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 announced that the Company will be attending the following investor conferences in June:

• On Thursday, June 10, 2010, the Company will be attending the Raymond James Boston Spring Investors Conference at The State Room in Boston, Mass. Attending from the Company will be Dennis Mullen, Chief Executive Officer, and Katie Scherping, Chief Financial Officer. Mr. Mullen and Mrs. Scherping will be hosting one-on-one meetings throughout the day. Analysts and portfolio managers who wish to attend the conference or would like to request a meeting should contact Raymond James.
• On Tuesday, June 29, 2010, the Company will present at Oppenheimer & Co’s 10^th Annual Consumer, Gaming, Lodging & Leisure Conference at the Four Seasons in Boston, Mass. Presenting from the Company will be Mr. Mullen and Mrs. Scherping. The presentation will begin at 11:15 AM Eastern Time. Investors and interested parties may listen to a webcast of this presentation by visiting the Company’s website in the “Investors” area of the site.

Red Robin Gourmet Burgers, Inc., 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.

Einstein Noah Restaurant Group (NASDAQ: BAGL), a leader in the quick-casual segment of the restaurant industry operating primarily under the Einstein Bros.® Bagels, Noah’s New York Bagels®, and Manhattan Bagel® brands, announced today that the Company will present at upcoming investor conferences in June.

On Tuesday, June 8, 2010, the Company will present at the Piper Jaffray 30th Annual Consumer Conference at The Westin New York at Times Square in New York City. The presentation will begin at 1:10 pm Eastern Time.

On Wednesday, June 30, 2010, the Company will present at the Oppenheimer & Co. 10th Annual Consumer, Gaming, Lodging & Leisure Conference at The Four Seasons Hotel in Boston, Massachusetts. The presentation will begin at 9:30 am Eastern Time.

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 690 restaurants, including more than 175 license locations, in 38 states plus the District of Columbia. It also operates a dough production facility. The company’s stock is traded under the symbol BAGL.

Wendy’s/Arby’s Group, Inc. (NYSE: WEN), the parent company of Wendy’s International, Inc. and Arby’s Restaurant Group, Inc., today announced the results of its 2010 Annual Meeting of Stockholders, which was held on May 27, 2010 in New York City.

The Company’s stockholders voted to elect 12 directors: Nelson Peltz, Peter W. May, Clive Chajet, Edward P. Garden, Janet Hill, Joseph A. Levato, J. Randolph Lewis, Peter H. Rothschild, David E. Schwab II, Roland C. Smith, Raymond S. Troubh, and Jack G. Wasserman. Each director will serve until the 2011 Annual Meeting of Stockholders. Eleven of the twelve directors were previous Board members. Peter Rothschild is a newly elected Board member and replaces former New York Governor Hugh L. Carey, who did not stand for re-election.

In addition, the Company’s stockholders voted in favor of the 2010 Omnibus Award Plan and a proposal to ratify the appointment of Deloitte & Touche LLP as the Company’s independent registered public accountants. The Company’s stockholders voted against a stockholder proposal regarding poultry slaughter.

Following the stockholder meeting, the Board of Directors voted to establish a Director Emeritus position and appointed former Board member, Hugh Carey, as Director Emeritus. Former Governor Hugh Carey has served on the Board for 16 years.

Additionally, the Board approved an increase in the Company’s stock repurchase authorization by $75 million to a total of $325 million. Since the Board authorized a stock repurchase program in 2009, the Company has repurchased approximately 47 million common stock shares for $223.1 million as of May 25, 2010, at an average price of $4.73 per share. The current common stock repurchase program, of which $101.9 million is now available, will remain in effect through January 2, 2011 and allow the Company to make repurchases as market conditions warrant.

Roland Smith, President and Chief Executive Officer of Wendy’s/Arby’s Group, said: “On behalf of the entire board of directors and management team, we thank our stockholders for their support. We share their confidence in the future of our Company as we continue to successfully execute on our goals. We believe Wendy’s/Arby’s Group is well-positioned to create value for our stockholders as we grow sales through distinct premium and value-oriented product offerings. We also plan to effectively control costs and invest in future growth through the development of breakfast at Wendy’s, remodeling of both of our brands and international. We look forward to communicating our progress in the months and years ahead.”

Wendy’s/Arby’s Group, Inc. is the third largest quick-service restaurant company in the United States, and includes Wendy’s International, Inc., the franchisor of the Wendy’s® restaurant system, and Arby’s Restaurant Group, Inc., the franchisor of the Arby’s® restaurant system. The combined restaurant systems include more than 10,000 restaurants in the U. S. and 24 countries and territories worldwide.

Management of Brinker International, Inc. (NYSE: EAT), will participate in two upcoming investment conferences.  The dates and times of the presentations are as follows:

• June 7  – 8:30 a.m. Eastern (Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference 2010 to be held in New York)
• June 8 – 10:30 a.m. Eastern (Bank of America Merrill Lynch Smidcap Conference to be held in Boston)

A simulcast of each presentation will be available on the company’s Web site – www.brinker.com.  An online replay of each presentation will be available for at least two weeks following each presentation.  To access the live simulcast of the presentation, please go to the company’s Web site at least 15 minutes prior to the presentation to download and install any necessary audio software.

Brinker International either owns, operates, franchises, or is involved in the ownership of more than 1,700 restaurants under the names Chili’s Grill & Bar, Maggiano’s Little Italy, and On The Border Mexican Grill & Cantina.  Brinker also holds a minority investment in Romano’s Macaroni Grill.

Luby’s, Inc. (“Luby’s”) (NYSE: LUB) announced today that an arbitration panel of the Financial Industry Regulatory Authority (“FINRA”), in a full and final resolution of the issues submitted for determination, ruled that Credit Suisse Securities (USA) LLC (“Credit Suisse”) was liable to Luby’s, and ordered Credit Suisse to buy back auction rate securities bought through Credit Suisse at par and to pay interest on them at the par purchase price of the auction rate securities at the rate of 6% per annum from and including May 29, 2010 through and including the date the award is paid in full.

The Award makes no specific findings of fact; however, Luby’s asserted that it had been unable to liquidate its auction rate securities as a result of Credit Suisse’s actions. 

As of Luby’s most recent quarterly filing at February 10, 2010, it held $7.1 million par value or $5.2 million fair value in auction rate securities.  As a result of the award, Luby’s expects to record a pre-tax gain of approximately $1.8 million, net of expenses, on the sale of investments in its fourth quarter fiscal 2010, which is a recovery of previously recorded other-than-temporary impairment charges.  

Luby’s filed the FINRA claim against Credit Suisse Securities (USA) LLC in October, 2008.  Previously, Credit Suisse denied Luby’s allegations and had refused to buy back the auction rate securities.

“We are happy that the panel ordered Credit Suisse to repurchase these auction rate securities from us at par,” said Peter Tropoli, Luby’s Senior Vice President, Administration and General Counsel. 

The FINRA complaint against Credit Suisse asserted that Credit Suisse knew but failed to disclose to Luby’s that auction rate securities were only liquid at the time because broker-dealers and others were artificially supporting and manipulating the auction market to maintain the appearance of liquidity and stability.  Luby’s further alleged that Credit Suisse represented that auction rate securities were equivalent to cash or money market funds, and were suitable for Luby’s to purchase. 

Luby’s was represented in the arbitration by Roy Camberg, of the Camberg Law Firm, PC, based in Houston, Texas, as well as Peter Tropoli. 

Luby’s operates 96 restaurants in Austin, Dallas, Houston, San Antonio, the Rio Grande Valley, and other locations throughout Texas and other states.  Luby’s provides its customers with quality home-style food, value pricing, and outstanding customer service.

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) today announced that the Board of Directors has declared a regular dividend to common shareholders of $0.20 per share, payable on August 5, 2010 to shareholders of record on July 16, 2010.

Cracker Barrel Old Country Store restaurants provide a friendly home-away-from-home in its old country stores and restaurants. Guests are cared for like family while relaxing and enjoying real home-style food and shopping that’s surprisingly unique, genuinely fun and reminiscent of America’s country heritage…all at a fair price. The restaurants serve up delicious, home-style country food such as meatloaf and homemade chicken n’ dumplins as well as our signature biscuits using an old family recipe. The authentic old country retail store is fun to shop and offers unique gifts and self-indulgences.

Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) was established in 1969 in Lebanon, Tenn. and operates 594 company-owned locations in 41 states. Every Cracker Barrel unit is open seven days a week with hours Sunday through Thursday, 6 a.m. – 10 p.m., and Friday and Saturday, 6 a.m. – 11 p.m.

Burger King Holdings, Inc. (NYSE:BKC) announced today that the company will participate in the Goldman Sachs Lodging, Gaming, Restaurant & Leisure Conference 2010 on Monday, June 7, 2010, at the Goldman Sachs Conference Center, located at 32 Old Slip, New York, NY beginning at 1:00 p.m. ET. John Chidsey, chairman and chief executive officer, will present the company’s strategic overview. Amy Wagner, senior vice president, investor relations and global communications, will also attend.

The presentation will be webcast live via the company’s investor relations Web site at http://investor.bk.com and at http://cc.talkpoint.com/gold006/060710a_mg/?entity=9_FS5MR0G. The presentation will be archived on the company’s Web site for 30 days.

ABOUT BURGER KING HOLDINGS, INC.

The BURGER KING(R) system operates more than 12,100 restaurants in all 50 states and in 74 countries and U.S. territories worldwide. Approximately 90 percent of BURGER KING(R) restaurants are owned and operated by independent franchisees, many of them family-owned operations that have been in business for decades. In 2008, Fortune magazine ranked Burger King Corp. (BKC) among America’s 1,000 largest corporations and in 2010, Standard & Poor’s included shares of Burger King Holdings, Inc. in the S&P MidCap 400 index. BKC was recently recognized by Interbrand on its top 100 “Best Global Brands” list and Ad Week has named it one of the top three industry-changing advertisers within the last three decades.

Ark Restaurants Corp. (NASDAQ:ARKR) announced today that the Board of Directors declared its regular quarterly dividend of 25 cents per share on the Company’s common stock to be paid on July 1, 2010 to shareholders of record at the close of business on June 15, 2010.

Ark Restaurants owns and operates 20 restaurants and bars, 30 fast food concepts and catering operations. Seven restaurants are located in New York City, four are located in Washington, D.C., five are located in Las Vegas, Nevada, two are located in Atlantic City, New Jersey, one is located at the Foxwoods Resort Casino in Ledyard, Connecticut and one is located in Boston, Massachusetts. The Las Vegas operations include three restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel’s room service, banquet facilities, employee dining room and nine food court concepts; one bar within the Venetian Casino Resort as well as three food court concepts and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino. The operations at the Foxwoods Resort Casino include one fast food concept and six fast food concepts at the MGM Grand Casino. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace. The Florida operations under management include five fast food facilities in Tampa, Florida and seven fast food facilities in Hollywood, Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations.

AFC Enterprises, Inc. (NASDAQ: AFCE), the franchisor and operator of Popeyes® restaurants, today reported results for first quarter 2010 which ended April 18, 2010. The Company also reaffirmed guidance for fiscal 2010 and provided a business update on its Strategic Plan.

First Quarter 2010 Highlights Compared to First Quarter 2009:

• Reported net income was $5.8 million, or $0.23 per diluted share, compared to $5.0 million, or $0.20 per diluted share, last year. Adjusted earnings per diluted share were $0.23 compared to $0.21 last year. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
• Total system-wide sales increased 2.1 percent compared to a 1.1 percent increase last year.
• Global same-store sales decreased 0.3 percent compared to a 0.2 percent increase last year. Domestic same-store sales decreased 0.4 percent compared to a 0.3 percent decrease last year. International same-store sales increased 1.2 percent compared to a 4.8 percent increase in 2009.
• The Popeyes system opened 17 restaurants and permanently closed 12 restaurants, resulting in 5 net openings.
• EBITDA was $13.4 million, at 30.6 percent of total revenue, compared to first quarter 2009 EBITDA of $11.5 million, at 24.0 percent of total revenue. EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
• Outstanding debt was reduced by $6.8 million to $75.8 million.
• The Company’s free cash flow was $6.8 million compared to $7.1 million last year. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, “Popeyes delivered solid earnings performance for the first quarter. Our same-store sales were slightly negative; however, this was in part a function of a planned change in first quarter media timing versus a year ago. Our national promotion events were in-line with our expectations, as we have continued to outpace the chicken QSR category for the eighth consecutive quarter.”

“In today’s intensely competitive and increasingly global marketplace, building our brand with culinary innovation is one of our key strategic initiatives. As such, we are excited to announce two new menu offerings which are being introduced next week – Popeyes Wicked Chicken and Cane Sweeeet Iced Tea. Wicked Chicken is a fun and portable new way to eat lunch at Popeyes and it is our first global limited-time promotion. Cane Sweeeet Iced Tea is our own proprietary tea recipe that is fresh brewed and sweetened with cane sugar instead of corn syrup. Both of these new menu items are sourced from our distinctive Louisiana heritage.”

Strategic Plan Update

The Company’s Strategic Plan is built on the foundation of the Four Pillars below.

1. Build the Popeyes Brand

• In February and March, Popeyes promoted its Butterfly Shrimp Tackle Box featuring 8-pieces of Butterfly Shrimp with Cajun fries and a buttermilk biscuit for $4.99. This promotion, which was supported with national media advertising, delivered positive traffic and positive same-store sales.
• In April, Popeyes ran its 2-piece Louisiana tenders with Cajun fries and a buttermilk biscuit for $2.99, supported with national media advertising. On April 21^st, the first week of the second quarter, the Popeyes system offered its Popeyes Pay Day promotion for the second consecutive year. This national one-day event featured 8-pieces of Popeyes signature Bonafide® chicken for only $5.99. Both promotions performed as expected, but below the record sales of a year ago.
• On May 31st, Popeyes will launch two new menu items — Popeyes Wicked Chicken and Cane Sweeeet Iced Tea. Popeyes Wicked Chicken features a portable box with Wicked Chicken, Cajun fries, a buttermilk biscuit, ranch dipping sauce and a mini bottle of TABASCO® Pepper Sauce for only $3.99. Wicked Chicken consists of thin strips of tender, juicy, all white meat chicken marinated with Louisiana seasonings that turns into twisty and curly fun when cooked. Cane Sweeeet Iced Tea, which will be a permanent menu addition, is a fresh brewed tea sweetened with all natural, pure cane sugar.

2. Run Great Restaurants

• Popeyes restaurants continue to see steady improvements in their Guest Experience Monitor (GEM) scores, with “Overall Delighted” scores up 2 to 3 percentage points from the end of last year and “Speed of Service” scores up a full 8 percentage points from the third quarter last year when the Company initiated its new speed of service training program. This service training is now in place in substantially all restaurants throughout the domestic system.

3. Strengthen Unit Economics

• In the first quarter, Popeyes restaurants achieved a 6.5 percent decrease in food costs compared to first quarter last year, which translated to approximately a 200 basis point improvement in restaurant operating margins. This improvement was equally a result of better commodity costs and new supply chain cost savings initiatives. The Company expects the supply chain cost savings to continue to benefit the Popeyes system throughout the remainder of the year.

4. Ramp Up New Unit Growth

• Domestically, the pipeline for new unit openings has steadily improved over the last six months. While credit markets remain tight, most new units are being built by existing operators from cash flow. Internationally, the new unit pipeline is strong and the Company anticipates opening restaurants in 4 new countries in 2010. The Company remains on track to deliver its opening guidance for the year.

First Quarter 2010 Financial Performance Compared to First Quarter 2009

Total system-wide sales increased by 2.1 percent. System-wide sales were comprised of $538.7 million in franchise restaurant sales and $16.1 million in company-operated restaurant sales.

Global same-store sales decreased 0.3 percent compared to a 0.2 percent increase in 2009. Total domestic same-store sales decreased 0.4 percent compared to a 0.3 percent decrease last year, an improvement over the 1.0 percent decrease in the fourth quarter of 2009. The first quarter decrease was in part due to a planned change in first quarter media timing from three national promotions last year to two national promotions this year. According to independent data, Popeyes’ first quarter domestic same-store sales outpaced the chicken QSR category for the eighth consecutive quarter. In 2010, Popeyes’ efforts will remain focused on offering our guests compelling value while introducing innovative products to drive traffic into the restaurants.

International same-store sales increased 1.2 percent compared to a 4.8 percent increase in 2009. The increase was due primarily to strong sales in Canada, Turkey and overseas U.S. military bases, partially offset by negative performance in Latin America, Korea and the Middle East. To address the slowdown in certain international markets, the Company will shift its marketing focus to value promotions to drive traffic into the restaurants. As the Company has experienced in the domestic system, management believes lowering average check in this climate is essential to gaining market share. As such, the Company expects 2010 same-store sales in international markets to be more modest than prior years.

Total revenues were $43.8 million, compared to $47.9 million last year. This decrease was primarily due to the Company’s successful re-franchising of 16 company-operated restaurants in Atlanta and Nashville during 2009.

Company-operated restaurant expenses include “restaurant food, beverages and packaging” and “restaurant employee, occupancy and other expenses”. Company-operated restaurant expenses as a percentage of sales in the first quarter were 5 percentage points better than first quarter last year. This improvement was equally a result of better food and labor costs, attributable to better management controls and lower commodity costs, and the re-franchising of lower performing company-operated restaurants.

General and administrative expenses were $16.8 million, or 3.0 percent of system-wide sales, compared to $17.7 million, or 3.3 percent of system-wide sales, last year. This decrease was primarily attributable to planned lower first quarter expenditures of national media advertising expenses. General and administrative expenses as a percent of system-wide sales were lower than the Company’s full year guidance due to timing of expenses. The Company expects to apply these expenses over the next three quarters and continues to expect general and administrative expenses to be in the range of 3.1-3.2 percent of system-wide sales for fiscal 2010.

Other income was $0.1 million compared to other expenses of $0.4 million last year.

EBITDA was $13.4 million, at 30.6 percent of total revenue, compared to first quarter 2009 EBITDA of $11.5 million, at 24.0 percent of total revenue. The increase in EBITDA was primarily due to an improvement in food and labor costs for company-operated restaurants and lower general and administrative expenses, as discussed above. EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Operating profit was $12.2 million, compared to operating profit of $9.9 million last year.

Interest expense, net was $2.8 million in the first quarter, a $1.1 million increase from 2009. This increase was primarily due to higher average interest rates on debt and amortization fees expensed in connection with the Company’s amended credit facility, which was partially offset by lower average debt balances as compared to 2009. Interest expense, net in the first quarter included $0.8 million of non-cash charges related to amortization of bank fees and interest rate swap costs.

Income tax expense was $3.6 million, at an effective tax rate of 38.3 percent, compared to an effective tax rate of 39.0 percent in the prior year. The effective rates differ from statutory rates due to adjustments to estimated tax reserves and other permanent differences.

Reported net income was $5.8 million, or $0.23 per diluted share, compared to $5.0 million, or $0.20 per diluted share, last year. Adjusted earnings per diluted share were $0.23 compared to $0.21 last year. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

During the first quarter, the Company made $6.8 million in debt repayments, including $6.0 million of voluntary payments, reducing its outstanding debt to $75.8 million. The Company’s Total Leverage Ratio is now at 1.73 to 1.

Free cash flow was $6.8 million, which included $0.1 million of other income, compared to $7.1 million in 2009, which included $0.4 million of other expense. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

The Popeyes system opened 17 restaurants in the first quarter, which included 5 domestic and 12 international restaurants, compared to 14 openings last year. The Popeyes system permanently closed 12 restaurants, resulting in 5 net openings. These closures included 10 domestic and 2 international restaurants.

On a system-wide basis, Popeyes had 1,944 restaurants operating at the end of the first quarter, compared to 1,909 restaurants at the end of the first quarter last year. Total unit count was comprised of 1,570 domestic restaurants and 374 international restaurants in 27 foreign countries and two territories. Of this total, 1,907 were franchised restaurants and 37 were company-operated restaurants.

Fiscal 2010 Guidance

The Company continues to project global same-store sales to be in the range of negative 1.0 to positive 2.0 percent for 2010, given the continuing challenges of the global economic environment and the intensely competitive restaurant sector.

Popeyes expects its global new openings to remain consistent with previous guidance in the range of 110-130 restaurants. The Company will continue to close underperforming restaurants and enforce higher operating standards throughout the system. As a result, the Company projects system-wide unit closings to be approximately 100 restaurants, yielding 10-30 net openings in 2010, consistent with the Company’s previous guidance. Popeyes restaurant closures typically have sales significantly lower than the system average.

The Company continues to expect its fiscal 2010 general and administrative expense rate to be consistent with last year’s rate of 3.1-3.2 percent of system-wide sales, among the lowest in the restaurant industry. The Company will continue to tightly manage general and administrative expenses and invest in its international business and core initiatives of the Company’s Strategic Plan. This includes new product innovation to drive traffic, operational tools and training to improve the guest experience, and productivity initiatives to strengthen restaurant profitability.

Consistent with previous guidance, the Company expects 2010 diluted earnings per share to be in the range of $0.73-$0.77.

Long-Term Guidance

Consistent with previous guidance, over the course of the next five years, the Company believes the execution of its Strategic Plan will deliver on an average annualized basis the following results: same-store sales growth of 1 to 3 percent; net new unit growth of 4 to 6 percent; and earnings per diluted share growth of 13 to 15 percent.

Corporate Profile

AFC Enterprises, Inc. is the franchisor and operator of Popeyes® restaurants, the world’s second-largest quick-service chicken concept based on number of units. As of April 18, 2010, Popeyes had 1,944 operating restaurants in the United States, Puerto Rico, Guam and 27 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners.

Cracker Barrel Old Country Store Inc.’s fiscal third-quarter earnings rose 20% as the casual-dining company reported improved sales and margins.

The results beat analysts’ expectations and the company boosted its earnings view for a third time, now raising it to $3.50 to $3.60 a share from $3.35 to $3.50. The company also lifted the low end of its prior-revenue view by a percentage point on new-store openings and projected same-store restaurant sales growth.

In addition, Cracker Barrel lowered its capital-spending view by $5 million to $65 million to $70 million.

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Landry’s Restaurants, Inc. (NYSE: LNY) (the “Company”) announced today that it has entered into an amendment to the merger agreement previously signed with a company wholly-owned by Tilman J. Fertitta, Chairman, Chief Executive Officer and President of the Company.  Pursuant to the amendment, the Fertitta company has agreed to acquire all of the Company’s outstanding common stock not already owned by Mr. Fertitta for $24.00 per share in cash.  The total value of the transaction is approximately $1.4 billion.  On May 23, 2010, Mr. Fertitta beneficially owned approximately 55% of the Company’s outstanding shares of common stock.  The merger agreement originally entered into on November 3, 2009 provided for a purchase price of $14.75 per share in cash.

The Company’s Board of Directors, acting upon the unanimous recommendation of a Special Committee comprised entirely of outside, non-employee directors, has approved the amended merger agreement and has recommended that the Company’s stockholders vote in favor of the amended merger agreement.  The Special Committee received the opinion of Moelis & Company, financial advisor to the Special Committee, that the amended purchase price is fair from a financial point of view to the Company’s stockholders, other than Mr. Fertitta and his affiliates.

The merger is subject to approval by the Company’s stockholders, including approval by the holders of a majority of the Company’s common stock voted at the special meeting and not owned by Mr. Fertitta and the directors in the litigation described below.

The Company also announced that a partial settlement has been reached to settle derivative and certain other claims against Mr. Fertitta, affiliates of Mr. Fertitta and the Company’s directors in a lawsuit currently pending in Delaware.  The merger is conditioned upon the dismissal with prejudice of such claims.

Both the amended merger agreement and terms of the settlement with the plaintiff in the Delaware lawsuit provide, among other things, that (1) the Special Committee will conduct an active “go-shop” process for 45 days, with the option for at least a 15-day extension for due diligence if the Special Committee deems necessary, (2) the Special Committee will waive standstills, except for hostile offers or open market transactions in the Company’s securities, to permit proposals during the “go-shop” process and will permit requests for waivers of standstills to be made thereafter, (3) Mr. Fertitta is not entitled to receive a termination fee upon termination of the amended merger agreement, but may be reimbursed for his actual expenses in specified circumstances, and (4) the Company will reimburse up to $500,000 in actual out-of-pocket due diligence costs incurred by the two highest bidders that submit a proposal to acquire the Company at a price in excess of $24.00 per share, if the Special Committee concludes that the proposal is reasonably likely to lead to a superior proposal. No assurances can be given that the solicitation of superior proposals will result in an alternative transaction.

Wendy’s/Arby’s Group, Inc. (NYSE:WEN), the third largest quick-service restaurant company in the United States, today announced that its subsidiary, Wendy’s/Arby’s Restaurants, LLC, has completed a new $650 million senior secured credit facility, which includes a $150 million revolving credit facility and a $500 million term loan.

Proceeds from the new term loan were used to retire approximately $251 million of outstanding indebtedness under the Company’s existing term loan, which was to mature in 2012, and will be used to redeem $200 million of Wendy’s International, Inc.’s 6.25% senior notes due November 15, 2011, plus a redemption premium of approximately $15 million. The remainder of the proceeds of the term loan will be used to pay related expenses of the transaction, with approximately $15 million of residual cash added to the balance sheet.

The interest rate on the new senior secured credit facility is based on a LIBOR rate, which has a floor of 1.5%, plus 3.5%, or a base rate, which has a floor of 2.5%, plus 2.5%. These rates are 225 basis points lower than the Company’s borrowing rate on the existing credit facility. The term loan was issued at 99.5% of par, which represented an original issue discount of 0.5%.

Banc of America Securities LLC and Citigroup Global Markets Inc. served as joint lead arrangers and joint book managers and Wells Fargo Securities, LLC and Credit Suisse Securities (USA) LLC served as co-managers.

Steve Hare, Chief Financial Officer of Wendy’s/Arby’s Group, said: “We are pleased to complete this refinancing of our medium-term debt maturities and take advantage of the current favorable interest rate environment. This transaction simplifies our borrowing structure and is expected to reduce our cash interest expense by approximately $5.8 million over the next 12 months.”

Wendy’s/Arby’s Group, Inc. is the third largest quick-service restaurant company in the United States, and includes Wendy’s International, Inc., the franchisor of the Wendy’s® restaurant system, and Arby’s Restaurant Group, Inc., the franchisor of the Arby’s® restaurant system. The combined restaurant systems include more than 10,000 restaurants in the U.S. and 24 countries and territories worldwide.

Panda Express, the largest Asian-themed restaurant company in the United States, is accelerating unit growth as a healing U.S. economy drives more diners into its nearly 1,300 quick-service outlets.

“Our business is up nicely,” said Peggy Cherng, co-founder of the chain’s privately held parent Panda Restaurant Group, based in Rosemead, California.

Company revenue rose more than 3 percent to $1.27 billion in 2009. Rival P.F. Chang’s China Bistro (PFCB.O) reported 2009 revenue that grew almost 3 percent to $1.23 billion.

Like many other restaurant chains, Panda Express saw same-store sales fall when the economy forced consumers to cut back on eating out. But it was in lockstep with many of the industry’s healthy operators when it saw sales return to positive territory in March.

Same-restaurant sales at Panda Express chalked up a 6.4 percent gain for the four-week period ended March 19. Sales for the period ended April 16 and May 14 rose 4.1 percent and 5.3 percent, respectively.

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Del Taco Holdings, Inc. (formerly known as Sagittarius Brands, Inc.) announced the completion of a recapitalization transaction.

The recapitalization involved a refinancing of the company’s existing debt, the sale of the company’s Captain D’s subsidiary, and an investment of equity capital. The new senior credit facilities, led by Wells Fargo and GE Capital, feature a $160 million term loan and a $39 million revolving line of credit. In conjunction with the new credit facility, Goldman Sachs Mezzanine Partners led a new cash equity infusion into Del Taco with existing investors Charlesbank Capital Partners and Leonard Green & Partners also contributing significant new capital to the recapitalization. Finally, in order to focus on its core Del Taco brand, the company sold its Captain D’s subsidiary to Sun Capital Partners, Inc.

“These transactions result in an improved capital structure for Del Taco, and provide us increased flexibility to support our growth through a sole focus on the Del Taco brand. This, combined with a significantly lower level of debt and cash interest requirements, allows Del Taco to improve cash flows and invest in the business,” said Steven Brake, Senior Vice President and Chief Financial Officer for Del Taco Holdings, Inc. “Our management and equity owners are excited about what this recapitalization means for the future of the brand.”

In 2009, Del Taco had system-wide sales of $568 million and currently operates 287 company-owned units with 231 franchised locations. The company’s growth plans include new company and franchise locations in various key markets in the United States. Currently, Del Taco’s strongest markets include Southern California, Phoenix, Las Vegas, Salt Lake City and the chain is expanding in Colorado, Michigan and recently opened its second location in Florida.

Del Taco Holdings, Inc. will be headquartered in Lake Forest, California.

Founded in 1964, Del Taco, the Lake Forest, California-based company operates or franchisees more than 515 restaurants in 16 states. Del Taco offers a full range of made-to-order Mexican items such as tacos, burritos, quesadillas and American favorites including cooked-to-order burgers, fries and shakes. Del Taco uses fresh ingredients including hand-made salsa, fresh produce, freshly grated cheddar cheese, chicken grilled every hour and lard-free beans made from scratch.

Red Robin Gourmet Burgers, Inc., 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 16 weeks ended April 18, 2010.

Financial and Operational Results

Results for the 16 weeks ended April 18, 2010, compared to the 16 weeks ended April 19, 2009, are as follows:

• Restaurant revenue increased 0.3% to $267.5 million.
• Company-owned comparable restaurant sales decreased 2.3%.
• Restaurant-level operating profit decreased 5.7% to $48.8 million.
• GAAP diluted earnings per share were $0.32 vs. $0.25 in the fiscal first quarter a year ago. GAAP diluted earnings per share in the fiscal first quarter 2009 included $0.22 per diluted share in one-time charges.
• The Company recorded $3.5 million, or $0.19 per diluted share, in other income as a result of a one-time adjustment to unredeemed gift card liabilities (see “Gift Card Breakage Income” below)
• Three new company-owned Red Robin® restaurants opened during the fiscal first quarter 2010. Three additional restaurants that were under construction during the first quarter – one company-owned and two franchised — have opened since the end of the quarter. Two franchised restaurants and one company-owned restaurant closed during the first quarter.

As of the end of the fiscal first quarter 2010, there were 308 company-owned and 131 franchised Red Robin® restaurants.

“While there are still many challenges in the current macroeconomic environment and the restaurant industry as a whole, we are encouraged by the strengthening of our comparable restaurant sales,” said Dennis Mullen, Red Robin Gourmet Burgers, Inc.’s chief executive officer. “Our guest counts and same store sales have benefited from our recent television advertising support, as well as our continued focus on quality, variety, value and our restaurant Team Members’ commitment to outstanding guest service. We’re looking forward to building on that momentum into the summer, with innovative and craveable additions to our menu, new LTO’s supported with TV advertising and other exciting marketing programs and the new restaurant development we have underway for the balance of the year.”

Fiscal First Quarter 2010 Results

Comparable restaurant sales decreased 2.3% for company-owned restaurants in the fiscal first quarter of 2010 compared to an 8.1% decrease in the fiscal first quarter of 2009, driven by a 0.1% increase in guest counts and a 2.4% decrease in the average guest check, which included the impact of LTO price promotions in the quarter. Fiscal first quarter 2010 comparable restaurant sales reflected a sequential improvement from the Company’s comparable restaurant sales decrease of 10.5% reported in the fiscal fourth quarter of 2009 and the decrease of 14.9% reported in the fiscal third quarter of 2009. The Company estimates that severe winter storms in several markets in the Northeast, California and Mid-Atlantic states in the fiscal first quarter of 2010 negatively impacted comparable restaurant sales by approximately 1.4% and diluted earnings per share by $0.10.

Average weekly comparable sales from the 286 company-owned comparable restaurants were $55,896 in the fiscal first quarter of 2010, compared to $58,079 for the 244 company-owned comparable restaurants in the fiscal first quarter of 2009. Average weekly sales for the 22 non-comparable company-owned restaurants were $56,560 in the fiscal first quarter of 2010, compared to $55,245 for the 41 non-comparable restaurants in the fiscal first quarter a year ago. For all company-owned restaurants, average weekly sales were $55,909 from the 4,906 operating weeks in the fiscal first quarter of 2010 compared to $57,352 from the 4,768 operating weeks in the fiscal first quarter of 2009.

Total company revenues, which include company-owned restaurant sales, franchise royalties and fees and other revenue, increased 1.7% to $275.5 million in the fiscal first quarter of 2010, versus $270.8 million last year. Included in other revenue in the fiscal first quarter of 2010 was $3.8 million attributed to recognition of gift card breakage revenue, as described below. Franchise royalties and fees of $4.2 million in the fiscal first quarter of 2010 were flat compared to the same period a year ago.

For the fiscal first quarter of 2010, the Company’s U.S. franchise restaurant sales of $93.6 million were lower compared to $95.0 million in the prior year period. Comparable sales in the fiscal first quarter of 2010 for franchise restaurants in the U.S. decreased 2.1% and for franchise restaurants in Canada increased 4.8% from the fiscal first quarter of 2009. Average weekly comparable sales for the U.S. franchised restaurants were $51,857 from the 106 comparable restaurants in the fiscal first quarter of 2010, compared to $52,961 for the 98 comparable restaurants in the fiscal first quarter of 2009. Average weekly sales in the fiscal first quarter of 2010 for the Company’s 18 comparable franchise restaurants in Canada were C$54,293 versus C$51,058 in the same period last year. Canadian results are in Canadian dollars.

Selling, general and administrative expenses were $30.8 million in the fiscal first quarter of 2010 and $24.8 million in the fiscal first quarter of 2009, which were 11.2% and 9.1% of total revenue, respectively. Included in the fiscal first quarter of 2010 was $6.6 million of investment in the Company’s television media campaign, which included a $1.2 million investment made by the Company to fund its franchisees’ portion of this initial system-wide television campaign. Beginning in the fiscal second quarter of 2010, franchisees will contribute an additional 1.25% of their revenue to the national cable television advertising efforts for the remainder of 2010. System-wide funding for the remaining national cable television campaigns and some local television advertising support in fiscal 2010 will total $11.4 million, of which $8.9 million will be funded by the Company from selling, general and administrative expenses.

Net interest expense was $1.9 million in the fiscal first quarter of 2010 and $2.1 million in the fiscal first quarter of 2009.

Net income for the fiscal first quarter of 2010 was $4.9 million or $0.32 per diluted share, compared to net income of $3.8 million, or $0.25 per diluted share, in the fiscal first quarter of 2009.

For the fiscal first quarter of 2010, the Company’s effective tax rate was 17.1% compared to an effective tax rate of 25.3% in the fiscal first quarter of 2009. The decrease is primarily due to more favorable general business and tax credits, primarily the FICA Tip Tax Credit, which as a percent of current year income before tax did not change at the same rate as the change in taxable income. The Company anticipates that the effective tax rate for the full fiscal year 2010 will be approximately 17%.

Schedule I of this earnings release defines restaurant-level operating profit and reconciles this metric 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 restaurant performance. 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 is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance.

Gift Card Breakage Income

Through its restaurants and third-parties, the Company sells gift cards, which do not have an expiration date, and the Company does not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards when the gift card is redeemed by the customer, or if the likelihood of gift card redemption is remote (referred to as “gift card breakage”) and the Company determines that there is not a legal obligation to remit the unredeemed gift cards to the relevant jurisdiction. During the fiscal first quarter of 2010, the Company completed an analysis of liabilities from unredeemed gift cards that were sold through its restaurants and, as a result of this analysis, recorded $3.5 million, or $0.19 per diluted share, in other revenue as a one-time cumulative adjustment, and $266,000 of other revenue for the first quarter 2010 related to the on-going amortization of the unredeemed gift card balances. The on-going quarterly revenue to be recognized as a result of breakage from unredeemed gift cards that were sold through the Company’s restaurants is expected to be between $200,000 and $250,000.

Balance Sheet and Liquidity

On April 18, 2010, the Company held $13.9 million in cash and cash equivalents and had a total outstanding debt balance of $170.2 million, including $113.3 million in borrowings under its $150 million term loan, $50.5 million of borrowings under its $150 million revolving credit facility and $6.3 million outstanding for capital leases. The Company has also issued $5.4 million of outstanding letters of credit under its revolving credit facility. In the first fiscal quarter of 2010, the Company paid down $21.2 million in debt, and since the end of the first quarter 2010, the Company has made additional debt repayments of $3.5 million on its revolving credit facility.

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 April 18, 2010, the Company was in compliance with all of its debt covenants, and the Company expects to remain in full compliance.

Outlook

The Company’s fiscal second quarter of 2010 is a 12-week quarter. One new company-owned restaurant opened early in the fiscal second quarter and four new company-owned restaurants are currently under construction. Two new franchised restaurants opened in the fiscal second quarter, and no new franchised restaurants are currently under construction. During fiscal year 2010, the Company expects to open 12 to 13 new company-owned restaurants and franchisees are expected to open three to four new restaurants.

For the fiscal year 2010, which is a 52-week year, the Company expects revenues of $872 million to $880 million and net income of $1.10 to $1.30 per diluted share. These projected results are based upon certain assumptions, including an expected comparable restaurant sales of 0% to up 1.0% compared to the fiscal year 2009. Through May 16, 2010, the first four weeks of the Company’s 12-week fiscal second quarter of 2010, comparable restaurant sales decreased 1.2% from the prior year comparable period for company-owned restaurants, compared to a year-over-year decrease of 11.1% in the first four weeks of the fiscal second quarter of 2009. The Company did not engage in TV advertising during the first four weeks of the second fiscal quarter of 2010 or 2009.

The annual financial guidance includes approximately $15.6 million that the Company expects to spend for television advertising to support limited time offer (LTO) promotions during 2010, compared to $2.3 million that the Company spent on television advertising during fiscal year 2009. The Company’s total marketing expense in 2010 is expected to be about $28.8 million compared to $15.2 million spent in fiscal 2009 and is included in selling, general and administrative expense.

For the remaining three quarters of fiscal 2010, the Company’s run rate SG&A expense is expected to be between $16.5 and $17.0 million per quarter. Adding to that will be what the Company’s portion of TV marketing expense is expected to be by quarter as follows: For the fiscal second quarter of 2010, the Company expects to spend $3.3 million; for the fiscal third quarter of 2010, the Company expects to spend $3.4 million; and for the fiscal fourth quarter of 2010, the Company expects to spend $2.3 million.

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 the Company expects to fund entirely out of operating cash flow. The Company also intends to 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.

Red Robin Gourmet Burgers, Inc., 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 440 Red Robin® restaurants located across the United States and Canada, including company-owned locations and those operating under franchise agreements.

Yum! Brands Inc. Board of Directors today declared a dividend of $0.21 per share of common stock. The quarterly dividend will be distributed August 6, 2010, to shareholders of record at the close of business on July 16. Yum! is committed to returning significant cash to shareholders through dividends and share repurchases. Since inception in 2004, Yum! has more than quadrupled the quarterly dividend.

Yum! Brands is the world’s largest restaurant company in terms of system restaurants with more than 37,000 restaurants in more than 110 countries and territories. The company is ranked #216 on the Fortune 500 List, with revenues of nearly $11 billion in 2009. Four of the company’s restaurant brands – KFC, Pizza Hut, Long John Silver’s and Taco Bell – are the global leaders of the chicken, quick-service seafood, pizza and Mexican-style food categories. A&W Restaurants is the longest running quick-service franchise chain in America. Outside the United States, Yum! Brands’ system opened more than four new restaurants each day of the year in 2009, making it a leader in international retail development.

Brazil Fast Food Corp., the second largest restaurant chain with 737 points of sale, operating under the Bob’s brand, KFC and Pizza Hut São Paulo as franchisee of Yum! Brands, and Doggis as franchisee of Chilean owner of this brand, all of them in Brazil, today announced financial results for the first quarter ended on March 31, 2010.

First Quarter 2010 Highlights

• System-wide sales totaled R$ 191.6 million, up 16.1% from the first quarter 2009
• Revenue totaled R$ 50.1 million, up 13.4% from the first quarter 2009
• EBITDA was R$ 4.6 million, up 19.8% from the first quarter 2009
• Operating income was R$2.3 million, up 24.8% from the first quarter 2009
• Net income was R$1.9 million, or R$0.23 per basic and diluted share

“Our results for the first quarter represent a good start for the year, and put us ahead of schedule to achieve our goal for 2010. In addition to delivering healthy top- and bottom-line growth, we were also pleased with the improvement in the operating margins of our owned stores,” said Mr. Ricardo Bomeny, President and CEO of Brazil Fast Food. “The outlook for our business in 2010 remains positive, and we will continue to make planned investments to grow our brands in the quarters ahead.”

First Quarter 2010 Results

System-wide sales grew 16.1% in the first quarter to R$ 191.6 million, driven by an increase in owned stores as well as franchised points of sale.

Total revenue for the first quarter 2010 increased by 13.4% to R$50.1 million from R$44.2 million in the first quarter 2009. Revenue growth was driven by the continued expansion of the Company’s Bob’s and KFC restaurant network as well as the launch of Doggis in the fourth quarter of 2009. The Company ended the first quarter of 2010 with 735 points of sale, compared to 667 in the comparable period in 2009.

Net revenue for company-owned and operated outlets was up 9.4% to R$38.3 million over the same period in 2009 due to the increase in the number of stores the Company owns and operates to 89, up from 85 in the first quarter of 2009. Same own-store sales, which measure the performance of stores open for more than a year, were up 4.8% year over year for Bob’s, 2.8% for KFC and 14.5% for Pizza Hut.

Net revenue from franchisees increased 8.2% year-over-year to R$6.6 million driven by an increase in number of franchised retail outlets to 647, up from 580 in the same period a year ago. Other revenue and income totaled R$5.2 million.

Operating expenses were up 12.9% to R$47.8 million driven by higher owned-store costs associated with increases in store rent and wages, higher franchisee costs associated with the growth in the number of franchised network stores, higher administrative costs driven by new staff hires, outsourcing services transition costs, legal expenses to adapt franchisee agreements and, in general, structure expenses to keep on preparing the group for the expansion of the stores of the operating brands.

Operating income for the first quarter of 2010 was R$2.3 million, compared to an operating income of R$1.8 million in the first quarter of 2009. Operating margin in the first quarter of 2010 was 4.6% compared to 4.1% in the comparable period of 2009.

EBITDA in the first quarter of 2010 was R$4.0 million, compared to R$3.4 million in the first quarter of 2009. EBITDA margin was 8.1% in the first quarter of 2010, compared to 7.6% in the comparable period of 2009. A table reconciling EBITDA to its nearest GAAP equivalent is provided elsewhere in this press release.

Interest expense was R$340 thousand in the first quarter of 2010, compared to R$808 thousand in the first quarter of 2009. The reduction in interest expense is attributable to lower interest rates as well as a reduction in the Company’s debt.

Net income for the first quarter of 2010 was R$1.9 million or R$0.23 per basic and diluted share, compared to net income and earnings per share of R$1.1 million and R$0.14 in the same period of 2009, respectively.

Financial Condition

As of the balance sheet date on March 31, 2010 the Company had R$13.8 million in cash. Shareholders’ equity was R$27.0 million at the end of the first quarter of 2010, compared to R$25.1 million at the end of 2009.

Business Outlook

During the first quarter, the macro-economic environment in Brazil was favorable for retail activities in general, but to a lesser extent for the food segment. Notwithstanding the Company delivered solid results driven by the strength of its industry leading brands. The outlook for the Brazilian economy remains positive, despite recent uncertainty associated with the European debt crisis. As a result the Company maintains its goal to end 2010 with 830 points of sale up from 673 in 2009.

“Our primary goal is to grow our existing brands organically. In addition to growing our own stores network as well as the Bob’s franchise, following the agreements with Yum! Brands and Chilean GED owner of Doggis brand, during 2010 we plan to initiate the development of the KFC and Doggis franchisee network. Nonetheless we will also continue to evaluate the acquisition or development of new brands opportunistically,” said Mr. Ricardo Bomeny, President and CEO of Brazil Fast Food. “On the operating front we remain committed to improving our managerial procedures to improve our efficiency and effectiveness with the goal of strengthening our competitive position and expanding our margins,” concluded Mr. Bomeny.

Brazil Fast Food Corp. owns and operates, both directly and through franchisees, the second largest fast-food restaurant chain in Brazil. The Bob’s trade name is used by Venbo Comércio de Alimentos Ltda., a subsidiary of Brazil Fast Food holding company, BFFC do Brasil Participações Ltda (formerly 22N Participações Ltda.). The “KFC” trade name is used by CFK Comércio de Alimentos Ltda. (formerly Clematis Indústria e Comércio de alimentos e Participações Ltda.), also a holding company subsidiary. The “Pizza Hut” trade name is used by Internacional Restaurantes do Brasil (“IRB”), also a 60% subsidiary of Brazil Fast Food holding company, BFFC do Brasil Participações Ltda. Recently, the Company entered into an agreement with Grupo de Empresas Doggis S.A (“GED”) to cross-franchise the Bob’s and Doggis brands in Chile and Brazil, respectively. Brazil Fast Food will control the Doggis master franchise in Brazil and GED will control the Bob’s master franchise in Chile.

Despite upheaval in the stock market, the economy is showing signs of a robust recovering, particularly with the Labor Department revealing a significant jump in nonfarm payrolls just last week. As a result, consumers are exhibiting a willingness to spend a little more at restaurants. In fact, a number of fast food restaurants have shown impressive growth in 2010 and are offering up some wonderful bullish trading opportunities.

Chipotle Mexican Grill owns and operates more than 950 quick-casual Mexican food eateries, Hoover’s reports. Customers can build a 1-1/4 pound burrito from a lineup that includes chicken, steak, barbecue or free-range pork, as well as beans, rice, guacamole and various other veggies and salsas. The company claims that, with extras, its menu offers more than 65,000 choices. Chipotle restaurants also serve tacos, chips and salsa, beer and margaritas. Operating in more than 30 states, many of the eateries are found in and around urban retail areas.

Furthermore, the company is expanding into Europe with a London location and is scouting sites in Paris and some German cities. The company projects 120 to 130 new restaurant openings in 2010.

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EPL Intermediate, Inc., parent company of El Pollo Loco, Inc., today reported results for the 13 weeks ended March 31, 2010.

El Pollo Loco reported operating revenue for the 13-week period ended March 31, 2010 of $68.0 million, which is a decrease of $2.6 million, or 3.7%, compared to operating revenue for the 13-week period ended April 1, 2009 of $70.6 million. Operating revenue includes both sales at company-operated stores and franchise revenue.

The decrease in operating revenue was primarily attributed to a 6.7% decrease in system-wide same-store sales for the first quarter of 2010 compared to the first quarter of 2009. Restaurants enter the comparable restaurant base for same-store sales the first full week after that restaurant’s 15-month anniversary.

Commenting on results for the first quarter of 2010, Stephen E. Carley, president and CEO of El Pollo Loco, Inc., said, “Our sales continued to be impacted by disproportionately high unemployment in our core markets and increased frugality among dine-out consumers.

“Despite the difficult economy, the January launch of our flame-grilled Carne Asada style Sirloin steak struck a responsive chord with consumers and we generated impressive trial of our steak entrees. For the first quarter, steak represented approximately 25% of our sales in the Mexican entrée category, which mainly excludes our family meals. We also drove family meal purchases and additional trial of our flame-grilled steak in the first quarter with a FREE Steak & 3-Cheese Quesadilla with the purchase of a 9- or 14-piece Family Feast chicken meal promotion.”

Operating income increased $0.3 million, or 7.6%, to $4.4 million for the first 13 weeks of 2010 from $4.0 million for the first 13 weeks of 2009.

Interest expense, net of interest income, increased $3.2 million, or 52.7%, to $9.2 million for the first 13 weeks of 2010 from $6.0 million for the first 13 weeks of 2009. Average debt balances for the first 13 weeks of 2010 increased to $268.2 million compared to $240.7 million for the first 13 weeks of 2009. The increase was mainly due to higher average debt balance and interest rate compared to the prior year period.

Our provision for income taxes consisted of an income tax expense of $0.7 million for the first 13 weeks of 2010 compared to an income tax benefit of $0.1 million in the first 13 weeks of 2009. This income tax expense was primarily related to the effect of changes in our deferred taxes and the related effect of maintaining a full valuation allowance against certain of our deferred tax assets as of March 31, 2010.

As a result of the factors cited above, there was a net loss for the 13 weeks ended March 31, 2010 of $5.6 million compared to a net loss of $1.3 million for the same 13 weeks of 2009.

Commenting on the remainder of 2010, Carley said, “In the months ahead we plan to maintain the delicate balance between providing value and protecting average check by introducing flavorful new products that leverage our flame-grilling expertise; focusing on our Loco Value Menu; and continuing to provide value with compelling family meal offers.”

El Pollo Loco’s restaurant count changes for the first 13 weeks of 2010 are as follows:

Addressing the Company’s growth, Mr. Carley said, “We expect to open fewer restaurants this year than last, due in part to the continued difficulty franchisees are having securing financing in this challenging economy and the impact the economic crisis has had on our franchisees, several of whom have delayed or reduced the number of new restaurants they plan to open. No new restaurants opened in the first quarter of 2010 and three restaurants closed during this timeframe, which included one company and one franchise restaurant in the Chicago area and one franchise restaurant in Yuma, AZ.

“We plan to open two company stores in 2010 to conserve capital and expect our franchisees to open three to four restaurants this year. Restaurants scheduled to open in 2010 will be located in areas where El Pollo Loco already has a presence.”

System-wide Sales

Included above is system-wide same-store sales information. System-wide sales are a financial measure that includes sales at all company-owned stores and franchise-owned stores, as reported by franchisees. Management uses system-wide sales information internally in connection with store development decisions, planning and budgeting analyses. Management believes system-wide sales information is useful in assessing consumer acceptance of the Company’s brand and facilitates an understanding of financial performance as the Company’s franchisees pay royalties and contribute to advertising pools based on a percentage of their sales.

About the Company

El Pollo Loco is the nation’s leading restaurant concept specializing in flame-grilled chicken. Headquartered in Costa Mesa, California, El Pollo Loco, Inc. operates a restaurant system comprised of 171 company-operated and 241 franchised restaurants (as of March 31, 2010) located primarily in California, with additional restaurants in Arizona, Colorado, Connecticut, Georgia, Illinois, Missouri, Nevada, New Jersey, Oregon, Texas, Utah and Virginia. El Pollo Loco’s menu features the Company’s signature citrus-marinated, flame-grilled chicken in individual and family-size meals served with a choice of corn or flour tortillas, freshly-prepared salsas and an assortment of side orders. El Pollo Loco also serves a variety of contemporary, Mexican-inspired entrees featuring the chain’s citrus-marinated, flame-grilled chicken and Carne Asada-style Sirloin steak, including Pollo Bowl® entrees, pollo salads, grilled burritos, tacos, quesadillas and more.

NexCen Brands, Inc. today reported unaudited financial results for the first quarter of 2010.

Kenneth J. Hall, Chief Executive Officer of NexCen Brands, stated, “While our revenues reflect continued weakness in the macro environment, we continued to generate positive cash flow from operations. Additionally, the cost reduction efforts that we implemented in 2009 resulted in our operating income being relatively flat as compared to the prior year. With that said, exploring alternatives to our capital and debt structure remained our priority throughout the quarter and we are pleased to have recently signed an agreement to sell our franchising business. The agreement allows us to address our current debt and capital structure in a manner we believe is most favorable for all of our stakeholders.”

First Quarter 2010 Operating Results and Financial Highlights

The operating results and financial highlights for the first quarter ended March 31, 2010 are as follows:

• Total revenues in the first quarter of 2010 decreased 16% to $10.0 million from $12.0 million in the first quarter of 2009. The decrease is primarily due to current economic conditions, including continued weak credit markets for franchisees and softness in consumer spending and retail traffic.
• Total operating expenses in the first quarter of 2010 decreased 18.6% to $8.3 million from $10.2 million in the first quarter of 2009. Total operating expenses in the first quarter of 2010 included $0.1 million in strategic initiative expenses associated with identifying and evaluating alternatives to the Company’s debt and capital structure. Operating income in the first quarter of 2010 of $1.7 million as compared to $1.8 million in the first quarter of 2009 was essentially flat. Net loss in the first quarter of 2010 was $0.7 million, or ($0.01) per diluted share compared to a loss of $0.9 million or ($0.02) per diluted share in the first quarter of 2009.
• Cash generated from operations was $1.2 million in the first quarter of 2010 compared to $0.4 million in the first quarter of 2009.
• The Company had cash and cash equivalents of $7.7 million as of March 31, 2010, compared to cash and cash equivalents of $7.8 million as of December 31, 2009.
• The Company’s outstanding debt balance was $136.5 million at March 31, 2010, compared to $138.2 million at December 31, 2009.
• The Company’s average effective interest rate for its credit facility was 6.4% in the first quarter of 2010, compared to 6.4% in the fourth quarter of 2009, and 6.8% in first quarter of 2009. The Company’s interest expense was $2.6 million in the first quarter of 2010, compared to $2.6 million in the fourth quarter of 2009, and $2.8 million in first quarter of 2009.
• Total franchised locations were 1,706 stores at March 31, 2010 versus 1,772 stores at March 31, 2009. The net decrease of 66 stores, or 3.7%, reflects closures, initiated either by the franchisee or the Company, of underperforming and non-compliant stores. Total franchised locations were 1,713 at December 31, 2009.
• The Company executed franchise agreements for 56 new franchise units during the first quarter of 2010, versus franchise agreements for 71 new franchise units in the fourth quarter of 2009.
• Deferred revenue related to the pipeline for franchise stores to be opened pursuant to executed letters of intent and franchise agreements was $2.4 million at March 31, 2010 as compared to $2.8 million at December 31, 2009. Total deferred revenue including vendor rebates remained constant at $3.2 million at March 31, 2010 and December 31, 2009.

Agreement to Sell Franchise Business

As previously announced on May 13, 2010, NexCen Brands entered into an agreement to sell its franchise business to an affiliate of Levine Leichtman Capital Partners (“LLCP”), an independent investment firm with significant franchise management experience. The transaction represents the culmination of a strategic review process that NexCen Brands undertook to identify and evaluate potential alternative approaches to addressing its current debt and capital structure.

This morning, the Company filed a Current Report on Form 8-K with the Securities and Exchange Commission that includes copies of the sale agreement with LLCP and the related agreements with the Company’s lender, BTMU Capital Corporation. The filing also discusses current expectations for the Company following completion of the sale transaction.

NexCen Brands, Inc. is a strategic brand management company with a focus on franchising. It owns a portfolio of franchise brands that includes two retail franchise concepts: TAF™ and Shoebox New York^®, as well as five quick service restaurant (QSR) franchise concepts: Great American Cookies^®, MaggieMoo’s^®, Marble Slab Creamery^®, Pretzelmaker^® and Pretzel Time^®. The brands are managed by NexCen Franchise Management, Inc., a subsidiary of NexCen Brands.