"We do not expect to maintain the company restaurant margin of 16.4% achieved in the first quarter of 2009 throughout fiscal 2009. The revenue component of the margin calculation in the first quarter of 2009 benefited from gift card redemptions, which are historically at their highest level in the first quarter of any year, and menu price increases, and the favorable effect of both is expected to decline throughout the rest of 2009. Additionally, we expect advertising expenses will increase due to the timing of promotions during the rest of 2009."

This is very strange to me. It is one thing to say that the company cannot expect FURTHER margin improvement, but this paragraphs suggest that the improvement in the first quarter was a one-time deal. Why? Gift card redemptions? It is not like there are no costs involved in serving a meal that is bought with a gift card. Menu price increases? What, is the company going to lower menu prices now to "undo" the margin improvement? Honestly, with the exception of advertising, this does not tell anyone why margins would expect to improve, and even advertising is "iffy," as advertising presumably brings in more people to the restaurant. I think Applebee's did some nice accounting gimmicks in the first quarter that, in order not to be sued, it is disclaiming as a continuing factor.