Industry News | February 20, 2009

Freddy's Frozen Custard & Steakburgers Reports a Record-Breaking 2008

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Freddy’s Frozen Custard & Steakburgers today announced the results of its fiscal year ended December 31, 2008, which included record revenues and profits. The number of stores in the Freddy’s system increased during the year by 69 percent to 27 with the opening of 11 franchised stores, while system-wide sales increased 83 percent over fiscal year 2007 sales.

Freddy’s opened stores in several previously undeveloped markets, including Pittsburg, Manhattan, Kansas, Joplin, Missouri, and the firsttwo stores in the Dallas market in Euless and Highland Village, Texas. A new system-wide initial weekly sales record was established in one of the four new units opened during the year by South Texas Custard LLC, the Freddy’s developer in the San Antonio region.

Bill Simon, President of Freddy’s, also announced that revenues from franchise-related activities more than doubled when compared to the previous fiscal year. The Affiliate-owned stores continued to contribute at record levels, delivering same store comp sales increases of 18.1 percent over 2007 for units opened at least 15 months. Simon went on to note that the results for 2008 comprise 53 weeks, compared to a 52 week fiscal 2007. Had the comparison included only 52 weeks for fiscal 2008, the resulting comp sales growth would have been 16.0 percent.

“Sales for the first six weeks of 2009 for the five Affiliate-owned locations continued to show growth of 11 percent versus the same weeks in 2008 despite the severe economic downturn,” Simon says.

Mark Scholler, Vice-President of Franchise Development, reported that the first Freddy’s Frozen Custard & Steakburger unit of 2009 opened in January in Cedar Park, Texas, and a second store will open in the Austin market in March 2009. Additional, Freddy’s are under development in various existing markets, as well as the previously undeveloped markets of Springfield, Missouri; Lawrence, Salina, and Hays, Kansas; Flagstaff, Gilbert, and Goodyear, Arizona; Lincoln and Omaha, Nebraska; and Denver, Colorado.

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