

Rosenfield and Flax continued, “We were very proud to have been ranked the #1 ‘Most Recommended Casual Dining Chain’ in a recent independent marketing survey. This type of recognition adds to our confidence for future growth, not only with full service restaurants, but with our Kraft partnership, international and domestic franchising, and licensing. These businesses provide CPK with a unique model within the casual dining industry and the ability to balance our portfolio with higher margin revenue streams positions us to maximize financial performance and build shareholder value over time.”

Average weekly sales for the Company’s 196 full service restaurants were $57,949 in the fourth quarter of 2009 compared to $61,034 in the same quarter last year.

During the fourth quarter of 2009, one of the Company’s franchise partners opened the first California Pizza Kitchen in Cancun, which is the seventh location in Mexico.

The Company outlined its financial guidance for the first quarter of 2010 based on the following assumptions:

• Comparable restaurant sales between negative 3.0% and negative 4.0%
• Opening one international franchised full service restaurant
• Opening one domestic franchised restaurant
• Earnings estimated in the range of $0.05-$0.07 per diluted share

Additionally, the Company outlined guidance for fiscal 2010 based on the following assumptions:

• Comparable restaurant sales between negative 2% and 0%
• Opening eight new full service restaurants
• Opening eight international franchised full service restaurants
• Opening five domestic franchised restaurants
• Earnings estimated in the range of $0.68-$0.73 per diluted share

California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain. The Company’s full service restaurants feature an imaginative line of hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of distinctive pastas, salads, soups, appetizers and sandwiches. The average guest check for 2009 was approximately $14.49. As of February 18, 2010 the company operates, licenses or franchises 252 locations, of which 205 are company-owned and 47 operate under franchise or license agreements. The Company also has a licensing agreement with Kraft Pizza Company which manufactures and distributes a line of California Pizza Kitchen premium frozen products. More information about California Pizza Kitchen, Inc. can be found on the Company’s website at www.cpk.com.

This release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include projections of earnings, revenue or other financial items, statements of the plans, strategies and objectives of management for future operations, statements concerning proposed new products or developments, statements regarding future economic conditions or performance, statements of belief and statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words “may,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect,” “anticipate,” “guidance” and similar words.

This release also includes non-GAAP earnings per diluted share information. This measure is not based on any standardized methodology prescribed by U.S. generally accepted accounting principles (“GAAP”) and is not necessarily comparable to similar measures presented by other companies. The Company believes that this non-GAAP information is useful as an additional means for investors to evaluate the Company’s operating performance, when reviewed in conjunction with the Company’s GAAP financial statements. This amount is not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the Company’s business and operations.

Investors are cautioned that forward-looking statements are not guarantees of future performance and, therefore, undue reliance should not be placed on them. Our actual results may and will likely differ materially from the expectations referred to herein. Among the key factors that may have a direct bearing on our operating results, performance and financial condition are deteriorating economic conditions, revenue from third party licensees and franchisees, changing consumer preferences and demands, the success of new initiatives aimed at revenue growth, the continued availability of qualified employees and our management team, the maintenance of reasonable food and supply costs, our exposure to the California market and numerous other matters discussed in the Company’s filings with the Securities and Exchange Commission. California Pizza Kitchen undertakes no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

More . . .

Red Robin Gourmet Burgers, Inc., (NASDAQ: RRGB), a casual dining restaurant chain focused on serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the 12 and 52 weeks ended December 27, 2009 and announced several key governance changes impacting the Company.

Financial and Operational Results

Results for the 12 weeks ended December 27, 2009, compared to the 12 weeks ended December 28, 2008, are as follows:

• Restaurant revenue decreased 8.2% to $179.6 million.
• Company-owned comparable restaurant sales decreased 10.5%.
• Restaurant-level operating profit decreased 19.8% to $31.2 million.
• GAAP diluted earnings per share were $0.10 vs. $0.38 in the same period a year ago. GAAP diluted earnings per share in the fourth fiscal quarter 2008 included $0.05 per diluted share of asset impairment charges.
• Two new company-owned Red Robin® restaurants and one new franchised restaurant opened during the fourth quarter 2009.

Results for the 52 weeks ended December 27, 2009, compared to the 52 weeks ended December 28, 2008, are as follows:

• Restaurant revenue decreased 3.1% to $828.0 million.
• Company-owned comparable restaurant sales decreased 11.1%.
• Restaurant-level operating profit decreased 13.6% to $156.3 million.
• GAAP diluted earnings per share were $1.14, which included $0.21 per diluted share in compensation expense related to the Company’s tender offer for certain stock options and $0.03 per diluted share in costs related to the closing of four company-owned restaurants early in fiscal 2009, vs. GAAP diluted earnings per share in fiscal 2008 of $1.69, which included $0.09 per diluted share of asset impairment charges, $0.02 per diluted share of reacquired franchise costs, and $0.01 per diluted share of acquisition-related integration costs.
• A total of 20 new Red Robin® restaurants, 15 company-owned and five franchised locations were opened during the 52-week period.

As of the end of the fiscal year 2009, there were 306 company-owned and 133 franchised Red Robin® restaurants.

“While 2009 was, without a doubt, a difficult year for the restaurant industry and for Red Robin, we were able to leverage our experiences with marketing, promotional activity and consumer research to develop a comprehensive plan to drive traffic in 2010,” said Dennis Mullen, Red Robin Gourmet Burgers, Inc.’s chief executive officer. “We expect that our 2010 plan will allow us to strengthen guest loyalty and retention with product news that emphasizes Red Robin quality, variety and value, and remain focused on the fundamentals of our business by managing controllable costs and further increasing brand awareness. In addition, as follow up to a Form 13D filing with the SEC on December 22, 2009, we have had constructive dialog with the shareholder group that filed the Form 13D, and our independent directors have also had discussions with our large shareholders. We also are implementing several corporate governance changes that have been under consideration for some time that we believe will benefit the Company and its shareholders. And, as always, we are extremely proud of our Team Members for their hard work and dedication to serving our Guests and contributing to Red Robin’s success.”

Fiscal Fourth Quarter 2009 Results

Comparable restaurant sales decreased 10.5% for company-owned restaurants in the fiscal fourth quarter of 2009 compared to the fiscal fourth quarter of 2008, driven by a 9.3% decrease in guest counts and a 1.2% decrease in the average guest check. Average weekly comparable sales from the 277 company-owned comparable restaurants were $50,249 in the fiscal fourth quarter of 2009, compared to $57,073 for the 241 company-owned comparable restaurants in the fiscal fourth quarter of 2008. Average weekly sales for the 29 non-comparable company-owned restaurants were $49,167 in the fiscal fourth quarter of 2009, compared to $55,188 for the 39 non-comparable restaurants in the fiscal fourth quarter a year ago. For all company-owned restaurants, average weekly sales were $50,148 from the 3,666 operating weeks in the fiscal fourth quarter of 2009 compared to $56,446 from the 3,537 operating weeks in the fiscal fourth quarter of 2008.

Total company revenues, which include company-owned restaurant sales and franchise royalties and fees, decreased 8.3% to $182.2 million in the fiscal fourth quarter of 2009, versus $198.6 million last year. Franchise royalties and fees decreased 13.4% to $2.6 million in the fiscal fourth quarter of 2009 compared to $3.0 million in the same period a year ago.

For the fiscal fourth quarter of 2009, the Company’s U.S. franchise restaurant sales of $61.9 million were lower compared to $68.4 million in the prior year period. Comparable sales in the fiscal fourth quarter of 2009 for franchise restaurants in the U.S. decreased 11.9% and for franchise restaurants in Canada increased 0.5% from the fiscal fourth quarter of 2008. Average weekly comparable sales for the U.S. franchised restaurants were $45,798 from the 104 comparable restaurants in the fiscal fourth quarter of 2009, compared to $52,161 for the 96 comparable restaurants in the fiscal fourth quarter of 2008. Average weekly sales in the fiscal fourth quarter of 2009 for the Company’s 18 comparable franchise restaurants in Canada were C$49,297 versus C$49,072 in the same period last year. Canadian results are in Canadian dollars.

Schedule I of this earnings release reconciles restaurant-level operating profit to income from operations and net income for all periods presented. The Company’s restaurant-level operating profit metric is designed to afford management and investors with a basis for considering and comparing performance at the store level. It is not calculated in conformity with generally accepted accounting principles (“GAAP”). It is intended to supplement, rather than replace GAAP results. Restaurant-level operating profit is useful to management and to the Company’s investors because it allows management and investors to separate discrete operations of the restaurants from corporate infrastructure and overhead expenses, thus permitting a comparison of the performance of the Company at the restaurant operations level both internally among the Company’s restaurants, and externally to other restaurant companies. As this measure has been used for years, it also provides investors a basis of comparison of margins for the Company’s individual restaurants historically.

The Company defines restaurant-level operating profit to be restaurant revenues minus restaurant-level operating costs, excluding restaurant impairment costs in the event closure or impairment charges are incurred. The measure includes occupancy costs which include fixed rents, percentage rents, common area maintenance charges, real estate and personal property taxes, general liability insurance and other property costs. The measure does not include general and administrative costs, pre-opening costs and costs associated with the tender offer of stock options attributed to non-restaurant employees. The measure also does not include depreciation and amortization expense because it represents a historical sunk cost which does not impact the profitability of the operations of the restaurants in the current economic environment for the periods presented.

As the Company’s marketing strategies have evolved, the Company has determined that marketing-related expenses are best reflected in the selling, general and administrative expense category of the Company’s income statement. The coordination and management of marketing strategies have historically been made at the discretion of the Company’s restaurant general managers. However, beginning with the launch of the Company’s first media advertising campaigns in 2007, these strategies are now being developed and implemented at the direction of the Company’s centralized marketing organization. As further noted in Schedule I of this earnings release, the Company has reclassified marketing-related expenses from restaurant operating expenses to the selling, general and administrative expense category. The Company has reclassified all periods presented in its income statement for purposes of comparability. The table below outlines the fiscal quarter and full year impact of this reclassification of marketing expenses from operating expenses to selling general and administrative expenses for the years 2008 and 2009. (In millions.)

		Q1				Q2				Q3				Q4				2009
		(16 weeks)				(12 weeks)				(12 weeks)				(12 weeks)				(52 weeks)
Restaurant operating costs		$	(4.6	)		$	(3.4	)		$	(4.0	)		$	(3.2	)		$	(15.2	)
Selling, general, and
administrative costs		$	4.6			$	3.4			$	4.0			$	3.2			$	15.2
		Q1				Q2				Q3				Q4				2008
		(16 weeks)				(12 weeks)				(12 weeks)				(12 weeks)				(52 weeks)
Restaurant operating costs		$	(6.9	)		$	(5.6	)		$	(5.7	)		$	(5.4	)		$	(23.6	)
Selling, general, and
administrative costs		$	6.9			$	5.6			$	5.7			$	5.4			$	23.6

Selling, general and administrative expenses as adjusted were $17.4 million in the fiscal fourth quarter of 2009 and $17.2 million in the fiscal fourth quarter of 2008, which were 9.6% and 8.7% of total revenue, respectively.

Net interest expense was $1.8 million in the fiscal fourth quarter of 2009 and $2.1 million in the fiscal fourth quarter of 2008.

Net income for the fiscal fourth quarter of 2009 was $1.6 million or $0.10 per diluted share, compared to net income of $5.8 million, or $0.38 per diluted share, in the fiscal fourth quarter of 2008.

Schedule II of this earnings release reconciles the impact on net income and diluted earnings per share as reported on a GAAP basis in the fiscal fourth quarters and fiscal full years 2009 and 2008 to adjusted amounts excluding certain charges in the fourth quarter of 2008 and fiscal year 2008 and 2009.

For the full fiscal year 2009, the Company’s effective tax rate was 18.3%, which was below the 21.0% that was previously estimated and lower than the 26.6% effective tax rate for the full fiscal year 2008.

Balance Sheet and Liquidity

On December 27, 2009, the Company held $20.3 million in cash and equivalents and had a total outstanding debt balance of $191.3 million, including $122.7 million in borrowings under the $150 million term loan, $62.0 million of borrowings under the $150 million revolving credit facility and $6.6 million outstanding for capital leases. The Company has also issued $5.0 million of outstanding letters of credit under its revolving credit facility. Since the end of the fourth quarter, the Company has made additional debt repayments of $4.5 million on its revolving facility and $4.6 million on the term loan.

The Company is subject to a number of customary covenants under its credit agreement, including limitations on additional borrowings, acquisitions, dividend payments, and requirements to maintain certain financial ratios. As of December 27, 2009, the Company was in compliance with all of its debt covenants, and we expect to remain in full compliance.

Corporate Governance Update

Today the Company announced several changes to its corporate governance structure that have been under consideration for some time. The Board of Directors approved the separation of the chairman and chief executive officer roles effective immediately. The chairman role will be assumed by board member Pattye Moore – a former president and former board member of Sonic Corp. between 2000 and 2006 and who joined the Red Robin Board in August 2007 — and Dennis Mullen will continue in his role as chief executive officer and a member of the board. The Company also announced that its two Class II directors, Edward Harvey and Gary Singer, whose terms will expire at the Annual Stockholders Meeting in 2010, have decided to not stand for reelection for personal reasons. Mr. Harvey, who joined the Company’s board in 2001, currently serves as the board’s lead independent director. Mr. Singer, who joined the Company’s board in 2000, currently serves as the chair of the Nominating & Governance Committee of the board. The board will make further announcements related to the Board of Directors at a later time.

The Board of Directors also recently made changes to certain components of its executive compensation to add certain performance metrics. In addition to the changes to Mr. Mullen’s base compensation previously announced in the Company’s 8-K filing on January 11, 2010, the board intends to amend the equity compensation program for all of the Company’s executive officers. Mr. Mullen’s equity awards to be granted in 2010 will be 100% performance-based. For all other executive officer equity awards, all stock options will be performance-based, and restricted stock awards will vest with the passage of time. The metric to be used to measure performance-based vesting will be based on a “Total Shareholder Return” calculation. More details on the specific metrics and other elements of executive compensation will be available in the Company’s proxy statement for the 2010 annual meeting of stockholders.

Pattye Moore, Red Robin’s new board chair, said, “The Company’s Board of Directors has taken these steps to further align executive compensation with the long-term performance of the Company and shareholder interests.”

Outlook

The Company’s fiscal first quarter of 2010 is a 16-week quarter. Five new company-owned restaurants are currently under construction. Three of these restaurants are expected to open in the fiscal first quarter. Two new franchised restaurants are currently under construction and are expected to open early in the fiscal second quarter of 2010. During fiscal year 2010, the Company expects to open between 11 and 13 new company-owned restaurants and franchisees are expected to open four to five new restaurants.

For the 2010 fiscal year, which is a 52-week year, the Company expects revenues of $887 million to $895 million and net income of $1.27 to $1.45 per diluted share. These projected results are also based upon certain assumptions, including an expected comparable restaurant sales result of up 2.4% to 3.4%. Through February 14, 2010, the first seven weeks of the Company’s 16-week fiscal first quarter of 2010, comparable restaurant sales decreased 7.8% from the prior year comparable period for company-owned restaurants. The Company estimates that the impact from winter storms in several of our markets during this seven week period impacted our comparable restaurant sales by approximately -0.8%.

The Company’s annual financial guidance includes the launch next week of a $6.7 million national advertising campaign that will be funded by the Company for the spring 2010 promotion. Depending on the success of the spring promotion, the Company expects to spend another $10 million in company-sponsored advertising to be funded for the remaining two limited time offer (LTO) promotions that the Company expects will be supported with television in the summer and fall. Total 2010 television advertising spending is expected to be approximately $16.0 million to $17.0 million — up from $2.3 million invested in television in fiscal year 2009. The Company’s total marketing expense in 2010 is expected to be about $31 million compared to $15.2 million spent in fiscal 2009, which is included in selling, general and administrative expense in both years. The 2010 advertising campaign begins on February 22, 2010 for the spring LTO promotion, and will run for four weeks over a five-week period of the eight-week LTO promotion window. The timing of the summer and fall 2010 promotion has not been committed yet.

Based on the Company’s development plans and other infrastructure and maintenance costs, the Company expects fiscal year 2010 capital expenditures to be approximately $35 million to $40 million, which will be funded entirely out of operating cash flow. The Company will also make scheduled payments of $18.7 million required by the term loan portion of its existing credit facility from free cash flow after capital expenditures in fiscal year 2010 and expects to use its remaining free cash flow to make payments on the Company’s revolving credit facility.

About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB)

Red Robin Gourmet Burgers, Inc. (www.redrobin.com), a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., serves up wholesome, fun, feel-good experiences in a family-friendly environment. Red Robin® restaurants are famous for serving more than two dozen insanely delicious, high-quality gourmet burgers in a variety of recipes with Bottomless Steak Fries®, as well as salads, soups, appetizers, entrees, desserts, and signature Mad Mixology® Beverages. There are more than 430 Red Robin® restaurants located across the United States and Canada, including company-owned locations and those operating under franchise agreements.

Darden Restaurants, Inc. will be webcasting their 2010 Analyst Meeting to be held in New York City on Wednesday, February 17, 2010 starting at 8:30 am to 12:00 pm ET. A webcast of the Company’s presentation will be available over the Internet at http://www.videonewswire.com/event.asp?id=63990. The archived webcast will also be available on the home page of the company’s website www.darden.com through March 17, 2010.

The subjects to be covered may include forward-looking information, such as the outlook for the current month, quarter, or fiscal year and the company’s previously-announced earnings guidance. Questions may be posed to management by participants at the meeting and in response the company may disclose additional material information.

Darden Restaurants, Inc., headquartered in Orlando, Fla., is the world’s largest company-owned and operated full-service restaurant company with over $7.2 billion in annual sales and approximately 180,000 employees. Darden is recognized for a culture that rewards caring for and responding to people. Our restaurant brands — Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze and Seasons 52 — reflect the rich diversity of those who dine with us. Our brands are built on deep insights into what our guests want. For more information, please visit www.darden.com.