Buffets, Inc. Updates Business Trends for the Quarter Ending April 9, 2003.Business Editors EAGAN, Minn.--(BUSINESS WIRE)--March 14, 2003 Buffets, Inc., the nation's leading owner and operator of buffet-style restaurants, announced that comparable restaurant sales for the third quarter of its 2003 fiscal year (the sixteen-week period ending April 9, 2003) are expected to be down approximately 5.5% to 6.5% versus the same period in the prior year. Previous guidance issued by Buffets anticipated comparable restaurant sales for the quarter declining by approximately 4.0% to 6.0%. Buffets expects to record a net loss for the third quarter of its 2003 fiscal year of between $0 and $2 million, which is consistent with Buffets' previous guidance. Severe winter weather adversely impacted January and February sales, principally in the Mid-Atlantic and Northeast regions. Buffets estimates it suffered a same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. decline during the quarter of 1.25% attributable solely to these adverse weather conditions. On October 9, 2002, Buffets entered into an exclusive purchase option arrangement with a prospective buyer for its 13 Original Roadhouse road·house n. An inn, restaurant, or nightclub located on a road outside a town or city. roadhouse Noun a pub or restaurant at the side of a road Noun 1. Grill restaurants. The prospective purchaser paid $1 million in non-refundable fees to obtain the exclusive purchase rights for these restaurants through March 14, 2003. Buffets has agreed to extend these exclusive purchase rights through March 21, 2003. Buffets, Inc. currently operates 385 restaurants in 36 states (364 buffet A buffet is a meal serving system where patrons serve themselves. It is a popular method of feeding large numbers of people with minimal staff. The term is also used to describe a sideboard, an antique form of furniture which was sometimes used to offer the dishes of a buffet meal restaurants, principally as Old Country Buffet Old Country Buffet is a buffet-style, sit-down restaurant chain headquartered in Eagan, Minnesota with locations throughout the United States. Menu Items Old Country Buffet restaurants feature a wide spread of menu items, in the following categories: Its wide selection of food include pizza, hot dogs, hot wings, sliced ham among many others. (R), 13 Original Roadhouse Grill(SM) restaurants and 8 Tahoe Joe's Famous Steakhouse(R) restaurants) and franchises 23 buffet restaurants in ten states. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 The statements contained in this release which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, forward-looking statements. Buffets has tried, whenever possible, to identify these forward-looking statements using words such as "projects," "anticipates," "believes," "estimates," "expects," "plans," "intends," and similar expressions. Similarly, statements herein that describe Buffets' business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. The risks and uncertainties involving forward-looking statements include, but are not limited to, general business and economic conditions, negative publicity, the impact of competition, the seasonality of Buffets' business, adverse weather conditions, future commodity prices, fuel and utility costs, labor costs, employment and environmental laws, governmental regulations, and inflation. For a detailed discussion of risks and uncertainties that you should consider, please refer to the "Risk Factors" section contained in Buffets' registration statement filed with the Securities and Exchange Commission on December 27, 2002. These statements reflect Buffets' current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this release are likely to cause these statements to become outdated out·dat·ed adj. Out-of-date; old-fashioned. outdated Adjective old-fashioned or obsolete Adj. 1. with the passage of time. Buffets does not intend, however, to update the guidance provided today prior to its next earnings release. |
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