DALLAS, June 29, 2020 /PRNewswire/ — RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the third quarter of fiscal 2020 ended March 29, 2020.
Third Quarter Highlights:
- Pizza Inn domestic comparable store retail sales decreased 7.8% in the third quarter of fiscal 2020 compared to the same period of the prior year.
- Pie Five comparable store retail sales decreased 21.4% in the third quarter of fiscal 2020 compared to the same period of the prior year.
- Total revenue decreased by $0.4 million to $2.7 million for the third quarter of fiscal 2020 compared to the same period of the prior year.
- Loss before taxes was $0.5 million for the third quarter of fiscal 2020 compared to a $0.3 million loss for the same period of the prior year.
- The Company recorded net loss of $4.5 million for the third quarter of fiscal 2020 compared to net loss of $0.3 million for the same period of the prior year primarily due to a $4.3 million increase in the reserve against net deferred tax assets;
- On a fully diluted basis, net loss increased $0.28 per share to $0.30 per share for the third quarter of fiscal 2020 compared to $0.02 per share for the same period of the prior year.
- Adjusted EBITDA for the third quarter of fiscal 2020 decreased $0.2 million from the same period of the prior year.
- Cash and cash equivalents decreased $0.4 million during the third quarter of fiscal 2020 to $1.5 million at March 29, 2020.
- Pizza Inn domestic unit count finished at 152.
- Pizza Inn international unit count finished at 37.
- Pie Five domestic unit count finished at 43.
“During this unprecedented time for the restaurant industry, I’m extremely proud of how our franchisees and team members have responded,” said Brandon Solano, Chief Executive Officer of Rave Restaurant Group, Inc. “I’ve been inspired by our system’s resilience and their tireless efforts to ensure that our restaurants remain a safe place to work and dine during the Coronavirus outbreak. Additionally, we have taken extensive measures to protect Rave’s financial stability. We looked at all areas to reduce expenses, including furloughing two-thirds of our support staff and an across-the-board 20% pay reduction for all other employees and executive leadership late in the third quarter. I am grateful for our team’s sacrifices and the continued support of our guests and communities.”
June, 24 2020
Del Taco Restaurants, Inc. (NASDAQ: TACO), the second largest Mexican-American quick service restaurant chain by units in the United States, today reported preliminary unaudited sales results for the 12-week period ending June 16, 2020 and provided a liquidity update.
John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “We are pleased that our system demonstrated sequential improvement in comparable restaurant sales trends throughout the second fiscal quarter, which we will look to build upon in the weeks and months ahead. This sales momentum helped enhance our liquidity as we recently reduced our outstanding revolving credit facility borrowing to $145 million, consistent with the balance at the end of fiscal year 2019. Notably, our franchised restaurants across a broad 14-state footprint achieved positive comparable restaurant sales growth during the last five weeks of the quarter, representing a more than 30% swing compared to the first three weeks of the fiscal quarter.”
Cappasola concluded, “We have leveraged our QSR+ strengths during the pandemic through our no contact or limited contact channels, lack of reliance upon dining rooms, and of course, Del Taco’s strong heritage of great value and variety. Our team members and franchise partners have done an incredible job rising to unique challenges and, looking ahead, we believe Del Taco is well positioned to accelerate performance.”
Fiscal Second Quarter 2020 Comparable Restaurant Sales
|Twelve weeks||Four weeks||Four weeks||Four weeks|
|June 16, 2020||April 21, 2020||May 19, 2020||June 16, 2020|
The results in the table above are compared to the comparable prior year period.
Other Fiscal Second Quarter 2020 Sales Highlights
- Total revenue of $104.5 million, representing a 14.0% decline from the fiscal second quarter 2019;
- Company-operated restaurant sales of $95.2 million, representing a 15.2% decline from the fiscal second quarter 2019; and
- At the end of the fiscal second quarter there was one franchise restaurant temporarily closed.
The expected sales results are preliminary and unaudited, have not been reviewed by our independent registered public accountants, and remain subject to the completion of normal quarter-end accounting procedures and adjustments and are subject to change.
Cash and Liquidity
During the fiscal second quarter the Company reduced its outstanding revolving credit facility borrowing down to $145 million, consistent with the balance at the end of fiscal year 2019, and the Company currently has over $6 million in cash on hand. The remaining availability under the revolving credit facility is currently $87.7 million.
Key Financial Definitions
Comparable restaurant sales growth reflects the change in year-over-year sales for the comparable company, franchise and total system restaurant base. Restaurants are included in the comparable store base in the accounting period following its 18th full month of operations and excludes restaurant closures.
About Del Taco Restaurants, Inc.
Del Taco (NASDAQ: TACO) offers a unique variety of both Mexican and American favorites such as burritos and fries, prepared fresh in every restaurant’s working kitchen with the value and convenience of a drive-thru. Del Taco’s menu items taste better because they are made with quality ingredients like fresh grilled chicken and carne asada steak, hand-sliced avocado, hand-grated cheddar cheese, slow-cooked beans made from scratch, and creamy Queso Blanco. The brand’s campaign further communicates Del Taco’s commitment to providing guests with the best quality and value for their money through cooking, chopping, shredding and grilling menu items from scratch. Founded in 1964, today Del Taco serves more than three million guests each week at its approximately 600 restaurants across 15 states.
June, 25 2020
Darden Restaurants, Inc., (NYSE: DRI) today reported its financial results for the fourth quarter and fiscal year ended May 31, 2020, which included a 53rd week of operations compared to 52 weeks last year.
Statement from Gene Lee, CEO.
The strategy we put in place five years ago helped us successfully navigate one of the most challenging periods in our Company’s history. When our dining rooms closed, our operators did an amazing job of reimagining the guest experience by staying true to our back-to-basics operating philosophy.
We benefited greatly from our competitive advantages that form the foundation of our strategy, especially our scale and our culture. Our scale allowed us to quickly react to constant change, while our team members displayed tremendous innovation, flexibility and passion as they continued to serve our guests. I’m incredibly proud of our teams and that our culture grew stronger during this time.
The full-service restaurant industry plays a vital role in our communities. As our industry continues to rebuild, there is significant opportunity to increase market share. Those executing at the highest level are going to win, and Darden is well positioned to take advantage of the opportunity.
Fourth Quarter 2020 Financial Highlights From Continuing Operations, Compared to Fourth Quarter Last Year
- Total sales decreased 43.0% to $1.27 billion driven by negative blended same-restaurant sales of 47.7%, which was partially offset by an extra week of operations and the addition of 19 net new restaurants
- Same-restaurant sales by segment and brand:
|(39.2)% for Olive Garden||(63.1)% for the Fine Dining||(65.4)% for the Other Business|
|(45.3)% for LongHorn Steakhouse||(62.5)% for The Capital Grille||(58.5)% for Cheddar’s Scratch Kitchen|
|(65.2)% for Eddie V’s||(70.7)% for Yard House|
|(69.9)% for Seasons 52|
|(66.1)% for Bahama Breeze|
- Reported diluted net loss per share was $3.85 as compared to reported diluted net earnings per share of $1.67 last year
- Adjusted diluted net loss per share was $1.24, after excluding approximately $2.61 primarily related to non-cash impairments on goodwill and trademark balances, restaurant-level and other assets, as compared to adjusted diluted net earnings per share of $1.76 last year*
|* See the “Non-GAAP Information” below for more details|
Fiscal 2020 Financial Highlights From Continuing Operations, Compared to Fiscal 2019
- Total sales decreased 8.3% to $7.81 billion driven by negative blended same-restaurant sales of 11.0%, which was partially offset by the addition of 19 net new restaurants
- Same-restaurant sales by segment and brand:
|(8.6)% for Olive Garden||(13.9)% for the Fine Dining||(17.9)% for the Other Business|
|(8.8)% for LongHorn Steakhouse||(13.6)% for The Capital Grille||(17.1)% for Cheddar’s Scratch Kitchen|
|(15.2)% for Eddie V’s||(17.3)% for Yard House|
|(18.7)% for Seasons 52|
|(20.1)% for Bahama Breeze|
- Reported diluted net loss per share was $0.40 as compared to reported diluted net earnings per share of $5.73 last year
- Adjusted diluted net earnings per share was $3.13, after excluding approximately $3.53 primarily related to non-cash impairments on goodwill and trademark balances, restaurant-level and other assets as well as non-cash pension settlement charges, as compared to adjusted diluted net earnings per share of $5.82 last year*
|* See the “Non-GAAP Information” below for more details|
Segment profit represents sales, less costs for food and beverage, restaurant labor, restaurant expenses and marketing expenses. Beginning in fiscal 2020, our calculation of segment profit now excludes non-cash real estate related expenses. Fiscal 2019 segment profit has been restated to conform to the current year presentation.
NEW YORK–(BUSINESS WIRE)–Ark Restaurants Corp. (Nasdaq:ARKR) today reported financial results for the second quarter ended March 28, 2020 and announced that the Company’s Board of Directors has suspended the declaration and payment of the quarterly dividend until such time as it deems appropriate to reinstate.
The Company’s 2020 fiscal year started strong with revenues and same store sales up 7.3% and 3.5%, respectively for the first quarter compared to the prior year and continuing through February. However, as the novel Coronavirus (“COVID-19”) rapidly spread throughout the world and to the United States we began to experience the impacts of COVID-19 during March 2020, resulting in a decline in traffic in early March and the government mandated temporary closures of all of our restaurants during the last two weeks of March 2020, with all locations closed as of March 28, 2020. In addition to the decrease in restaurant revenue from the closures, the Company estimates that it incurred approximately $700,000 of costs directly related to COVID-19 in the 13 weeks ended March 28, 2020 consisting primarily of payments to employees for paid-time off during restaurant closures, inventory waste, and rent and rent related costs for closed restaurants from the day that they closed.
In response to these business disruptions and liquidity concerns caused by the COVID-19 pandemic, the Company took the following actions:
- Furloughed all hourly employees and approximately 95% of restaurant management personnel, while enacting temporary salary reductions for all remaining restaurant management personnel. In addition, the Company temporarily reduced the pay of all corporate and administrative staff by 50% to 75%, temporarily reduced senior management salaries by 75% to 95%, and temporarily suspended all board fees.
- Subsequent to the second quarter of 2020, the Company entered into a Payment Suspension Agreement with its bank which deferred all monthly interest payments through June 1, 2020 and deferred aggregate principal payments of $675,000 due on June 1, 2020 to the respective loan maturity dates. In addition, our bank agreed to relaxed financial covenants through fiscal Q3 2021.
- Indefinitely deferred the payment of the $0.25 dividend declared on March 2, 2020.
- Suspended future dividend payments until such time as the Board deems appropriate to reinstate.
- Canceled or delayed all non-essential capital expenditures.
- Suspended the vast majority of lease payments for the months of April, May and June 2020 and is currently in negotiations for rent concessions, abatements and deferrals with its landlords to reduce these lease payments. While some landlords have agreed to certain concessions subsequent to quarter end, there can be no assurance that the Company will be successful in obtaining all, or any, of the relief it is continuing to seek.
- Certain Company subsidiaries applied for and received an aggregate of approximately $14.9 million of loans under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which was enacted March 27, 2020 (see below).
- Utilized additional provisions of the CARES Act to obtain tax savings as well as the deferral of our portion of social security taxes to future years.
The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Management is continually evaluating the impact of the global crisis on its financial condition, liquidity, operations, suppliers, industry, and workforce and will take additional actions as necessary. The disruption in operations has led the Company to consider the impact of the COVID-19 pandemic on its liquidity, debt covenant compliance, and recoverability of long-lived and ROU assets, goodwill and intangible assets, among others. If these disruptions continue, the Company expects a continued material negative impact on its consolidated financial condition, future results of operations and liquidity. The extent of such negative impact will be determined, in part, by the longevity and severity of the pandemic.