WILBRAHAM, Mass. – Friendly Ice Cream Corp. (Amex: FRN) today said its first-quarter widened to $6.0 million or 73 cents per share, from a loss of $1.8 million or 23 cents per share in the first quarter of 2006. The net loss from continuing operations widened to 73 cents per share from the year-ago 56 cents per share.
Total revenue shrank by 2.5 percent to $122.6 million from the company’s first-quarter 2006 revenue of $125.7 million, which included $42.6 million or 33 cents per share in income from discontinued operations. Comparable-restaurant sales declined 4.1 percent for company owned restaurants and 4.6 percent for franchised restaurants.
At the quarter’s end, on April 1, Friendly’s had $21.9 million in cash and cash equivalents and its revolving credit line was paid in full.
The first quarter saw the opening of one new company-owned restaurant and one new franchise restaurant, and the hiring of President and CEO George M. Condos.
“Since joining the company in January 2007, I have visited a number of restaurants and have spoken to employees, franchisees and guests,” Condos said. Those visits “have resulted in the development of numerous initiatives to re-energize the Friendly’s brand,” with an improved menu and “more contemporary environment,” Condos said.
“Beginning this month, we will introduce the first of these initiatives, which include a new line of cold beverages and a new service program.”
Friendly Ice Cream Corp. (AMEX: FRN) is a vertically integrated restaurant company, with more than 520 company and franchised restaurants throughout the Northeast, and the maker of Friendly’s Ice Cream distributed to more than 4,500 retail locations. Additional information is available at www.friendlys.com.
