Exhibit 99-B
FOR IMMEDIATE RELEASE Contact: David M. Findlay
- --------------------- Vice President Strategic
Planning & Investor Relations
(219) 271-4600
QUALITY DINING REPORTS SECOND QUARTER RESULTS
---------------------------------------------
INCOME FROM RESTAURANT OPERATIONS INCREASES 90%
Mishawaka, Indiana (June 7, 1996)--Quality Dining, Inc. (Nasdaq/NM:QDIN) today
announced a 90% increase in income from restaurant operations for its second
quarter ended May 12, 1996. Income from restaurant operations was $7.5 million
versus $4.0 million for the comparable period in fiscal 1995. The Company also
reported an 83% increase in net income to $2.1 million for the quarter versus
$1.1 million for the same period in fiscal 1995. Net income per share for the
second quarter of fiscal 1996 was $0.24 versus $0.17 for the comparable period
in fiscal 1995. Earnings per share for the second quarter of fiscal 1996
reflects a 31% increase in weighted average shares outstanding over the
comparable period in fiscal 1995.
Restaurant sales increased 130% to $55.4 million for the second quarter of
fiscal 1996 compared with $24.1 million in the same period of fiscal 1995. This
increase was driven by the addition of revenues derived from the Company's 42
Grady's American Grill restaurants, which were acquired in the first quarter of
fiscal 1996, and continued growth in its other concepts.
For the 28 weeks ended May 12, 1996, Quality Dining reported a 76% increase
in income from restaurant operations to $14.5 million versus $8.3 million for
the comparable period in fiscal 1995. The Company reported restaurant sales of
$109.0 million for the 28 weeks ended May 12, 1996, a 109% increase over $52.3
million for the comparable period in fiscal 1995. Quality Dining reported net
income of $2.8 million, or $0.31 per share, for the first half of fiscal 1996
versus $2.3 million, or $0.34 per share, for the comparable period in fiscal
1995. Earnings per share for the first half of fiscal 1996 reflects a 31%
increase in weighted average shares outstanding over the comparable period in
fiscal 1995.
Net income for the first quarter of fiscal 1996 included a pre-tax charge
of $1.9 million ($1.2 million after tax, or $0.14 per share) for restructuring
and integration costs related to the acquisitions of Grady's American Grill and
Spageddies Italian Kitchen. Excluding the special charge, the Company's net
income for the first half of fiscal 1996 would have been $4.0 million, or $0.45
per share.
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QDIN Reports Second Results
Page 2
June 7, 1996
Quality Dining increased the number of restaurants operating from a total
of 145 at the end of the first quarter of fiscal 1996 to 150 units operating at
the conclusion of the second quarter of fiscal 1996. This increase included the
addition of three Bruegger's Bagel Bakeries, one Burger King restaurant and one
Chili's Grill & Bar restaurant. The Company's Bruegger's Bagel Bakeries
reported a comparable sales increase of 10.5% for the second quarter of fiscal
1996. Comparable restaurant sales for the second quarter of fiscal 1996 for the
Company's Burger King and Chili's units were negative 1.1% and negative 4.4%,
respectively. Comparable restaurant sales for the first half of fiscal 1996 for
the Company's Bruegger's Bagel Bakeries, Burger King and Chili's units were
positive 7.5%, negative 0.8% and negative 2.8%, respectively.
President and Chief Executive Officer Daniel B. Fitzpatrick commented on
the results, "We are pleased to report strong results for the first half of
fiscal 1996. Throughout the first and second quarters of fiscal 1996, our
businesses fared well in the face of intense competition and challenging
weather. Comparable sales performance, overall sales and restaurant operating
margins were significantly impacted by these factors. Given these influences,
the Company's performance is indeed gratifying."
Fitzpatrick continued, "We are well positioned to execute against our
strategic business plan for the balance of fiscal 1996 which is focused on
maintaining the Company's historical operational excellence and expanding our
opportunities through our merger with Bruegger's Corporation."
As of May 12, 1996, Quality Dining, Inc. operated a total of 150 quick
service and casual theme dining restaurants located in 20 states throughout the
country. The Company operated 63 Burger King restaurants, 42 Grady's American
Grill restaurants, 21 Bruegger's Bagel Bakeries, 19 Chili's Grill & Bar
restaurants and 5 Spageddies Italian Kitchen restaurants.
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that involve a
number of risks and uncertainties. Among the factors that could cause actual
results to differ materially are the following: the availability and cost of
suitable locations for new restaurants; the hiring, training and retention of
skilled management and other restaurant personnel; the ability to obtain the
necessary government approvals and third-party consents; changes in governmental
regulations, including any increase in the minimum wage; and other risk factors
listed from time to time in the Company's filings with the Securities and
Exchange Commission.
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QUALITY DINING, INC.
UNAUDITED FINANCIAL HIGHLIGHTS
(in thousands, except per share amounts)
12 Weeks Ended 28 Weeks Ended
-------------------- --------------------------
May 12, May 14, May 12, May 14,
1996 1995 1996 1995
--------- --------- --------------- ---------
Restaurant sales:
Burger King $16,208 $12,562 $ 35,588 $27,961
Grady's 24,571 --- 41,679 ---
Chili's 9,506 9,178 21,086 20,229
Spageddies 1,889 1,159 4,373 1,920
Bruegger's 3,228 1,164 6,321 2,144
------- ------- -------- -------
Total restaurant sales 55,402 24,063 109,047 52,254
------- ------- -------- -------
Restaurant operating expenses:
Food and beverage 17,406 7,068 34,256 15,543
Payroll and benefits 15,326 6,154 30,650 13,552
Depreciation and amortization 2,527 1,222 5,214 2,694
Other operating expenses 12,620 5,649 24,390 12,188
------- ------- -------- -------
Total restaurant operating expenses 47,879 20,093 94,510 43,977
------- ------- -------- -------
Income from restaurant operations 7,523 3,970 14,537 8,277
General and administrative expenses 2,518 1,468 5,088 3,282
Restructuring and integration costs --- --- 1,938 ---
------- ------- -------- -------
Operating income 5,005 2,502 7,511 4,995
------- ------- -------- -------
Other income (expense):
Interest expense (1,701) (674) (3,125) (1,369)
Gain (loss) on sale of property --- --- 3 (4)
Interest income 40 24 111 58
Other expense, net (60) (37) (130) (60)
------- ------- -------- -------
Total other expense (1,721) (687) (3,141) (1,375)
------- ------- -------- -------
Income before income taxes 3,284 1,815 4,370 3,620
Income taxes 1,198 672 1,595 1,340
------- ------- -------- -------
Net income $ 2,086 $ 1,143 $ 2,775 $ 2,280
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Net income per share $0.24 $0.17 $0.31 $0.34
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Net income per share before
restructuring and integration costs $0.24 $0.17 $0.45 $0.34
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Weighted average number of shares
of common stock outstanding 8,839 6,761 8,838 6,744
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