Benihana Inc., operator of the nation’s largest chain of Japanese theme and sushi restaurants, today reported total restaurant sales and comparable restaurant sales for the first four weeks (July 19 – August 15, 2010) of the second fiscal quarter 2011 compared to the same four-week period for the second fiscal quarter 2010 (July 20 – August 16, 2009). These results demonstrate continued positive momentum resulting from the company’s implementation of its renewal program.

Total restaurant sales increased 4.2% to $25.2 million from $24.2 million, while Company-wide comparable restaurant sales increased 4.3%, representing the 6^th consecutive period with comparable restaurant sales increases. By concept, comparable restaurant sales increased 7.3% at Benihana teppanyaki, while the impact of macro-economic weakness caused decreases of 1.2% at RA Sushi and 0.6% at Haru. There were a total of 388 store-operating weeks during the first four weeks of the second fiscal quarter 2011 compared to a total of 393 store-operating weeks during the first four weeks of the second fiscal quarter 2010.

Richard C. Stockinger, Chief Executive Officer and President, said, “We are pleased with the traffic gains (up 9.7%) at Benihana teppanyaki, which drove our sales momentum during the four-week period. Our renewal program continues to result in visits by both new and lapsed guests to our flagship brand. Our Chef’s Table email database, which since its introduction in April 2009 has grown to approximately 1.2 million subscribers, and our Chef’s Special promotions during the period, featuring ‘shrimp and chicken for 2’ for $35 and ‘hibachi steak for 2’ for $37, also proved effective in encouraging guests to enjoy our Benihana teppanyaki restaurants. While renewed softness in the overall economy led to a sequential slowdown at RA Sushi and Haru from the first fiscal quarter, we are encouraged that both brands were off only marginally from year-ago sales levels.”

Today, the Board of Directors for Brinker International, Inc. (NYSE: EAT) declared a quarterly dividend of $0.14 per share on the common stock of the company.

The dividend will be paid on September 30, 2010 to shareholders of record as of September 10, 2010.

At the end of the fourth quarter of fiscal 2010, Brinker International either owned, operated or franchised 1,550 restaurants under the names Chili’s® Grill & Bar (1,505 restaurants) and Maggiano’s Little Italy® (45 restaurants). Brinker also holds a minority interest in Romano’s Macaroni Grill®.

The statements contained in this release that are not historical facts are forward-looking statements. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by general business and economic conditions, the impact of competition, the impact of acquisitions and divestitures and other strategic transactions, the seasonality of the company’s business, adverse weather conditions, future commodity prices, fuel and utility costs and availability, terrorists acts, consumer perception of food safety, changes in consumer taste and behavior, health epidemics or pandemics, changes in demographic trends, availability of employees, unfavorable publicity, the company’s ability to meet its growth plan, acts of God, governmental regulations, and inflation.

Krispy Kreme Doughnuts, Inc. (NYSE: KKD) plans to release its financial results for the second quarter of fiscal 2011 on Thursday, September 2, 2010, shortly after the market closes.  The Company plans to host a conference call to review the results and management’s outlook for the balance of fiscal 2011 at 4:30 p.m. (ET) that day.

A live webcast of the conference call will be available at www.KrispyKreme.com.  The conference call also can be accessed over the phone by dialing (888) 215-6918 or, for international callers, by dialing (913) 312-0934.  To access an archived audio replay of the call, dial (888) 203-1112, or (719) 457-0820 for international callers; the passcode is 5687421.  The audio replay will be available through September 9, 2010. A transcript of the conference call will also be available at the Company website.

About Krispy Kreme

Krispy Kreme is a leading branded specialty retailer and wholesaler of premium-quality sweet treats, including its signature Original Glazed(R) doughnut.  Headquartered in Winston-Salem, N.C., the Company has offered the highest-quality doughnuts and great-tasting coffee since it was founded in 1937.  Today, Krispy Kreme can be found in over 600 locations around the world.  Visit us at www.KrispyKreme.com.

McDonald’s Corporation announced today that it has placed Renminbi (RMB)-denominated bonds in a private placement to institutional and professional investors in Hong Kong.  The aggregate principal amount of the bonds is RMB 200 million.  The bonds will accrue interest at a rate of 3.00% per annum and mature in three years.

The funds will provide working capital to support the growth of McDonald’s in China, including the opening of new restaurants.

Timothy Fenton, President of McDonald’s APMEA (Asia/Pacific, Middle East and Africa) said that this announcement is another sign of the company’s confidence in its long-term growth opportunities for China.  ”We are pleased and honored that McDonald’s is set to become the first issuer of RMB-denominated bonds by a multinational company,” said Fenton.  ”China is the fastest-growing market for McDonald’s worldwide in terms of new restaurant openings.”  

Commenting on McDonald’s operations in China, Kenneth Chan, CEO of McDonald’s China, said, “We are excited and confident about our continued business growth in China.”  McDonald’s plans to continue investing in China by opening new restaurants, reimaging existing restaurants and rolling out convenience initiatives. This year, McDonald’s plans to open between 150-175 restaurants in China.

McDonald’s has opened more than 1,100 stores in Mainland China since the first restaurant opened on October 8, 1990 in Shenzhen.  Today, McDonald’s has more than 60,000 employees in China.

Ark Restaurants Corp. has reported financial results for the third quarter and nine month periods ended July 3, 2010.

Total revenues for the three month period ended July 3, 2010 were $35.2 million versus $31.1 million in the same period last year. Total revenues for the nine month period ended July 3, 2010 were $85.9 million versus $81.7 million in the same period last year.

EBITDA, as adjusted for non-cash stock option expense and non-controlling interests, for the three month period ended July 3, 2010 was $5,242,000 versus $3,552,000 during the same three month period last year. EBITDA, as adjusted for non-cash stock option expense and non-controlling interests, for the nine month period ended July 3, 2010 was $5,429,000 versus $5,150,000 during the same nine month period last year.

For the three months ended July 3, 2010, the Company’s net income was $2,916,000, or $0.84 per share ($0.83 per diluted share), compared to $1,597,000, or $0.46 per share ($0.46 per diluted share), for the same period last year. For the nine months ended July 3, 2010, the Company’s net income was $1,521,000, or $0.44 per share ($0.43 per diluted share), compared to $1,733,000, or $0.50 per share ($0.50 per diluted share), for the same period last year.

Company-wide same store sales increased 9% for the three month period ended July 3, 2010 compared to the same three month period last year and increased 1.1% for the nine month period ended July 3, 2010 compared to the same nine month period last year.

As of July 3, 2010, the Company had cash, cash equivalents and short term investments totaling $9,130,000 and no long-term debt.

Ark Restaurants owns and operates 20 restaurants and bars, 31 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.

Except for historical information, this news release contains forward-looking statements, which involve unknown risks, and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. Important factors that might cause such differences are discussed in the Company’s filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

J. Alexander’s Corporation (NASDAQ: JAX) today reported operating results for the second quarter and first half of fiscal 2010 ended July 4, 2010.

A summary of the second quarter of 2010 compared to the second quarter of 2009 follows:

• Net sales increased 4.7% to $36,336,000 from $34,710,000.
• Average weekly same store sales per restaurant advanced 4.7%.
• The loss before income taxes was $357,000 compared to a loss before income taxes of $1,431,000 in the second quarter of 2009.
• An income tax benefit of $383,000 was recorded for the second quarter of 2010 compared to a benefit of $635,000 in the second quarter of 2009.
• Net income was $26,000 compared to a net loss of $796,000 in the second quarter of 2009, and the diluted earnings per share were $.00 compared to a loss per share of $.12 in the second quarter of 2009.

Commenting on results for the second quarter of 2010, Lonnie J. Stout II, Chairman, President and CEO, said, “We are pleased with the continued upward trend in same store sales which was responsible for much of the improvement in our performance. Our sales gains were somewhat ahead of our expectations and were broad-based with most of our restaurants posting increases. We are encouraged with these results, but very mindful that we still have a way to go before returning to our pre-recession sales and profit levels.”

For the second quarter of 2010, J. Alexander’s Corporation recorded average weekly same store sales per restaurant of $84,700, up from $80,900 in the corresponding quarter a year earlier. The Company’s average weekly sales per restaurant for the second period of 2010 were $84,800, an increase from $80,900 achieved in the second quarter of 2009. Same store sales calculations are based on 32 restaurants open for more than 18 months.

J. Alexander’s Corporation reported an increase of 2.6% in average guest counts on a same store sales basis from the comparable period of 2009. The average guest check, including alcoholic beverage sales for the quarter, rose 2.2% to approximately $25.00. The effect of menu price increases for the quarter just ended was approximately 1.3% compared to the same period a year earlier.

“In a still uncertain economy, we believe our sales performance and increases in guest counts indicate that our guests continue to appreciate the quality and service J. Alexander’s offers,” Stout observed.

The Company’s increases in same store sales contributed to lower labor and related costs and other restaurant operating expenses as percentages of net sales during the second quarter of the current year. Total labor and related costs decreased from 35.5% of net sales to 34.5% of net sales. Other restaurant operating expenses decreased to 22.5% of net sales from 23.5% of net sales. Depreciation and amortization of restaurant property and equipment decreased to 4.1% of net sales for the second quarter of 2010 from 4.8% for the second quarter of 2009 because asset impairment charges recorded at the end of 2009 significantly lowered the depreciable basis for the assets of two restaurants and because of the increase in same store sales.

Cost of sales for the second quarter of 2010 increased to 32.4% of net sales from 31.2% of net sales in the corresponding quarter of the previous year.

“Our cost of sales climbed in the second quarter of 2010 largely due to higher prices paid by the Company for beef and certain other food commodities,” Stout pointed out. “This took our cost of sales above our targeted level and we are implementing some very modest menu price increases to offset some of these higher food costs.”

For the second quarter of 2010, J. Alexander’s Corporation’s restaurant operating margins (net sales minus total restaurant operating expenses divided by net sales) increased to 6.6% from 5.1% in the same period of 2009.

General and administrative expenses for the second quarter of 2010 decreased by approximately $450,000, or 16.5%, largely due to charges included in the second quarter of 2009 related to litigation pending at that time. Stout added that the Company had done a good job of managing other general and administrative expenses as well and that expenses were down versus the prior year quarter in most categories.

For the first six months of 2010, J. Alexander’s Corporation recorded net sales of $75,061,000, up from $72,775,000 reported in the first two quarters of 2009. The Company recorded net income of $823,000, or $.14 per diluted share, compared to a net loss of $344,000, or $.05 per share, posted in the comparable two periods of 2009.

J. Alexander’s Corporation had average weekly same store sales per restaurant of $88,000 in the first six months of 2010, up 3.2% from $85,300 recorded in the first two quarters of 2009. The Company’s average weekly sales per restaurant for the first two periods of 2010 were $87,500, up 3.2% from $84,800 reported in the corresponding period of 2009.

The Company’s average guest counts for the first six months of 2010 increased 1.9% on a same store basis from the comparable six months of 2009. The average guest check, including alcoholic beverage sales, increased 1.5% to $25.13. The effect of menu price increases for the first two quarters of 2010 was approximately 0.9% compared to the same period of the prior year.

Total cost of sales for the first six months of 2010 was 31.9%, up from 31.3% in the comparable six month period of 2009. Restaurant labor and related costs for the first two quarters of the current year decreased to 33.8% of net sales from 34.4% of net sales in the same two periods of 2009, and other restaurant operating expenses decreased to 22.1% of net sales for the first half of 2010 compared to 22.8% for the first half of 2009. For the first six months of 2010, J. Alexander’s Corporation had restaurant operating margins of 8.1%, up from 6.9% in the first two quarters of 2009.

Stout said that the outlook for the balance of the year is generally favorable, but with questions remaining about the strength of the recovery and consumer confidence.

“We are seeing signs of recovery in the upscale segment of the restaurant industry. Our goal is to make sure we have our fair share of the business.

“Our outlook is considerably brighter than at this point a year ago. We enter the final half of 2010 with a very positive pace of sales momentum. We are confident in our ability to continue to improve the performance of our restaurants even in a fragile economic recovery.”

J. Alexander’s Corporation operates 33 J. Alexander’s restaurant in thirteen states: Alabama, Arizona, Colorado, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Michigan, Ohio, Tennessee and Texas. The Company’s menu features a wide selection of American classics, including steaks, prime rib of beef and fresh seafood, as well as a large assortment of interesting salads, sandwiches and desserts. J. Alexander’s also has a full-service bar that features an outstanding selection of wines by the glass and bottle.

J. Alexander’s Corporation is headquartered in Nashville, Tennessee.

This press release contains forward-looking statements that involve risks and uncertainties. Actual results, performance or developments could differ materially from those expressed or implied by those forward-looking statements as a result of known or unknown risks, uncertainties and other factors. These risks, uncertainties and factors include the Company’s ability to maintain satisfactory guest count levels and maintain or increase sales and operating margins in its restaurants under weak economic conditions, which may continue indefinitely and which could worsen, potentially resulting in additional asset impairment charges and/or restaurant closures and charges associated therewith; fluctuations in the Company’s operating results which could affect compliance with its debt covenants and ability to borrow funds; conditions in the U.S. credit markets and the availability of bank financing on acceptable terms; changes in business or economic conditions, including rising food costs and product shortages as well as mandated increases in the minimum wage the Company is required to pay; the effect of higher gasoline prices or commodity prices, unemployment and other economic factors on consumer demand; availability of qualified employees; increased cost of utilities, insurance and other restaurant operating expenses; potential fluctuations of quarterly operating results due to seasonality and other factors; the effect of hurricanes and other weather disturbances which are beyond the control of the Company; the number and timing of new restaurant openings and the Company’s ability to operate them profitably; competition within the casual dining industry, which is very intense; competition by the Company’s new restaurants with its existing restaurants in the same vicinity; changes in consumer spending, consumer tastes, and consumer attitudes toward nutrition and health; the potential impact of mandated food content labeling and disclosure legislation; expenses incurred if the Company is the subject of claims or litigation or increased governmental regulation; the impact associated with recently passed federal health care reform legislation, including the operating costs necessary to comply with applicable health care benefit requirements; changes in accounting standards, which may affect the Company’s reported results of operations; and expenses the Company may incur in order to comply with changing corporate governance and public disclosure requirements of the Securities and Exchange Commission and The NASDAQ Stock Market. These as well as other factors are discussed in detail in the Company’s filings made with the Securities and Exchange Commission and other communications.

Sbarro, Inc. has announced results of operations for the second quarter and six months ended June 27, 2010. The Company’s detailed results are included in its Quarterly Report on Form 10-Q, which was filed with the SEC on August 11, 2010.

Second Quarter Financial Results

Revenues were $76.1 million for the quarter ended June 27, 2010 as compared to revenues of $80.1 million for the quarter ended June 28, 2009. The decrease in sales is due to a decrease in comparable-unit sales of $4.5 million or 6.2% in our QSR restaurants and lost sales from stores strategically closed of $1.4 million, partially offset by sales generated by new stores opened, remodeled or relocated in 2010 and 2009 of $1.9 million. Domestic franchise restaurants performed better than company-owned restaurants with a comparable-unit sales decline of 0.9%, mainly due to shifts in the university semesters as compared to the prior year. The decrease in company-owned and domestic franchise comparable-unit sales primarily reflects continued reduced consumer spending throughout the United States as a result of the current economic environment. Without consideration for foreign currency fluctuations, international franchise comparable-unit sales increased 4.1%. The valuation of the U.S. Dollar relative to foreign currencies added an additional 3.9% increase in international franchise comparable-unit sales.

EBITDA, as calculated in accordance with the terms of the Company’s bank credit agreements, was $6.3 million for the quarter ended June 27, 2010 as compared to $8.2 million for the quarter ended June 28, 2009. The decline was primarily the result of the decline in company-owned comparable-unit sales and an increase in commodity costs during the quarter, specifically cheese, partially offset by payroll and other cost savings initiatives.

As discussed in Exhibit A, EBITDA is a non-GAAP financial measure that management believes is an important metric for us to report to our investors, as we consider it a helpful additional indicator of our ability to meet future debt obligations and to comply with certain covenants in our borrowing agreements which are tied to this metric. Exhibit A includes a reconciliation of EBITDA to net loss, which is the most directly comparable financial measure under United States Generally Accepted Accounting Principles (“GAAP”). Exhibit A also identifies adjustments to EBITDA that are provided for under the Company’s bank credit agreements.

Year to Date Financial Results

Revenues were $155.1 million for the six months ended June 27, 2010 as compared to revenues of $159.7 million for the six months ended June 28, 2009. The decrease in sales is due to a decrease in comparable-unit sales of $5.4 million or 3.7% in our QSR restaurants and lost sales from stores strategically closed of $3.6 million, partially offset by sales generated by new stores opened, remodeled or relocated in 2010 and 2009 of $3.9 million. Domestic franchise comparable-unit sales declined 3.0%. The decrease in company-owned and domestic franchise comparable-unit sales primarily reflects continued reduced consumer spending throughout the United States as a result of the current economic environment. Without consideration for foreign currency fluctuations, international franchise comparable-unit sales increased 5.8%. The valuation of the U.S. Dollar relative to foreign currencies added an additional 7.0% increase in international franchise comparable-unit sales.

EBITDA, as calculated in accordance with the terms of the Company’s bank credit agreements, was $14.3 million for the six months ended June 27, 2010 as compared to $17.3 million for the six months ended June 28, 2009. The decline was primarily the result of the decline in company-owned comparable-unit sales and an increase in commodity costs, specifically cheese, partially offset by cost savings initiatives.

The Company was in compliance with all covenants as calculated in accordance with the terms of the Company’s bank credit agreement at June 27, 2010.

Nicholas McGrane, Interim President and Chief Executive Officer of Sbarro, Inc. commented, “Our results for the second quarter of 2010 continued to be impacted by the general economic slowdown still present in our operating environment. We are focusing on top line performance to strengthen results in the months ahead while continuing to balance our cost control initiatives.”

Conference Call Scheduled

Sbarro, Inc. will host a conference call on August 19, 2010 at 9:30 AM Eastern Time to discuss results of operations for the second quarter and six months ended June 27, 2010. There are two ways to participate in the conference call-via conference call or webcast. Domestic callers may dial in at 1-877-941-8601. International callers may dial in at 1-480-629-9810. Request to be connected to the Sbarro, Inc. Q2 Fiscal 2010 Earnings Conference Call, confirmation number 4349740. Callers should dial in five to ten minutes before the scheduled start time. You may also access the conference call via webcast by visiting Sbarro Inc.’s website (http://www.sbarro.com), selecting Investors, and going to Investor Presentations.

An archived copy of the call will be available for one week to replay beginning at 12:30 PM (ET) on August 19, 2010. Domestic callers may dial 1-877-870-5176 and International callers may dial 1-858-384-5517. The replay PIN number is 4349740. An archived copy of the call will also be available by accessing Sbarro, Inc.’s homepage.

About the Company

Based in Melville, New York, we are the world’s leading Italian quick service restaurant concept and the largest shopping mall-focused restaurant concept in the world. We have more than 1,000 restaurants in 41 countries. Sbarro restaurants feature a menu of popular Italian food, including pizza, a selection of pasta dishes and other hot and cold Italian entrees, salads, sandwiches, drinks and desserts. Additional information is available at http://www.sbarro.com.

Forward-Looking Statement Disclosure

This press release contains “forward-looking statements,” as such term is used in the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements about non-historical matters and often are identified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” and similar expressions. These forward-looking statements include statements about anticipated future store openings and growth and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of Sbarro and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include: (1) general economic, inflation, national security, weather and business conditions; (2) decrease in mall traffic, and other events arising from the downturn in the economy; (3) the availability of suitable restaurant sites in appropriate regional shopping malls and other locations on reasonable rental terms; (4) changes in consumer tastes; (5) changes in population and traffic patterns, including the effects that military action and terrorism or other events may have on the willingness of consumers to frequent malls, airports or downtown areas which are the predominant areas in which our restaurants are located; (6) our ability to continue to attract franchisees; (7) the success of our present, and any future, joint ventures and other expansion opportunities; (8) changes in commodity and commodity related prices (particularly cheese and flour), beverage and paper products; (9) our ability to pass along cost increases to our customers; (10) increases in the Federal minimum wage; (11) the continuity of services of members of our senior management team; (12) our ability to attract and retain competent restaurant and executive managerial personnel; (13) competition; (14) the level of, and our ability to comply with, government regulations; (15) our ability to generate sufficient cash flow to make interest payments under our borrowing agreements; (16) our ability to comply with financial covenants and ratios and the effects the restrictions imposed by those financial covenants and ratios may have on our ability to operate our business; (17) our ability to repurchase and/or repay amounts under our borrowing agreements to the extent required in the event of certain circumstances as defined in our borrowing agreements; and (18) other factors discussed in our filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

[Financial schedules to follow]

Our calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since all companies do not calculate this non-GAAP measure in the same manner. Our EBITDA calculations are not intended to represent cash provided by (used in) operating activities since they do not include interest and taxes and changes in operating assets and liabilities, nor are they intended to represent a net increase in cash since they do not include cash provided by (used in) investing and financing activities. The calculation of EBITDA under our bank credit agreements and under the indenture governing our Senior Notes may differ, because of differences in the definitions contained in those two documents. We provide a calculation of EBITDA under our bank credit agreements because we are required to satisfy a quarterly financial measurement that uses EBITDA as a compliance metric. Our indenture does not include a similar quarterly compliance covenant.

The following tables reconcile net loss attributable to Sbarro, Inc. for the following periods in 2010 and 2009, respectively, to EBITDA as defined in the Company’s bank credit agreements for the same periods. We believe that net loss is the most directly comparable GAAP financial measure to EBITDA. All amounts below are in thousands.

O’Charley’s Inc. (Nasdaq: CHUX) today reported operating results for the 12-week period ended July 11, 2010, and filed its Form 10-Q for the second quarter of 2010.

Financial and Operating Highlights

• Revenue for the second quarter of fiscal 2010 decreased by 5.9 percent to $194.1 million from $206.2 million in the second quarter of fiscal 2009. Second quarter same-store sales at O’Charley’s company-operated restaurants declined by 7.9 percent, on a 5.7 percent decline in guest counts and a 2.4 percent decline in average check. Same-store sales at Ninety Nine declined by 0.5 percent, as a 0.4 percent increase in guest counts was offset by a 0.9 percent decline in average check. Same store sales at Stoney River Legendary Steaks declined by 0.7 percent, as a 7.8 percent increase in guest counts was offset by an 8.0 percent decline in average check.
• Restaurant-level margins, which the Company defines as restaurant sales less cost of food and beverage, payroll and benefits costs, and restaurant operating costs, decreased to 14.1 percent of restaurant sales from 16.4 percent in the prior year quarter, with year-over-year margin improvement at Stoney River offset by margin declines at O’Charley’s and Ninety Nine.
• General and administrative expenses for the quarter were $10.2 million, or 5.3 percent of revenue, and included severance and other charges of $2.4 million, or 1.2 percent of revenues relating to organizational changes in the quarter. General and administrative expenses in the prior year quarter were $8.1 million, or 3.9 percent of revenues.
• Including the severance charges, loss from operations in the quarter was $0.5 million, or 0.3 percent of revenues, compared to income from operations of $5.2 million, or 2.5 percent of revenues in the prior year quarter. Results for the prior year quarter included impairment charges of $1.5 million. Adjusted EBITDA in the quarter was $12.4 million, or 6.4 percent of revenues, compared to $18.9 million, or 9.2 percent of revenues in the prior year quarter. Adjusted EBITDA is a non-GAAP supplemental financial measure that the Company believes may be useful for understanding its financial performance. A reconciliation of adjusted EBITDA to income from operations is provided later in this release.
• Results for the quarter include interest expense of $2.9 million, and an income tax benefit of $0.9 million, resulting in a net loss attributable to common shareholders of $2.5 million, or $0.12 per diluted share. In comparison, net earnings available to common shareholders in the prior year quarter were $2.8 million, or $0.13 per diluted share.
• Capital investment during the quarter was $4.7 million, compared to $4.5 million in the prior year quarter. At quarter end, the Company had a cash balance of $25.9 million, and had no drawings on its revolving line of credit.

“Although the economic environment continues to be challenging for casual dining companies, two of our three concepts, Ninety Nine and Stoney River, experienced a positive shift in momentum in the second quarter,” said Philip J. Hickey, Jr., chairman of the board of directors and interim chief executive officer of O’Charley’s Inc. “Ninety Nine outperformed its relevant Knapp-Track averages in the quarter, and had its first quarter of positive guest count growth in more than four years. Our guests continue to respond favorably to our ‘Nine Real-Sized Entrees for $9.99’ offering, and we hope to continue this momentum at Ninety Nine in the second half of the year. It appears that the repositioning of the Stoney River concept continues to show progress. Same store sales were better than the trends of the past three years, guest counts have been positive in the high single digits for three consecutive quarters, and restaurant operating margin in the quarter improved by 530 basis points compared to the prior year quarter.

“While we were disappointed with the second quarter financial performance of the O’Charley’s concept, we believe that enhanced focus on innovative food offerings, service improvements and value will lead to a shift in sales trends later this year. We believe that improving guest counts is the first step toward improving the sales and profitability of the concept. In this regard, we recently re-introduced ‘2 Meals for $14.99’ featuring our proven favorites combined with value-priced appetizer, beverage, and full-meal offerings. As we announced last week, David Head will be joining us soon as President and Chief Executive Officer and a member of our Board of Directors. I look forward to working closely with David to continue our pursuit of positive momentum.”

Outlook for the Third Quarter of 2010

Given the current uncertainty in the general economic outlook and the outlook for consumer spending, the Company does not believe that it has sufficient visibility to offer a projection of its full-year 2010 financial performance. For the third quarter of 2010, the Company is forecasting total revenue of between $186 million and $192 million, and a loss from operations of between $1 million and $4 million. The Company projects adjusted EBITDA of between $7 million and $10 million in the third quarter, based upon estimated depreciation and amortization expense of approximately $10 million, and estimated stock compensation expense of approximately $1 million.

Investor Conference Call and Web Simulcast

O’Charley’s Inc. will conduct a conference call on its 2010 second quarter results on August 12, 2010, at 11:00 a.m. Eastern. The number to call for this interactive teleconference is (877) 941-8631, and the confirmation passcode is 4343186. Please dial in 10 minutes prior to the beginning of the call. A replay of the conference call will be available through August 26, 2010, by dialing (800) 406-7325 and entering passcode 4343186.

The live broadcast of O’Charley’s conference call will be available online: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=82565&eventID=3270686

If you are unable to participate during the live Webcast, the call will be archived on the Company’s Web site at www.ocharleysinc.com, as well as www.streetevents.com and www.earnings.com, and be available through August 26, 2010.

About O’Charley’s Inc.

O’Charley’s Inc., headquartered in Nashville, Tenn., is a multi-concept restaurant company that operates or franchises a total of 367 restaurants under three brands: O’Charley’s, Ninety Nine Restaurant, and Stoney River Legendary Steaks. The O’Charley’s concept includes 243 restaurants in 19 states in the Southeast and Midwest, including 234 company-operated O’Charley’s restaurants, and 9 restaurants operated by franchisees. The menu, with an emphasis on fresh preparation, features several specialty items, such as hand-cut and aged USDA choice steaks, a variety of seafood and chicken, freshly baked yeast rolls, fresh salads with special-recipe salad dressings and signature caramel pie. The company operates Ninety Nine restaurants in 113 locations throughout New England and the Mid-Atlantic states. Ninety Nine has earned a strong reputation as a friendly, comfortable place to gather and enjoy great American food and drink at a terrific price. The menu features a wide selection of appetizers, salads, sandwiches, burgers, entrees and desserts. The company operates 11 Stoney River Legendary Steaks restaurants in six states in the East, Southeast and Midwest. The steakhouse concept appeals to both upscale casual-dining and fine-dining guests by offering high-quality food and attentive customer service typical of high-end steakhouses, but at more moderate prices.

Forward Looking Statement

The forward looking statements in this press release and statements made by or on behalf of the Company relating hereto, including those containing words like “forecast,” “expect,” “project,” “believe,” “may,” “could,” “anticipate,” and “estimate,” are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be affected by certain risks and uncertainties, including, but not limited to, the continued deterioration in the United States economy and the related adverse effect on our sales of decreases in consumer spending; the Company’s ability to comply with the terms and conditions of its financing agreements; the Company’s ability to maintain or increase operating margins and same-store sales at its restaurants; the effect that increases in food, labor, energy, interest costs and other expenses have on our results; the effect of increased competition; the Company’s ability to sell closed restaurants and other surplus assets; and the other risks described in the Company’s filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included herein, you should not regard the inclusion of such information as a representation by us that our objectives, plans and projected results of operations will be achieved and the Company’s actual results could differ materially from such forward-looking statements. The Company does not undertake any obligation to publicly release any revisions to the forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.

Wendy’s/Arby’s Group, Inc. (NYSE: WEN), the third largest quick-service restaurant company in the United States, today reported results for the second quarter ended July 4, 2010.

Roland Smith, President and Chief Executive Officer of Wendy’s/Arby’s Group, said: “We achieved 3.2% growth in adjusted EBITDA¹ in the second quarter, primarily due to the continued expansion of Wendy’s® company-operated restaurant margin and by significantly reducing G&A expense. We generated this growth despite ongoing challenges in the U.S. economy, particularly the high unemployment rate. We continue to invest in our long-term growth opportunities including Wendy’s breakfast program, remodeling restaurants at both Arby’s® and Wendy’s, and international development.”

Consolidated Second Quarter 2010 Summary

• Adjusted EBITDA was $120.9 million, excluding pre-tax integration-related costs totaling $0.9 million, and increased 3.2% as compared to second quarter 2009 of $117.2 million, excluding pre-tax integration-related costs of $7.3 million.
• Consolidated revenues were $877.0 million as compared to second quarter 2009 revenues of $912.7 million.
• Net income was $10.7 million, or $0.03 per share, including net after-tax special charges of $15.2 million, or $0.03 per share. Second quarter 2009 net income was $14.9 million, or $0.03 per share, including after-tax special charges of $12.4 million, or $0.03 per share.

Consolidated Year-to-Date 2010 Summary

• Adjusted EBITDA was $212.9 million, excluding pre-tax integration-related costs and non-recurring charges of $8.7 million, and increased 7.8% as compared to 2009 year-to-date adjusted EBITDA of $197.5 million, excluding pre-tax integration-related costs of $15.1 million.
• Consolidated revenues were $1.7 billion as compared to year-to-date 2009 revenues of $1.8 billion.
• Net income was $7.3 million, or $0.02 per share, including net after-tax special charges of $27.3 million, or $0.06 per share as compared to year-to-date 2009 net income of $4.0 million, or $0.01 per share, including after-tax special charges of $27.4 million, or $0.06 per share.

Wendy’s Second Quarter 2010 Brand Summary

For the second quarter 2010, Wendy’s total revenue was $607.4 million compared to revenue of $615.2 million in the second quarter a year ago, a year-over-year decrease of $7.8 million due primarily to the decline in company same-store sales.

• Wendy’s North America systemwide same-store sales decreased 1.7%.
• Wendy’s North America company-operated same-store sales decreased 2.9% and Wendy’s North America franchise same-store sales decreased 1.4%.
• Wendy’s company-operated restaurant margin was 16.4%, compared to 15.9% in the second quarter 2009, an increase of 50 basis points. This year-over-year improvement was offset in part by sales deleveraging as well as unfavorable commodity costs.

“At Wendy’s, we were pleased to expand restaurant margins to 16.4%, despite soft same-store sales and a 90 basis point increase in commodity costs. Second quarter same-store sales were impacted by the weak economic environment and continued aggressive value promotions by QSR competitors,” said Smith. “Looking ahead, we are excited about our new lineup of premium salads, which feature high quality, fresh ingredients and all-natural dressings, as well as other new products in the pipeline.

“Our July North America company-operated same-store sales were soft early in the month as we lapped the successful introduction of Boneless Wings a year ago. Sales improved significantly since the start of national advertising for our new salads on July 19, and we anticipate our third quarter same-store sales will be positive at Wendy’s,” said Smith. “Later this year, we will return to value messaging with new product offerings.”

Arby’s Second Quarter 2010 Brand Summary

For the second quarter 2010, Arby’s total revenue was $269.6 million compared to $297.5 million in the second quarter a year ago, a decrease of $27.9 million, which was primarily due to declines in same-store sales and 18 fewer company-operated restaurants.

• Arby’s North America systemwide same-store sales decreased 7.4%.
• Arby’s North America company-operated same-store sales declined 8.8% and North America franchise same-store sales declined 6.7%.
• Arby’s company-operated restaurant margin was 13.4%, compared to 14.9% in the second quarter 2009. The year-over-year difference was due to sales deleveraging and unfavorable commodity costs, partially offset by advertising costs that were deferred until the second half of the year.

“During the second quarter, we achieved flat comparable transactions versus a year ago, which is very encouraging compared to trends over the past year,” said Smith. “It will take some time to turn same-store sales positive, particularly in this tough economic climate. In July, we enhanced our value proposition with the introduction of our new $1 Junior Deluxe Roast Beef sandwich supported by national media.

“Our July North America company-operated same-store sales were negative, but improved significantly after we started national advertising for our new $1 value menu sandwich on July 19, and we generated positive transactions over the last two weeks of the period. While we anticipate Arby’s same-store sales will remain negative for the quarter, we expect sequential improvement over the previous quarter,” said Smith. “We continue to make progress on our key priorities at Arby’s, under the leadership of our new President Hala Moddelmog, including increasing our media efficiency and advertising effectiveness. We are also revitalizing product innovation, executing on our three-year remodel program, and validating and reintroducing our brand positioning to the consumer.”

Company Updates Financial Outlook

The Company updated its outlook and now anticipates 2010 adjusted EBITDA to decline approximately 3% to 5%, as compared to 2009 adjusted EBITDA of $411.6 million normalized for the effect of the 53^rd week (2009 net income was $5.1 million). The revised outlook for adjusted EBITDA excludes the incremental advertising of approximately $8 million to support the expansion of Wendy’s new breakfast program later this year to additional company and franchise markets.

The updated 2010 EBITDA outlook includes the following annual expectations:

• Flat same-store sales at Wendy’s North America company-operated restaurants.
• Improvement of 70 to 90 basis points in Wendy’s company-operated restaurant margin excluding the effect of the incremental breakfast advertising and the 53^rd week.
• Negative same-store sales at Arby’s North America company-operated restaurants, but improving on a year-over-year basis.
• Capital expenditures of approximately $165 million, as expected.

“Our adjusted EBITDA outlook for full-year 2010 reflects lower than anticipated sales at each brand due to the challenging economic environment,” said Smith. “We are reviewing our 2011 outlook and plan to provide an update later this year.”

Company Continues International Expansion in Russia and Eastern Caribbean

The Company recently announced a major restaurant development agreement with Wenrus Restaurant Group Limited for the Russian Federation. The agreement calls for the development of 180 dual-branded Wendy’s and Arby’s restaurants over the next 10 years. The Company also recently announced signing an agreement for the development of 24 Wendy’s restaurants over the next 10 years in Trinidad and Tobago and eight other markets in the Eastern Caribbean.

Since the merger in September 2008, franchisees outside of North America have opened 45 new restaurants and the Company has signed development agreements for more than 400 restaurants over the next 10 years.

“International expansion represents a major long-term growth opportunity for Wendy’s/Arby’s Group and we continue to invest resources to realize this potential,” said Smith. “We’ve made significant development progress over the past year in the Middle East, Singapore, Turkey and Russia, and we anticipate additional development agreements in other international markets.”

Second Quarter 2010 Special Expense Charges

For the second quarter 2010, the Company recorded net pre-tax special charges of approximately $24.6 million ($15.2 million after tax), including integration-related expenses, impairment charges, costs related to refinancing the senior secured credit facility and the related debt repayments, partially offset by income recognized from the collection of the Deerfield Capital Corp. note as the proceeds exceeded the carrying value of the note.

Debt Refinancing

The Company also completed a new $650 million senior secured credit facility in the second quarter 2010, which included a $150 million revolving credit facility and a $500 million term loan. The proceeds from the new term loan were used to repay the outstanding indebtedness under the previously existing senior secured credit facility, the Wendy’s 6.25% senior notes due in 2011, and for expenses related to the new credit facility. The Company recognized a $26.2 million loss on early extinguishment of debt. The new credit facility allowed the Company to take advantage of the favorable credit and interest rate environment and is anticipated to reduce annual interest expense.

Stock Repurchase Program

Since the Board of Directors authorized a stock repurchase program in 2009, the Company has repurchased approximately 52 million shares of common stock for $245 million as of August 6, 2010, at an average price of $4.69 per share. At the close of business on August 6, 2010, the Company had approximately 418 million shares of common stock outstanding. The Company has approximately $80 million authorized and available for additional common stock repurchases as of August 6, 2010. The current common stock repurchase program will remain in effect through January 2, 2011, and will allow the Company to make repurchases as market conditions warrant.

Management to Host Conference Call Today – August 12, 2010

Management will host a conference call with slides to discuss its financial results today (August 12, 2010) at 12:00 p.m. ET. Hosting the call will be Roland Smith, President and Chief Executive Officer; Steve Hare, Chief Financial Officer; and John Barker, Chief Communications Officer.

The conference call can be accessed live over the phone by dialing 877-572-6014 or for international callers by dialing 281-913-8524. A replay will be available two hours after the call and can be accessed by dialing 800-642-1687, or for international callers by dialing 706-645-9291; the conference ID for the replay is 88576117. The replay will be available until midnight ET on Thursday, August 26, 2010.

The conference call and slides will also be webcast live from the investor relations page of the Company’s website at www.wendysarbys.com. The webcast will be archived on the Company’s website at www.wendysarbys.com.

About Wendy’s/Arby’s Group, Inc.

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 U.S. territories worldwide.

Forward-Looking Statements

This news release contains certain statements that are not historical facts, including, importantly, information concerning possible or assumed future results of operations of Wendy’s/Arby’s Group, Inc. and its subsidiaries (collectively “Wendy’s/Arby’s Group” or the “Company”). Those statements, as well as statements preceded by, followed by, or that include the words “may,” “believes,” “plans,” “expects,” “anticipates,” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). All statements that address future operating, financial or business performance; strategies or expectations; future synergies, efficiencies or overhead savings; anticipated costs or charges; future capitalization; future domestic or international business development; future daypart expansion; and anticipated financial impacts of recent or pending transactions are forward-looking statements within the meaning of the Reform Act. The forward-looking statements are based on our expectations at the time such statements are made, speak only as of the dates they are made and are susceptible to a number of risks, uncertainties and other factors. Our actual results, performance and achievements may differ materially from any future results, performance or achievements expressed or implied by our forward-looking statements. For all of our forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Reform Act. Many important factors could affect our future results and could cause those results to differ materially from those expressed in, or implied by our forward-looking statements. Such factors, all of which are difficult or impossible to predict accurately, and many of which are beyond our control, include, but are not limited to: (1) changes in the quick-service restaurant industry, such as consumer trends toward value-oriented products and promotions or toward consuming fewer meals away from home; (2) prevailing economic, market and business conditions affecting the Company, including competition from other food service providers, increasing unemployment and decreasing consumer spending; (3) the ability to successfully integrate acquired businesses and to achieve related synergies, cost reductions and operational improvements; (4) cost and availability of capital; (5) cost fluctuations associated with food, supplies, energy, fuel, distribution or labor; (6) the financial condition of our franchisees, with a significant number of Arby’s franchisees and a minimal number of Wendy’s franchisees having experienced declining sales and profitability; (7) conditions beyond the Company’s control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company’s customers or food supplies, or acts of war or terrorism; (8) the availability of suitable locations and terms for the development of new restaurants; (9) adoption of new, or changes in, laws, regulations or accounting policies and practices; (10) changes in debt, equity and securities markets; (11) goodwill and long-lived asset impairments; (12) changes in the interest rate environment; and (13) other factors discussed from time to time in the Company’s news releases, public statements and/or filings with the SEC, including those identified in the “Risk Factors” sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q.

All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We assume no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by federal securities laws. In addition, it is our policy generally not to make any specific projections as to future earnings, and we do not endorse any projections regarding future performance that may be made by third parties.

Disclosure Regarding Non-GAAP Financial Measures

EBITDA is used by the Company as a performance measure for benchmarking against the Company’s peers and competitors. The Company believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the restaurant industry. The Company also uses adjusted EBITDA, which excludes integration-related expenses included within general and administrative expense, expenses for the Strategic Sourcing Group purchasing co-op and facilities relocation and corporate restructuring expenses, as an internal measure of business operating performance. The Company believes adjusted EBITDA provides a meaningful perspective of the underlying operating performance of the Company’s current business. EBITDA and adjusted EBITDA are not recognized terms under U.S. Generally Accepted Accounting Principles (“GAAP”). Because all companies do not calculate EBITDA or similarly titled financial measures in the same way, those measures as used by other companies may not be consistent with the way the Company calculates EBITDA or similarly titled financial measures and should not be considered as alternative measures of operating profit (loss) or net income (loss). Because certain income statement items needed to calculate net income vary significantly, the Company has not provided projections of net income and a reconciliation of projected adjusted EBITDA to net income. The Company’s presentation of EBITDA and adjusted EBITDA is not intended to replace the presentation of the Company’s financial results in accordance with GAAP.