WILBRAHAM, Mass. – Friendly Ice Cream Corp. (Amex: FRN) posted a 2006 profit of $4.9 million or 61 cents per share, after losing $27.3 million or $3.49 per share the year before. The company cited comparable-sales gains and improved profit margins.
Total revenue was steady at $531.5 million, compared with $531.3 million in 2005. Comparable-restaurant sales rose 1.4 percent at company-run venues and slipped 0.9 percent for franchises.
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For the quarter ended Dec. 31, the company posted a profit of $100,000 or 2 cents per share, compared with a loss of $30.2 million or $3.82 per share in the year-ago period.
Total revenue in the period slipped 8.9 percent to $122.4 million from the year-ago $123.5 million. Comparable-restaurant sales rose 1.8 percent or $1.2 million at company-owned shops and 0.5 percent at franchise shops.
The 2005 losses included a fourth-quarter charge of $22.2 million in additional non-cash tax valuation allowance.
“We are pleased with our results,” said George Condos, the company’s president and CEO since January. “We will continue to leverage the value of the Friendly’s brand by improving the quality of our menu and overall guest experience and by creating a more contemporary environment within our restaurants.”
In December, the company noted, Orlando-area franchisee Central Florida Restaurants LLC defaulted on its lease and franchise agreements, surrendering 11 restaurants to Friendly’s and closing a 12th. Friendly’s is operating the 11 remaining restaurants while undertaking a workout with Central Florida Restaurants, its lender and other creditors.
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.
