Bankruptcy, a possible acquisition, financial reporing and expansion updates are all part of this week's chain restaurant news.
Caesars Entertainment Atlantic City announced it will add several B.R. Guest Restaurants into Harrah's Resort Atlantic City and Caesars, including Dos Caminos, Atlantic Grill and Bill's Bar & Burger. Each of these concepts is expected to open in the summer of 2011, according to a Cesar's press release. This marks the first time B.R. Guest restaurants will have a presence in Atlantic City and the company's first partnership with Caesars Entertainment.
For its fiscal third quarter ending March 8, 2011, Frisch's Restaurants, Inc. (NYSE Amex: FRS) reported a 4 percent sales increase. For the first three quarters of the company's 2011 fiscal year, Frisch's reported sales of $231,067,733, which represents a 4.2 percent increase. The company attributes the increase in sales from new Big Boy restaurants opened in the last 12 months and year to date increases in Golden Corral same store sales.
Good Times Restaurants Inc. (Nasdaq:GTIM - News) same store sales increased 8.6 percent in March compared to the prior year. This is the eighth consecutive month the company has reported an increase in same store sales, according to a Good Times release. In addition, same store sales for the second quarter of fiscal its 2011 year increased 5.7 percent. Year to date for the first six months of the fiscal year same store sales have increased 9.6 percent.
Through his affiliate LSRI Holdings Inc., Tilman Fertitta announced plans to make an all-cash offer of $9.25 per share to acquire all of the issued and outstanding shares of common stock of McCormick & Schmick's Seafood Restaurants, Inc. (Nasdaq: MSSR). The offer covers all shares not already owned by Fertitta or his affiliates. LSRI is a subsidiary of Landry's Restaurants, Inc. In response to Fertitta's announcement, McCormick & Schmick's released the following statement: "McCormick & Schmick's did not solicit such an offer and has had no discussions with Mr. Fertitta concerning it. If the offer is formally made, the McCormick & Schmick's board of directors will respond appropriately in accordance with its fiduciary duties. The board has made no decision at this point whether to initiate or enter into discussions with Mr. Fertitta or any other party or to consider any sale or other strategic transaction concerning the Company."
Pizza Inn (Nasdaq:PZZI - News) opened a location in Pikeville, N.C. that is run by franchise owner Tom Vail.
To facilitate the restructuring of its debt, Sbarro, Inc. has commenced a voluntary, pre-arranged filing under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The pizza chain anticipates being able to operate its business without interruption during this restructuring process, according to a Sbarro release. As part of this agreement, Sbarro, Inc., and its domestic subsidiaries, announced it has reached agreement with all of its second-lien secured lenders and approximately 70 percent of its senior noteholders. The reorganization will eliminate approximately $200 million in debt, according to the release.