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The Company makes trade commitments in
the course of its normal operations. As of May 26, 2002, and
May 27, 2001, the Company was contingently liable for approximately
$9,786 and $10,889, respectively, under outstanding trade
letters of credit issued in connection with purchase commitments.
These letters of credit have terms of one month or less and
are used to collateralize the Companys obligations to
third parties for the purchase of inventories.
As collateral for performance on contracts
and as credit guarantees to banks and insurers, the Company
is contingently liable under standby letters of credit. As
of May 26, 2002, and May 27, 2001, the Company had $30,000
and $30,000, respectively, of standby letters of credit related
to workers compensation and general liabilities accrued
in the Companys consolidated financial statements. As
of May 26, 2002, and May 27, 2001, the Company had $8,608
and $8,166, respectively, of standby letters of credit related
to contractual operating lease obligation and other payments.
All standby letters of credit are renewable annually.
As of May 26, 2002, and May 27, 2001, the
Company had $5,463 and $6,922, respectively, of guarantees
associated with third party sub-lease obligations. The guarantees
expire over the lease terms.
The Company is involved in litigation arising
from the normal course of business. In the opinion of management,
this litigation is not expected to materially impact the Companys
consolidated financial statements.

The following table summarizes unaudited quarterly data for
fiscal 2002 and 2001:
| (1) |
Restaurant operating profit is calculated as sales
less cost of sales. |
| (2) |
Includes after-tax restructuring credits of $1,394
and $183 recorded in the second and fourth quarters of
fiscal 2002, respectively. The related basic and diluted
net earnings per share impact of the credits recorded
in the second and fourth quarters of fiscal 2002 amounted
to $0.01 and $0.00, respectively. |
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