WICHITA, Kansas, Jan. 4, 2000 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. (Nasdaq:STAR)today announced the closing of 24 underperforming domestic Lone Star Steakhouse & Saloon restaurants, and one Mexican restaurant, effective immediately. In connection with the closings the Company recorded a pre-tax charge of approximately $7.2 million in the fourth quarter of its fiscal year ended December 28, 1999. The after tax charge will be approximately $4.7 million or $0.14 per share. The restaurants to be closed had sales of approximately $21 million for the year ended December 28, 1999 and a combined restaurant level loss of approximately $2.8 million.
Closing the underperforming restaurants will allow the Company to continue focusing on its existing program of additional staffing and operating improvements in the remaining restaurants.
This Press Release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the Press release will prove to be accurate.