RISE - Menu Monitor

Friendly Ice Cream Corp. is engaged in a board dispute with shareholder The Lion Fund LP. The Lion Fund holds a 12.7%
stake in the Friendly’s chain and was looking to nominate two directors to the board at Friendly’s. The chain offered Lion Fund
two seats in order to avoid a proxy fight. (Nation’s Restaurant News Online 1/01/07)
Friendly Ice Cream Corporation reported for the fourth quarter ended December 31 net earnings increased to $0.1 million from
a loss of $30.2 million for the same period last year. Revenues dropped 0.9% to $122.4 million from $123.5 million. Samestore
sales increased 1.8%. For the year ended December 31, net earnings increased to $4.9 million from a loss of $27.3
million for 2005. Revenues grew 0.03% to $531.5 million from $531.3 million. Same-store sales rose 1.4%. (Company Release
3/7/07)
Friendly Ice Cream Corp. plans to revive the brand with a new menu featuring more contemporary sandwiches, cold
beverages and other healthy options. It also plans to modernize the restaurants and put an emphasis on quick service.
(Boston.com 3/8/07)
Friendly Ice Cream Corp. reported for the first quarter ended April 1 a net loss of $6 million compared to a loss of $1.8 million
for the same period last year. Revenues declined $2.5% to $122.6 million from $125.7 million. Same-store sales fell 4.1% at
company-owned locations and 4.6% at franchised units comparable to the first quarter of 2006. (Company Release 5/11/07)
Friendly’s Ice Cream has agreed to a $337.2 million acquisition by Freeze Operations Holding Corp., an affiliate of Sun Capital
Partners Inc. The corporate office and its franchisees operate 515 family-dining restaurants in the Northeast and Friendly’sbrand
ice cream is sold in more than 4,000 retail locations throughout the country. Sun Capital Partners Inc. has controlling
interest or investment stakes in Bruegger’s, Fazioli’s Restaurants, Garden Fresh Restaurant Corp., Real Mex Restaurant,
Restaurants Unlimited and Souper Salad. (Nation’s Restaurant News 6/25/07 p15)
Friendly Ice Cream Corporation is offering to purchase any and all of its outstanding $175 million aggregate principal amount
of senior notes that are due in 2012. The company will pay for the notes in cash. (Company Release 7/26/07)
Friendly Ice Cream Corp. shareholders approved a $337.2 million sale of 515 Friendly’s locations to Freeze Operations Inc.,
which will assume Friendly’s debt and will pay shareholders $15.50 per share in cash. The transaction was completed August
30. Freeze Operations Inc. is an affiliate of Sun Capital Partners Inc. (NRN Daily NewsFax 8/30/07)
The acquisition of Friendly Ice Cream Corp. to Sun Capital Partners Inc. for $337.2 million has been completed. All directors of
Friendly’s have resigned from the board in connection with the transaction. (NRN Daily NewsFax 9/4/07)
Friendly Ice Cream Corp. has sold and leased back its headquarters and 160 restaurants in a deal with Realty Income Corp.
The aggregate price was not disclosed. Friendly’s was acquired in August for $337.2 million by Sun Capital Partners, a
Florida-based private-equity firm with holdings in the restaurant industry. Most stores involved in the sale-leaseback
transactions were company-owned. Friendly’s has 316 company-owned restaurants and 196 franchises. (Nation’s Restaurant
News Online 10/22/07)
Friendly Ice Cream Corp., Friendly’s Restaurant Franchise, and the owners of a Friendly’s restaurant in Myrtle Beach, SC,
have been accused of racial discrimination by the NAACP. In a lawsuit filed in U.S. District Court in Florence, SC, the
restaurant is accused of serving a limited menu from the sidewalk during a motorcycle rally attended by blacks, bu staying
open with a full menu during a similar rally attended mostly by whites. In addition, the NAACP claims that the restaurant did
not offer its ice cream for sale and accepted only cash payments during the black biker weeks, which took place from 1999 to
2005. The lawsuit seeks unspecified monetary awards from the defendants and asks that the court bar the restaurant from
continuing the alleged discrimination. (The Associated Press 10/31/07)
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Technomic believes that its sources of information are reliable, but does not assume any responsibility or liability for the accuracy of the information
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