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 September 30, 1998
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 September 30, 1998:
40,051,000 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
September 30, October 1,
1998 1997
<TABLE>
<S> <C> <C>
Restaurant sales $ 162,440 152,731
Operating expenses:
Food and beverage 62,798 60,321
Payroll and benefits 47,568 43,411
Depreciation and amortization 6,747 6,735
Other operating expenses 21,002 19,448
Total operating expenses 138,115 129,915
General and administrative expenses7,467 6,856
Interest expense 1,842 1,443
Revenues from franchised restaurants(296) (269)
Other income, net (516) (264)
Earnings before income taxes 15,828 15,050
Income taxes 5,715 5,524
Net earnings $ 10,113 9,526
Net earnings per common share:
Basic $ .25 .20
Diluted .24 .20
Weighted-average shares:
Basic 40,637 47,238
Diluted 41,476 47,772
</TABLE>
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
September 30, October 1,
1998 1997
<TABLE>
<S> <C> <C>
Restaurant sales $ 483,122 456,332
Operating expenses:
Food and beverage 189,293 180,380
Payroll and benefits 141,279 128,541
Depreciation and amortization 19,944 19,753
Other operating expenses 59,379 55,646
Total operating expenses 409,895 384,320
General and administrative expenses21,816 20,418
Interest expense 4,879 4,488
Revenues from franchised restaurants(868) (1,024)
Other income, net (1,524) (1,105)
Earnings before income taxes 48,924 49,235
Income taxes 17,662 18,081
Net earnings $ 31,262 31,154
Net earnings per common share:
Basic $ .72 .66
Diluted .71 .65
Weighted-average shares:
Basic 43,227 47,436
Diluted 43,826 47,880
</TABLE>
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
1998 1997
<TABLE>
ASSETS (Unaudited)
Current assets:
<S> <C> <C>
Cash and cash equivalents $ 577 289
Receivables 2,736 2,756
Inventories 4,401 4,294
Deferred income taxes 3,629 3,629
Other current assets 1,460 1,121
Total current assets 12,803 12,089
Property and equipment:
Land and improvements 114,424 108,397
Buildings 308,252 291,408
Equipment 191,418 182,524
Construction in progress 31,701 35,407
645,795 617,736
Less accumulated depreciation 156,468 137,204
Net property and equipment 489,327 480,532
Other assets 2,923 2,933
$ 505,053 495,554
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable 66,400 28,300
Current portion of long-term debt 5,813 -
Accounts payable 9,021 9,330
Income taxes payable 5,139 600
Accrued liabilities 30,460 26,622
Total current liabilities 116,833 64,852
Long-term debt 87,187 93,000
Deferred income taxes 20,818 20,641
Total liabilities 224,838 178,493
Shareholders' equity:
Common stock of $1.00 par value;
authorized 100,000,000 shares;
issued 40,051,000 shares in 1998
and 46,978,000 shares in 1997 40,051 46,978
Additional paid-in capital - 457
Retained earnings 240,164 269,626
Total shareholders' equity 280,215 317,061
Commitments
$ 505,053 495,554
</TABLE>
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended
September 30, October 1,
1998 1997
<TABLE>
Cash flows from operating activities:
<S> <C> <C>
Net earnings $31,262 31,154
Adjustments to reconcile
net earnings to net cash
provided by operating
activities:
Depreciation and amortization 20,940 20,851
Gain on sale of property
and equipment (657) (68)
Decrease (increase) in:
Receivables 20 (394)
Inventories (107) (304)
Other current assets (1,462) (1,471)
Other assets 4 (2)
Increase (decrease) in:
Accounts payable (309) (5,494)
Income taxes payable 4,539 3,949
Accrued liabilities 3,838 2,440
Deferred income taxes 177 179
Net cash provided by operating
activities 58,245 50,840
Cash flows from investing
activities:
Proceeds from sale of property
and equipment 2,300 4,882
Capital expenditures (30,249) (37,418)
Net cash used in investing
activities (27,949) (32,536)
Cash flows from financing
activities:
Net proceeds from (repayment of)
notes payable 38,100 (4,300)
Proceeds from issuance of
common stock 2,485 1,220
Purchases of common stock (70,593) (15,449)
Net cash used in financing
activities (30,008) (18,529)
Increase (decrease) in cash
and cash equivalents 288 (225)
Cash and cash equivalents
- beginning of period 289 746
Cash and cash equivalents
- end of period $ 577 521
</TABLE>
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 September 30, 1998
(Unaudited)
$1 Par Value Additional
Common Paid-In Retained
Stock Capital Earnings Total
<TABLE>
<S> <C> <C> <C> <C>
Balances at December 31, 1997 $ 46,978 457 269,626 317,061
Net earnings - - 31,262 31,262
Issuance of common stock
under Stock Option Plans 308 2,177 - 2,485
Purchases of common stock (7,235) (2,634) (60,724) (70,593)
Balances at September 30, 1998 $ 40,051 - 240,164 280,215
</TABLE>
II. For the Nine Months ended October 1, 1997
(Unaudited)
$1 Par Value Additional
Common Paid-In Retained
Stock Capital Earnings Total
<TABLE>
<S> <C> <C> <C> <C>
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 Plans 210 1,010 - 1,220
Purchases of common stock (2,015) (1,016) (12,418) (15,449)
Balances at October 1, 1997 $ 47,226 115 263,560 310,901
</TABLE>
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1998
(Unaudited)
Note 1. Description of Business
Ryan's Family Steak Houses, Inc. operates a single-concept
restaurant chain consisting of 277 Company-owned and 26
franchised restaurants located principally in the southern
and midwestern United States. The Company, organized in
1977, completed its initial public offering in 1982. The
Company does not operate or franchise any international
units and has no individually significant customers.
Note 2. 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 September 30, 1998 are not
necessarily indicative of the results that may be expected
for the fiscal year ending December 30, 1998. 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 December 31, 1997.
Note 3. New Accounting Pronouncement
In April 1998, the American Institute of Certified Public
Accountants issued Statement of Position ("SOP") 98-5,
"Reporting on the Cost of Start-up Activities." This SOP
requires that the costs of start-up activities, or one-time
activities that relate to the opening of a new facility, be
expensed as incurred instead of being capitalized. The
Company incurs such costs when opening a new restaurant and
currently amortizes these pre-opening costs over the first
52 weeks of a restaurant's operations. This SOP must be
implemented by no later than the first quarter of 1999 at
which time the write-off of any unamortized pre-opening
costs will be reported as the cumulative effect of a change
in accounting principle. Management estimates that, when
implemented, the related write-off will impact the Company's
financial results by approximately one cent per share.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Quarter ended September 30, 1998 versus October 1, 1997
Restaurant sales during the third quarter of 1998 increased
by 6.4% over the comparable quarter of 1997. The sales
growth resulted from the 3.4% unit growth of Company-owned
restaurants, which totaled 277 at September 30, 1998 and 268
at October 1, 1997, and from a 2.8% increase in same-store
sales. The Company calculates same-store sales using
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. The third quarter's same-store
sales increase compares favorably with the 2.0% decrease
experienced during the third quarter of 1997.
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 85.0% during the third quarter of 1998 compared
to 85.1% in 1997. Food and beverage costs decreased to
38.7% of sales in 1998 from 39.5% in 1997 due to improved
store-level controls and lower beef, produce and coffee
prices. Payroll and benefits increased to 29.3% of sales in
1998 compared to 28.4% of sales in 1997 due principally to
higher compensation costs of both store management and
hourly personnel as well as from increased health insurance
claims costs. All other operating costs, including
depreciation and amortization charges, remained at 17.1% of
sales in 1998 and 1997. Based on these factors, the
Company's operating margin at the restaurant level increased
to 15.0% of sales in the third quarter of 1998 from 14.9% in
1997.
General and administrative expenses increased to 4.6% of
sales in 1998 compared to 4.5% in 1997, resulting
principally from higher media advertising costs in 1998.
Annual advertising costs for 1998 are expected to
approximate 1997's level of 0.3% of sales. The actual
extent of the Company's advertising program during the
remainder of 1998 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 for the third quarters of 1998 and 1997
amounted to 1.1% and 0.9% of sales, respectively. Due to
the Company's stock repurchase program (see "Liquidity and
Capital Resources"), total debt increased to $159.4 million
at September 30, 1998 compared to $121.3 million at December
31, 1997. The effective average interest rate was 6.1%
during the third quarter of 1998 compared to 6.2% in 1997.
Franchise revenues for the third quarters of both 1998 and
1997 amounted to 0.2% of sales. There were 26 franchised
Ryan's at September 30, 1998 compared to 25 at October 1,
1997. In March 1998, the Company's sole franchisee, Family
Steak Houses of Florida, Inc. ("Family"), announced that it
had retained an investment banker to assist Family in
identifying and evaluating strategic alternatives to enhance
shareholder value. These alternatives could include a sale
of assets, which could result in the termination of the
Company's franchise agreement with Family and the related
royalty and license fees. The Company does not intend to
pursue new franchisees. Accordingly, the continued receipt
by the Company of revenues from Family depends upon the
resolution of Family's strategic review of its business.
Other income increased to 0.3% of sales in 1998 from 0.2% in
1997 due primarily to a gain on the sale of warehouse
property.
Effective income tax rates of 36.1% and 36.7% were used for
the third quarters of 1998 and 1997, respectively. The
lower rate in 1998 resulted from the benefit of various tax-
planning strategies implemented in prior years.
Net earnings for the third quarter of 1998 amounted to $10.1
million in 1998 compared to $9.5 million in 1997. Due to a
13% reduction in weighted-average diluted shares resulting
from the Company's stock repurchase program (see "Liquidity
and Capital Resources"), earnings per share (diluted)
increased 20% to 24 cents in 1998 compared to 20 cents in
1997.
Nine months ended September 30, 1998 versus October 1, 1997
For the nine months ended September 30, 1998, restaurant
sales increased by 5.9% over the comparable period of 1997
due to 4.4% average unit growth of Company-owned restaurants
and a 1.7% increase in same-store sales.
Nine-month costs and expenses as detailed above were 84.8%
and 84.2% of sales for 1998 and 1997, respectively. During
the first nine months of 1998, costs and expenses were most
affected by increased payroll and benefits costs (up 1.1% of
sales) due to the same factors described in the quarterly
discussion. Decreases in food and beverage costs and
depreciation and amortization charges provided some
offsetting savings (down 0.3% and 0.2% of sales,
respectively). Based on these factors, the Company's
operating margin at the restaurant level decreased to 15.2%
of sales for the first nine months of 1998 compared to 15.8%
in 1997.
General and administrative and interest expenses as well as
franchise revenues were essentially constant as a percent of
sales for the first nine months of 1998 when compared to the
same period in 1997, both individually and in the aggregate.
Effective income tax rates of 36.1% and 36.7% were used for
the first nine months of 1998 and 1997, respectively. The
lower rate in 1998 resulted from the benefit of various tax-
planning strategies implemented in prior years.
Net earnings for the first nine months of 1998 amounted to
$31.3 million compared to $31.2 million in 1997. Due to a
9% reduction in weighted-average diluted shares resulting
from the Company's stock repurchase program (see "Liquidity
and Capital Resources"), earnings per share (diluted)
increased 10% to 71 cents in 1998 compared to 65 cents in
1997.
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 September 30, 1998, the Company's working capital was a
$104.0 million deficit compared to a $52.8 million deficit
at December 31, 1997. Included in these amounts are notes
payable of $66.4 million and $28.3 million at September 30,
1998 and December 31, 1997, respectively, under bank lines
of credit (see fourth 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 $58.2 million for
the nine months ended September 30, 1998 and $64.6 million
for the year ended December 31, 1997.
Total capital expenditures for the first nine months of 1998
amounted to $30.2 million. The Company opened 9 new Ryan's
restaurants during the first nine months of 1998 and plans
to open 2 additional Ryan's during the remainder of the year
for a total of 11 new restaurants. The Company also
relocated 2 restaurants during the first nine months of 1998
and plans to relocate 2 additional restaurants in the fourth
quarter for a total of 4 relocations for the year.
Management defines a relocation as a restaurant opened
within 18 months after closing another restaurant in the
same marketing area. A relocation represents a redeployment
of assets within a market. Total capital expenditures for
1998 are estimated at $50 million. Expansion of Company-
owned restaurants will occur in states either within or
contiguous to the Company's current 22-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.
The Company's current operating strategies are consistent
with its Focus 2000 plan, which was announced in November
1996. The key elements of the plan are 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.
In March 1996, management announced its intention to
repurchase an aggregate 6.4 million shares of the Company's
common stock through December 1998. Later, in connection
with the November 1996 announcement of the Focus 2000 plan,
the repurchase authorization was raised to 10.0 million
shares. On April 15, 1998, the Company announced that its
Board of Directors had authorized the repurchase of an
additional ten million shares through December 31, 2000.
Accordingly, the current stock repurchase authorization is
set at 20 million shares. During the first nine months of
1998, approximately 7.2 million shares had been purchased at
an aggregate cost of $70.2 million. Cumulative purchases
from March 1996 through September 30, 1998 amounted to
approximately 14.1 million shares, or 26% of total shares
available at the beginning of the repurchase program, at an
aggregate cost of $126.5 million. Management intends to
proceed with the repurchase program during 1998, subject to
the continued availability of capital and the other factors
described in "Forward-Looking Information". 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.
The extent of the Company's external funding requirements
for 1998 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 current target debt levels, a
maximum repurchase scenario would require approximately $11
million of additional borrowings during the last three
months of 1998. 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 $115
million at various short-term rates of which $66.4 million
was utilized at September 30, 1998.
The term loan agreement contains, 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. In October 1998,
an amendment to the term loan agreement increased the
maximum permitted debt-to-total capitalization ratio to 45%
and set a fixed minimum net worth requirement of $255
million. At September 30, 1998, the Company exceeded the
agreement's most restrictive minimum net worth covenant (as
amended) by approximately $25.2 million.
Management believes that its current capital structure is
sufficient to meet the Company's 1998 financing
requirements. Based upon current stock repurchase plan
objectives, the financial covenants in the term loan
agreement should not conflict with estimated financial
results through 2000. However, additional credit facilities
will be necessary. Accordingly, discussions are underway
with various financing sources to review various credit
options.
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 team members
are paid at the minimum wage and, accordingly, legislated
changes to the minimum wage affect the Company's payroll
costs. In September 1997, previously enacted legislation
increased the Federal minimum wage from $4.75 per hour to
$5.15. The $2.13 rate for servers was not changed.
Although no additional increases have been legislated, the
possibility is mentioned frequently in various political
discussions.
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. Menu price increases have averaged 3.0% for the
twelve-month period ended September 30, 1998.
YEAR 2000 CONVERSION
The Company recognizes the need to ensure that its
operations will not be adversely impacted by software
failures associated with programming incompatibilities with
the year 2000 ("Y2K"). In 1997, the Company identified
which systems were not Y2K-compliant and began researching
conversion and replacement options. The current Y2K
conversion plan provides for system replacements,
enhancements and upgrades to be completed by late-1999. The
total cost of the project is estimated to not exceed $1.0
million and will be funded through operating cash flows.
Costs associated with the Y2K plan that represent
significant functional or technology improvements will be
capitalized. Other costs related principally to Y2K
compatibility will be charged to expense as incurred.
The Company's Information Technology department is leading
the Company's Y2K efforts. Reports on the Y2K remediation
efforts are made periodically to the Company's senior
management and quarterly to the Company's Board of
Directors. At September 30, 1998, conversion of the general
ledger, accounts payable, payroll and benefits systems was
in process. Current plans call for these systems to be
functional and fully on-line by December 1998. Although all
critical systems have already been reviewed for Y2K-
compliance, the Company is currently undergoing a
supplemental third-party review of its hardware, operating
systems and applications (collectively referred to hereafter
as "Computer Systems") that will determine the extent to
which Computer Systems are Y2K-compliant. This fieldwork
phase of this review, which includes both corporate office
and store-level Computer Systems, has been completed. The
report is currently under study, and an action plan to
address the deficiencies noted therein is expected to be
completed by the end of 1998. Upgrades to critical store-
level systems are scheduled to be completed during the first
and second quarters of 1999, and the Company's principal
food supplier has asserted that its systems will be fully
Y2K-compliant by the end of 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 December 31, 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 stock repurchase program during 1998
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 stock
repurchase levels authorized by the Company's Board of
Directors. Factors that could result in the Company not being
Y2K-compliant by January 1, 2000 include, but are not limited
to, the following: failure to detect Y2K system or programming
incompatibilities in existing systems or software; other pro
gramming incompatibilities related to purchased or internally-
developed software; non-delivery of Y2K-compliant solutions from
developers of purchased software; and the inability to engage
or retain adequate personnel, either internal or external, to
correct Y2K system and programming issues.
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 July 13, 1998, the Company filed a report on
Form 8-K regarding sales information for June
1998.
On August 10, 1998, the Company filed a report
on Form 8-K regarding sales information for July
1998.
On September 8, 1998, the Company filed a report
on Form 8-K regarding sales information for
August 1998.
On October 5, 1998, the Company filed a report
on Form 8-K regarding sales information for
September 1998.
On November 12, 1998, the Company filed a report
on Form 8-K regarding sales information for
October 1998.
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 15, 1998 /s/Charles D. Way
Charles D. Way
Chairman, President and Chief
Executive Officer
November 15, 1998 /s/Fred T. Grant, Jr.
Fred T. Grant, Jr.
Vice President-Finance and
Treasurer
November 15, 1998 /s/Richard D. Sieradzki
Richard D. Sieradzki
Controller
<TABLE> <S> <C>
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<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-30-1998
<PERIOD-END> SEP-30-1998
<CASH> 577
<SECURITIES> 0
<RECEIVABLES> 2,957
<ALLOWANCES> 221
<INVENTORY> 4,401
<CURRENT-ASSETS> 12,803
<PP&E> 645,795
<DEPRECIATION> 156,468
<TOTAL-ASSETS> 505,053
<CURRENT-LIABILITIES> 116,833
<BONDS> 87,187
0
0
<COMMON> 40,051
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