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Restaurateur Frisch's Restaurants Inc. recently announced its decision to hike quarterly dividend by 2 cents to 18 cents per share, reflecting a 12.5% increase from the prior dividend payout. This equates to an annual payout of 72 cents per share. The latest hike brings the forward annual dividend yield, as of Sep 12, 2013, to 3.65%. The increased dividend will be paid on Oct 10, 2013 to stockholders of record as on Sep 26, 2013.

Frisch's Restaurants which operates under the brand name of ‘Frisch's Big Boy’ has a consistent track record of paying quarterly dividends even during the economic downturn. The company has a history of reporting profits every year since it went public in 1960, and paid cash dividends every quarter during this period. The last dividend hike of 6.7% was announced in Sep 2011. Prior to that, Frisch's announced a dividend hike of 15% in Sep 2010 and 8% in Sep 2009.

Frisch's is not the only company in the restaurant sector paying attractive dividends. Another restaurant company, Brinker International Inc. (EAT - Analyst Report), recently increased its quarterly dividend by 20% to 24 cents per share. Frisch's Restaurants’ current annualized dividend yield inched past Brinker’s forward annualized dividend yield of 2.40% as of Sep 12, 2013.

Yet another behemoth in this sector, McDonald’s Corp. (MCD - Analyst Report), has a history of increasing dividends every year since the inception of its dividend payout program in 1976. Another operator, Yum! Brands Inc. (YUM - Analyst Report) has also been raising its dividend over the last few years, irrespective of the economic peaks and valleys.

We appreciate Frisch's Restaurants’ efforts to consistently return long-term shareholder and franchisee value even amidst slower economic growth. However, Frisch's Restaurants currently carries Zacks Rank #4 (Sell).

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