LEAWOOD, Kan.–(BUSINESS WIRE)–NPC International, Inc. (“NPC” or the “Company”) announced today that it has closed the sale transactions contemplated by its previously announced agreements with Flynn Restaurant Group (“Flynn”) and Wendy’s International, LLC (“Wendy’s”), which together have resulted in the sale of substantially all of NPC’s assets to Flynn and five current Wendy’s franchisees. The Company’s separate asset purchase agreements with Flynn and Wendy’s were previously approved by the United States Bankruptcy Court for the Southern District of Texas (the “Court”) on January 20, 2021.
“I’d like to offer my sincere thanks to our employees across our shared services, Pizza Hut and Wendy’s teams for their incredible hard work, dedication and support, especially during the past year,” said Jon Weber, CEO of NPC’s Pizza Hut and Wendy’s divisions. “I have been so proud of the way our entire NPC team rose to the occasion time after time to keep our operations running smoothly and to continue serving our guests with excellence during a restructuring process in the midst of a global pandemic. I also want to express my deep appreciation and gratitude to the NPC management team and Board of Directors for their outstanding leadership and many contributions during this time. Finally, I’d also like to thank our team of capable advisors for their expert guidance and counsel, which along with the steadfast commitment and support of our creditors, was instrumental to our ability to successfully and efficiently complete the Chapter 11 process. Looking ahead, I’m confident that our Pizza Hut and Wendy’s teams are in capable hands with their new owners. I wish them great success with both brands.”
NPC currently expects that the Company’s previously confirmed Second Amended Joint Chapter 11 Plan will be consummated and become effective in the coming days.
The asset purchase agreements and all relevant Court filings and other documents related to the sale process and the restructuring process are available at http://dm.epiq11.com/NPC; or by calling NPC’s restructuring information line at (855) 917-3563 (Toll free U.S.) or +1 (503) 502-4403 for (Non-U.S. Parties) or sending an email to NPCInquiries@epiqglobal.com.
Weil, Gotshal & Manges LLP is acting as NPC’s legal counsel, Greenhill & Co., LLC is acting as financial advisor, AlixPartners LLP is serving as restructuring advisor, A&G Realty is acting as real estate advisor to the Company, and The Cypress Group is acting as quick-service restaurant M&A advisor in connection with the transaction.
Gibson, Dunn & Crutcher LLP, Houlihan Lokey Capital, Inc., and Beyond Development Group are respectively acting as legal counsel, financial advisor, and quick-service restaurant development advisor to NPC’s senior secured lender group in connection with NPC’s restructuring.
About NPC International
NPC International, Inc., headquartered in Leawood, Kansas, was the largest franchisee of both Pizza Hut and Wendy’s as well as the second largest restaurant franchisee overall in the U.S., operating over 1,300 restaurants in 30 states and the district of Columbia.
DENVER–(BUSINESS WIRE)–The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the fourth quarter and full year ended December 31, 2020.
- Fourth quarter consolidated comparable sales* decreased 14.8%, which was comprised of a 4.2% increase in October, a 18.4% decrease in November, and a 26.4% decrease in December. Due to local mandated restrictions, the Company’s indoor seating capacity decreased through the quarter. Indoor capacity was 51% in October, 44% in November, and 38% in December.
- For STK, fourth quarter consolidated comparable sales* decreased 20.7%, which was comprised of a 0.3% increase in October, a 20.8% decrease in November, and a 36.0% decrease in December. STK comparable sales* were negatively impacted by state and local mandates which restricted private and group dining events for the quarter.
- For Kona Grill, fourth quarter consolidated comparable sales* decreased 8.0%, which was comprised of an 8.6% increase in October, a 15.8% decrease in November, and a 14.4% decrease in December.
- Year to date through March 14, 2021, two-year consolidated comparable sales* increased 0.5%, comparable sales* for STK decreased 3.0% and comparable sales* for Kona Grill increased 4.3%. For STK, excluding Las Vegas where capacity averaged less than 30%, two-year comparable sales* from January 1, 2021 through March 14, 2021 increased 10.8%.
- Takeout and delivery were approximately 15% of sales in the fourth quarter of 2020 (2.7 times higher than in the first quarter of 2020) and will continue to be a meaningful layer of the business going forward.
- As of December 31, 2020, the Company had $24.4 million in cash and cash equivalents, $47.4 million in term loan debt, and $10.7 million available on its revolving credit facility, subject to restrictions.
*Comparable sales represent total U.S. food and beverage sales at owned and managed units opened for at least a full 18-month period. This measure includes total revenue from our owned and managed locations. Revenues from locations where we do not directly control the event sales force (The W Hotel Westwood, CA) are excluded from this measure. Two-year comparable sales relates to the comparison of comparable sales for the period of 1/1/2021 through 3/14/2021 to the period of 1/1/2019 through 3/14/2019. The Company has presented two-year comparable sales to illustrate how sales at its restaurant base before the COVID-19 pandemic compare to sales as COVID-19 restrictions have eased and the Company has begun to recover lost sales.
Fourth Quarter 2020 Financial Results:
- Total GAAP revenues decreased 13.8% to $45.0 million in the fourth quarter of 2020 from $52.2 million in the fourth quarter of 2019. The decrease was primarily due to effects of the COVID-19 pandemic, including occupancy limitations in locations resuming in person dining due to state and local mandates.
- Total owned restaurant net revenues decreased 10.0% to $43.7 million in the fourth quarter of 2020 from $48.6 million in the fourth quarter of 2019. The decrease in revenue was primarily attributable to limited in-person seating due to state and local mandates. Consolidated comparable restaurant sales decreased 14.8% in the fourth quarter of 2020.
- Management, license and incentive fee revenues were $1.3 million in the fourth quarter of 2020 compared to $3.6 million in the fourth quarter of 2019. Management and license fee revenue decreased primarily as a result of temporary closures for managed locations due to COVID-19.
- Restaurant Operating Profit** was $7.0 million, or 16.0% of company-owned restaurant net revenues, in the fourth quarter of 2020 compared to $6.8 million, or 14.0% of company-owned restaurant net revenues, in the fourth quarter of 2019. The 200 basis point improvement was primarily driven by the strong management of operating costs coupled with menu development and optimizations as restaurants re-opened.
- GAAP net loss attributable to The ONE Group Hospitality, Inc. in the fourth quarter of 2020 was $4.5 million, or $0.15 net loss per share, compared to GAAP net income of $19.8 million, or $0.66 per share, in the fourth quarter of 2019. Fourth quarter 2020 net loss includes $1.7 million of incremental costs related to COVID-19 and $2.9 million for lease exit costs for restaurants never built and still under dispute with landlords.
- Adjusted EBITDA*** decreased to $4.1 million in the fourth quarter of 2020 from $6.9 million in the fourth quarter of 2019.
“Our teams did an exceptional job managing through decreased capacity and maximizing revenues while containing operating costs. This resulted in a 200 basis point increase to restaurant operating profit. In addition, we generated almost $9.0 million in Adjusted EBITDA for the second half of the year at an average indoor capacity of 45%,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.
NEW YORK, March 18, 2021 /PRNewswire/ — FAST Acquisition Corp. II (the “Company”) today announced that it had closed its initial public offering of 20,000,000 units at a price of $10.00 per unit. The units are listed on the New York Stock Exchange (the “NYSE”) and began trading under the ticker symbol “FZT.U” on March 16, 2021. Each unit consists of one share of Class A common stock of the Company and one-quarter of one redeemable warrant, with each whole warrant exercisable to purchase one share of Class A common stock at a price of $11.50 per share. Once the securities comprising the units begin separate trading, the shares of Class A common stock and warrants are expected to be listed on the NYSE under the symbols “FZT” and “FZT WS,” respectively.
FAST Acquisition Corp. II is the third special purpose acquisition company formed by the principals of &vest with the business purpose to effect a business combination with one or more businesses. While the Company may pursue an initial business combination with a company in any sector or geography, the Company intends to focus its search on the restaurant, hospitality, consumer and related sectors in North America with an enterprise value of $800 million or greater. &vest is an investment platform led by founder and CEO Doug Jacob.
Jefferies LLC acted as sole book-running manager for the offering. The Company has granted the underwriter a 45-day option to purchase up to 3,000,000 additional units at the initial public offering price to cover over-allotments, if any.
The offering was made only by means of a prospectus. Copies of the prospectus relating to the offering may be obtained by contacting Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by telephone at (877) 821-7388 or by e-mail at email@example.com.
A registration statement relating to the securities was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on March 15, 2021. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.