908652--8/10/2007--LANDRYS_RESTAURANTS

related topics

{financial, litigation, operation}

{condition, economic, financial}

{control, financial, internal}

{acquisition, growth, future}

{cost, operation, labor}

{cost, contract, operation}

{competitive, industry, competition}

{stock, price, operating}

{operation, international, foreign}

{debt, indebtedness, cash}

{customer, product, revenue}

{cost, regulation, environmental}

{personnel, key, retain}

{gas, price, oil}

{property, intellectual, protect}

{operation, natural, condition}

{tax, income, asset}

{product, market, service}

Some of our restaurants have limited operating histories, which makes it difficult for us to predict their future results of operations. Because many of our restaurants are concentrated in single geographic areas, our results of operations could be materially adversely affected by regional events. Our gaming activities rely heavily on certain markets, and changes adversely impacting those markets could have a material adverse effect on our gaming business. If we are unable to obtain a seafood supply in sufficient quality and quantity to support our operations, our results of operations could be materially adversely affected. If we are unable to anticipate and react to changes in food and other costs, our results of operations could be materially adversely affected. We use significant amounts of electricity, natural gas and other forms of energy, and energy price increases may adversely affect our results of operations. The restaurant, hospitality and gaming industries are particularly affected by trends and fluctuations in demand and are highly competitive. If we are unable to successfully surmount these challenges, our business and results of operations could be materially adversely affected. Our growth strategy depends on opening new restaurants. Our ability to expand our restaurant base is influenced by factors beyond our control, which may slow restaurant development and expansion and impair our growth strategy. The expansion of our business through acquisitions poses risks that may reduce the benefits we anticipate and could harm our business and our financial condition. The cost of compliance with the significant governmental regulation to which we are subject or our failure to comply with such regulation could materially adversely affect our results of operations. Our officers, directors and key employees are required to be licensed or found suitable by gaming authorities and the loss of, or inability to obtain, any licenses or findings of suitability may have a material adverse effect on us. Our business is subject to seasonal fluctuations, and, as a result, our results of operations for any given quarter may not be indicative of the results that may be achieved for the full fiscal year. Our international operations subject us to certain external business risks that do not apply to our domestic operations. If we are unable to protect our intellectual property rights, it could reduce our ability to capitalize on our brand names, which could have an adverse affect on our business and results of operations. We face the risk of adverse publicity and litigation, the cost or adverse results of which could have a material adverse effect on our business and results of operations. Unfavorable publicity relating to one or more of our restaurants in a particular brand may taint public perception of the brand. Labor shortages or increases in labor costs could slow our growth or harm our business. Health concerns relating to the consumption of seafood, beef and other food products could affect consumer preferences and could negatively impact our results of operations. Expanding our restaurant base by opening new restaurants in existing markets could reduce the business of our existing restaurants. Restaurant companies have been the target of class actions and other lawsuits alleging, among other things, violation of federal and state law. Rising interest rates would increase our borrowing costs, which could have a material adverse effect on our business and results of operations. Certain holders of our Senior Notes have attempted to accelerate our Senior Notes. If we are unsuccessful in showing that the attempted acceleration is inappropriate and also unsuccessful in curing such attempted acceleration, obtaining alternative financing in the current credit market could materially adversely affect our business and results of operations. The capital costs of our specialty growth and gaming divisions are extremely high. As a result, the failure of any one of these could have a material adverse effect on our operations. The loss of Tilman J. Fertitta could have a material adverse effect on our business and development. Changes in our tax rates could affect our future results The matters relating to the investigation of our historical stock option granting practices and the restatement of our consolidated financial statements have resulted in our being named as a party in a derivative legal action and may result in future litigation, which could harm our business and financial condition. Other risk factors may adversely affect our financial performance. There are inherent limitations in all control systems, and misstatements due to error that could seriously harm our business may occur and not be detected.

Full 10-K form ▸

908652--8/10/2007--LANDRYS_RESTAURANTS_INC