EXHIBIT 99.1
O'CHARLEY'S INC.
NEWS RELEASE
CONTACTS: Lawrence E. Hyatt Gene Marbach
Chief Financial Officer Investor Relations
O'Charley's Inc. Makovsky + Company
(615) 782-8818 (212) 508-9600
O'CHARLEY'S INC. ANNOUNCES MANAGEMENT AND
ORGANIZATIONAL CHANGES
NASHVILLE, Tenn. (December 1, 2005)-- O'Charley's Inc. (NASDAQ/NM: CHUX), a
leading casual dining restaurant company, today announced that Mr. Steven J.
Hislop, 45, has resigned, as O'Charley's Concept President, and as a member of
the Company's Board of Directors. The Company has initiated a search for a new
President for the O'Charley's concept. In the interim, O'Charley's Inc. Chairman
and Chief Executive Officer Gregory L. Burns will also serve in the Concept
President role.
The Company also announced that Mr. Richard D. May, 53, Chief Strategy Officer,
has announced that he will resign at the end of the year, following the
completion of the Company's strategic review process. His strategic planning
responsibilities will be assumed by Mr. Lawrence E. Hyatt, 51, the Company's
Chief Financial Officer.
Mr. Burns stated, "To guide our O'Charley's concept, we are seeking a proven
leader with deep operational experience in the restaurant, hospitality or retail
industries, and one who can develop and implement initiatives to drive sales,
increase guest frequency, and improve operating margins through more efficient
food, labor and energy costs. Additionally, our organization is striving to
strengthen our relationship with each and every guest. We have a `Passion to
Serve' vision and our new O'Charley's concept president will help us achieve our
goal of being `Best of Class.' The O'Charley's concept is a proven one and will
benefit greatly from new operational approaches. Given his experience in the
retail, foodservice and the hospitality industries, we look forward to Larry
Hyatt's increased involvement in the Company's strategic planning efforts.
Finally, on behalf of the board, management team and all of the O'Charley's Inc.
employees, I wish to thank Steve for his many years of loyal service to the
company and all that he has meant to the O'Charley's team. We also wish to
acknowledge the many valuable contributions Rich made to the Company during his
tenure with us. We wish both of them well in their future endeavors."
OTHER MANAGEMENT AND ORGANIZATIONAL CHANGES ANNOUNCED
In addition to the departures of Mr. Hislop and Mr. May, O'Charley's also
announced a number of management appointments and organizational changes
intended to improve the organizational effectiveness and efficiency of the
organization:
o All real estate development activities, including site selection,
development, construction, and equipment purchasing for all of the
Company's restaurant concepts are being consolidated under James
Quackenbush, 47, who has been promoted to the new position of Vice
President of Corporate Real Estate Development. Mr. Quackenbush is a
four-year veteran of Ninety Nine Restaurant & Pub, and previously
spent over 20 years in real estate development at McDonald's
Corporation. The Company expects this new structure to facilitate the
sharing of knowledge and the achievement of other cost efficiencies in
the construction and purchasing processes.
o Susan Osterberg, 41, a 17-year veteran of O'Charley's and previously
the Chief Support Officer for the Company, will become an Area
Supervisor for the O'Charley's concept.
o Diane Dillon, 39, has been promoted to Vice President of Corporate
Communications, a newly-created position within the company.
Previously a part of the Ninety Nine concept team, Diane will be
responsible for all internal and external communications at the
O'Charley's, Stoney River Legendary Steaks, and the Ninety Nine
concepts. Ms. Dillon joined Ninety Nine in 1998 and has more than 15
years of marketing and communications expertise.
Commenting on the management and organizational changes, Mr. Burns stated "A big
part of my focus is finding the right people to lead our transformation process
and these individuals will play important roles in that effort. We have stated
that we will be opening fewer restaurants in 2006 than we have in previous years
and, as a result, we will streamline the development organization and processes
under the direction of James Quackenbush. Susan Osterberg, with her
customer-orientation and high level of energy, will focus on meeting the
operational and performance goals of the O'Charley's concept as an Area
Supervisor. Finally, communicating the progress of the transformation process to
both external as well as internal audiences is central to its success and Diane
Dillon is well-suited for this effort."
The Company expects that severance, relocation and other costs relating to the
organizational and management changes announced today will impact fourth quarter
results by $0.04 per diluted share. This charge was not reflected in the fourth
quarter guidance issued by the Company with the release of its third quarter
results on October 27.
ABOUT O'CHARLEY'S INC.
O'Charley's Inc., headquartered in Nashville, Tenn., is a multi-concept
restaurant company that operates or franchises a total of 347 restaurants under
three brands: O'Charley's, Ninety Nine Restaurant and Pub, and Stoney River
Legendary Steaks. The Company operates 225 company-owned O'Charley's restaurants
in 17 states in the Southeast and Midwest, and has four franchised O'Charley's
restaurants in Michigan and two joint venture O'Charley's restaurants in
Louisiana. The menu, with an emphasis on fresh preparation, features several
specialty items such as hand-cut and aged steaks, a variety of seafood and
chicken, freshly baked yeast rolls, fresh-cut salads with special-recipe salad
dressings and signature caramel pie. The Company operates Ninety Nine Restaurant
& Pub restaurants in 109 locations
throughout Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode
Island, Vermont and Pennsylvania. Ninety Nine has earned a strong reputation for
providing generous portions of high-quality food at moderate prices in a
comfortable, relaxed atmosphere. The menu features a wide selection of
appetizers, salads, sandwiches, burgers, entrees and desserts. The Company
operates seven Stoney River Legendary Steaks restaurants in Georgia, Illinois,
Kentucky, Ohio and Tennessee. The dinner-only steakhouse concept appeals to both
upscale casual dining and fine dining customers by offering high-quality food
and attentive customer service typical of high-end steakhouses at more moderate
prices.
FORWARD LOOKING STATEMENT
This press release and statements made by or on behalf of the Company relating
hereto may be deemed to constitute forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are subject to certain risks and
uncertainties, including the risks described in the Company's filings with the
Securities and Exchange Commission. In light of the significant uncertainties
inherent in the forward-looking statements included herein, you should not
regard the inclusion of such information as a representation by us that our
objectives, plans and projected results of operations will be achieved and the
Company's actual results could differ materially from such forward-looking
statements. The Company does not undertake any obligation to publicly release
any revisions to the forward-looking statements contained herein to reflect
events and circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events.
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