NEW YORK–(BUSINESS WIRE)–Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the first quarter ended December 29, 2018.
Total revenues for the three-month period ended December 29, 2018 were $40,548,000 versus $39,340,000 for the three months ended December 30, 2017.
Company-wide same store sales increased 2.9% for the three-month period ended December 29, 2018 compared to the same three month period in the prior year.
The Company’s EBITDA, adjusted for non-controlling interests, non-cash stock option expense and losses incurred on the closure of Durgin-Park discussed below, for the three-month period ended December 29, 2018 was $2,543,000 versus $2,071,000 during the same three-month period in the prior year.
As of December 29, 2018, the Company determined that it would not be able to operate Durgin-Park profitably due to decreased traffic at the Faneuil Hall Marketplace in Boston, MA, where it is located, and rising labor costs. As a result, included in the Statement of Operations for the 13 weeks ended December 29, 2018 is a loss on closure in the amount of $1,067,000 consisting of: (i) impairment of trademarks of $721,000, (ii) accelerated depreciation of fixed assets of $333,000, and (iii) write-offs of prepaid expenses of $13,000. The restaurant was closed on January 12, 2019.
Net income (loss) for the three-month period ended December 29, 2018, which includes losses as a result of non-cash write-offs on the closure of Durgin-Park in the amount of $1,067,000, was ($62,000), or ($0.02) per basic and diluted share compared to net income of $1,627,000, or $0.47 per basic share ($0.46 per diluted share), for the same three-month period last year. The three-month period ended December 30, 2017 includes a discrete income tax benefit of $1.2 million related to changes in the tax law.
Ark Restaurants owns and operates 19 restaurants and bars, 19 fast food concepts and catering operations primarily in New York City, Florida, Washington, D.C., Las Vegas, Nevada and the gulf coast of Alabama. Five restaurants are located in New York City, two are located in Washington, D.C., five are located in Las Vegas, Nevada, three are located in Atlantic City, New Jersey, two are located on the east coast of Florida and two are located on the Gulf Coast of Alabama. The Las Vegas operations include four restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel’s room service, banquet facilities, employee dining room and six food court concepts; and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino and a restaurant in the Tropicana Hotel and Casino. The operations at the Foxwoods Resort Casino consist of one fast food concept. The Florida operations include the Rustic Inn in Dania Beach, Shuckers, located in Jensen Beach, the operation of five fast food facilities in Tampa, and seven fast food facilities in Hollywood, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe. In Alabama, the Company operates two Original Oyster Houses, one in Gulf Shores, Alabama and one in Spanish Fort, Alabama.
Charlotte, NC (RestaurantNews.com) Bojangles’, Inc. (“Bojangles’” or the “Company”) (NASDAQ: BOJA) announced that its all-cash acquisition by Durational Capital Management LP and The Jordan Company, L.P. is complete, effective today. The acquisition was previously announced on November 6, 2018.
Bojangles’ will operate as an independent, privately-held company and will remain based in Charlotte, N.C.
“We are pleased to have successfully completed this transaction in partnership with Bojangles’ and The Jordan Company,” said Eric Sobotka, Managing Partner at Durational Capital Management. “We are excited to begin working with the Bojangles’ team, employees and franchisees to execute a long-term growth strategy that will fully realize the strong potential of the iconic Bojangles’ brand.”
Ian Arons, Partner at The Jordan Company, said: “We believe the completion of this acquisition represents an exciting next chapter for Bojangles’. As a private company, and with our and Durational’s support, Bojangles’ will be able to further strengthen its operations while expanding its brand and market presence.”
Under the terms of the merger agreement, Bojangles’ stockholders will receive $16.10 per share in cash. As a result of the closing of the transaction, Bojangles’ common stock has ceased trading as of today on the NASDAQ Global Select Market and will be delisted.
The Company also announced the addition of two key executives to its leadership team.
Jose Armario will lead the brand as its permanent new Chief Executive Officer. Armario has 38 years of senior leadership experience with such brands as Burger King, Luxottica Group and McDonald’s. During his time with McDonald’s Corporation, Armario served in several prominent leadership positions including President of McDonald’s Chile, Group President of McDonald’s Canada and Latin America, and Executive Vice President of Worldwide Supply Chain, Development and Franchising.
Brian Unger has been named Chief Operating Officer for Bojangles’. Unger began his 30-year career in the restaurant business with McDonald’s, where he spent more than 20 years eventually rising in the ranks to Senior Vice President of Operations. Unger has also served as Chief Operating Officer for Einstein Noah Restaurants Group, Inc. and President and Chief Operating Officer for Long John Silver’s.
“I am thrilled to be joining the incredibly talented and hardworking team members at Bojangles’,” said Armario, Bojangles’ newly appointed Chief Executive Officer. “What this Company and its franchise partners have accomplished over the last four decades is simply amazing. I have visited lots of Bojangles’ restaurants across the system where our dedicated team members are serving the highest quality, best-tasting food in the industry, and I look forward to being part of the exciting future that lies ahead for the Bojangles’ brand.”
About Bojangles’, Inc.
Bojangles’, Inc. is a highly differentiated and growing restaurant operator and franchisor dedicated to serving customers high-quality, craveable food made from our Southern recipes, including breakfast served All Day, Every Day. Founded in 1977 in Charlotte, N.C., Bojangles’® serves menu items such as made-from-scratch biscuit breakfast sandwiches, delicious hand-breaded bone-in chicken, flavorful fixin’s (sides) and Legendary Iced Tea®. At December 30, 2018, Bojangles’ had 759 system-wide restaurants, of which 319 were company-operated and 440 were franchised restaurants, primarily located in the Southeastern United States. For more information, visit www.bojangles.com or follow Bojangles’ on Facebook, Instagram and Twitter.
About Durational Capital Management LP
Based in New York, Durational Capital Management LP is an investment firm that invests in high quality consumer companies. Durational approaches its investments with a strategic mindset and focuses on driving long-term value creation through partnership with top tier management teams and actively supporting management to drive operational improvements. The firm was founded in 2017, and its investment professionals have extensive experience investing in the consumer sector. For more information, visit: www.durational.com.
About The Jordan Company, L.P.
The Jordan Company, founded in 1982, is a middle-market private equity firm that has managed funds with original capital commitments in excess of $11 billion since 1987 and a 36-year track record of investing in and contributing to the growth of many businesses across a wide range of industries including Industrials, Transportation & Logistics, Healthcare, Consumer, and Telecom, Technology & Utility. The senior investment team has been investing together for over 20 years and it is supported by the Operations Management Group, which was established in 1988 to initiate and support operational improvements in portfolio companies. Headquartered in New York, TJC also has an office in Chicago. For more information, visit: www.thejordancompany.com.
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January, 25 2019
Starbucks Corporation (NASDAQ: SBUX) yesterday reported financial results for its 13-week fiscal first quarter ended December 30, 2018. GAAP results in fiscal 2019 and fiscal 2018 include items which are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.
“Starbucks delivered solid operating results in the first quarter, demonstrating continued momentum in our business, as we drive our growth-at-scale agenda with focus and discipline,” said Kevin Johnson, president and ceo. “We are particularly pleased with the sequential improvement in quarterly comparable store transactions in the U.S., underpinned by our digital initiatives and improved execution of our in-store experience. With this solid start to the fiscal year, we are on track to deliver on our full-year commitments.”
“Comprehensive efforts to streamline our business have allowed us to focus on three key strategic initiatives that position Starbucks for long-term success: accelerating growth in our targeted markets of the U.S. and China, expanding the global reach of the Starbucks brand through our Global Coffee Alliance with Nestlé, and increasing shareholder returns. Combined with our efforts to build and amplify the Starbucks brand, we expect these initiatives will position the company to drive predictable, sustainable growth and shareholder returns for years to come,” concluded Johnson.
Q1 Fiscal 2019 Highlights
- Global comparable store sales increased 4%, driven by a 3% increase in average ticket
- Americas and U.S. comparable store sales increased 4%, with transactions flat
- CAP comparable store sales increased 3%, including 1% transaction growth; China comparable store sales increased 1%, with transactions down 2%
- The company opened 541 net new stores in Q1, yielding 29,865 stores at the end of the quarter, a 7% increase over the prior year. Over two-thirds of the net new store openings were outside the U.S.; approximately 50% were licensed
- Consolidated net revenues of $6.6 billion grew 9% over the prior year including a net benefit of approximately 1% from Streamline-driven activities and unfavorable foreign currency translation of nearly 1%
- Streamline-driven activities include the consolidation of the acquired East China business, partially offset by licensing our CPG and foodservice businesses to Nestlé following the close of the deal on August 26, 2018 and the sale of the Tazo brand
- GAAP operating margin, inclusive of restructuring and impairment charges, declined 310 basis points year-over-year to 15.3% primarily due to Streamline-driven activities and partner (employee) investments
- Non-GAAP operating margin of 17.4% declined 180 basis points compared to the prior year
- GAAP Earnings Per Share of $0.61, down 61% over the prior year
- Non-GAAP EPS of $0.75, up 15% over the prior year, included a $0.07 benefit from discrete income tax items
- The company returned $5.5 billion to shareholders through a combination of share repurchases and dividends
- Starbucks RewardsTM loyalty program grew to 16.3 million active members in the U.S., up 14% year-over-year