33769--6/29/2010--EVANS_BOB_FARMS

related topics

{condition, economic, financial}

{financial, litigation, operation}

{cost, regulation, environmental}

{customer, product, revenue}

{debt, indebtedness, cash}

{personnel, key, retain}

{cost, operation, labor}

{stock, price, operating}

{cost, contract, operation}

{product, market, service}

{operation, natural, condition}

{property, intellectual, protect}

{acquisition, growth, future}

{competitive, industry, competition}

{system, service, information}

Our business could suffer if we are the subject of negative publicity or litigation regarding allegations of food-related illnesses. Legislation and regulations requiring the display and provision of nutritional information for our menu offerings in our restaurants could increase our operating costs, affect consumer preferences, increase the likelihood of litigation, and negatively impact our results of operations. The financial performance and results of operations of our food products business could be adversely affected by availability of and price we pay for sows. Health concerns and government regulations relating to the consumption of trans-fats, pork, beef, chicken and other food products could affect consumer preferences and could negatively impact our results of operations. The global economic crisis adversely impacted our business and financial results in fiscal 2010, and a prolonged recession could have a material adverse effect on us in the future. Certain economic and business factors specific to the restaurant industry and certain general economic factors including unemployment, energy prices and interest rates that are largely out of our control may adversely affect our results of operations. Because many of our restaurants are concentrated in certain geographic areas, there could be a material adverse effect on our operations by regional economic conditions and events. Our failure to achieve and maintain positive same-store sales for an extended period of time would likely have a material adverse effect upon our financial condition, results of operation and cash flows. Our business could suffer if we are the subject of increased litigation regarding personal injuries suffered on our premises, discrimination, harassment or other labor matters. The restaurant and food products industries are heavily regulated, and compliance with applicable laws and regulations may be more costly than we expect. A privacy breach could adversely affect our business. Our success depends on our ability to compete effectively in the restaurant and food products industries. The price and availability of food, ingredients and utilities used by our restaurants could adversely affect our revenues and results of operations. Our inability to successfully and sufficiently raise menu and food products prices to offset increased costs could result in a decline in margins. Our success depends on consumer acceptance of our menu offerings, food products, prices, atmosphere and service procedures. Catastrophic events may disrupt our business and could adversely affect our revenues and results of operations. Our food products business is dependent upon a limited number of suppliers for the production of a significant number of items and relies upon a relatively small number of customers for a large percentage of its sales. We are dependent on timely delivery of fresh ingredients by our suppliers. Our long-term growth strategy depends on opening new restaurants. Our ability to expand our restaurant base is influenced by factors beyond our control, which may further slow restaurant expansion and impair our growth strategy. The growth of our food products sales and profits is dependent upon our ability to expand into existing and new markets. Our quarterly operating results may fluctuate significantly and could fall below the expectations of securities analysts and investors due to a variety of other factors, resulting in a decline in our stock price. If we lose the services of any of our key management personnel, our business could suffer. Many factors, including those over which we have no control, affect the trading price of our stock. Disruptions in the financial markets may adversely impact the availability and cost of credit and consumer spending patterns. Restrictive covenants in our debt instruments restrict or prohibit our ability to engage in or enter into a variety of transactions, which could adversely affect us. A breach of a covenant in our debt instruments could cause acceleration of a significant portion of our outstanding indebtedness. Our restaurant business is dependent upon satisfactory customer service, and we may have difficulty hiring and retaining a sufficient number of qualified employees to deliver appropriate service. Our failure or inability to enforce our trademarks or other proprietary rights could adversely affect our competitive position or the value of our brand.

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33769--6/29/2010--EVANS_BOB_FARMS_INC