Pizza Inn, Inc. Reports Results for Fiscal Year 2009

CEO is Encouraged by Success of New Buffet Prototype and Its Promise for the Future of the Pizza Inn Brand

• Press Release
• Source: Pizza Inn, Inc.
• On 5:54 pm EDT, Wednesday September 23, 2009

THE COLONY, Texas, Sept. 23, 2009 (GLOBE NEWSWIRE) -- Pizza Inn, Inc. (Nasdaq:PZZI - News) today reported net income of $1.2 million, or $0.14 per share, for the fiscal year ended June 28, 2009, versus net income of $2.8 million, or $0.29 per share, for the prior fiscal year. The $0.15 difference in earnings per share is driven primarily by two factors. Due to a change in the availability and use of its net loss carryforwards, the Company reported tax expense of $0.5 million in fiscal year 2009 compared to a tax benefit of $0.1 million in fiscal year 2008, representing $0.07 of the earnings per share difference. In addition, the Company incurred litigation settlement expenses of $0.3 million in fiscal year 2009 versus a litigation settlement benefit of $0.3 million in fiscal year 2008, representing another $0.06 of the earnings per share difference. In the absence of these items, earning per share would have been $0.23 for fiscal year 2009 compared to $0.25 for fiscal year 2008.

Related Quotes

Symbol	Price	Change
PZZI	1.65	+0.06

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Highlights for the fourth quarter and fiscal year 2009 included:

 * Sales from Company-owned restaurants increased 153%, or $1.1
   million, in fiscal 2009 compared to the prior year, primarily due
   to the opening of the buffet location in Denton, Texas in October
   of 2008.
 * Comparable domestic buffet restaurant sales decreased 1.3% for
   fiscal 2009 and 3.8% for the fourth quarter compared to the prior
   fiscal year.
 * Total comparable domestic restaurant sales decreased 2.0% for
   fiscal 2009 and 4.4% for the fourth quarter compared to the prior
   fiscal year.
 * Buffet unit and total unit closures for the fourth quarter and
   fiscal year 2009 were at their lowest in the last ten years.

Charlie Morrison, President and CEO, commented, "Despite the tough economic conditions, we are seeing positive results from the changes we have made to the Pizza Inn concept. Comparable buffet restaurant sales have trended ahead of pizza segment averages, which is encouraging for the continued momentum of the brand. Our successful new buffet prototype, combined with a great incentive program for franchise development, has delivered 13 new buffet franchise agreements for the coming fiscal year. These new franchise agreements include both new and existing franchisees. We also opened our third company-owned restaurant in Ft. Worth, Texas last week and have plans to continue expanding our company-owned store base in the future."

Certain statements in this press release, other than historical information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created thereby. These forward-looking statements are based on current expectations that involve numerous risks, uncertainties and assumptions. Assumptions relating to these forward-looking statements involve judgments with respect to, among other things, future economic, competitive and market conditions, regulatory framework and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Pizza Inn's control. Although the assumptions underlying these forward-looking statements are believed to be reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that any forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of such information should not be regarded as a representation that Pizza Inn's objectives and plans will be achieved. Pizza Inn, Inc. (www.pizzainn.com) is an owner, franchisor and supplier of a system of restaurants operating domestically and internationally under the trademark "Pizza Inn." The Company and its distribution division, Norco Restaurant Services Company, are headquartered in The Colony, Texas. The Company's common stock is listed on the Nasdaq Capital Market under the symbol "PZZI."

The Pizza Inn logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4933

Pizza Inn, Inc.
Nancy Ellefson, VP of Finance
469-384-5000
nellefson@pihq.com