PIZZA INN, INC. ANNOUNCES RESULTS FOR
THIRD QUARTER FISCAL YEAR 2011
Strong same store sales and new store growth fuel 22% earnings increase
The Colony, Texas – May 10, 2011 -- PIZZA INN, INC. (NASDAQ:PZZI)
Third Quarter Highlights:
| · | Net income increased 22% to $442,000 compared to $362,000 in 2010 |
| · | Earnings per share of $0.06 in 2011 compared to $0.05 in 2010 |
| · | Domestic same store sales increased 1.8% driven by a 2.3% increase in same store sales for domestic buffet-style restaurants |
| · | Sales for Company owned restaurants increased 49% driven by new restaurants added in the previous two fiscal quarters |
Pizza Inn, Inc. (NASDAQ: PZZI) today announced results for the third fiscal quarter ended March 27, 2011. Net income increased 22% year over year to $442,000, or $0.06 per share, compared to net income of $362,000, or $0.05 per share, for the same quarter of the prior fiscal year. Revenues increased 5.3% to $10.7 million compared to $10.2 million for the same quarter of the prior fiscal year. Domestic same store sales increased 1.8% for the third fiscal quarter compared to the prior fiscal year driven by a 2.3% increase in same store sales for the buffet-style concept.
For the nine months ended March 27, 2011, Company revenues were $31.7 million compared to $30.6 million for the same period in the prior fiscal year. Net income for the nine months ended March 27, 2011 was $1.0 million, or $0.12 per share, compared to $1.1 million, or $0.14 per share, for the same period in the prior fiscal year. The decline in net income was primarily attributable to $0.3 million of depreciation expense associated with the closure of a Company store opened prior to the rollout of the new buffet prototype.
"We are very pleased with our third quarter results,” commented Charlie Morrison, President and CEO. “We have returned our chain to positive same stores sales growth led by the efforts of a strong and resilient group of franchise partners who can weather any storm. Our franchisees have been aggressively investing in remodeling their restaurants and are working harder than ever to fight price competition with the best product quality and service in the industry. In addition, we expect to open more than 20 new restaurants worldwide in fiscal 2011, providing even more opportunities for pizza lovers to enjoy our fresh-made, crackery thin crust pizzas.”
Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, future economic, competitive and market conditions, regulatory framework and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Pizza Inn’s control. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that Pizza Inn’s objectives and plans will be achieved.
Pizza Inn, Inc. is an owner, franchisor and supplier of a system of restaurants operating domestically and internationally under the trademark “Pizza Inn.” The Company and its distribution division, Norco Restaurant Services Company, are headquartered in The Colony, Texas. The Company’s common stock is listed on the Nasdaq Capital Market under the symbol “PZZI.”
