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KETTLE RESTAURANTS, INC. ANNOUNCES 1992 EARNINGS

 HOUSTON, Dec. 30 /PRNewswire/ -- Kettle Restaurants, Inc. today announced the company reported a net profit for the fiscal year ended Oct. 29, 1992 of $496,000 or $.43 per share compared to a net profit of $1,875,000 or $1.63 per share for fiscal 1991. The net profit for the quarter ended Oct. 29, 1992 was $260,000 or $.22 per share compared to a net profit of $279,000 or $.24 per share for the comparable 1991 period.
 Total revenues increased $4,527,000 to $48,276,000 in fiscal 1992, an increase of 10.3 percent. The increase is primarily due to the 18 percent increase in restaurant revenues to $37,793,000. This increase in restaurant revenues reflects a 5.6 percent increase in weighted average sales per store and a net increase of six company operated stores for fiscal 1992. Franchise fees and rental income, which are principally related to the granting of franchises, decreased $729,000 to $9,514,000, reflecting the net decrease of three franchised stores in fiscal 1992 and 12 stores in fiscal 1991, partially offset by a 3.3 percent increase in weighted average sales of franchised stores during fiscal 1992.
 Net income for fiscal 1991 was substantially enhanced by the credit to earnings of $1,446,000 of workers' compensation premiums which were rescinded due to the successful appeal of a 1990 rate modification.
 In fiscal 1992 the company implemented its first major system wide marketing program. The marketing emphasis consists of creative development and media that promote Kettle's homestyle food, hospitable service and reasonable prices. A series of 60-second award-winning radio spots, featuring actress Peg Phillips, who portrays the character Ruth Ann on the Emmy winning CBS series "Northern Exposure," were produced to promote the "America's Kitchen" image. These spots continue to be aired as a part of the overall marketing program to create Brand Awareness. Customer reception has appeared to be favorable. Generally, most markets with active marketing programs have responded with improvement in sales volume.
 The containment of costs remained a major operational emphasis. Variable restaurant operating costs, as a percentage of sales, remained relatively constant compared to 1991. The establishment of a retrospective workers' compensation insurance program in July of 1991 has proven to be a positive step in containing the historically high costs of workers' compensation insurance premiums. Safety programs instituted to prevent work injuries and to manage related medical costs have also helped in our ensuing efforts to reduce insurance costs.
 Two franchised stores and one company operated store were opened during fiscal 1992 and it is anticipated that five franchised stores will be added during the first two quarters of fiscal 1993. Additionally, in fiscal 1992, one multi-unit franchise development agreement was granted to an existing franchisee.
 Kettle Restaurants, Inc. is principally engaged in the operation and franchising of 24-hour full-service, family-oriented restaurants. The restaurants offer a wide selection of moderately priced menu items for all meal periods. Kettle and its franchisees operate 166 restaurants in 16 states, primarily in the sunbelt region.
 KETTLE RESTAURANTS, INC.
 (Dollars and shares in thousands, except per share data)
 Periods ended Fourth Quarter Fiscal Years
 Oct. 29, Oct. 31, Oct. 29, Oct. 31,
 1992 1991 1992 1991
 Operating Data:
 Restaurant sales $9,916 $8,540 $37,793 $32,040
 Franchise fees 1,007 1,026 4,006 4,160
 Lease income 1,341 1,467 5,508 6,083
 Cash flow-operating
 activity -- -- 1,970 1,107
 Operating income 394 427 667 2,880
 Extraordinary item,
 net of income
 taxes of $29 -- -- 57 --
 Net income 260 279 496 1,875
 Earnings per share .22 .24 .43 1.63
 Weighted Average
 common and common
 equivalent shares
 outstanding 1,148 1,148 1,148 1,148
 Number of restaurants at
 end of period:
 Company operated 70 64
 Franchised 96 99
 Total 166 163
 -0- 12/30/92
 /CONTACT: C. Doyle Smith, chief financial officer and treasurer of Kettle Restaurants, 713-524-3464/


CO: Kettle Restaurants, Inc. ST: Texas IN: LEI SU: ERN

SH -- NY007 -- 0549 12/30/92 10:12 EST
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Publication:PR Newswire
Date:Dec 30, 1992
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