1288741--3/9/2007--McCormick_&_Schmicks_Seafood_Restaurants

related topics

{acquisition, growth, future}

{financial, litigation, operation}

{cost, contract, operation}

{condition, economic, financial}

{competitive, industry, competition}

{operation, natural, condition}

{cost, operation, labor}

{personnel, key, retain}

{property, intellectual, protect}

{stock, price, operating}

{cost, regulation, environmental}

{loss, insurance, financial}

{product, liability, claim}

Restaurant companies have been the target of class-actions and other lawsuits alleging, among other things, violation of federal and state law. Our ability to expand our restaurant base is influenced by many factors beyond our control and therefore we may not be able to achieve our planned growth. Unexpected expenses and low market acceptance could adversely affect the profitability of restaurants that we open in new markets. Our growth may strain our infrastructure and resources, which could slow our development of new restaurants and adversely affect our ability to manage our existing restaurants. Our ability to raise capital in the future may be limited, which could adversely impact our growth. Our operations are susceptible to changes in food availability and costs, which could adversely affect our operating results. Our operating results may fluctuate significantly and could fall below the expectations of securities analysts and investors due to seasonality and other factors, resulting in a decline in our stock price. A decline in visitors or business travelers to downtown areas where our restaurants are located could negatively affect our restaurant sales. If we lose the services of any of our key management personnel our business could suffer. Many of our restaurants are concentrated in local or regional areas and, as a result, we are sensitive to economic and other trends and developments in these areas. Our success depends on our ability to protect our proprietary information. Failure to protect our trademarks, service marks or trade secrets could adversely affect our business. Our insurance policies may not provide adequate levels of coverage against all claims. Expanding our restaurant base by opening new restaurants in existing markets could reduce the business of our existing restaurants. We may not be able to successfully integrate into our business the operations of restaurants that we acquire, which may adversely affect our business, financial condition and results of operations. Negative publicity concerning food quality, health and other issues and costs or liabilities resulting from litigation may have a material adverse effect on our results of operations. Health concerns relating to the consumption of seafood or other foods could affect consumer preferences and could negatively impact our results of operations. Changes in consumer preferences or discretionary consumer spending could negatively impact our results of operations. Labor shortages or increases in labor costs could slow our growth or harm our business. We may incur costs or liabilities and lose revenue, and our growth strategy may be adversely impacted, as a result of government regulation. Our operations and profitability are susceptible to the effects of violence, war and economic trends. We may not be able to compete successfully with other restaurants, which could adversely affect our results of operations.

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1288741--3/9/2007--McCormick_&_Schmicks_Seafood_Restaurants_Inc.