DALLAS, May 30, 2003 (PRIMEZONE) -- Romacorp, Inc. today announced that it has entered into an Asset Purchase Agreement pursuant to which 11 company-operated restaurants in Texas and Oklahoma would be sold to Romadal, LTD I, a new franchisee of the Tony Roma's concept. Terms of the agreement include the future development of three new restaurants in the development territory. The transaction is expected to close during June 2003.
Frank H. Steed, Chief Executive Officer and President commented, "We are excited to welcome a new franchisee that is committed to growth of the Tony Roma's brand in Texas and Oklahoma. The strategy of transferring ownership of company-owned restaurants to franchisees committed to growth has proved successful in other concepts and we expect to evaluate additional opportunities in the future."
Romacorp, Inc. operates and franchises Tony Roma's restaurants, the world's largest casual dining restaurant chain specializing in ribs. The Company currently operates 54 restaurants and franchises 202 restaurants in 28 states and 27 foreign countries and territories.
Forward-Looking Comments
Statements which are not historical facts contained herein are forward-looking statements that involve estimates, risks and uncertainties, including but not limited to: consumer demand and market acceptance risk; the level of and the effectiveness of marketing campaigns by the Company; training and retention of skilled management and other restaurant personnel; the Company's ability to locate and secure acceptable restaurant sites; the effect of economic conditions, including interest rate fluctuations, the impact of competing restaurants and concepts, new product introductions, product mix and pricing, the cost of commodities and other food products, labor shortages and costs and other risks detailed in filings with the Securities and Exchange Commission.