Financial Overview – February 2019

Ark Restaurants Announces Financial Results for the First Quarter of 2019

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.

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Restaurant Brands International Inc. Reports Full Year and Fourth Quarter 2018 Results

Feb 11, 2019, 06:30 ET

RBI achieves consolidated 2018 system-wide sales growth of 7.4%, and increases 2019 dividend target by 11%
TIM HORTONS® comparable sales in Canada accelerates in Q4 to 2.2%, driven by the ‘Winning Together’ plan
BURGER KING® delivers strong global net restaurant growth, with 2018 net openings of over 1,000 restaurants
POPEYES® continues double-digit profitability growth through accelerated restaurant expansion

TORONTO, Feb. 11, 2019 /PRNewswire/ – Restaurant Brands International Inc. (TSX/NYSE: QSR, TSX: QSP) today reported financial results for the full year and fourth quarter ended December 31, 2018.

Jose Cil, Chief Executive Officer of Restaurant Brands International Inc. (“RBI”) commented, “I am pleased to report that our business continued to deliver strong system-wide sales growth in 2018, driven by acceleration of net restaurant growth at Burger King and Popeyes and improved momentum in comparable sales at Tim Hortons through our ‘Winning Together’ plan. We have demonstrated our increased focus on technology and made notable progress against many of our initiatives including delivery, kiosks, and mobile app development. Throughout the year, we continued to maintain a balanced approach to capital allocation through our increased dividend, share repurchases, and reinvestment in our brands, illustrating our confidence in the long-term growth potential of our business. We remain focused on further growing franchisee profitability and improving guest experience, which we believe will drive value for all of our stakeholders for many years to come.”

2018 Growth and Profitability Highlights:

  • System-wide Sales Growth of 7.4%
  • Net Restaurant Growth of 5.5%
  • Diluted EPS of $2.42 versus $2.54 in prior year
  • Adjusted Diluted EPS of $2.63 versus $2.10 in prior year
  • Net Income Attributable to Common Shareholders and Noncontrolling Interests of $1,143 million versus $1,211 million in prior year
  • Adjusted EBITDA of $2,212 million increased 4.1% organically versus the prior year on a combined basis (including a full year of Popeyes in both periods)

Dividend Update:

  • RBI announced that its board of directors declared a dividend of $0.50 per common share and partnership exchangeable unit of Restaurant Brands International Limited Partnership (“RBI LP”) for the first quarter of 2019
  • In connection with the declared dividend, RBI also announced that it is targeting a total of $2.00 in dividends per common share and partnership exchangeable unit of RBI LP for 2019

View full version at https://www.prnewswire.com/news-releases/restaurant-brands-international-inc-reports-full-year-and-fourth-quarter-2018-results-300792874.html

Good Times Restaurants Reports Q1 Results

Total Revenues increased 11% to $25.4 million in Q1
Company announces buyout of JV partners
Company reaffirms fiscal 2019 guidance
Conference Call Thursday, February 7, 2019, at 3:00 p.m. MST/5:00 p.m. EST

DENVER–(BUSINESS WIRE)–Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Good Times Burgers & Frozen Custard, a regional quick service restaurant chain focused on fresh, high quality, all natural products and Bad Daddy’s Burger Bar, a full service, upscale concept today announced its preliminary unaudited financial results for the first fiscal quarter ended December 25, 2018.

Key highlights of the Company’s financial results include:

  • Total revenues increased 11% to $25,370,000 for the quarter
  • Total Restaurant Sales for Bad Daddy’s restaurants increased 21.8% to $18,250,000 and Bad Daddy’s Restaurant Level Operating Profit* (a non-GAAP measure) was $2,738,000 or 15.0% as a percent of sales
  • Same store sales for company-owned Bad Daddy’s restaurants increased 0.2% for the quarter on top of last year’s increase of 0.7%
  • The Company opened one new Bad Daddy’s restaurant during the quarter
  • Total Restaurant Sales for Good Times restaurants were $6,897,000 and Good Times Restaurant Level Operating Profit* (a non-GAAP measure) was $785,000 or 11.4% as a percent of sales
  • Net Loss Attributable to Common Shareholders was $1.1 million for the quarter
  • Adjusted EBITDA* (a non-GAAP measure) for the quarter was $767,000
  • The Company ended the quarter with $2.4 million in cash and $10.2 million drawn against its senior credit facility
  • Subsequent to the end of the quarter the Company announced that it has purchased the non-controlling interests in three existing Bad Daddy’s restaurants in the Raleigh, NC market

Boyd Hoback, President & CEO, said, “During our first quarter, while we continued to post favorable same store sales results for Bad Daddy’s, our Good Times same store sales were significantly impacted by more inclement weather compared to the prior year and were down 5.2% during the quarter. Two Bad Daddy’s restaurants that were opened at the very end of fiscal 2018 and the one opened during the quarter have had slower starts as compared to the bigger honeymoon periods we experienced on new stores in fiscal 2018. However, subsequent to the end of the quarter we opened our fourth store in the Raleigh, NC market which has again experienced significantly above average weekly sales during its first four weeks. We are also reporting the purchase of the non-controlling interests in the other three restaurants in the Raleigh market, which is our highest average unit sales market in the system. We paid approximately $3 million for the trailing twelve-month cash flow of approximately $600,000 and we believe we can improve that cash flow stream by an additional 25% with more control over the restaurants by the end of the fiscal year, which would equate to an effective multiple of approximately four times cash flow.”

Commenting on the Company’s earnings guidance, Ryan Zink, Chief Financial Officer, stated, “We are generally reaffirming our guidance, which calls for Adjusted EBITDA of approximately $6.0 to $6.5 million and the opening of five new Bad Daddy’s restaurants for the 2019 fiscal year. Due to the acquisition of the Raleigh-area non-controlling interests, our expected total capital expenditures and end-of-year balance on our credit facility have each increased by approximately $3 million.”

View full version at https://www.businesswire.com/news/home/20190207005855/en/Good-Times-Restaurants-Reports-Q1-Results

Yum! Brands Reports Fourth-Quarter GAAP Operating Profit Decline of (39)%; Fourth-Quarter Core Operating Profit Growth of +5%; On Track with Strategic Transformation to Accelerate Growth

Yum! Brands Reports Fourth-Quarter GAAP Operating Profit Decline of (39)%; Fourth-Quarter Core Operating Profit Growth of +5%; On Track with Strategic Transformation to Accelerate Growth

LOUISVILLE, Ky.–(BUSINESS WIRE)–Yum! Brands, Inc. (NYSE: YUM) today reported results for the fourth-quarter and year ended December 31, 2018. Fourth-quarter GAAP EPS was $1.04, a decrease of (17)%. Full-year GAAP EPS was $4.69, an increase of 24%. Fourth-quarter EPS excluding Special Items was $0.40, a decrease of (58)%. Full-year EPS excluding Special Items was $3.17, an increase of 7%.

GREG CREED & DAVID GIBBS COMMENTS

Greg Creed, CEO, said, “I am very proud of what we have been able to accomplish in just two short years since we announced the transformation of Yum!. In 2018, our diverse portfolio of iconic brands generated over $49 billion in system sales and ended the year with over 48,000 restaurants. Focus on our four growth drivers, increased collaboration and a new mindset are fueling strong results. During 2018, system sales grew 5% with same store sales growth of 2%, and net unit growth of 4%, excluding the impact of Telepizza. Combined across our brands and led by over 2,000 world-class franchisees, we opened a record 8 gross new restaurants per day across the globe in 2018. As we move into 2019, we will continue to pursue even more growth, leverage our unprecedented scale, and maximize value for all Yum! stakeholders.”

David Gibbs, President, COO and CFO, continued, “Fourth-quarter results were a strong finish to a solid year, and serve as a healthy foundation for our 2019 guidance. I am also pleased that we made significant progress on our transformation commitments in 2018, having achieved our goal of becoming at least 98% franchised. Our commitment to being more focused, more franchised and more efficient is strengthening our enviable business model. Yum! is well positioned to leverage our massive scale and expand our capabilities in order to improve franchise unit economics and accelerate growth.”

FOURTH-QUARTER HIGHLIGHTS
• Worldwide system sales excluding foreign currency translation grew 6%, with Taco Bell at 9%, KFC at 7% and Pizza Hut at 2%.
• We opened 865 net new units and added 1,282 Telepizza units for 7% net unit growth.
• We refranchised 331 restaurants, including 227 KFC and 104 Taco Bell units, for pre-tax proceeds of $380 million. We recorded net refranchising gains of $255 million in Special Items. As of quarter end, our global franchise ownership mix increased to 98%.
• We repurchased 7.8 million shares totaling $696 million at an average price of $90.
• We reflected the change in fair value of our investment in Grubhub by recording $171 million of pre-tax investment expense, resulting in a negative ($0.41) impact to EPS on the quarter.
• Foreign currency translation unfavorably impacted divisional operating profit by $14 million.

FULL-YEAR HIGHLIGHTS
• Worldwide system sales excluding foreign currency translation grew 5%, with KFC at 6%, Taco Bell at 6% and Pizza Hut at 1%.
• We opened 1,757 net new units and added 1,282 Telepizza units for 7% net unit growth.
• We refranchised 660 restaurants, including 364 KFC, 97 Pizza Hut and 199 Taco Bell units, for pre-tax proceeds of $825 million, recording net refranchising gains of $540 million in Special Items.
• We repurchased 28.2 million shares totaling $2.4 billion at an average price of $85.
• We reflected the change in fair value of our investment in Grubhub by recording $14 million of pre-tax investment income, resulting in a positive $0.03 impact to EPS on the year.
• Foreign currency translation favorably impacted divisional operating profit by $1 million.

View full version at https://www.businesswire.com/news/home/20190207005274/en/Yum%21-Brands-Reports-Fourth-Quarter-GAAP-Operating-Profit

Dunkin’ Brands Reports Fourth Quarter and Fiscal Year 2018 Results

Feb 07, 2019, 06:00 ET

CANTON, Mass., Feb. 7, 2019 /PRNewswire

Fiscal year 2018 highlights include:

  • Dunkin’ U.S. comparable store sales growth of 0.6%
  • Baskin-Robbins U.S. comparable store sales decline of 0.6%
  • Added 392 net new restaurants worldwide, including 278 net new Dunkin’ locations in the U.S.
  • Revenues increased 3.6%
  • Diluted EPS of $2.71, a decrease of 7.8% driven by the impact of tax reform in the prior year
  • Diluted adjusted EPS increased 40.1% to $2.90

Fourth quarter highlights include:

  • Flat Dunkin’ U.S. comparable store sales
  • Baskin-Robbins U.S. comparable store sales decline of 3.7%
  • Added 148 net new Dunkin’ and Baskin-Robbins locations globally, including 106 net new Dunkin’ locations in the U.S.
  • Revenues increased 1.5%
  • Diluted EPS of $0.64, a decrease of 56.5% driven by the impact of tax reform in the prior year
  • Diluted adjusted EPS increased by 41.7% to $0.68

 

Dunkin’ Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin’ and Baskin-Robbins (BR), today reported results for the fourth quarter and fiscal year ended December 29, 2018.

“In 2018 we made substantial progress with our Blueprint for Growth designed to evolve Dunkin’ U.S. into a beverage-led, on-the-go brand. Along with making an unprecedented investment into the business, we implemented a deliberate sequencing of strategic initiatives including simplifying our menu nationwide, making our first foray into national value, debuting our NextGen new store design, unveiling our new Dunkin’ brand identity, and successfully relaunching our espresso beverages served at the speed of Dunkin’,” said David Hoffmann, Dunkin’ Brands Chief Executive Officer and President of Dunkin’ U.S.  “While we did not drive consistent traffic momentum for the full year, we laid the foundation for future growth and, most importantly, along with our franchisees, are unified and well-positioned to capitalize in 2019 on our brand promise of ‘great coffee, fast.'”

“We are pleased to have delivered our revenue, operating income, and earnings per share targets for 2018,” said Kate Jaspon, Dunkin’ Brands Chief Financial Officer. “We also achieved our Dunkin’ U.S. net development goal for the year, including delivering more than double the expected number of NextGen restaurants and exceeding our first-year sales goals for new restaurants. Additionally, we announced this morning that the Board of Directors increased our quarterly dividend by nearly 8 percent over the prior quarter.”

See full version at https://www.prnewswire.com/news-releases/dunkin-brands-reports-fourth-quarter-and-fiscal-year-2018-results-300791119.html

Chipotle Announces Strong Fourth Quarter 2018 Results

COMP SALES UP 6.1%, AS TRANSACTIONS ACCELERATE

DIGITAL SALES SURPASS HALF A BILLION DOLLARS FOR FULL YEAR 2018

Feb 06, 2019, 16:10 ET

NEWPORT BEACH, Calif.Feb. 6, 2019 /PRNewswire/ — Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its fourth quarter and year ended December 31, 2018.

Fourth quarter highlights, year over year:

  • Revenue increased 10.4% to $1.2 billion
  • Comparable restaurant sales increased 6.1%, which included 2.0% of comparable restaurant transactions growth
  • Digital sales grew 65.6% and accounted for 12.9% of sales
  • Restaurant level operating margin was 17.0%, an increase from 14.9%
  • Diluted earnings per share was $1.15, a 25.8% decrease from $1.55. Adjusted diluted earnings per share was $1.72, excluding the impact of restaurant closure costs, corporate restructuring, and certain other costs, a 11.0% increase from $1.55.1
  • Opened 40 new restaurants and closed or relocated 12

Full year 2018 highlights, year over year:

  • Revenue increased 8.7% to $4.9 billion
  • Comparable restaurant sales increased 4.0%, net of a 0.8% decline in comparable restaurant transactions
  • Digital sales grew 42.4% and accounted for 10.9% of sales
  • Restaurant level operating margin was 18.7%, an increase from 16.9%
  • Diluted earnings per share was $6.31, a 2.3% increase from $6.17. Adjusted diluted earnings per share was $9.06, excluding the impact of restaurant closure costs, corporate restructuring, and certain other costs, a 33.0% increase from $6.811
  • Opened 137 new restaurants and closed or relocated 54

1 Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.

“I’m very pleased to report strong fourth quarter results with 6.1% comparable restaurant sales growth that included 2% transaction growth. For the full year, Chipotle’s average unit volumes exceeded $2 million with digital sales surpassing half a billion dollars,” said Brian Niccol, Chief Executive Officer, Chipotle. “The growth acceleration this quarter gives us confidence that our strategy is working. When we connect with guests through great operations, relevant marketing focused on Chipotle’s great taste and real ingredients, and provide more convenient access, they respond enthusiastically.”

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RAVE Restaurant Group, Inc. Reports Second Quarter 2019 Financial Results

RAVE reports growth in comparable store retail sales and net income

Feb 06, 2019, 08:00 ET

DALLASFeb. 6, 2019 /PRNewswire/ — RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the second quarter of fiscal 2019 ended December 23, 2018.

Second Quarter Highlights:

  • RAVE total comparable store domestic retail sales increased 0.8% in the second quarter of fiscal 2019 compared to the same period of the prior year.
  • Pizza Inn domestic comparable store retail sales increased 2.7% in the second quarter of fiscal 2019 compared to the same period of the prior year, while total Pizza Inn domestic retail sales increased 1.8%.
  • Pie Five comparable store retail sales decreased 3.6% in the second quarter of fiscal 2019 compared to the same period of the prior year, while total system-wide Pie Five retail sales decreased 11.5% primarily due to a decrease in average units open during the quarter.
  • Total revenue decreased by $1.0 million to $3.2 million for the second quarter of fiscal 2019 compared to $4.2 million for the same period of the prior year primarily driven by reduced Company-owned restaurant count and retail sales.
  • Net income improved by $0.8 million to $0.2 million for the second quarter of fiscal 2019 compared to a net loss of $0.6 million for the same period of the prior year.
  • On a fully diluted basis, the Company had net income of $0.02 per share for the second quarter of fiscal 2019 compared to a net loss of $0.04 per share for the same period of the prior year.
  • Adjusted EBITDA of $0.6 million for the second quarter of fiscal 2019 increased $0.7 million from the same period of the prior year.
  • Pizza Inn domestic unit count finished at 148.
  • Pizza Inn international unit count finished at 48.
  • PIE domestic unit count finished at 7.
  • Pie Five domestic unit count finished at 65.

“We’re proud to deliver our third consecutive quarter of growth in comparable store sales and profitability,” said Scott Crane, Chief Executive Officer for RAVE Restaurant Group, Inc. “Our second quarter results demonstrate that our strategic plan is firmly on track. With the recent promotions of Bob Bafundo to President and Andrea Allen to Chief Accounting and Administrative Officer at Rave, we feel we have a talented team in place to build success.  Bob has been instrumental in shoring up our franchise base at Pizza Inn and has already made great strides with Pie Five franchisees. Investments in new menu offerings, updated technologies, and operational processes give us confidence in our ability to continue to deliver results for our consumers, franchisees, and shareholders. Our teams continue to focus on sales growth for all of our brands and we are adding franchise development resources to continue expansion of Pizza Inn, Pie Five, and our newest concept, PIE.”

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Papa John’s Announces $200 Million Strategic Investment from Starboard and Appointment of Three New Directors to Papa John’s Board, Including Jeffrey C. Smith as Chairman

New Directors to Bring Substantial Restaurant, Hospitality, Operational Turnaround, Corporate Governance and Corporate Finance Expertise

Additional Financial Resources and New Expertise to Support Company’s Strategic Priorities and Better Position Papa John’s for Growth and Value Creation

Company Announces Preliminary, Unaudited Selected Results for Fourth Quarter of 2018 and Comparable Sales for January 2019

February 04, 2019 07:00 AM Eastern Standard Time

LOUISVILLE, Ky.–(BUSINESS WIRE)–Papa John’s International, Inc. (NASDAQ: PZZA) today announced that it has entered into a securities purchase agreement with Starboard Value LP (together with its affiliates, “Starboard”) pursuant to which Starboard is making a $200 million strategic investment in the Company with the option to make an additional $50 million investment through March 29, 2019, as described below.

In connection with the investment, the Papa John’s Board of Directors is expanding to include two new independent directors, including Jeffrey C. Smith, Chief Executive Officer of Starboard, who has been appointed Chairman of the Papa John’s Board, and Anthony M. Sanfilippo, former Chairman and Chief Executive Officer of Pinnacle Entertainment, Inc. These directors bring substantial experience in the restaurant, retail and hospitality industries, with skill sets spanning operational turnarounds, corporate finance and corporate governance. Their expertise and new perspectives will help support the Company’s strategy to capitalize on its differentiated “BETTER INGREDIENTS. BETTER PIZZA.” market position and build a better pizza company for the benefit of its shareholders, team members, franchisees and customers. In addition, Papa John’s President and Chief Executive Officer Steve Ritchie has been appointed to the Board. With the addition of the new directors, the Board will comprise nine directors, seven of whom are independent.

In September 2018, the Company began a process to evaluate a wide range of strategic options with the goal of maximizing value for all shareholders and serving the best interest of the Company’s stakeholders. In order to execute the strategic review, a Special Committee comprised of the independent directors of the Board retained Lazard and BofA Merrill Lynch as its financial advisors. After extensive discussions with a wide group of strategic and financial investors, the Board concluded that the investment agreement with Starboard was in the best interest of shareholders.

“Our agreement with Starboard concludes a comprehensive strategic review conducted over the past five months to better position Papa John’s for growth, improve the Company’s financial performance and serve the best interests of our stakeholders. This transaction provides the Company with financial resources and strong and experienced directors on the Board in order to position the Company for success over the long term. We believe we have found terrific partners to advance Papa John’s strategy, especially given their record of reinvigorating and growing premier restaurant and consumer brand companies,” said Olivia Kirtley, a member of the Special Committee and most recently Chairman of the Papa John’s Board. “Starboard’s investment represents a strong vote of confidence in Papa John’s, our people, our franchisees and the many opportunities we have ahead. We are excited to work with Jeff as our new Chairman and look forward to welcoming Anthony and Steve to the Board.”

Mr. Ritchie commented, “Our agreement with Starboard marks an exciting step forward for Papa John’s. I look forward to working with Jeff and Anthony, as well as the rest of our Board and team, to extend our focus on Better to our people, franchisees and customers in new ways, thereby fortifying Papa John’s position as the ‘BETTER INGREDIENTS. BETTER PIZZA.’ company.”

View full version at https://www.businesswire.com/news/home/20190204005320/en/Papa-John%E2%80%99s-Announces-200-Million-Strategic-Investment

Yum China Reports Fourth Quarter and Fiscal Year 2018 Results

Jan 31, 2019, 16:30 ET

Fourth quarter total revenues grew 2% or 7% in constant currency;

Fourth quarter total system sales grew 6% and same-store sales grew 2% in constant currency;

Opened 819 gross new stores in 2018

SHANGHAIJan. 31, 2019 /PRNewswire/ — Yum China Holdings, Inc. (the “Company” or “Yum China“) (NYSE: YUMC) today reported unaudited results for the fourth quarter and year ended December 31, 2018. Reported GAAP results include Special Items, which are excluded from adjusted measures.  Special Items are not allocated to any segment and therefore only impact reported GAAP results of Yum China.  See “Reconciliation of Reported GAAP Results to Adjusted Measures” within this release.

Fourth Quarter Highlights

  • Total revenues increased 2% year over year to $1.91 billion from $1.87 billion (7% year over year increase excluding foreign currency translation (“F/X”)).
  • Total system sales grew 6% year over year, with 9% growth at KFC partially offset by a 2% decline at Pizza Hut, excluding F/X.
  • Same-store sales grew 2% year over year, with a 3% increase at KFC and a 4% decrease at Pizza Hut, excluding F/X.
  • Restaurant margin was 11.5%, as compared with 11.6% in the prior year period.
  • Operating Profit increased 77% year over year to $84 million from $47 million (84% year over year increase excluding F/X).
  • Reported an impairment charge of $12 million on intangible assets acquired from DAOJIA.com.cn (“Daojia”). Excluding this special item, Adjusted Operating Profit increased to $96 million from $47 million in the prior year period.
  • Net Income increased to $74 million from a net loss of $107 million in the prior year period.
  • Recognized a tax benefit of $36 million in the fourth quarter 2018 as a result of adjusting the provisional amount of transition tax related to US tax reform previously recorded in fourth quarter 2017. Excluding the one-time tax benefit and the Daojia impairment, Adjusted Net Income decreased 19% to $46 million, primarily driven by the mark to market loss of $27 million on our equity investment in Meituan Dianping.
  • Diluted EPS increased to $0.19 from negative $0.28 in the prior year period. Adjusted Diluted EPS decreased 14% to $0.12 from $0.14 in the prior year period (36% year over year increase excluding the mark to market loss impact of our equity investment in Meituan Dianping).

Full Year Highlights

  • Total revenues increased 8% year over year to $8.42 billion from $7.77 billion (6% year over year increase excluding F/X).
  • Total system sales grew 5% year over year, with 7% growth at KFC partially offset by a 1% decline at Pizza Hut, excluding F/X.
  • Same-store sales increased 1% year over year, with a 2% increase at KFC and a 5% decrease at Pizza Hut, excluding F/X.
  • Restaurant margin was 15.7%, as compared with 16.7% in the prior year.
  • Operating Profit increased 21% year over year to $941 million from $778 million (16% year over year increase excluding F/X). Adjusted Operating Profit increased 10% year over year to $855 million from $775 million (6% year over year increase excluding F/X).
  • Net Income increased 78% to $708 million from $398 million in the prior year (70% year over year increase excluding F/X). Adjusted Net Income increased 9% to $606 million from $559 million in the prior year (4% year over year increase excluding F/X).
  • Effective tax rate was 22.6%. Excluding the adjustment made in the fourth quarter 2018 to the provisional amount of transition tax related to US tax reform previously recorded in 2017, the effective tax rate was 26.5%.
  • Diluted EPS increased 79% to $1.79 from $1.00 in the prior year. Adjusted Diluted EPS increased 9% to $1.53 from $1.40 in the prior year (14% year over year increase excluding the mark to market loss impact of our equity investment in Meituan Dianping).
  • Opened 819 new restaurants during the year, bringing total store count to 8,484 across more than 1,200 cities.

View full version at https://www.prnewswire.com/news-releases/yum-china-reports-fourth-quarter-and-fiscal-year-2018-results-300787338.html

McDonald’s Reports Fourth Quarter And Full Year 2018 Results And Quarterly Cash Dividend

Jan 30, 2019, 07:58 ET

CHICAGOJan. 30, 2019 /PRNewswire/ — McDonald’s Corporation today announced results for the fourth quarter and year ended December 31, 2018.

“Our performance in 2018 was strong, driven by the Velocity Growth Plan with broad-based momentum across each of our global segments. We continued to transform our business by making substantial progress on modernising our restaurants and offering more convenience, choice and value to our customers,” said McDonald’s President and Chief Executive Officer Steve Easterbrook. “We’ve now achieved 14 consecutive quarters of positive global comparable sales and our customers rewarded us with more visits in 2018, helping us to achieve two consecutive years of global guest count growth for the first time since 2012.”

Fourth quarter highlights:

  • Global comparable sales increased 4.4%, reflecting positive comparable sales across all segments.
  • Due to the impact of the Company’s strategic refranchising initiative, consolidated revenues decreased 3% (flat in constant currencies).
  • Systemwide sales increased 5% in constant currencies.
  • Consolidated operating income decreased 7% (4% in constant currencies) primarily due to non-cash impairment charges. Excluding these charges, consolidated operating income was flat (increased 3% in constant currencies).
  • Diluted earnings per share was $1.82, reflecting non-cash impairment charges of $0.18 per share, partly offset by an income tax benefit of $0.03 per share associated with the final 2018 adjustments to the provisional amounts recorded in the prior year under the Tax Cuts and Jobs Act of 2017 (“Tax Act”). Excluding these items, diluted earnings per share was $1.97, an increase of 15% (18% in constant currencies) over prior year earnings per share (excluding $0.84 per share of prior year net tax cost under the Tax Act).

Full year highlights:

  • Global comparable sales increased 4.5%, reflecting positive comparable sales across all segments.
  • Due to the impact of the Company’s strategic refranchising initiative, consolidated revenues decreased 8% (8% in constant currencies).
  • Consolidated operating income decreased 8% (8% in constant currencies). 2018 results included non-cash impairment and strategic restructuring charges. 2017 results reflected a gain on the sale of the Company’s businesses in China and Hong Kong, partly offset by restructuring and impairment charges. Excluding these items in both years, consolidated operating income increased 2% (2% in constant currencies).
  • Diluted earnings per share of $7.54 increased 18% (18% in constant currencies). Refer to the Key Highlights – Consolidated page for additional details.
  • Cash provided by operations was $7.0 billion and free cash flow was $4.2 billion, a 14% increase over the prior year.
  • The Company returned $8.5 billion to shareholders through share repurchases and dividends. In addition, the Company announced a 15% increase in its quarterly dividend to $1.16 per share beginning in the fourth quarter 2018, and increased the cash return to shareholder target for the 3-year period ending 2019 to about $25 billion.

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Brinker International Reports 2018 Q2 Results

January, 29 2019

Brinker International, Inc. (NYSE: EAT) today announced results for the fiscal second quarter ended December 26, 2018.

Highlights include the following:

  • Earnings per diluted share, on a GAAP basis, in the second quarter of fiscal 2019 increased 53.7% to $0.83 compared to $0.54 in the second quarter of fiscal 2018
  • Earnings per diluted share, excluding special items, in the second quarter of fiscal 2019 increased 2.3% to $0.89 compared to $0.87 in the second quarter of fiscal 2018 (see non-GAAP reconciliation below)
  • Brinker International’s Company sales in the second quarter of fiscal 2019 increased 2.5% to $761.5 million compared to the second quarter of fiscal 2018. Total revenues in the second quarter of fiscal 2019 increased 3.2% to $790.7 million compared to the second quarter of fiscal 2018
  • Chili’s company-owned comparable restaurant sales increased 2.9% in the second quarter of fiscal 2019 compared to the second quarter of fiscal 2018. Chili’s U.S. franchise comparable restaurant sales increased 3.4% in the second quarter of fiscal 2019 compared to the second quarter of fiscal 2018
  • Maggiano’s company-owned comparable restaurant sales increased 1.8% in the second quarter of fiscal 2019 compared to the second quarter of fiscal 2018
  • Chili’s international franchise comparable restaurant sales decreased 6.5% in the second quarter of fiscal 2019 compared to the second quarter of fiscal 2018
  • Operating income, as a percent of Total revenues, was 6.3% in the second quarter of fiscal 2019 compared to 7.1% in the second quarter of fiscal 2018 representing a decrease of approximately 80 basis points
  • Restaurant operating margin, as a percent of Company sales, was 12.4% in the second quarter of fiscal 2019 compared to 14.9% in the second quarter of fiscal 2018 (see non-GAAP reconciliation below)
  • Cash flows provided by operating activities in the first six months of fiscal 2019 was $56.2 million that included a $67.1 million cash tax payment related to the gain on the sale leaseback transactions, and capital expenditures totaled $78.7 million resulting in negative free cash flow of $(22.5) million (see non-GAAP reconciliation below). Proceeds from sale leaseback transactions of $458.0 million are included in Cash flows provided by investing activities
  • The Company’s Board of Directors approved a quarterly dividend of $0.38 per share on the common stock of the Company. The dividend will be payable March 28, 2019 to shareholders of record as of March 8, 2019

“Brinker delivered our fifth consecutive quarter of sequential sales improvement, posting positive sales and industry leading traffic,” said Wyman Roberts, Chief Executive Officer and President. “Our sustained momentum is being driven by several key factors including operational execution, takeout, and value.”

ABOUT BRINKER

Brinker International, Inc. is one of the world’s leading casual dining restaurant companies. Based in Dallas, Texas, as of December 26, 2018, Brinker owned, operated, or franchised 1,685 restaurants under the names Chili’s® Grill & Bar (1,632 restaurants) and Maggiano’s Little Italy® (53 restaurants).

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Bojangles’, Inc., Durational Capital Management and The Jordan Company Complete Acquisition

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.

For Media Inquiries:
Brian Little of Bojangles’ Restaurants, Inc.
704-519-2118

David Millar/Danya Al-Qattan
Sard Verbinnen & Co
212-687-8080

View source version at http://www.restaurantnews.com/bojangles-inc-durational-capital-management-and-the-jordan-company-complete-acquisition-012819/

Starbucks Reports Q1 Fiscal 2019 Results

January, 25 2019

Q1 Consolidated Net Revenues Up 9% to Record $6.6 Billion – Q1 Comparable Store Sales Up 4% Globally Driven by 4% Growth in the U.S.

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

 

View full version at https://www.hotelnewsresource.com/HNR-detail-sid-103705-digest-1.html