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Stocks O / O'Charley's Inc.


Subject:  2002 Q4 Conference Call Notes Date:  2/20/2003  2:59 AM
Author:  kh Number:  25 of 35

The acquisition of Ninety-Nine Restaurants closed in January. Total long-term debt after the acquisition should be about $300 million.

Same store sales for O'Charley's in the quarter rose .1%. (SSS had been declining, slightly, in each of the last two quarters.) For all of 2002, SSS fell .1%, the first such decrease in 12 years.

For Ninety-Nine Restaurants, SSS fell .1% in the quarter, but was up 1.3% for all of 2002.

During the first few weeks of 2003, SSS is running slightly positive. But bad weather has hurt results somewhat, according to CEO Burns. (Note: Burn's comment was made a couple of weeks ago, i.e., before the recent weather in the northeast, where all the Ninety-Nine units are located.)

As for franchising the O'Charley's brand, Burns said the company continues to study the concept, but then he has been saying the same thing for about a year. Despite earlier suggestions that there would be franchises in 2002, there still are no signed franchise agreements in place at this time. I got the impression that the primary focus in 2003 will be