American Restaurant Group, Inc. announces its first quarter 2001 results. For the thirteen weeks ended March 26, 2001, the company's revenues for its 105 restaurants grew to $82.2 million, a 4.6% increase over the $78.6 million in the prior year's comparable period. Same-store-sales increased 1.4% in the quarter, building on the prior year's first-quarter increase of 8.4%. Operating profit from continuing operations grew to $9.4 million, from $7.6 million in the prior year's first quarter.

EBITDA for Stuart Anderson's Black Angus Restaurants is $12.1 million, versus $11.6 in prior year, with an EBITDA margin in both years of 14.7%. "`Although same-store-sales are softer due to a generally weaker economic environment, Black Angus EBITDA improved for the quarter by offsetting increased utility expenses with an improved cost of sales and other operating expenses," said Ralph Roberts, American Restaurant Group's Chief Executive Officer. "We have all been through similar economic softness before, and the key to our business is to continue to execute the Black Angus concept to the highest possible level."

As previously announced, in a June 2000 transaction, the Company sold the stock of four subsidiaries (Grandy's, Inc., Local Favorite, Inc., Spectrum Foods, Inc., and Spoons Restaurants, Inc.) to Spectrum Restaurant Group, Inc. (formerly known as NBACo, Inc.). As a result, Black Angus is the only remaining operating entity in the continuing operations of the Company. First quarter selling and administrative expenses continue to improve through the single focus of operating only the Black Angus concept.