Exhibit 99.1
Einstein Noah Restaurant Group Reports Strong Growth in Earnings and Cash Flow for 2008
- Cash flow from operations increased 73% to $43.1 million in 2008 resulting in an unrestricted cash balance of $24.2 million -
- Full year diluted EPS increased 47% to $1.29 -
LAKEWOOD, Colo.--(BUSINESS WIRE)--March 2, 2009--Einstein Noah Restaurant Group (NASDAQ: BAGL), a leader in the quick-casual segment of the restaurant industry operating primarily under the Einstein Bros.® Bagels, Noah's New York Bagels®, and Manhattan Bagel® brands, today reported financial results for the fourth quarter and full year ended December 30, 2008.
Selected Highlights for the Fourth Quarter 2008 Compared to the Fourth Quarter 2007:
- Total revenue of $103.9 million vs. $105.2 million
- System-wide comparable store sales decreased a modest 1.0%
- Gross profit of $21.5 million in each of these quarters
- Net income and diluted EPS of $5.8 million and $0.36, respectively, versus net income and diluted EPS of $6.8 million and $0.41. Fourth quarter 2008 results included $1.3 million in senior management transition costs, or approximately $0.08 per diluted share.
- Generated $9.4 million of cash flow from operations in 2008 compared to $5.6 million in 2007.
Selected Highlights for 2008 Compared to 2007:
- Total revenue growth of 2.6% to $413.5 million from $402.9 million
- System-wide comparable store sales increased 1.4%
- Gross profit of $81.8 million vs. $80.9 million
- Net income and diluted EPS of $21.1 million and $1.29, respectively, versus net income and diluted EPS of $12.6 million and $0.88. 2008 results included $3.2 million in charges for senior management transition costs and California wage and hour settlements, or approximately $0.20 per diluted share.
- Generated $43.1 million of cash flow from operations in 52-week period, resulting in an unrestricted cash balance of $24.2 million on December 30, 2008, compared to the 52 weeks ended January 1, 2008 where we generated $24.9 million in cash flow and had an unrestricted cash balance of $9.4 million.
Jeff O’Neill, chief executive officer and president of Einstein Noah, said, “Our performance is a testament to the strength of our loyal customer base. In the face of unprecedented economic challenges, we’ve been able to preserve our comparable store sales, continue to build efficiencies in our manufacturing and commissary operations, and lower our G&A costs significantly. Most importantly, in 2008 we generated free cash flow totaling $16.4 million, which further strengthens our liquidity position.”
O’Neill continued, “In 2009, our key objectives are to accelerate our marketing and merchandising efforts, continue to build on our strong and growing base of Franchise and License partners, and prudently manage our controllable costs. We are pleased with our unique strength and positioning in the Fast Casual Breakfast day part, and are confident that we can take additional market share from our competitors through our emphasis on exciting new products and value-oriented promotions. Overall, we look forward to continued progress in 2009 and are well underway toward building a ‘best in class’ organization.”
Fourth Quarter 2008 Financial Results
For the fourth quarter of 2008, system–wide comparable store sales, which include Company-owned, franchised, and licensed locations, decreased a modest 1.0%. Total revenues decreased 1.3% to $103.9 million from $105.2 million in the fourth quarter last year. The fourth quarter of 2008 had a benefit of $0.3 million from gift card breakage, compared to a benefit of approximately $1.3 million in the fourth quarter last year.
Company-owned restaurant sales fell 2.5% to $94.3 million from $96.7 million, including a 3.3% decrease in comparable store sales, of which approximately 1.2% was due to management deliberately reducing the hours of operation. Once again, our upgraded restaurants experienced stronger comparable store sales, and outperformed all other locations by 2.4%. Company-owned restaurant gross profit was $18.9 million in the fourth quarter of 2008, compared to $20.7 million in the same quarter last year.
Franchise and license locations continued a trend of strong positive comparable store sales in the fourth quarter of 2008, posting an 8.5% increase compared to the same quarter in the prior year. We also benefitted from a net increase of nine license locations in the quarter. The effect of the new locations and comparable store sales helped drive franchise and license related revenues up 11.1% to $1.9 million in the fourth quarter of 2008.
Manufacturing and commissary revenues increased 12.6% to $7.7 million in the fourth quarter of 2008, resulting in gross profit of $0.7 million, compared to a $0.9 million loss in the fourth quarter last year.
General and administrative expenses declined $0.9 million to $8.4 million in the fourth quarter of 2008 compared to $9.3 million in the fourth quarter in the prior year.
Net income was $5.8 million in the fourth quarter of 2008, or $0.36 per diluted share, compared to net income of $6.8 million, or $0.41 per diluted share, in the same quarter last year. The fourth quarter of 2008 results included $1.3 million in senior management transition costs.
2008 Financial Results
For the full year ended December 30, 2008, system-wide comparable store sales, which include Company-owned, franchised, and licensed locations, increased 1.4%. Total revenues increased 2.6% to $413.5 million from $402.9 million last year.
Company-owned restaurant sales grew 1.0% to $376.7 million from $373.0 million, with virtually flat comparable store sales, despite management deliberately reducing the hours of operation beginning in the second quarter of 2008. Company-owned restaurant gross profit was $73.5 million compared to $75.8 million in 2007.
Franchise and license related revenues increased 12.6% to $6.4 million in 2008, compared to $5.7 million last year. We benefitted from a net increase of 27 franchise and license locations, in addition to a strong comparable store sales increase of 8.6%. To date, we have signed seven development agreements for additional Einstein Bros. Bagels franchises which should ultimately result in a total of 49 additional franchise openings.
Manufacturing and commissary revenues increased 25.5% to $30.4 million, compared to $24.2 million last year. Manufacturing and commissary gross profit was $1.8 million, compared to a $0.6 million loss in 2007.
Net income was $21.1 million for 2008, or $1.29 per diluted share, compared to net income of $12.6 million, or $0.88 per diluted share, in 2007 and reflects one full year’s benefit of our recapitalization, which occurred in June 2007. The 2008 results included a $1.9 million charge related to two California wage and hour settlements, along with $1.3 million of senior management transition costs, which in aggregate was approximately $0.20 per diluted share.
2009 Update
Our primary focus in 2009 will be driving organic growth through consumer promotions, product innovations and additional locations. We plan to open six to eight Company-owned, six to eight franchised, and 30 to 35 licensed stores in 2009. We also intend to upgrade 45 Company-owned stores.
We have locked in over 90% of all major agricultural commodities at virtually flat prices compared to 2008, with an option to benefit from further reductions in pricing.
Rick Dutkiewicz, chief financial officer of Einstein Noah, added, “Our ‘asset light’ investment model generates strong cash on cash returns and provides for a substantial amount of free cash flow. We have over $24 million of unrestricted cash and remain in full compliance with our debt agreements. We will also continue to invest in our successful upgrade program to generate both top line sales growth as well as additional store margin dollars. By the end of 2009, approximately 50% of our Company-owned restaurants will have been constructed in the last four years or will have been upgraded. This demonstrates our commitment to enhancing the guest experience at all levels.”
Dutkiewicz concluded, “Our growth strategy and brand building efforts place greater emphasis on high-margin, capital efficient development, and our goal is to have approximately 50% of all locations operated by franchise and license partners by 2012. This expansion strategy is expected to drive significant cash flow for our shareholders, while providing greater stability to our core business in an otherwise volatile environment.”
Conference Call Today
We will host a conference call to discuss fourth quarter and full year 2008 financial results today at 3:00 p.m. Mountain Time (5:00 p.m. Eastern Time). Hosting the call will be Jeff O’Neill, president and chief executive officer, and Richard Dutkiewicz, chief financial officer.
The dial-in numbers for the conference call are 1-800-762-8779 for domestic toll-free calls and 1-480-248-5081 for international. The conference ID is 3989731. A telephone replay will be available through March 16, 2009, and may be accessed by dialing 1-800-406-7325 for domestic toll-free calls or 1-303-590-3030 for international. The conference replay access code is 3989731#.
To access a live Webcast of the call, please visit Einstein Noah's Web site at www.einsteinnoah.com. A replay of the Webcast will be available on the Web site for at least four weeks.
About Einstein Noah Restaurant Group
Einstein Noah Restaurant Group is a leading company in the quick casual restaurant industry that operates locations primarily under the Einstein Bros.® Bagels and Noah's New York Bagels® brands and primarily franchises locations under the Manhattan Bagel® brand. The company's retail system consists of more than 600 restaurants, including more than 100 license locations, in 36 states plus the District of Columbia. It also operates a dough production facility. The company's stock is traded under the symbol BAGL. Visit www.einsteinnoah.com for additional information.
Forward Looking Statement Disclosure
Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "estimate," "project," "plan to," "is designed to," "expectations," “prospects,” "intend," "indications," "expect," "should," "would," "believe," “target”, "trend", “contemplate,” “set the foundation for” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. These factors include but are not limited to (i) the results for period over period revenue, gross profit, operating income, net income, depreciation and amortization, comparable store sales and margin performance are not necessarily indicative of future results, and our expectations for 2009 results are subject to shifting consumer preferences, economic conditions, weather, and competition, among other factors; (ii) the results for the 2008 fourth quarter are not necessarily indicative of future results, which are subject to a variety of factors, including consumer preferences and the economy and increasing utility and other costs, and other seasonal effects; (iii) the ability to develop and open new company-owned, licensed and franchised restaurants and continue our upgrade program for company-owned restaurants and opportunities for franchised and licensed locations are dependent upon the availability of capital, the availability of desirable locations, reaching favorable lease terms, as well as the availability of contractors and materials, and the ability to obtain necessary permits and licenses; (iv) our goal to have 50% of our locations operated by licensees or franchisees by 2012 and build on our base of franchise and license partners is dependent upon our ability to attract franchisees and licensees, negotiate favorable agreements, and their ability to secure financing as well as the factors listed in (iii), above; (v) our ability to drive significant cash flow and provide greater stability to our business through our expansion strategy of growing our franchise and licensed locations is dependent, in turn, upon the factors listed in (iii) and (iv), above; (vi) our ability to grow is dependent on many factors including our ability to attract and train personnel, the availability of products, our ability to develop new menu items and to produce those items in the restaurants, and the availability of capital and consumer acceptance; (vii) our ability to take market share from our competitors and our unique positioning in the fast casual breakfast daypart are subject also to consumer preferences and economic conditions, and the attractiveness, desirability and perceived value of our offerings, among other factors; (viii) our ability to drive organic growth through consumer promotions, product innovations and additional locations is dependent upon our ability to develop new menu items, the acceptance of our products, the success of our marketing and promotions among other factors and the factors outlined in (iii) and (iv), above; (ix) whether the parties to development agreements open the anticipated number of franchise locations is subject to a variety of factors mentioned above including the availability of capital, the availability of desirable locations, reaching favorable lease terms, as well as the availability of contractors and materials, and the ability to obtain necessary permits and licenses, hire personnel and general economic and market conditions, among other factors; (x) our ability to accelerate our marketing and merchandising efforts is dependent upon available resources, innovative ideas and production and distribution of materials; and (xi) our ability to manage costs is dependent upon economic conditions, including market and inflationary pressures. These and other risks are more fully discussed in the Company's SEC filings.
| EINSTEIN NOAH RESTAURANT GROUP, INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (in thousands, except earnings per share and related share information) |
| | | | | | | | | | |
| | 13 weeks ended | | Increase/ | | 13 weeks ended |
| | (dollars in thousands) | | (Decrease) | | (percent of total revenue) |
| | January 1, | | December 30, | | 2008 | | January 1, | | December 30, |
| | 2008 | | 2008 | | vs. 2007 | | 2008 | | 2008 |
| Revenues: | | | | | | | | | | |
| Company-owned restaurant sales | | $ 96,714 | | $ 94,333 | | (2.5%) | | 91.9% | | 90.8% |
| Manufacturing and commissary revenues | | 6,795 | | 7,650 | | 12.6% | | 6.5% | | 7.4% |
| Franchise and license related revenues | | 1,705 | | 1,894 | | 11.1% | | 1.6% | | 1.8% |
| Total revenues | | 105,214 | | 103,877 | | (1.3%) | | 100.0% | | 100.0% |
| | | | | | | | | | |
| Cost of sales: | | | | | | | | | | |
| Company-owned restaurant costs | | | | | | | | | | |
| Cost of goods sold | | 28,744 | | 28,155 | | (2.0%) | | 27.3% | | 27.1% |
| Labor costs | | 28,789 | | 27,542 | | (4.3%) | | 27.4% | | 26.5% |
| Other operating costs | | 8,731 | | 9,670 | | 10.8% | | 8.3% | | 9.3% |
| Rent and related, and marketing costs | | 9,800 | | 10,087 | | 2.9% | | 9.3% | | 9.7% |
| Total company-owned restaurant costs | | 76,064 | | 75,454 | | (0.8%) | | 72.3% | | 72.6% |
| | | | | | | | | | |
| Manufacturing and commissary costs | | 7,660 | | 6,959 | | (9.2%) | | 7.3% | | 6.7% |
| Total cost of sales | | 83,724 | | 82,413 | | (1.6%) | | 79.6% | | 79.3% |
| | | | | | | | | | |
| Gross profit: | | | | | | | | | | |
| Company-owned restaurant | | 20,650 | | 18,879 | | (8.6%) | | 19.6% | | 18.1% |
| Manufacturing and commissary | | (865) | | 691 | | ** | | (0.8%) | | 0.7% |
| Franchise and license | | 1,705 | | 1,894 | | 11.1% | | 1.6% | | 1.8% |
| Total gross profit | | 21,490 | | 21,464 | | (0.1%) | | 20.4% | | 20.6% |
| | | | | | | | | | |
| Gross profit percentages: | | | | | | | | | | |
| Company-owned restaurant | | 21.4% | | 20.0% | | (6.5%) | | * | | * |
| Manufacturing and commissary | | (12.7%) | | 9.0% | | ** | | * | | * |
| Franchise and license | | 100.0% | | 100.0% | | 0.0% | | * | | * |
| | | | | | | | | | |
| Operating expenses: | | | | | | | | | | |
| General and administrative expenses | | 9,254 | | 8,421 | | (9.0%) | | 8.8% | | 8.1% |
| California wage and hour settlements | | - | | - | | ** | | 0.0% | | 0.0% |
| Senior management transition costs | | - | | 1,335 | | ** | | 0.0% | | 1.3% |
| Depreciation and amortization | | 3,282 | | 3,907 | | 19.0% | | 3.1% | | 3.8% |
Loss on sale, disposal or abandonment of assets, net | | 172 | | 76 | | ** | | 0.2% | | 0.1% |
Impairment charges and other related costs | | 23 | | 209 | | ** | | 0.0% | | 0.2% |
| Income from operations | | 8,759 | | 7,516 | | (14.2%) | | 8.3% | | 7.2% |
| Other expense: | | | | | | | | | | |
| Interest expense, net | | 1,702 | | 1,282 | | (24.7%) | | 1.6% | | 1.2% |
| Income before income taxes | | 7,057 | | 6,234 | | (11.7%) | | 6.7% | | 6.0% |
| Provision for income taxes | | 296 | | 450 | | 52.0% | | 0.3% | | 0.4% |
| Net income | | $ 6,761 | | $ 5,784 | | (14.5%) | | 6.4% | | 5.6% |
| | | | | | | | | | |
| Net income per common share – Basic | | $ 0.43 | | $ 0.36 | | (16.3%) | | * | | * |
| Net income per common share – Diluted | | $ 0.41 | | $ 0.36 | | (12.2%) | | * | | * |
| | | | | | | | | | |
| Weighted average number of common shares outstanding: | | | | | | | | | | |
| Basic | | 15,837,211 | | 15,974,248 | | 0.9% | | * | | * |
| Diluted | | 16,623,629 | | 16,179,269 | | (2.7%) | | * | | * |
| | | | | | | | | | |
| * not applicable | | | | | | | | | | |
| ** not meaningful | | | | | | | | | | |
| EINSTEIN NOAH RESTAURANT GROUP, INC. |
| CONSOLIDATED BALANCE SHEETS |
| (in thousands, except share information) |
| (unaudited) |
| | | | |
| | January 1, | | December 30, |
| | 2008 | | 2008 |
| ASSETS | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ 9,436 | | $ 24,216 |
| Restricted cash | | 1,203 | | 526 |
Accounts receivable, net of allowance of $606 and $216, respectively | | 7,807 | | 6,459 |
| Inventories | | 5,313 | | 5,290 |
| Prepaid expenses and other current assets | | 5,281 | | 4,774 |
| Total current assets | | 29,040 | | 41,265 |
| | | | |
| Property, plant and equipment, net | | 47,714 | | 59,747 |
| Trademarks and other intangibles, net | | 63,831 | | 63,831 |
| Goodwill | | 4,981 | | 4,981 |
| Other assets | | 2,996 | | 3,105 |
| | | | |
| Total assets | | $ 148,562 | | $ 172,929 |
| | | | |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | |
| Current liabilities: | | | | |
| Accounts payable | | $ 5,072 | | $ 5,123 |
| Accrued expenses and other current liabilities | | 19,279 | | 22,410 |
| Short-term debt and current portion of long-term debt | | 955 | | 8,088 |
| Current portion of obligations under capital leases | | 80 | | 61 |
Mandatorily redeemable, Series Z Preferred Stock, $.001 par value, $1,000 per share liquidation value; 57,000 shares authorized; 57,000 shares issued and outstanding | | - | | 57,000 |
| | | | |
| Total current liabilities | | 25,386 | | 92,682 |
| | | | |
| Senior notes and other long-term debt | | 88,875 | | 79,787 |
| Long-term obligations under capital leases | | 67 | | 38 |
| Other liabilities | | 10,841 | | 14,073 |
Mandatorily redeemable, Series Z Preferred Stock, $.001 par value, $1,000 per share liquidation value; 57,000 shares authorized; 57,000 shares issued and outstanding | | 57,000 | | - |
| Total liabilities | | 182,169 | | 186,580 |
| | | | |
| Commitments and contingencies | | | | |
| | | | |
| Stockholders’ deficit: | | | | |
Series A junior participating preferred stock, 700,000 shares authorized; no shares issued and outstanding | | | | |
Common stock, $.001 par value; 25,000,000 shares authorized; 15,878,811 and 15,969,167 shares issued and outstanding | | 16 | | 16 |
| Additional paid-in capital | | 262,830 | | 264,179 |
| Accumulated other comprehensive loss | | - | | (2,470) |
| Accumulated deficit | | (296,453) | | (275,376) |
| Total stockholders’ deficit | | (33,607) | | (13,651) |
| | | | |
| Total liabilities and stockholders’ deficit | | $ 148,562 | | $ 172,929 |
| EINSTEIN NOAH RESTAURANT GROUP, INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (in thousands) |
| | | | | | |
| | 52 weeks ended |
| | January 2, | | January 1, | | December 30, |
| | 2007 | | 2008 | | 2008 |
| OPERATING ACTIVITIES: | | | | | | |
| Net income (loss) | | $ (6,868) | | $ 12,586 | | $ 21,077 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | |
| Depreciation and amortization | | 16,949 | | 11,192 | | 14,100 |
| Stock-based compensation expense | | 654 | | 1,688 | | 945 |
| Loss, net of gains, on disposal of assets | | 493 | | 601 | | 198 |
| Impairment charges and other related costs | | 2,268 | | 236 | | 263 |
| Provision for losses on accounts receivable | | 133 | | 101 | | 157 |
| Amortization of debt issuance and debt discount costs | | 817 | | 651 | | 487 |
| Write-off of debt issuance costs | | 3,956 | | 2,071 | | - |
| Write-off of debt discount | | - | | 528 | | - |
| Paid-in-kind interest | | 1,591 | | 904 | | - |
| Changes in operating assets and liabilities: | | | | | | |
| Restricted cash | | 462 | | 1,484 | | 677 |
| Accounts receivable | | (1,020) | | (1,515) | | 1,191 |
| Accounts payable and accrued expenses | | (5,706) | | (2,387) | | 3,297 |
| Other assets and liabilities | | 267 | | (3,254) | | 703 |
| | | | | | |
| Net cash provided by operating activities | | 13,996 | | 24,886 | | 43,095 |
| | | | | | |
| INVESTING ACTIVITIES: | | | | | | |
| Purchase of property and equipment | | (13,172) | | (25,869) | | (26,690) |
| Proceeds from the sale of equipment | | 209 | | 1,168 | | 17 |
| Acquisition of restaurant assets | | - | | (375) | | (7) |
| | | | | | |
| Net cash used in investing activities | | (12,963) | | (25,076) | | (26,680) |
| | | | | | |
| FINANCING ACTIVITIES: | | | | | | |
| Proceeds from secondary common stock offering | | - | | 90,000 | | - |
| Costs incurred with offering of our common stock | | - | | (6,667) | | - |
| Proceeds from line of credit | | 24 | | - | | - |
| Repayments of line of credit | | (24) | | - | | - |
| Repayments of other borrowings | | (280) | | (280) | | (280) |
| Payments under capital lease obligations | | (53) | | (53) | | (84) |
| Repayment of notes payable | | (160,000) | | - | | - |
| Borrowings under First Lien Term Loan | | 80,000 | | 11,900 | | - |
| Repayments under First Lien Term Loan | | (1,425) | | (925) | | (1,675) |
| Borrowing under Second Lien | | 65,000 | | - | | - |
| Repayments under Second Lien Term Loan | | - | | (65,000) | | - |
| Borrowings under Subordinated Note | | 24,375 | | - | | - |
| Repayments under Subordinated Note | | - | | (25,000) | | - |
| Debt issuance costs | | (4,923) | | (843) | | - |
| Proceeds upon stock option exercises | | 194 | | 1,017 | | 404 |
| | | | | | |
| Net cash provided by (used in) financing activities | | 2,888 | | 4,149 | | (1,635) |
| | | | | | |
| Net increase in cash and cash equivalents | | 3,921 | | 3,959 | | 14,780 |
| Cash and cash equivalents, beginning of period | | 1,556 | | 5,477 | | 9,436 |
| Cash and cash equivalents, end of period | | $ 5,477 | | $ 9,436 | | $ 24,216 |
| EINSTEIN NOAH RESTAURANT GROUP, INC. |
| CURRENT RESTAURANT SUMMARY |
| | | | | | | | | | | | | | | | |
| | 13 weeks ended January 1, 2008 | | 13 weeks ended December 30, 2008 |
| | Company | | | | | | | | Company | | | | | | |
| | Owned | | Franchised | | Licensed | | Total | | Owned | | Franchised | | Licensed | | Total |
| Einstein Bros. | | | | | | | | | | | | | | | | |
| Beginning balance | | 337 | | - | | 108 | | 445 | | 339 | | 2 | | 140 | | 481 |
| Opened restaurants | | 4 | | - | | 14 | | 18 | | 8 | | - | | 8 | | 16 |
| Closed restaurants | | (4) | | - | | (1) | | (5) | | - | | - | | (1) | | (1) |
| Ending balance | | 337 | | - | | 121 | | 458 | | 347 | | 2 | | 147 | | 496 |
| | | | | | | | | | | | | | | | |
| Noah's | | | | | | | | | | | | | | | | |
| Beginning balance | | 74 | | - | | 3 | | 77 | | 77 | | - | | 3 | | 80 |
| Opened restaurants | | 3 | | - | | - | | 3 | | - | | - | | 2 | | 2 |
| Closed restaurants | | - | | - | | - | | - | | - | | - | | - | | - |
| Ending balance | | 77 | | - | | 3 | | 80 | | 77 | | - | | 5 | | 82 |
| | | | | | | | | | | | | | | | |
| Manhattan Bagel | | | | | | | | | | | | | | | | |
| Beginning balance | | - | | 71 | | - | | 71 | | 1 | | 69 | | - | | 70 |
| Opened restaurants | | 1 | | 1 | | - | | 2 | | - | | - | | - | | - |
| Closed restaurants | | - | | (3) | | - | | (3) | | - | | - | | - | | - |
| Ending balance | | 1 | | 69 | | - | | 70 | | 1 | | 69 | | - | | 70 |
| | | | | | | | | | | | | | | | |
| Non-Core Brands | | | | | | | | | | | | | | | | |
Beginning balance | | 1 | | 4 | | - | | 5 | | 1 | | - | | - | | 1 |
| Opened restaurants | | - | | - | | - | | - | | - | | - | | - | | - |
| Closed restaurants | | - | | (1) | | - | | (1) | | - | | - | | - | | - |
| Ending balance | | 1 | | 3 | | - | | 4 | | 1 | | - | | - | | 1 |
| | | | | | | | | | | | | | | | |
| Consolidated Total | | | | | | | | | | | | | | | | |
| Total beginning balance | | 412 | | 75 | | 111 | | 598 | | 418 | | 71 | | 143 | | 632 |
| Opened restaurants | | 8 | | 1 | | 14 | | 23 | | 8 | | - | | 10 | | 18 |
| Closed restaurants | | (4) | | (4) | | (1) | | (9) | | - | | - | | (1) | | (1) |
| Total ending balance | | 416 | | 72 | | 124 | | 612 | | 426 | | 71 | | 152 | | 649 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | 52 weeks ended January 1, 2008 | | 52 weeks ended December 30, 2008 |
| | Company | | | | | | | | Company | | | | | | |
| | Owned | | Franchised | | Licensed | | Total | | Owned | | Franchised | | Licensed | | Total |
| Einstein Bros. | | | | | | | | | | | | | | | | |
| Beginning balance | | 341 | | - | | 93 | | 434 | | 337 | | - | | 121 | | 458 |
| Opened restaurants | | 8 | | - | | 31 | | 39 | | 16 | | 2 | | 30 | | 48 |
| Closed restaurants | | (12) | | - | | (3) | | (15) | | (6) | | - | | (4) | | (10) |
| Ending balance | | 337 | | - | | 121 | | 458 | | 347 | | 2 | | 147 | | 496 |
| | | | | | | | | | | | | | | | |
| Noah's | | | | | | | | | | | | | | | | |
| Beginning balance | | 73 | | - | | 3 | | 76 | | 77 | | - | | 3 | | 80 |
| Opened restaurants | | 4 | | - | | - | | 4 | | 1 | | - | | 2 | | 3 |
| Closed restaurants | | - | | - | | - | | - | | (1) | | - | | - | | (1) |
| Ending balance | | 77 | | - | | 3 | | 80 | | 77 | | - | | 5 | | 82 |
| | | | | | | | | | | | | | | | |
| Manhattan Bagel | | | | | | | | | | | | | | | | |
| Beginning balance | | - | | 80 | | - | | 80 | | 1 | | 69 | | - | | 70 |
| Opened restaurants | | 1 | | 2 | | - | | 3 | | - | | - | | - | | - |
| Closed restaurants | | - | | (13) | | - | | (13) | | - | | - | | - | | - |
| Ending balance | | 1 | | 69 | | - | | 70 | | 1 | | 69 | | - | | 70 |
| | | | | | | | | | | | | | | | |
| Non-Core Brands | | | | | | | | | | | | | | | | |
| Beginning balance | | 2 | | 6 | | - | | 8 | | 1 | | 3 | | - | | 4 |
| Opened restaurants | | - | | - | | - | | - | | - | | - | | - | | - |
| Closed restaurants | | (1) | | (3) | | - | | (4) | | - | | (3) | | - | | (3) |
| Ending balance | | 1 | | 3 | | - | | 4 | | 1 | | - | | - | | 1 |
| | | | | | | | | | | | | | | | |
| Consolidated Total | | | | | | | | | | | | | | | | |
| Total beginning balance | | 416 | | 86 | | 96 | | 598 | | 416 | | 72 | | 124 | | 612 |
| Opened restaurants | | 13 | | 2 | | 31 | | 46 | | 17 | | 2 | | 32 | | 51 |
| Closed restaurants | | (13) | | (16) | | (3) | | (32) | | (7) | | (3) | | (4) | | (14) |
| Total ending balance | | 416 | | 72 | | 124 | | 612 | | 426 | | 71 | | 152 | | 649 |
CONTACT:
Einstein Noah Restaurant Group
Investor Relations
Tom Ryan, 203-682-8200
tryan@icrinc.com
or
Raphael Gross, 203-682-8200
rgross@icrinc.com
