CINCINNATI Frisch's Restaurants Inc. reported a dive in third-quarter profit as severe winter weather hurt sales at its Big Boy family-dining chain.
For the quarter ended March 9, Frisch's posted net income of $2.0 million, or 39 cents a share, down more than 40 percent from year-ago earnings of $3.4 million, or 66 cents a share. Last year's third quarter earnings were boosted by an $889,579 settlement of what the company described as "a long-running legal issue."
Latest-quarter revenue fell 4.2 percent to $64.9 million. Same-store sales declined 3.4 percent at Frisch's Big Boy restaurants and fell 6.4 percent at the company's Golden Corral locations.
Frisch’s blamed the sales decline on snow storms in Ohio, Kentucky, Indiana and Pennsylvania, the states where the company operates 89 Big Boy and 35 Golden Corral restaurants and is the franchisor of an additional 25 Big Boys.
"Record snowfalls for February hit our primary markets, driving down customer traffic in our restaurants," Craig F. Maier, Frisch's president and chief executive, said in a statement.
Several other restaurant chains, including Sonic, Burger King and Hardee's, have cited weather for disappointing sales in January and February. (EARLIER: Restaurants shift blame to weather for sinking sales )