QDIN Quality Dining - Common Stock (MM)

Quality Dining Reports Fourth Quarter and Year-End Results MISHAWAKA, Ind., Dec. 24 /PRNewswire-FirstCall/ -- Quality Dining, Inc. today announced total revenues of $54.1 million for the fourth quarter of fiscal 2003 versus $54.8 million during the same period in fiscal 2002. The Company reported net income of $1,106,000, or $0.10 per share, for the fourth quarter of fiscal 2003 compared to a net income of $1,201,000, or $0.11 per share, for the same period in fiscal 2002. For the fiscal year ended October 26, 2003, the Company reported total revenues of $227.1 million versus $248.2 million in fiscal 2002. For the fiscal year ended October 26, 2003, the Company reported a net income of $872,000, or $0.08 per share, compared to net income of $5,084,000, or $0.45 per share, for fiscal 2002. Quality Dining owns the Grady's American Grill(R), Papa Vino's Italian Kitchen(TM) and Spageddies Italian Kitchen(R) concepts and operates Burger King(R) restaurants and Chili's Grill & Bar(R) restaurants as a franchisee. As of December 24, 2003, the Company operates 12 Grady's American Grill restaurants, 6 Papa Vino's Italian Kitchen restaurants, 3 Spageddies Italian Kitchen restaurants, 118 Burger King restaurants and 37 Chili's Grill & Bar restaurants. This press release contains and incorporates forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the Company's development plans and trends in the Company's operations and financial results. Forward-looking statements can be identified by the use of words such as "anticipates," "believes," "plans," "estimates," "expects," "intends," "may," and other similar expressions. Forward-looking statements are made based upon management's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that the Company will actually achieve the plans, intentions and expectations discussed in these forward-looking statements. Actual results may differ materially. Among the risks and uncertainties that could cause actual results to differ materially are the following: the availability and cost of suitable locations for new restaurants; the availability and cost of capital to the Company; the ability of the Company to develop and operate its restaurants; the ability of the Company to sustain sales and margins in the increasingly competitive environment; the hiring, training and retention of skilled corporate and restaurant management and other restaurant personnel; the integration and assimilation of acquired concepts; the overall success of the Company's franchisors; the ability to obtain the necessary government approvals and third-party consents; changes in governmental regulations, including increases in the minimum wage; the results of pending litigation; and weather and other acts of God. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future developments or otherwise. Quality Dining is not responsible for changes made to this document by wire services or Internet services. QUALITY DINING, INC. Unaudited Financial Highlights (in thousands, except per share amounts) 12 Weeks 12 Weeks 52 Weeks 52 Weeks Ended Ended Ended Ended October 26, October 27, October 26, October 27, 2003 2002 2003 2002 --------- --------- --------- --------- Revenues: Restaurant sales: Burger King $27,739 $28,330 $14,983 $123,795 Chili's Grill & Bar 19,550 17,984 80,710 75,760 Italian Dining Division 3,889 4,238 17,560 17,052 Grady's American Grill 2,878 4,238 13,892 31,607 --------- --------- --------- --------- Total revenues 54,056 54,790 227,145 248,214 --------- --------- --------- --------- Operating Expenses: Restaurant Operating Expenses: Food and beverage 15,070 15,375 61,910 69,379 Payroll and benefits 15,685 15,950 66,486 72,791 Depreciation and amortization 2,304 2,408 9,977 10,117 Other operating expenses 14,168 14,342 61,540 64,655 --------- --------- --------- --------- Total restaurant operating expenses 47,227 48,075 199,913 216,942 --------- --------- --------- --------- Income from restaurant operations 6,829 6,715 27,232 31,272 General and administrative 3,186 3,842 15,961 18,638 Amortization of intangibles 62 105 364 431 Impairment of assets and facility closing costs (34) 362 3,901 355 --------- --------- --------- --------- Operating income 3,615 2,406 7,006 11,848 --------- --------- --------- --------- Other income (expense): Recovery of note receivable - - 3,459 - Interest expense (1,632) (1,833) (7,479) (8,429) Gain (loss) on sale of property and equipment (8) 595 (53) 1,034 Stock purchase expense - - (1,294) - Other income (expense), net 159 (8) 992 655 --------- --------- --------- --------- Total other income (expense), net (1,481) (1,246) (4,375) (6,740) --------- --------- --------- --------- Income before income taxes and discontinued operations 2,134 1,160 2,631 5,108 Income tax provision 1,175 (11) 1,966 1,053 --------- --------- --------- --------- Income from continuing operations 959 1,171 665 4,055 Income from discontinued operations 147 30 207 1,029 --------- --------- --------- --------- Net Income $1,106 $1,201 $872 $5,084 ========= ========= ========= ========= Basic net income per share: Continuing operations 0.09 0.11 0.06 0.36 Discontinuing operations 0.01 - 0.02 0.09 --------- --------- --------- --------- Basic net income per share $0.10 $0.11 $0.08 $0.45 ========= ========= ========= ========= Diluted net income per share: Continuing operations 0.09 0.11 0.06 0.36 Discontinuing operations 0.01 - 0.02 0.09 --------- --------- --------- --------- Diluted net income per share $0.10 $0.11 $0.08 $0.45 ========= ========= ========= ========= Weighted average shares: Basic 11,311 11,311 11,311 11,248 Diluted 11,331 11,417 11,326 11,306 DATASOURCE: Quality Dining, Inc. CONTACT: John C. Firth, Executive Vice President and General Counsel of Quality Dining, Inc., +1-574-243-6616

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