El Dorado / Kansas / United States
Wichita, Ks) Freddys 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 Freddys system increased during the year by 69% to 27 with the opening of 11 franchised stores while system-wide sales increased 83% over fiscal year 2007 sales. Freddys opened stores in several previously undeveloped markets, including Pittsburg and Manhattan, Kansas, Joplin, Missouri, and the first 2 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 Freddys developer in the San Antonio region. Bill Simon, President of Freddys, 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% over 2007 for units opened at least 15 months. Simon went on to note that the results for 2008 were comprised of 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%. He added, "Sales for the first six weeks of 2009 for the five Affiliate-owned locations continued to show growth of 11% versus the same weeks in 2008 despite the severe economic downturn." Mark Scholler, Vice-President of Franchise Development, reported that the first Freddys 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 Freddys 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. Scott Redler, Chief Operating Officer, revealed that the Company is continuing its efforts to stay responsive to its growing franchise system. "In 2008, we increased our support staff with the creation of three significant positions." Missy Stevens was hired as Director of Marketing, and Ben Hesse and Zach Woodburn were promoted from store management positions to Director of Training and Franchise Training Consultant, respectively. Mr. Redler added, "The continued growth of the Freddys concept makes it imperative that we stay ahead of the curve. I believe the quality of the individuals with whom we are filling these positions demonstrates our commitment to this goal." Ben Simon, Director of Operations, also announced that the Company is evaluating several sites in its Wichita and Tulsa markets for further development. "Freddys personnel are the best in the industry and we are well positioned to take on the challenges of new Company store openings after a year hiatus in 2008." Co-founded by Scott Redler and Bill, Randy, and Freddy Simon, Freddys opened its first location on West 21st street in Wichita in 2002, offering a unique combination of cooked-to-order steakburgers, Chicago dogs, and other savory items along with its signature desserts prepared from premium frozen custard made fresh throughout the day in each store. The Company opened its new prototype design on East 13th Street in Wichita during the summer of 2007. In addition to the 3 Wichita locations, Freddys also operates stores through its affiliates in El Dorado, Kansas and Tulsa, Oklahoma. Franchise units serve Topeka, Pittsburg and Hutchinson, Kansas; Moore, Enid, Edmond, and Oklahoma City, Oklahoma; Selma, San Antonio, New Braunfels, and, as mentioned above, Cedar Park, Euless and Highland Village, Texas; and Glendale, Arizona.
