33769--7/12/2006--EVANS_BOB_FARMS

related topics

{financial, litigation, operation}

{condition, economic, financial}

{product, market, service}

{acquisition, growth, future}

{customer, product, revenue}

{cost, operation, labor}

{cost, regulation, environmental}

{loss, insurance, financial}

{stock, price, operating}

{personnel, key, retain}

{competitive, industry, competition}

{cost, contract, operation}

A decline in general economic conditions could materially adversely affect our financial results. Our success depends on our ability to compete effectively in the restaurant and food products industries. Our 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. Our success depends on consumer acceptance of our menu offerings, food products, prices, atmosphere and service procedures. 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. Because many of our restaurants are concentrated in certain geographic areas, our results of operations could be materially adversely affected by regional economic conditions and events. Expanding our restaurant base by opening new restaurants in existing markets could reduce the business of our existing restaurants. Adverse weather conditions could harm our sales. The restaurant and food products industries are heavily regulated, and compliance may be more costly than we expect. Our business could suffer if we are the subject of negative publicity or litigation regarding allegations of food-related illnesses or other complaints about our operations. Our inability to successfully and sufficiently raise menu and food product prices to offset increased costs could result in a decline in margins. We are dependent on timely delivery of fresh ingredients by our suppliers. The growth of our food products sales and profits is dependent upon our ability to expand into existing and new markets. Health concerns relating to the consumption of beef, chicken, pork and other food products could affect consumer preferences and could negatively impact our results of operations. 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. Our current insurance loss estimates may not be adequate and, if claims exceed such estimates, our profitability may be materially adversely affected.

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33769--7/12/2006--EVANS_BOB_FARMS_INC