Frisch's (FRS) Completes $49.8M Sale of Golden Corral Locations; to Recognize Q4 Loss

Frisch's Restaurants, Inc. (NYSE: FRS) announced the closing of the previously announced sale of all of its Golden Corral operations and real estate consisting of 29 restaurants in Ohio, Indiana, Kentucky, West Virginia and Pennsylvania to Golden Corral Corporation. The purchase price for the sale is $49.8 million, before adjustments for the proration of real estate taxes and personal property taxes, final inventory amounts, and other closing adjustments.

The Company will recognize a loss on the transaction against its pretax earnings in the fourth quarter (ending May 29, 2012) of fiscal year 2012, currently estimated between $5.1 million and $5.3 million, which includes transactional costs, and which will result in a loss for the Company's fourth fiscal quarter. For the 2012 fiscal year ending May 29, 2012, the Company currently expects to report a profit.

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