October 3, 2005

Brinker International’s sale of its Corner Bakery Café heads our list of multi-unit operators in the news. Others covered in this section include: Yum!, P.F. Chang’s and Wendy’s.

Brinker International announced the sale of its Corner Bakery Café brand to CBC Restaurant Corp. for an undisclosed price. CBC is affiliated with Il Fornaio (America) Corp. and Bruckmann, Rosser, Sherrill & Co., LLC. BRS & Co. is a New York-based private equity firm with extensive experience in restaurant acquisitions. The sale is expected to close by the end of the calendar year. Corner Bakery Café operates 92 restaurants in eight states and the District of Columbia. Other Brinker restaurant brands include Chili's Grill & Bar, Romano's Macaroni Grill, On The Border Mexican Grill & Cantina and Maggiano's Little Italy.

For the third quarter ending Sept. 3, 2005, Yum! Brands Inc. reported system-wide same-store sales in the United States increased by 4% and sales in its U.S. multi-brand restaurants grew by 17%. In addition, Yum! reported that sales in its International Division of restaurants grew by 4%.

P.F. Chang's China Bistro Inc. reported that revenues increased 17% to $203.0 million for the third quarter ended Oct. 2, 2005, from $174.0 million in the third quarter of 2004. P.F. Chang's China Bistro accounted for $168.6 million of consolidated revenues and reported a decrease of 0.8% in comparable store sales. The company's Pei Wei Asian Diner units accounted for $34.4 million of consolidated revenues and experienced a 2.8% increase in comparable store sales for the period.

Wendy's International Inc. released preliminary same-store sales results for the third quarter, which ended on Sunday, Oct. 2. Citing record-high gasoline prices and lower consumer spending levels, Wendy's announced same-store sales decreased 5.0% at U.S. company stores and 5.5% to 5.7% at U.S. franchised restaurants, compared to positive sales in the quarter a year ago. The company also reported that its Baja Fresh Mexican Grill system same-store sales declined 4.1%. Third-quarter same-store sales for the company’s Tim Hortons concept increased 3.6% to 3.7% at restaurants in Canada and 4.7% in the United States, compared to very strong sales in the quarter a year ago.

Papa John's International Inc. today announced that domestic system-wide comparable sales for the five weeks ended Sept. 25, 2005, increased 3.4% (composed of an 8.2% increase at company-owned restaurants and a 1.9% increase at franchise restaurants). Domestic system-wide comparable sales for the quarter ended Sept. 25, 2005, increased 3.9% (composed of an 8.7% increase at company-owned restaurants and a 2.3% increase at franchise restaurants). The company noted a continuation in the recent trend that the comparable sales results for company-owned restaurants were primarily attributable to increased transactions while the results for franchise restaurants were primarily attributable to increased ticket average. Total system-wide international sales increased 9.7% for September and 12.4% for the quarter, on a constant U.S. dollar basis, over the comparable periods last year.

Compared to the same time frame one year ago, Bob Evans Farms announced that same-store sales in the company’s 485 core Bob Evans Restaurants decreased 4.4% for the four-week period ended Sept. 23, 2005, the first month in the company’s 2006 fiscal year. Same-store sales at the company’s 70 core Mimi's Cafe units increased 0.1% from the same period a year ago.

Fox & Hound Restaurant Group, operator of the Fox and Hound and Bailey's restaurant chains, announced it has signed a letter of intent to be taken private by Los Angeles private equity firm Levine Leichtman Capital Partners for $14 per share or $145.6 million. A newly formed affiliate of Levine including some current restaurant executives will buy Fox & Hound, which operated 75 restaurants at the end of last year and generated $149.2 million in revenue. Chief Executive Officer Steven M. Johnson and Chief Financial Officer James K. Zielke are among those who will be equity holders in the new company.

Ryan's Restaurant Group, which operates 340 Ryan’s® Grill, Buffet & Bakery and Fire Mountain® restaurants in 23 states, primarily in the southern and Midwestern United States, reported a 4.2% decrease in same-store sales for September 2005. For the company’s third quarter, which ended Sept. 28, same-store sales decreased by 3.7%. In reporting these results, Ryan’s management noted that five stores remain closed as a result of Hurricanes Katrina and Rita.

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