2
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter ended October 1, 1997
Commission File No. 0-10943
RYAN'S FAMILY STEAK HOUSES, INC.
(Exact name of registrant as specified in its charter)
South Carolina No. 57-0657895
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
405 Lancaster Avenue (29650)
P. O. Box 100
Greer, South Carolina 29652
(Address of principal executive
offices, including zip code)
864-879-1000
(Registrant's telephone number, including area code)
------------------------------------------------------------
-----------
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Sections 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No ________
The number of shares outstanding of each of the registrant's
classes of common stock as of October 1, 1997:
47,226,000 shares of common stock, $1.00 Par Value
PART I. FINANCIAL INFORMATION
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Quarter Ended
October 1, October 2,
1997 1996
Restaurant sales $ 152,731 146,250
Operating expenses:
Food and beverage 60,321 58,525
Payroll and benefits 43,411 41,517
Depreciation and amortization 6,735 6,480
Other operating expenses 19,448 18,827
Total operating expenses 129,915 125,349
General and administrative expenses 6,856 6,002
Interest expense 1,443 956
Revenues from franchised restaurants (269) (369)
Other income, net (264) (289)
Earnings before income taxes 15,050 14,601
Income taxes 5,524 5,373
Net earnings $9,526 9,228
Net earnings per common and common
equivalent share $ .20 .18
Weighted average shares 47,808 51,184
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Nine Months Ended
October 1, October 2,
1997 1996
Restaurant sales $456,332 424,469
Operating expenses:
Food and beverage 180,380 169,705
Payroll and benefits 128,541 119,998
Depreciation and amortization 19,753 18,248
Other operating expenses 55,646 53,311
Total operating expenses 384,320 361,262
General and administrative expenses 20,418 18,319
Interest expense 4,488 2,278
Revenues from franchised restaurants(1,024) (1,165)
Other income, net (1,105) (1,102)
Earnings before income taxes 49,235 44,877
Income taxes 18,081 16,542
Net earnings $31,154 28,335
Net earnings per common and common
equivalent share $ .65 .54
Weighted average shares 47,989 52,157
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
October 1, January 1,
1997 1997
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 521 746
Receivables 2,335 1,941
Inventories 4,192 3,888
Deferred income taxes 3,405 3,405
Other current assets 1,414 1,932
Total current assets 11,867 11,912
Property and equipment:
Land and improvements 106,114 105,366
Buildings 287,975 267,220
Equipment 180,640 168,377
Construction in progress 34,259 37,546
608,988 578,509
Less accumulated depreciation 131,794 115,062
Net property and equipment 477,194 463,447
Other assets 2,264 2,267
$ 491,325 477,626
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable 31,000 35,300
Accounts payable 9,333 14,827
Income taxes payable 5,790 1,841
Accrued liabilities 27,018 24,578
Total current liabilities 73,141 76,546
Long-term debt 93,000 93,000
Deferred income taxes 14,283 14,104
Total liabilities 180,424 183,650
Shareholders' equity:
Common stock of $1.00 par value; authorized
100,000,000 shares; issued 47,226,000 shares
in 1997 and 49,031,000 shares in 199647,226 49,031
Additional paid-in capital 115 121
Retained earnings 263,560 244,824
Total shareholders' equity 310,901 293,976
Commitments
$491,325 477,626
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended
October 1, October 2,
1997 1996
Cash flows from operating activities:
Net earnings $31,154 28,335
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 20,851 18,872
Loss (gain) on sale of property and equipment (68) 101
Decrease (increase) in:
Receivables (394) (124)
Inventories (304) 14
Other current assets (1,471) (2,336)
Other assets (2) (189)
Increase (decrease) in:
Accounts payable (5,494) 2,847
Income taxes payable 3,949 3,639
Accrued liabilities 2,440 1,074
Deferred income taxes 179 165
Net cash provided by operating activities 50,840
52,398
Cash flows from investing activities:
Proceeds from sale of property and equipment 4,882 804
Capital expenditures (37,418) (68,935)
Net cash used in investing activities (32,536)
(68,131)
Cash flows from financing activities:
Net repayment of notes payable (4,300) (54,500)
Proceeds from issuance of long-term debt -
93,000
Proceeds from issuance of common stock1,220 737
Purchases of common stock (15,449) (24,265)
Net cash provided by (used in) financing activities (18,529)
14,972
Decrease in cash and cash equivalents(225) (761)
Cash and cash equivalents - beginning of period 746
1,299
Cash and cash equivalents - end of period$ 521 538
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands)
I. For the Nine Months ended October 1, 1997
(Unaudited)
$1 Par ValueAdditional
Common Paid-In Retained
Stock Capital Earnings Total
Balances at January 1, 1997$49,031 121 244,824 293,976
Net earnings - - 31,154 31,154
Issuance of common stock
under Stock Option Plans210 1,010 - 1,220
Purchases of common stock (2,015) (1,016) (12,4
18) (15,449)
Balances at October 1, 1997$47,226 115 263,560
310,901
II. For the Nine Months ended October 2, 1996
(Unaudited)
$1 Par ValueAdditional
Common Paid-In Retained
Stock Capital Earnings Total
Balances at January 3, 1996$53,4626,751 242,481 302,694
Net earnings - - 28,335 28,335
Issuance of common stock
under Stock Option Plans118 619 - 737
Purchases of common stock (2,645) (7,370) (14,2
50) (24,265)
Balances at October 2, 1996$50,935 - 256,566
307,501
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
October 1, 1997
(Unaudited)
Note 1. Basis of Presentation
The consolidated financial statements include the financial
statements of Ryan's Family Steak Houses, Inc. and its
wholly owned subsidiaries. All significant intercompany
balances and transactions have been eliminated in
consolidation.
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
the instructions to Form 10-Q and do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair
presentation have been included. Consolidated operating
results for the nine months ended October 1, 1997 are not
necessarily indicative of the results that may be expected
for the fiscal year ending December 31, 1997. For further
information, refer to the consolidated financial statements
and footnotes included in the Company's annual report on
Form 10-K for the fiscal year ended January 1, 1997.
Note 2. Earnings Per Share
Earnings per share are computed based on the weighted
average number of common and common equivalent shares
outstanding during the period. Common equivalent shares are
represented by shares under option.
In February 1997, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards ("SFAS")
No. 128, "Earnings Per Share", which simplifies standards
for computing and presenting earnings per share ("EPS") and
makes them more comparable to international standards. This
Statement supersedes APB Opinion No. 15, "Earnings per
Share", and must be implemented in 1998. Management of the
Company does not expect that adoption of SFAS No. 128 will
have a material impact on the Company's results of
operations.
Note 3. Reclassifications
Certain 1996 amounts in the accompanying consolidated
financial statements have been reclassified to conform to
the 1997 presentation.
Note 4. Other New Accounting Pronouncements
In June 1997, the Financial Accounting Standards Board
issued SFAS No. 130, "Reporting Comprehensive Income." This
Statement establishes standards for the reporting and
display of comprehensive income and its components
(revenues, expenses and other changes in non-owner
shareholders' equity) in a full set of general-purpose
financial statements and must be implemented in 1998.
Management of the Company does not expect that the adoption
of SFAS No. 130 will have a material impact on the Company's
financial position or results of operations.
Note 5. Subsequent Event
In October 1997, the Company entered into an interest rate
swap agreement with a major regional bank under which the
Company receives a floating rate based on LIBOR, or the
London Interbank Offered Rate, on a notional amount of $25
million and pays a fixed rate of 5.54%, as determined in
quarterly intervals through October 30, 2000. The
transaction effectively changes a portion of the Company's
interest rate exposure from a floating rate to a fixed rate.
The agreement contains termination options that can be
triggered solely by the bank, effective no earlier than
November 1, 1998.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Quarter ended October 1, 1997 versus October 2, 1996
Restaurant sales during the third quarter of 1997 increased
by 4% over the comparable quarter of 1996 with substantially
all of the growth resulting from the 6% unit growth of
Company-owned restaurants, which totaled 268 at October 1,
1997 and 255 at October 2, 1996. The 1997 total store count
consisted entirely of Ryan's restaurants, while the 1996
total store count included 250 Ryan's and 5 test-concept
restaurants (see "Liquidity and Capital Resources"). Same-
store sales at the Company's Ryan's restaurants, or average
unit sales in units that have been open for at least 18
months and operating during comparable weeks during the
current and prior year, decreased 2.0% during the quarter
compared to a 0.7% decrease during the third quarter of
1996.
Total costs and expenses of Company-owned restaurants
include food and beverage, payroll, payroll taxes and
employee benefits, depreciation and amortization, repairs,
maintenance, utilities, supplies, advertising, insurance,
property taxes and licenses. Such costs, as a percentage of
sales, were 85.1% during the third quarter of 1997 compared
to 85.7% in 1996. Food and beverage costs decreased from
40.0% of sales in 1996 to 39.5% in 1997 due principally to
lower dairy and poultry prices. Payroll and benefits
remained flat at 28.4% of sales compared to 1996 due to
lower hourly staffing levels resulting from more efficient
labor scheduling offset by higher medical insurance costs.
All other operating costs, including depreciation and
amortization of pre-opening costs, decreased to 17.2% of
sales in 1997 compared to 17.3% in 1996 due principally to
lower repairs and maintenance and various restaurant supply
costs. Based on these factors, the Company's operating
margin at the restaurant level increased to 14.9% of sales
in the third quarter of 1997, a 60 basis point increase from
14.3% in 1996.
General and administrative expenses increased to 4.5% of
sales in 1997 compared to 4.1% in 1996 due principally to
higher training costs at existing restaurants incurred in
connection with the Company's Focus 2000 plan (see
"Liquidity and Capital Resources") and increased media
advertising charges. The Company has significantly expanded
its media advertising program in 1997 with coverage
extending to 20 markets and 97 stores compared to 10 markets
and 67 stores in 1996. Total media advertising costs are
expected to amount to 0.4% of sales in 1997 versus 0.3% in
1996. The actual extent of the Company's advertising
program during the remainder of 1997 depends on a number of
factors, including sales trends at restaurants receiving
media support, the Company's overall financial results and
the availability of reasonably priced media.
Interest expense increased by $487,000 to 0.9% of sales in
1997 compared to 0.7% in 1996. This change is due
principally to the increase in the Company's outstanding
debt, which amounted to $124.0 million at October 1, 1997
compared to $110.7 million at October 2, 1996 and resulted
principally from the stock repurchase program implemented in March 1996
(see "Liquidity and Capital Resources"). An increase in the
Company's third quarter effective average interest rate from
6.0% in 1996 to 6.2% in 1997 also contributed to the higher
interest expense.
Franchise revenues for the third quarter of 1997 decreased
to $269,000 (0.2% of sales) from $369,000 (0.3% of sales) in
1996 resulting principally from the payoff of a long-term
note receivable from a franchisee during the first quarter
of 1997. Both principal and interest payments from this
note have consistently been recognized as income on a cash
basis in the Company's consolidated financial statements.
There were 25 franchised Ryan's at both October 1, 1997 and
October 2, 1996.
Effective income tax rates of 36.7% and 36.8% were used for
the third quarters of 1997 and 1996, respectively.
Net earnings for the third quarter of 1997 increased 3.2% to
$9.5 million compared to $9.2 million in 1996. Due to a 7%
reduction in weighted average shares resulting from the
Company's stock repurchase program (see "Liquidity and
Capital Resources"), earnings per share increased 11% to 20
cents in 1997 compared to 18 cents in 1996.
Nine months ended October 1, 1997 versus October 2, 1996
For the nine months ended October 1, 1997, restaurant sales
were up 8% compared to the same period in 1996, principally
due to the 8% average unit growth of Company-owned
restaurants. Same-store sales were down 0.7% for the first
nine months of 1997 compared to a 0.1% decrease in 1996.
Nine-month costs and expenses as detailed above were 84.2%
and 85.1% of sales for 1997 and 1996, respectively. During
the first nine months of 1997, costs and expenses were most
affected by lower other food costs (down 0.5% of
sales) and lower other operating expenses (down 04% of sales).
Food costs were favorably impacted by favorable produce, dairy
and poultry costs, and other operating expenses decreased
due to lower repairs and maintenance and miscellaneous
operating costs. Based on these factors, the Company's
operating margin at the restaurant level increased to 15.8%
of sales for the first nine months of 1997 compared to 14.9%
in 1996.
General and administrative expenses increased as a
percentage of sales to 4.5% in 1997 from 4.3% in 1996 due
primarily to increased training and advertising costs.
Interest expense increased by $2,210,000 to 1.0% of sales
due principally to the increase in debt resulting from the
stock repurchase program (see "Liquidity And Capital
Resources") combined with an increase in the Company's
effective average interest rate from 5.9% in 1996 to 6.1% in
1997. Effective income tax rates of 36.7% and 36.9% were
used for the first nine months of 1997 and 1996,
respectively.
Net earnings for the first nine months of 1997 increased 10%
to $31.2 million compared to $28.3 million in 1996. Due to
an 8% reduction in weighted-average shares resulting from
the Company's stock repurchase program (see "Liquidity and
Capital Resources"), earnings per share increased 20% to 65
cents in 1997 compared to 54 cents in 1996.
LIQUIDITY AND CAPITAL RESOURCES
The Company's restaurant sales are primarily derived from
cash. Inventories are purchased on credit and are rapidly
converted to cash. Therefore, the Company does not maintain
significant receivables or inventories, and other working
capital requirements for operations are not significant.
At October 1, 1997, the Company's working capital was a
$61.3 million deficit compared to a $64.6 million deficit at
January 3, 1997. Included in these amounts are notes
payable of $31.0 million and $35.3 million at October 1,
1997 and January 1, 1997, respectively, under bank lines of
credit (see sixth succeeding paragraph). The Company does
not anticipate any adverse effects from the current working
capital deficit due to significant cash flow provided by
operations, which amounted to $50.8 million for the nine
months ended October 1, 1997 and $68.9 million for the year
ended January 1, 1997.
Total capital expenditures for the first nine months of 1997
amounted to $37.4 million. The Company opened 13 new Ryan's
restaurants during the first nine months of 1997 and plans
to open 2 additional Ryan's during the remainder of the year
for a total of 15 new restaurants (all Ryan's). During
1996, the Company opened 30 restaurants (all Ryan's). Total
capital expenditures for 1997 are estimated at $53 million.
Current plans for 1998 call for 15 new Company-owned Ryan's
restaurants. Expansion of Company-owned restaurants will
occur in states either within or contiguous to the Company's
current 21-state operating area. The Company is currently
concentrating its efforts on Company-owned units and is not
actively pursuing any additional franchised locations,
either domestic or international.
During the first quarter of 1997, the Company closed one
underperforming Ryan's and all five of its casual-dining
restaurants, representing three different test concepts. No
further expansion of the casual-dining concepts is planned.
Accordingly, during the entire second and third quarters of
1997, the Company's operations consisted entirely of Ryan's
restaurants. At the end of the third quarter of 1997, four
of the five closed casual-dining units had been sold.
Management believes that substantially all costs related to
the closings were covered by a $13.3 million asset valuation
charge recognized during the fourth quarter of 1996 in
accordance with Statement of Financial Accounting Standards
No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed of".
In November 1996, the Company announced its Focus 2000 plan.
The key elements of the plan were as follows:
1.Reducing unit investment and further increasing store-
level profitability, thereby increasing return on
investment;
2.Realigning energies and resources to provide deeper
levels of training, resulting in greater team member
empowerment, performance and retention;
3.Opening new Ryan's units at the rate of 5% for the
next two to three years; and
4.Pursuing stock repurchases at a more aggressive level
to accelerate earnings per share growth.
During 1997, the Company's operating strategies have centered
on Focus 2000, and success in meeting the Focus 2000 goals has been
achieved in most areas. First, a lower-cost prototype restaurant opened
during the third quarter of 1997 with a cost estimated at $100,000
to $200,000 below the average 1996 new restaurant cost, subject to final
audit. In addition, restaurant operating margins and training efforts
have increased as noted in the "Results of Operations" discussion above.
Next, the current 1998 plan calls for a 5.6% unit growth rate, and,
finally, 6.6 million shares have been repurchased by the Company
as noted in the following paragraph.
In March 1996, management announced its intention to
repurchase an aggregate 6.4 million shares of the Company's
common stock through December 1998. In connection with the
Focus 2000 plan, the repurchase authorization was later
raised to 10.0 million shares in November 1996. Repurchases
may be made from time to time in the open market or in
privately negotiated transactions in accordance with
applicable securities regulations, depending on market
conditions, share price and other factors. During the first
nine months of 1997, approximately 2.0 million shares had
been purchased at an aggregate cost of $15.4 million.
Cumulative purchases from March 1996 through October 1, 1997
amounted to approximately 6.6 million shares at an aggregate
cost of $53.6 million. Management intends to proceed with
the repurchase program during 1997 and 1998, subject to the
continued availability of capital and the other factors
described in "Forward-Looking Information".
The extent of the Company's external funding requirements
for 1997 will depend significantly upon the level of stock
repurchase transactions during the remainder of the year.
If no further stock is repurchased, management currently
estimates that its additional external funding requirements
will be minimal. Based on target debt levels, a maximum
repurchase scenario would require approximately $27.9
million of additional borrowings. All other funding needs,
including capital expenditures, are expected to be met by
internally generated cash from operations. The Company's
debt structure currently consists of a $93 million term loan
(see following paragraph) and several uncommitted bank lines
totaling $110 million at various short-term rates of which
$31.0 million was utilized at October 1, 1997.
In June 1996, the Company entered into a credit agreement
with a group of banks for a $93 million term loan ("Term
Loan") payable in quarterly installments of $5,813,000
commencing September 1999 with the final quarterly
installment due June 2003. The Term Loan is unsecured and
bears interest at various rates generally equal to LIBOR, or
the London Interbank Offered Rate, plus 0.5% for periods
ranging from one to six months. The terms of the credit
agreement contain, among other provisions, requirements for
the Company to maintain a minimum net worth level and
certain financial ratios and restrictions on the Company's
ability to incur additional indebtedness, merge,
consolidate, and acquire or sell assets. At October 1,
1997, the Company exceeded the most restrictive minimum net
worth covenant by approximately $58.2 million.
Under the current borrowing arrangements, no interest rates
have been fixed and generally change in response to changes
in LIBOR. However, in October 1996, the Company entered
into an interest rate collar agreement with a major regional
bank, placing a ceiling of 7.25% and a floor of 5.00% on the
three-month LIBOR through October 1998 on a notional amount
of $75,000,000. The three-month LIBOR has stayed between
the ceiling and the floor since the commencement of the
transaction.
Management believes that its current capital structure is
sufficient to meet the Company's 1997 financing
requirements, but intends to continue monitoring the
interest rate environment and may enter into future interest
rate hedging transactions if deemed advantageous.
IMPACT OF INFLATION
The Company's operating costs that may be affected by
inflation consist principally of food, payroll and utility
costs. A number of the Company's restaurant employees are
paid at the minimum wage and, accordingly, legislated
changes to the minimum wage affected the Company's payroll
costs. In July 1996, Congress legislated an increase in the
Federal minimum wage from $4.25 per hour to $4.75 on October
1, 1996 and then to $5.15 on September 1, 1997. This
measure effectively freezes the $2.13 hourly rate for tipped
employees. During September 1997, moderate menu price
increases were implemented to cover the higher payroll costs
related to the higher minimum wage.
The Company considers its current price structure to be very
competitive. This factor, among others, is considered by
the Company when passing increased costs on to its
customers. Annual menu price increases have consistently
ranged from 1% to 3%.
IMPACT OF NEW ACCOUNTING PRONOUNCEMENTS
In February 1997, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards ("SFAS")
No. 128, "Earnings Per Share", which simplifies standards
for computing and presenting earnings per share ("EPS") and
makes them more comparable to international standards. This
Statement supersedes APB Opinion No. 15, "Earnings per
Share", and must be implemented in 1998. Management of the
Company does not expect that adoption of SFAS No. 128 will
have a material impact on the Company's results of
operations.
In June 1997, the Financial Accounting Standards Board
issued SFAS No. 130, "Reporting Comprehensive Income." This
Statement establishes standards for the reporting and
display of comprehensive income and its components
(revenues, expenses and other changes in non-owner
shareholders' equity) in a full set of general-purpose
financial statements and must be implemented in 1998.
Management of the Company does not expect that the adoption
of SFAS No. 130 will have a material impact on the Company's
financial position or results of operations.
SUBSEQUENT EVENT
In October 1997, the Company entered into an interest rate
swap agreement with a major regional bank under which the
Company receives a floating rate based on LIBOR, or the
London Interbank Offered Rate, on a notional amount of $25
million and pays a fixed rate of 5.54%, as determined in
quarterly intervals through October 30, 2000. The
transaction effectively changes a portion of the Company's
interest rate exposure from a floating rate to a fixed rate.
The agreement contains termination options that can be
triggered solely by the bank, effective no earlier than
November 1, 1998.
FORWARD-LOOKING INFORMATION
Statements in this discussion as to anticipated future
performance and results constitute forward-looking
statements that involve risks and uncertainties, and actual
results could differ materially from these expectations. In
addition to those discussed herein, the factors that could
cause the actual results to differ materially from such
expectations include, but are not limited to, the following:
general economic conditions; competitive factors; the
Company's ability to open new restaurants or sell closed
restaurants; food and labor supply costs; weather factors;
interest rate changes; changes in the Company's common stock
price; and the risks and factors described from time to time
in the Company's reports filed with the Securities and
Exchange Commission, including the Company's annual report
on Form 10-K for the fiscal year ending January 1, 1997.
The Company's ability to open new restaurants depends on a
number of factors, including its ability to find suitable
locations and negotiate acceptable land acquisition and
construction contracts, its ability to attract and retain
sufficient numbers of restaurant managers and team members,
and the availability of reasonably priced capital. The
extent of the Company's share repurchase program during 1997
and future years depends on the financial performance of the
Company's restaurants, the investment required to open new
restaurants, share price, the availability of reasonably
priced capital, the financial covenants contained in the
Term Loan agreement, and the maximum debt and share
repurchase levels authorized by the Company's Board of
Directors.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None reportable.
Item 2. Changes in
Securities.
None.
Item 3. Defaults Upon Senior
Securities.
None.
Item 4. Submission of
Matters to a Vote of Security Holders.
None reportable.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports
on Form 8-K.
(a)None.
(b)On September 8, 1997, the Company filed a report
on Form 8-K regarding sales information for
August 1997.
On October 6, 1997, the Company filed a report
on Form 8-K regarding sales information for
September 1997.
On November 11, 1997, the Company filed a report
on Form 8-K regarding sales information for
October 1997.
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
RYAN'S FAMILY STEAK HOUSES, INC.
(Registrant)
November 14, 1997 /s/Charles D. Way
Charles D. Way
Chairman, President and Chief
Executive Officer
November 14, 1997 /s/Fred T. Grant, Jr.
Fred T. Grant, Jr.
Vice President-Finance and
Treasurer
November 14, 1997 /s/Richard D. Sieradzki
Richard D. Sieradzki
Controller
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