QDIN Quality Dining - Common Stock (MM)

Quality Dining Reports First Quarter Results MISHAWAKA, Ind., April 4 /PRNewswire-FirstCall/ -- Quality Dining, Inc. (NASDAQ:QDIN) today reported net income of $548,000, or $0.05 per diluted share, on total revenues of $71.5 million for the first quarter of fiscal 2005 compared to a net income of $92,000, or $0.01 per diluted share, on total revenues of $64.1 million for the same period in fiscal 2004. For further information about the results of the quarter ended February 20, 2005, see Quality Dining's Form 10-Q to be filed with the Securities and Exchange Commission ("SEC") shortly hereafter. Investors and shareholders of Quality Dining are advised to read the Form 10-Q. This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares, nor is it a solicitation of a proxy to vote in connection with the Company's go-private transaction. For more detailed information about the proposed transaction, interested parties should read the definitive merger agreement that was filed as an attachment to a Form 8-K filed with the SEC on November 10, 2004. In addition, Quality Dining has filed with the SEC and mailed to its shareholders a proxy statement containing information about the proposed transaction, in connection with a special meeting of Quality Dining's shareholders that will be held on April 12, 2005, to consider and vote upon the proposed transaction. Investors and shareholders of Quality Dining are advised to read the definitive merger agreement and the proxy statement carefully because they contain important information about the proposed transaction, the persons soliciting proxies related thereto, their interests in the proposed transaction and related matters. Investors and shareholders may obtain free copies of the proxy statement and other documents filed by Quality Dining at the SEC's website at http://www.sec.gov/ . Free copies of the proxy statement will also be available to investors and shareholders from Quality Dining by directing such requests to the attention of John C. Firth, Secretary, Quality Dining, Inc., 4220 Edison Lakes Parkway, Mishawaka, Indiana 46545, 574-271- 4600. Quality Dining, Mr. Fitzpatrick and the members of his group, and the other directors and executive officers of Quality Dining, may be deemed to be participants in the solicitation of proxies from Quality Dining's shareholders with respect to the proposed transaction. Information regarding the directors and executive officers of Quality Dining is included in Quality Dining's Form 10-K for the fiscal year ended October 31, 2004, and information regarding the interests of participants in the solicitation is set forth in the proxy statement filed with the SEC in connection with the proposed transaction on March 21, 2005. Quality Dining owns the Grady's American Grill(R), Papa Vino's Italian Kitchen(TM) and Spageddies Italian Kitchen(TM) concepts and operates Burger King(R) restaurants and Chili's Grill & Bar(R) restaurants as a franchisee. As of April 4, 2005, the Company operates 123 Burger King restaurants, 39 Chili's Grill & Bar restaurants, six Papa Vino's Italian Kitchen(TM) restaurants, three Spageddies Italian Kitchen restaurants, two Grady's American Grill restaurants, and one Porterhouse Steaks and Seafood(TM) restaurant. 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) 16 Weeks Ended 16 Weeks Ended February 20, 2005 February 15, 2004 ----------------- ----------------- Revenues: Burger King $37,440 $32,307 Chili's Grill & Bar 27,332 24,807 Italian Dining Division 4,963 5,027 Grady's American Grill 1,731 1,922 ----------------- ----------------- Total revenues 71,466 64,063 ----------------- ----------------- Operating Expenses: Restaurant Operating Expenses: Food and beverage 19,727 17,586 Payroll and benefits 20,825 18,780 Depreciation and amortization 2,857 2,967 Other operating expenses 19,351 16,904 ----------------- ----------------- Total restaurant operating expenses 62,760 56,237 ----------------- ----------------- Income from restaurant operations 8,706 7,826 General and administrative 4,881 5,014 Trademark amortization 33 82 Facility closing costs 26 -- ----------------- ----------------- Operating income 3,766 2,730 ----------------- ----------------- Other income (expense): Interest expense (1,978) (2,059) Loss on sale of property and equipment (71) (47) Minority interest in earnings (732) (480) Other income, net 65 86 ----------------- ----------------- Total other income (expense), net (2,716) (2,500) ----------------- ----------------- Income from continuing operations before income taxes 1,050 230 Income tax provision 480 289 ----------------- ----------------- Income (loss) from continuing operations 570 (59) Income (loss) from discontinued operations, net of tax (22) 151 ----------------- ----------------- Net Income $548 $92 ================= ================= Basic net income per share: Continuing operations 0.05 -- Discontinuing operations -- 0.01 ----------------- ----------------- Basic net income per share $0.05 $0.01 ================= ================= Diluted net income per share: Continuing operations 0.05 -- Discontinuing operations -- 0.01 ----------------- ----------------- Diluted net income per share $0.05 $0.01 ================= ================= Weighted average shares: Basic 10,183 10,163 Diluted 10,343 10,163 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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