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Nashville, TN � February
2002 � O'Charley's Inc. (Nasdaq/NM:CHUX
- news) recently issued its revenue and earnings estimate and store development
plans for 2002. The Company also affirmed its previously issued guidance
for the fourth quarter of fiscal 2001.
The Company stated that
it expects to report net earnings per share of $1.25 to $1.30 for 2002
on estimated revenues of $500 to $510 million. These projected results
are based upon an anticipated comparable store sales increase of approximately
0% to 2% and the opening of 18 to 22 new O'Charley's restaurants and two
new Stoney River restaurants. These projected results exclude any possible
impact to earnings related to transitional impairment charges associated
with the adoption of SFAS No. 142, Goodwill and Other Intangible Assets.
The Company is currently evaluating the impact of the adoption of this
standard and has not yet determined the effect of adoption on its results
of operations.
O'Charley's affirmed its
guidance of net earnings of $0.23 to $0.25 per diluted share on estimated
revenues of $102 to $105 million for the fourth quarter ending December
30, 2001. The fourth quarter of fiscal 2001 consists of 12 weeks compared
with 13 weeks in the fourth quarter of fiscal 2000. These projected results
for the fourth quarter are based upon an anticipated same store sales increase
of approximately 1% to 2%, three new O'Charley's restaurants that have
already opened during the fourth quarter, which brought the total for 2001
to 24 new O'Charley's restaurants, and the effect of the 2.3 million additional
outstanding shares resulting from the public offering in April 2001.
Commenting on the announcement,
Gregory L. Burns, chairman and chief executive officer, stated, �Since
reporting our third quarter results last month, we have continued to see
favorable trends in sales and operating costs. Same store sales are currently
running above plan on higher traffic, and we have experienced a moderation
in food and utility costs. Although there are certainly many variables
in the macroeconomic environment for 2002, such as the timing of an economic
recovery, consumer confidence and food cost trends, we are cautiously optimistic
about the improvement we have seen so far. We will remain focused on maintaining
market share, increasing customer traffic and ensuring that our guests
continue to receive a valuable dining experience that exceeds their expectations.�
�Our store development
plan for 2002 reflects the decision to remain with our successful `Town
and Country' approach of entering select metropolitan markets and backfilling
in surrounding areas. While most of our expansion will occur in existing
markets, we will enter one new metropolitan market, Jacksonville, Florida.
Given the current economic environment, we believe it is prudent to take
a more conservative stance on store expansion in 2002.�
The Company also announced
that it has completed the feasibility study on franchising its O'Charley's
restaurant concept. Burns added, �We are working on an implementation plan
for franchising that we expect to be completed during 2002, and we will
provide additional details on that plan when it is in place. Our estimate
for 2002 incorporates the expected legal and administrative costs associated
with developing the franchising plan and does not assume contributions
from franchising revenue during 2002. We strongly believe that O'Charley's
is a 700-plus-unit concept and has tremendous growth potential. The compelling
value created by our high quality food, superior service and excellent
pricing position generates customer loyalty and increases repeat visits.
O'Charley's distinct, neighborhood-themed design and diverse menu appeal
to a broad customer base.�
O'Charley's Inc. operates
161 casual-dining, full-service O'Charley's restaurants in 14 states in
the Southeast and Midwest. The menu, with an emphasis on fresh preparation,
features several specialty items such as hand-cut and aged steaks, fresh
seafood, chicken that is always fresh and never frozen, popular homemade
yeast rolls, a variety of fresh-cut salads with special-recipe salad dressings
and their signature caramel pie. In addition, the Company currently operates
three Stoney River Legendary Steaks restaurants with two locations in Atlanta,
Georgia, and one location in Chicago, Illinois.
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| This press release and statements
made by or on behalf of the Company relating hereto, including the Company's
estimates of its same stores sales and results of operations in future
periods, statements concerning potential increases in food and other operating
costs, the Company's development and expansion plans and the adequacy of
the Company's financing, 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 may be affected by
certain risks and uncertainties, including, but not limited to, the Company's
ability to locate acceptable restaurant sites, open new restaurants, and
operate such restaurants profitably; the Company's ability to hire, train,
and retain skilled management and other personnel; the Company's ability
to obtain adequate financing on acceptable terms; changes in consumer tastes,
demographic trends, and national, regional and local economic conditions;
changes in costs relating to food, commodities, labor, employee benefits
and similar items; and the other risks described in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2000, under
the caption �Forward-looking Statements/Risk Factors� and in the Company's
other 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 and plans 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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Contact:
O'Charley's Inc., Nashville
A. Chad Fitzhugh, 615/782-8818
www.ocharleys.com |