Frisch’s Restaurants, Inc. (NYSEMKT:FRS) finished the last trading session with a gain of 0.24%, which would be negligible for any other stock but this. The reason behind the greater significance of so minor an advance comes from the absolutely low volatility of the stock. The stock is highly illiquid and that is well reflected from the last day’s volume of 22,000 against the daily average of 7,000. Just a few shares changing hands can move this stock by a great margin. The longer term perspective is very comfortable for the bulls.
Aziz Hashim, who recently acquired Frisch’s Restaurants, Inc. (NYSEMKT:FRS), said that they will continue to sell the signature dish of the food-chain. The company last reported its financial numbers in July.
The numbers
Frisch’s recorded revenue of over $211 million for the fiscal ended June 2, 2015, suggesting a 1.3% jump over FY2014. Net earnings for FY2015 jumped 5.1% to $1.94 diluted earnings a share compared to $1.86 earnings per share in FY2014. The additional week in FY2014 contributed almost $4 in revenue which yielded a projected $737,000 in pretax earnings. Net earnings for FY 2014 received the benefit of a lower effective tax rate, which was a result of certain tax planning strategies.
For 4Q2015, Frisch’s revenue dropped 6.2% to $50 million from $53 million in the comparable quarter of FY2014. The drop was due to the impact of FY2014’s extra week. Net earnings declined 28.8% in 4Q2015 to $2.53 million compared to $3.552 million in the fourth quarter of FY2014, which comprised 13 weeks.
The highlights
Disregarding the adverse impact of the additional week in 4Q2014, the revenue in fourth quarter increased 1.3% and pretax earnings gained 16%. Same store sales surged 2.5% in the fourth quarter of FY2015 against the fourth quarter of 2014. The margin from restaurant operating segment improved to 14.5% from 11.7% in the prior year on reduced food, healthcare and payroll costs.
Administrative and advertising cost, a part of operating income, jumped over $1.25 million due to the professional fees related with the announced sale of Frisch’s. Craig F. Maier, the President and CEO, said that the restaurants witnessed an excellent year and recorded strong results in 4Q2015. The management appreciates the hard work of team who made this possible. It is further evidence to their accomplishment that Frisch’s recorded a profit every year since it became public in 1960.
