Ark Restaurants Announces Financial Results for the First Quarter of 2021
NEW YORK–(BUSINESS WIRE)–Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the first quarter ended January 2, 2021.
Financial Results
Total revenues for the 13-weeks ended January 2, 2021 were $20,299,000 versus $43,514,000 for the 13 weeks ended December 28, 2019. The 13 weeks ended January 2, 2021 includes revenues of $478,000, which represents four weeks of sales related to Blue Moon Fish Company, which was acquired on December 1, 2020 (see below).
As a result of state and local governments lifting mandatory shut-down requirements from May through August 2020, the Company had reopened all of its properties, with the exception of Thunder Grill in Washington, D.C. (see below), at varying levels of limited capacity as allowed by federal, state and local governments. However, indoor dining in New York City was again shut down on December 14, 2020 through February 12, 2021 at which point it was allowed at 25% maximum capacity. In Washington, DC indoor dining capacity was reduced from 50% to 25% on December 14, 2020 and then was suspended entirely on December 23, 2020 until January 22, 2021 at which point it was allowed at 25% maximum capacity. In Las Vegas indoor dining capacity was reduced from 50% to 25% of capacity in mid-December as well. In addition to government mandated shut-downs and capacity restrictions, the Company temporarily closed several restaurants, typically for three to ten days due to a high rate of positive COVID-19 tests of our employees. These closures and capacity rollbacks have had and will continue to have a material adverse impact on our operations. Accordingly, we have not presented Company-wide same store sales as they are not meaningful based on these events.
The Company’s EBITDA, adjusted for non-controlling interests and non-cash stock option expense, for the 13 weeks ended January 2, 2021 was $(2,370,000) versus $3,485,000 during the 13-week period ended December 28, 2019. Net loss for the 13-weeks ended January 2, 2021 was ($763,000) or ($0.22) per basic and diluted share, compared to net income of $1,513,000 or $0.43 per basic and diluted share, for the 13-week period ended December 28, 2019.
COVID-19 Update
The pandemic has caused and continues to cause unprecedented business disruptions, especially in the hospitality industry. Although we have experienced some recovery from the initial impact of COVID-19 in our Florida and Alabama locations, the long-term impact of COVID-19 on the economy and on our business remains uncertain, the duration and scope of which cannot currently be predicted. We continue to monitor and adhere to local restrictions and are maintaining elevated safety measures, including additional sanitation and disinfecting practices and the use of gloves and facial protection for our employees.
In addition to the decrease in restaurant revenue from the mandatory closures and operating at varying levels of limited capacity, the Company estimates that it incurred costs directly related to COVID-19 during the 13 weeks ended January 2, 2021 consisting primarily of payments to employees during restaurant closures or while they were ill due to COVID-19.
As a result of these developments, the Company is experiencing a significant negative impact on its revenues, results of operations and cash flows, and has a working capital deficiency of $(1,560,000) as of January 2, 2021. However, we believe that our existing cash balances, which include the proceeds from Paycheck Protection Program loans and actions taken by management, set out below and otherwise, will be sufficient to meet our obligations over the next 12 months.
In response to the business disruption and liquidity concerns caused by the COVID-19 pandemic, the Company has taken the following actions, which management expects will enable it to meet its obligations over the next 12 months:
- While restaurants were closed or continue to be closed, we furloughed all hourly employees and approximately 95% of salaried restaurant management personnel, while enacting salary reductions for all remaining restaurant management personnel.
- As restaurants re-opened, restaurant management salaries were restored to 70% of pre-pandemic amounts. If a location produced sustained cash flow, restaurant management salaries were restored to 100% of pre-pandemic amounts.
- Initially reduced the pay of all corporate and administrative staff by 50% to 75% and senior management salaries by 75% to 95%. As of January 2, 2021, corporate salaries continue to be at 50-65% of pre-pandemic levels. In addition, the Board waived their director fees through December 31, 2020.
- Extended the maturity date of all outstanding revolver borrowings under our credit agreement in the amount of $9,666,000 to February 17, 2022. In addition, the bank agreed to modified financial covenants through fiscal Q2 2022.
- Canceled 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 while our restaurants were closed as a result of government mandated shutdowns, and attempted to negotiate rent concessions, abatements and deferrals with these landlords to reduce the lease payments. While some landlords have agreed to concessions, several negotiations are still ongoing as of the date of this filing and we will attempt to obtain further concessions at many of our leased properties. However, there can be no assurance that the Company will be successful in obtaining the relief it is seeking.
- Certain Company subsidiaries applied for and received a total of approximately $15.0 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.
- Utilized additional provisions of the CARES Act to obtain tax savings, file carryback claims and defer a portion of our social security taxes to future years.
Due to the rapid development and fluidity of this situation, management cannot determine the ultimate impact that the COVID-19 pandemic will have on the Company’s consolidated financial condition, liquidity, future results of operations, suppliers, industry, and workforce and therefore any prediction as to the ultimate material adverse impact on the Company’s consolidated financial condition, liquidity, and future results of operations is uncertain. 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. In addition, we cannot predict how soon we will be able to reopen any or all of our restaurants at full capacity or whether they will be required to close again in the future, as these decisions will depend primarily on the actions of a number of governmental bodies over which we have no control. Moreover, once restrictions are lifted, it is unclear how quickly customers will return to our restaurants, which may be a function of continued concerns over safety and/or depressed consumer sentiment due to adverse economic conditions, including job losses. If these disruptions continue, the Company expects a continued material negative impact on its consolidated financial position, 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.
Other Matters
On November 13, 2020, the Company was advised by the landlord that it would have to vacate Gallagher’s Steakhouse and Gallagher’s Burger Bar at the Resorts Casino Hotel located in Atlantic City, NJ. which were on a month-to-month, no rent lease. The closure of these properties occurred on January 2, 2021 and did not result in a material charge to the Company’s operations.
On December 1, 2020, the Company, through a newly formed, wholly-owned subsidiary, acquired the assets of Bear Ice, Inc. and File Gumbo Inc., which collectively operated a restaurant and bar named Blue Moon Fish Company located in Lauderdale by the Sea, FL. The total purchase price of $2,820,000 was paid with cash in the amount of $1,820,000 and a four-year note held by the sellers in the amount of $1,000,000 payable monthly with 5% interest. The acquisition was accounted for as a business combination. Concurrent with the acquisition, the Company assumed the related lease which expires in 2026 and has four, five-year extension options. Rent payments under the lease are approximately $360,000 per year and increase by approximately 15% as each option is exercised.
As of January 2, 2021, the Company determined that, given the current situation, it will not reopen Thunder Grill in Washington, D.C. which has been closed since March 20, 2020. This closure did not result in a material charge to the Company’s operations.
On January 26, 2021, the Company exercised its right-of-first refusal to acquire the land, building and parking lot associated with JB’s on the Beach for $11,000,000. The agreement required the Company to fund a $3,000,000 deposit on February 12, 2021 and close by March 22, 2021. In connection with this transaction, the Company contributed its rights and interest in its right-of-first-refusal to a new entity whose managing member funded the $3,000,000 deposit and will fund the remaining $8,000,000 of the purchase price at closing. In exchange, the Company will receive an equity interest in any future real estate development of the sites. In addition, all rights and privileges under the current lease will be assigned to this new entity, as landlord and the lease terms will remain unchanged. In the event the transaction does not close, the Company is obligated to reimburse this partner the $3,000,000 deposit plus expenses.
About Ark Restaurants Corp.
Ark Restaurants owns and operates 18 restaurants and bars, 17 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, one is located in Atlantic City, New Jersey, four 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 in the Tropicana Hotel and Casino. The operation at the Foxwoods Resort Casino consists of one fast food concept. The Florida operations include the Rustic Inn in Dania Beach, Shuckers in Jensen Beach, JB’s on the Beach in Deerfield Beach, Blue Moon Fish Company in Lauderdale by the Sea and the operation of four fast food facilities in Tampa and six fast food facilities in Hollywood, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations. In Alabama, the Company operates two Original Oyster Houses, one in Gulf Shores and one in Spanish Fort.
View full version at Ark Restaurants
BJ’s Restaurants, Inc. Reports Fiscal Fourth Quarter and Fiscal 2020 Results
HUNTINGTON BEACH, Calif., Feb. 11, 2021 (GLOBE NEWSWIRE) — BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for its 2020 fourth quarter and fiscal year that ended Tuesday, December 29, 2020. The actual 2020 fourth quarter results are in line with the preliminary 2020 fourth quarter results the Company announced on January 21, 2021.
Fourth Quarter 2020 Compared to Fourth Quarter 2019
- Total revenues decreased 32.3% to $197.0 million
- Total restaurant operating weeks increased 0.6%
- Comparable restaurant sales declined 32.3%
- Net loss of $18.1 million compared to net income of $14.5 million
- Fourth quarter 2020 net loss includes a $1.3 million pretax gain related to a sale-leaseback transaction and a $1.7 million pretax impairment charge for one restaurant.
- Diluted net loss per share of $0.81 compared to diluted net income per share of $0.75
- Fourth quarter 2020 net loss per share includes a $0.05 gain related to a sale-leaseback transaction and a $0.06 impairment charge for one restaurant.
- Adjusted EBITDA of $2.4 million
Fiscal 2020 Compared to Fiscal 2019
- Total revenues decreased 33.0% to $778.5 million
- Total restaurant operating weeks increased 1.5%
- Comparable restaurant sales declined 34.0%
- Net loss of $57.9 million compared to net income of $45.2 million
- Fiscal year 2020 net loss includes a $3.3 million pretax gain related to a sale-leaseback transaction, a $2.3 million pretax gain related to settlements pertaining to credit card interchange fees and handheld tablet maintenance, and a $13.7 million pretax impairment charge for five restaurants.
- Diluted net loss per share of $2.74 compared to diluted net income per share of $2.20
- Fiscal year 2020 net loss per share includes an $0.11 gain related to a sale-leaseback transaction, an $0.08 gain related to the settlements described above, and a $0.49 impairment charge for five restaurants.
- Adjusted EBITDA of $10.3 million
“Throughout the fourth quarter, our team members continued to demonstrate an entrepreneurial spirit and unwavering commitment to serving our guests at the highest levels, which enabled us to deliver quarterly results that exceeded our expectations, despite increased dining room capacity restrictions and the closure of dining rooms and patios in our 62 California restaurants in December,” commented Greg Trojan, Chief Executive Officer. “To date, trends in January and February are encouraging, as the combination of relaxed capacity restrictions in certain markets and pent-up guest demand have led to positive sales momentum. Over the past few weeks, we re-opened patio seating in California and dine-in seating in Maryland, Michigan, and Washington, while strictly adhering to social distancing and capacity restrictions. Today approximately 144 of our restaurants have open dining rooms with some government-mandated capacity limitations, another 65 can serve our guests only on outdoor patios, and one remains temporarily closed. Our California comparable restaurant sales have improved by over 20 percentage points the last two weeks since our outdoor patios re-opened. Our total company weekly sales average increased to over $74,000 last week, compared to $66,400 in January and $60,300 in December. The recent sales performance illustrates the benefits of re-openings, even with capacity restrictions, and is another indication that our guests value BJ’s differentiated, high quality and high energy dining experience.
“While we look forward to serving more guests in our dining rooms as we emerge from the pandemic, we are also focused on leveraging a variety of additional sales initiatives to drive further traffic and sales gains in our restaurants. Our subscription-based beer club, which is currently available in eight of our Sacramento area restaurants, has been favorably received to date, and we anticipate expanding this service to additional California restaurants this spring. We also expect that our innovation around individual catering boxes developed to address pandemic-related challenges, combined with our other catering options and family meal bundles, will continue to drive momentum in this under-leveraged segment of our business. In addition, our virtual restaurant brand, focused on our slow roast and other protein offerings, continues to perform well in early test, and we expect to expand this platform later this year. These sales initiatives complement the new menu innovation and customer convenience programs that we have successfully implemented over the last several years. Coupled with the contraction in casual dining supply resulting from the pandemic and our opportunity to expand to at least 425 restaurants nationally, BJ’s has a long term roadmap to continue growing our market share and driving shareholder value for many years to come,” concluded Trojan.
Investor Conference Call and Webcast
BJ’s Restaurants, Inc. will conduct a conference call on its fourth quarter and fiscal year 2020 earnings release today, February 11, 2021, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Management will discuss the financial results and host a question and answer session. In addition, a live audio webcast of the call will be accessible to the public on the “Investors” page of the Company’s website located at http://www.bjsrestaurants.com, and a recording of the webcast will be archived on the site for 30 days following the live event. Please allow 15 minutes to register and download and install any necessary software.
About BJ’s Restaurants, Inc.
BJ’s Restaurants, Inc. (“BJ’s”) is a national brand with brewhouse roots and a menu where craft matters. BJ’s broad menu has something for everyone: slow-roasted entrees, like prime rib, BJ’s EnLIGHTened Entrees® including Cherry Chipotle Glazed Salmon, signature deep dish pizza and the often imitated, but never replicated world-famous Pizookie® dessert. BJ’s has been a pioneer in the craft brewing world since 1996, and takes pride in serving BJ’s award-winning proprietary handcrafted beers, brewed at its brewing operations in five states and by independent third party craft brewers. The BJ’s experience offers high-quality ingredients, bold flavors, moderate prices, sincere service and a cool, contemporary atmosphere. Founded in 1978, BJ’s owns and operates 210 casual dining restaurants in 29 states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and Washington. All restaurants offer dine-in, take-out, delivery and large party catering. Due to the COVID-19 pandemic, one of our 210 restaurants remains temporarily closed, 144 of our restaurants are serving guests in our dining rooms in a limited capacity, and 65 of our restaurants are serving guests only on the patio or in other outdoor seating, all while adhering to social distancing protocols, and hours are limited. For more BJ’s information, visit http://www.bjsrestaurants.com.
View full version at BJ’s Restaurants
Restaurant Brands International Inc. Reports Full Year and Fourth Quarter 2020 Results
Feb 11, 2021, 06:30 ET
Global digital sales reach $6 billion in 2020, more than doubling in home markets
Continued strength in off-premise channels across all brands with global delivery sales also doubling in 2020
Accelerated transformation of drive-thru experience, 3,600 digital menu boards installed in home markets in 2020
RBI declares 9th consecutive dividend increase and ends 2020 with $2.6 billion of available liquidity
TORONTO, Feb. 11, 2021 /PRNewswire/ – Restaurant Brands International Inc. (TSX: QSR) (NYSE: QSR) (TSX: QSP) today reported financial results for the full year and fourth quarter ended December 31, 2020.
Jose Cil, Chief Executive Officer of Restaurant Brands International Inc. (“RBI”) commented, “We are confident that our efforts in food and beverage quality, restaurant experience, digital leadership and brand building will be beneficial to returning our business to the growth we know we are capable of in all three brands. While we ended 2020 with about the same restaurant count as 2019, we have been working closely with our network of franchisees on restarting the development engine and expect to deliver net restaurant growth roughly in line with what we delivered in 2018 and 2019. Strong results in 2021 will help pave the way toward our aspiration of achieving 40,000 restaurants in the coming years.”
Cil continued, “Driving rapid digital innovation has been essential to the recovery of our business. We increased support for and continued to build on our e-commerce platforms, reimagined service opportunities like curbside pickup and expanded delivery services into thousands of new restaurants. The outcome has been the more than doubling of digital sales in North America.”
“The quality of our plans today is the result of a team that refused to be distracted by short-term barriers that we couldn’t control and instead focused on the right long-term priorities to grow our restaurant brands for many years to come,” concluded Cil.”
2020 Highlights:
- System-wide Sales Growth declined (8.6)%
- Net Restaurant Growth declined (0.2)%
- Diluted EPS of $1.60 versus $2.37 in prior year
- Adjusted Diluted EPS of $2.03 versus $2.72 in prior year
- Net Income Attributable to Common Shareholders and Noncontrolling Interests of $748 million versus $1,109 million in prior year
- Adjusted EBITDA of $1,864 million decreased (18.1)% organically versus the prior year
- Net Cash Provided by Operating Activities of $921 million and Free Cash Flow of $804 million
2020 Corporate Highlights:
- RBI announced its Restaurant Brands for Good evergreen framework in 2020, available on the company’s website and discussed in the open letter posted today by Jose Cil
- RBI awarded “Great Place to Work®” certification and achieved 100% on Corporate Equality Index
Dividend Update:
- RBI announced that its board of directors declared a dividend of $0.53 per common share and partnership exchangeable unit of Restaurant Brands International Limited Partnership (“RBI LP”) for Q1 of 2021
- In connection with the declared dividend, RBI also announced that it is targeting a total of $2.12 in dividends per common share and partnership exchangeable unit of RBI LP for 2021
Consolidated Operational Highlights
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||
|
2020 |
2019 |
2020 |
2019 |
||||||||
|
(unaudited) |
(unaudited) |
||||||||||
|
System-wide Sales Growth |
|||||||||||
|
TH |
(12.9)% |
(2.9)% |
(17.5)% |
(0.3)% |
|||||||
|
BK |
(8.1)% |
8.4% |
(11.1)% |
9.3% |
|||||||
|
PLK |
(0.9)% |
42.3% |
17.7% |
18.5% |
|||||||
|
Consolidated |
(8.0)% |
9.9% |
(8.6)% |
8.3% |
|||||||
|
System-wide Sales (in US$ millions) |
|||||||||||
|
TH |
$ |
1,478 |
$ |
1,679 |
$ |
5,488 |
$ |
6,716 |
|||
|
BK |
$ |
5,428 |
$ |
5,905 |
$ |
20,038 |
$ |
22,921 |
|||
|
PLK |
$ |
1,307 |
$ |
1,327 |
$ |
5,143 |
$ |
4,397 |
|||
|
Consolidated |
$ |
8,213 |
$ |
8,911 |
$ |
30,669 |
$ |
34,034 |
|||
|
Net Restaurant Growth |
|||||||||||
|
TH |
0.3% |
1.8% |
0.3% |
1.8% |
|||||||
|
BK |
(1.1)% |
5.9% |
(1.1)% |
5.9% |
|||||||
|
PLK |
4.1% |
6.9% |
4.1% |
6.9% |
|||||||
|
Consolidated |
(0.2)% |
5.2% |
(0.2)% |
5.2% |
|||||||
|
System Restaurant Count at Period End |
|||||||||||
|
TH |
4,949 |
4,932 |
4,949 |
4,932 |
|||||||
|
BK |
18,625 |
18,838 |
18,625 |
18,838 |
|||||||
|
PLK |
3,451 |
3,316 |
3,451 |
3,316 |
|||||||
|
Consolidated |
27,025 |
27,086 |
27,025 |
27,086 |
|||||||
|
Comparable Sales |
|||||||||||
|
TH |
(11.0)% |
(4.3)% |
(15.7)% |
(1.5)% |
|||||||
|
BK |
(7.9)% |
2.8% |
(7.9)% |
3.4% |
|||||||
|
PLK |
(5.8)% |
34.4% |
13.8% |
12.1% |
|||||||
|
Note: System-wide sales growth and comparable sales are calculated on a constant currency basis and include sales at franchise restaurants and company-owned restaurants. System-wide sales are driven by sales at franchised restaurants, as approximately 100% of current restaurants are franchised. We do not record franchise sales as revenues; however, our franchise revenues include royalties based on a percentage of franchise sales. Additionally, if a restaurant is closed for a significant portion of a month, the restaurant is excluded from the monthly comparable sales calculation. View full version at RBI
|
Good Times Restaurants Reports Results for the First Quarter Ending December 29, 2020
February, 8 2021
Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain, today reported financial results for the fiscal quarter ended December 29, 2020.
Key highlights of the Company’s financial results include:
- Total Revenues decreased 11.4% to $27.3 million for the 13-week quarter, compared against a 14-week quarter in fiscal 2020
- Total Restaurant Sales for Bad Daddy’s restaurants were $18.7 million for the quarter
- Same Store Sales1 for company-owned Bad Daddy’s restaurants decreased 11.8% for the quarter, impacted by dining room closures in our Colorado restaurants
- Total Restaurant Sales for Good Times restaurants increased $0.6 million to $8.4 million
- Same Store Sales for company-owned Good Times restaurants increased 22.1% for the quarter
- Net Income Attributable to Common Shareholders was $0.8 million for the quarter
- Adjusted EBITDA2 (a non-GAAP measure) for the quarter was $1.8 million
- The Company ended the quarter with $10.0 million in cash, $4.0 million outstanding under its senior credit facility and $11.6 million in outstanding Paycheck Protection Program loans
Ryan M. Zink, the Company’s Chief Executive Officer, said, “I am pleased with our performance for the quarter. We increased Net Income of the Company to $0.8 million, continued to experience strong same store sales for the Good Times brand, and maintained restaurant-level operating profit3 (a non-GAAP measure) for the Bad Daddy’s brand. We believe our results compared to 2020 are even more impressive when considering that this year’s quarter has one fewer operating week than did 2020 and that our Colorado Bad Daddy’s were required to close their indoor dining rooms mid-way through November and were closed for the remainder of the quarter. We have since re-opened dining rooms and Bad Daddy’s sales have meaningfully improved in the new calendar year, with that brand reporting same stores sales of (8.3%) for our fiscal January. Good Times continues its streak of double-digit same store sales, posting +24.6% for January.”
Mr. Zink continued, “At Good Times, we continue to focus on speed and accuracy in the drive-thru. We intend to introduce a new shake program mid-year and continue to generate “new news” through rotating seasonal features that have proven successful. We continue to utilize radio as our primary advertising medium but are also now actively using targeted digital and social ad placements to actual customers using the same technology platform we began using in Bad Daddy’s during 2020. At Bad Daddy’s, we implemented new packaging to enhance temperature hold times and the quality of food served in to-go and delivery formats, are testing a new Carnitas Nachos appetizer that showcases the scratch-made nature of our kitchen, and have twenty-four restaurants running our virtual brand, Bad Mama’s Chicken. Sales from Bad Mama’s account for approximately two percent of sales in restaurants where we have rolled out the virtual brand, in-line with our target. We are on-track to open two restaurants during the remainder of our fiscal year, in the greater-Atlanta and Montgomery designated market areas (DMAs).”
“Above all, I continue to be thankful for the high-performing team that is executing each of our concepts and the restaurant support team who together are responsible for delivering these results. We have a mission to delight every guest; we achieve that at Good Times through a focus on speed and accuracy with an all-natural platform, and at Bad Daddy’s through dedication to scratch cooking in our kitchens and genuine, southern-rooted hospitality. In both cases, we believe that, by living these principles, we will create emotional connections to our brands, and in the long-run, drive consistent sales increases,” Zink concluded.
Fiscal 2021 Outlook:
Due to continuing unprecedented economic conditions associated with the ongoing COVID-19 pandemic and unpredictable nature of COVID-19 and government responses to the evolving situation, the Company has not provided a financial outlook for the remainder of the 2021 fiscal year. In late November 2020, all twelve of the Company’s Bad Daddy’s locations in Colorado had additional restrictions imposed upon them resulting in the closure of dining rooms in those locations. Although these dining rooms have since re-opened and no other states have at this time similarly restricted inside dining where the Company has Bad Daddy’s restaurants, the possibility remains that such restrictions might be put in place with limited notice. At the current time, the Company is therefore still unable to reasonably estimate the full impact of the continuing pandemic to ongoing operations and results and is unable to provide a financial outlook for the remainder of fiscal 2021.
About Good Times Restaurants Inc.: Good Times Restaurants Inc. (GTIM) owns, operates, franchises and licenses 39 Bad Daddy’s Burger Bar restaurants through its wholly owned subsidiaries. Bad Daddy’s Burger Bar is a full-service “small box” restaurant concept featuring a chef-driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft microbrew beers in a high-energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly-owned subsidiaries, Good Times Restaurants Inc. operates and franchises a regional quick-service restaurant chain consisting of 32 Good Times Burgers & Frozen Custard restaurants located primarily in Colorado.
View full version at Good Times Restaurants
RAVE Restaurant Group, Inc. Reports Second Quarter Financial Results
February, 8 2021
RAVE Restaurant Group, Inc. (NASDAQ: RAVE) last week reported financial results for the second quarter ended December 27, 2020.
Second Quarter Highlights:
- The Company recorded net income of $102 thousand for the second quarter of fiscal 2021 compared to net income of $14 thousand for the same period of the prior year.
- Total revenue decreased by $0.7 million to $2.1 million for the second quarter of fiscal 2021 compared to the same period of the prior year.
- Income before taxes was $104 thousand for the second quarter of fiscal 2021 compared to $10 thousand for the same period of the prior year.
- Pizza Inn domestic comparable store retail sales decreased 18% in the second quarter of fiscal 2021 compared to the same period of the prior year.
- Pie Five comparable store retail sales decreased 16% in the second quarter of fiscal 2021 compared to the same period of the prior year.
- On a fully diluted basis, net income increased $0.01 per share to $0.01 per share for the second quarter of fiscal 2021 compared to net income of $0.00 per share for the same period of the prior year.
- Cash and cash equivalents increased $3.3 million during the second quarter of fiscal 2021 to $6.3 million at December 27, 2020.
- Pizza Inn domestic unit count finished at 142.
- Pizza Inn international unit count finished at 32.
- Pie Five domestic unit count finished at 37.
“While we continue to work through challenges presented by the pandemic, we are seeing strong indications that the team and strategy we’ve put into place are taking hold and yielding results in repositioning RAVE for long-term success,” said Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc. “We hold significant cash, have limited leverage, and were more profitable in Q2 during the pandemic than we were in Q2 a year ago before COVID-19 was declared a pandemic leading to dining room restrictions and closures.”
“In Q2 at Pie Five we tested a new pricing strategy and product innovation called Panzano pan pizza. Test stores outperformed the rest of the Pie Five system by double digit percentages in increased traffic and sales. Panzano pan pizza is something most other fast-causal pizza players are hard-pressed to duplicate due to our oven technology and is amazingly craveable, using house-made dough and whole milk mozzarella shredded in-house from block. We are in the process of rolling this product and pricing strategy out to Pie Five stores nationally and expect to be completed in February. We anticipate significant other innovation to follow.”
“At Pizza Inn, we are driving operations consistency and facilities improvements while launching our first pilot of a point-of-sale technology that we expect to be adopted system-wide. In addition to the Contactless Buffet To-Go and new Right-Way Buffet, we are eagerly awaiting vaccine distribution and reduced dine-in restrictions to launch key innovations specifically designed to enhance the buffet experience as families emerge from their homes and seek exciting dining experiences together, not just functional feeding,” Solano concluded.
“Our results this quarter are once again a testament to the incredible efforts by our team to control costs amid the continuing effects of the pandemic,” said Clint Fendley, Vice President of Finance of RAVE Restaurant Group, Inc. “Our focus on cost controls yielded another quarter of profitability as the income before taxes for the six months ended December 27, 2020 was $182 thousand. RAVE’s cash balance of $6.3 million further bolsters our position as we deal with the lingering effects of the pandemic while working to revitalize both of our brands. Although we have experienced modest store closures, the closures have been less than we expected when the pandemic began and are a credit to the tenacity of our franchisees.”
About RAVE Restaurant Group, Inc.
Founded in 1958, Dallas-based RAVE Restaurant Group [NASDAQ: RAVE] owns, operates, franchises and/or licenses more than 200 Pie Five Pizza Co. and Pizza Inn restaurants and Pizza Inn Express kiosks domestically and internationally. Pizza Inn is an international chain featuring freshly made pizzas, along with salads, pastas, and desserts. Pie Five Pizza Co. is a leader in the rapidly growing fast-casual pizza space. Pizza Inn Express, or PIE, is developing unique opportunities to provide freshly made pizza from non-traditional outlets. The Company’s common stock is listed on the Nasdaq Capital Market under the symbol “RAVE”.
View full version at RAVE Restaurant Group
Yum! Brands Reports Fourth-Quarter Results, Primed to Grow in 2021 and Beyond; Same-Store Sales Decline of (1)%, Record Digital Sales of Nearly $5 Billion
February, 4 2021
Yum! Brands, Inc. (NYSE: YUM) today reported results for the fourth-quarter and year ended December 31, 2020. Fourth-quarter GAAP EPS was $1.08, a decrease of (32)%. Full-year GAAP EPS was $2.94, a decrease of (29)%. Fourth-quarter EPS excluding Special Items was $1.15, an increase of 15%. Full-year EPS excluding Special Items was $3.62, an increase of 2%.
DAVID GIBBS & CHRIS TURNER COMMENTS
David Gibbs, CEO, said “Yum! enters 2021 a stronger company primed to profitably grow system sales this year and beyond. Despite the challenges of 2020, our full-year results demonstrated our resilience and validated the strategies we put in place during the transformation of Yum!. We intensified our focus on leveraging our scale and reinforcing our growth model, by accelerating our investments in digital and technology to enhance the customer experience and unit economics. In 2020, digital sales hit a record of $17 billion, about a 45% increase over the prior year and a testament to our brands’ ability to quickly meet new consumer needs. I am more confident than ever in the ability of our teams and franchisees to compete and win in a rapidly changing world.”
Chris Turner, CFO, said “Q4 results are evidence our brands remain effectively positioned to win in an off-premise environment and that our business model is positioned for sustained rapid growth once we emerge from the pandemic. Overall Q4 system sales declined 2%, including a 3% headwind of the 53rd week in 2019, with slightly positive net units year-over-year and a 1% same-store sales decline. With iconic category-leading brands and a uniquely diversified global portfolio of over 50,000 restaurants, Yum! is well positioned to grow and maximize value creation for all our stakeholders for years to come.”
SUMMARY FINANCIAL TABLE
| Fourth-Quarter | Full-Year | ||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||
| GAAP EPS | $1.08 | $1.58 | (32) | $2.94 | $4.14 | (29) | |||||
| Special Items EPS1 | $(0.07) | $0.58 | NM | $(0.68) | $0.59 | NM | |||||
| EPS Excluding Special Items | $1.15 | $1.00 | +15 | $3.62 | $3.55 | +2 | |||||
| 1See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Special Items. |
| All comparisons are versus the same period a year ago. |
| System sales growth figures exclude foreign currency translation (“F/X”) and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details. Same-store sales reflects the inclusion of Habit Burger Grill in the prior year base and is not impacted by the lap of the 53rd week in 2019. |
| Digital sales includes all transactions where consumers at system restaurants utilize ordering interaction that is primarily facilitated by automated technology. |
|
Unless otherwise noted, all results include the impact of lapping the 53rd week in 2019. View full version at Yum! Brands |
Chipotle Announces Fourth Quarter And Full Year 2020 Results
February, 3 2021
Chipotle Mexican Grill, Inc. (NYSE: CMG) yesterday reported financial results for its fourth quarter and fiscal year ended December 31, 2020.
Fourth quarter highlights, year over year:
- Total revenue increased 11.6% to $1.6 billion
- Comparable restaurant sales increased 5.7%
- Digital sales grew 177.2% and accounted for 49.0% of sales
- Restaurant level operating margin was 19.5%, an increase of 30 bps
- Diluted earnings per share was $6.69, which included an income tax benefit of $3.77, partially offset by a $0.56 after-tax impact from expenses related to legal, corporate restructuring, and certain other costs, a 162.4% increase from $2.55. Adjusted diluted earnings per share excluding these charges and the income tax benefit was $3.48, a 21.7% increase from $2.86.1
- Opened 61 new restaurants including two relocations, and closed one
Full year 2020 highlights, year over year:
- Total revenue increased 7.1% to $6.0 billion
- Comparable restaurant sales increased 1.8%
- Digital sales grew 174.1% and accounted for 46.2% of sales
- Restaurant level operating margin was 17.4%, a decrease of 310 bps
- Diluted earnings per share was $12.52, which included an income tax benefit of $3.79, partially offset by a $2.00 after-tax impact from expenses related to legal, corporate restructuring, restaurant closure costs, and certain other costs, a 1.1% increase from $12.38. Adjusted diluted earnings per share excluding these charges and the income tax benefit was $10.73, a 23.6% decrease from $14.05.1
- Opened 161 new restaurants including six relocations, and closed nine
1 Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures.
“We are pleased to report a strong ending to what has been a challenging year. Despite the difficult backdrop, our ability to pivot and adapt to the rapidly changing needs of our guests is a testament to the durability of our business model and the strength of our team members,” said Brian Niccol, Chairman and Chief Executive Officer, Chipotle. “Expanding access and convenience through our digital ecosystem has kept the Chipotle brand relevant and with world class talent, an inclusive culture, strong business fundamentals and deep financial strength, we are well prepared to emerge even stronger post-COVID.”
COVID-19 and Liquidity Update:
Given the resurgence in COVID cases during the fourth quarter, the health and well-being of our employees and guests remains our top priority. We are benefitting from investments over the past several years including advanced air filtration systems, sanitizers throughout the restaurant, wellness protocols, and improved handwashing. In addition, we are closely following the recommendations of the CDC and local health departments and have implemented social distancing, wearing face masks, a tamper evident packaging seal for all digital orders, and created a new steward role to sanitize high-traffic areas. Collectively, these efforts give our employees and guests confidence that Chipotle remains steadfast in our commitment to keep them safe.
As of December 31, 2020, Chipotle maintains a strong financial position with $1.1 billion in cash, investments and restricted cash, and no debt, along with a $600 million untapped credit facility with which to continue to navigate this crisis. Our financial strength gives us the opportunity to make on-going strategic investments in our people, business, and communities, which we believe will benefit us for years to come. At the same time, our team remains focused on reducing non-essential controllable costs and judiciously spending on return generating projects to preserve liquidity.
View full version at Chipotle
Luby’s Issues First Quarter Fiscal 2021 Report
Estimated Net Assets in Liquidation of $3.82 per Share
Feb 01, 2021, 17:15 ET
HOUSTON, Feb. 1, 2021 /PRNewswire/ — Luby’s, Inc. (NYSE: LUB) (“Luby’s”) which is in the process of monetizing its assets for the benefit of its shareholders, announced today its financial results for the first quarter ended December 16, 2020.
Financial Results
Liquidation Basis of Accounting
As a result of Luby’s shareholder approval of its plan of liquidation on November 17, 2020, effective November 19, 2020, in accordance with Generally Accepted Accounting Principles (“GAAP”), the Company began reporting its financial results on the liquidation basis of accounting. The liquidation basis of accounting requires, among other things, that management estimate net sales proceeds on an undiscounted basis as well as include in the Company’s assets and liabilities the undiscounted estimate of future revenues and expenses of the Company through the end of the liquidation. Based on the liquidation basis of accounting, the net assets in liquidation at December 16, 2020 are currently estimated to result in future liquidating distributions of approximately $3.82 per common share based on the number of common shares outstanding on that date. The estimated liquidating distributions per share on a fully diluted basis, assuming all restricted stock awards vest and all in-the-money options are exercised, is not materially different than the amount stated above. This estimate of future liquidating distributions includes projections of sales proceeds and net operating revenues to be received and costs and expenses to be incurred, including costs to dispose of the Company’s assets, during the period required to complete the plan of liquidation which is currently projected to be completed by June 30, 2022. There is inherent uncertainty with these projections, and accordingly, these projections could change materially based on a number of factors both within and outside of Luby’s control including public health crises, general market conditions, the timing of the sales, the performance of the underlying assets, resolution of the Company’s PPP loan, settlement of lease terminations, the exercise of outstanding stock options, the vesting of restricted stock awards and any changes in the underlying assumptions of projected cash flows. There can be no assurance that these estimated values will be realized. Such amounts should not be taken as an indication of the timing or the amount of future distributions or our actual dissolution.
The current estimate of net assets in liquidation at December 16, 2020 has been estimated based on undiscounted cash flow projections and assumes a final liquidation on June 30, 2022 even though the actual timing of the sale of the Company’s operating businesses and real estate holdings cannot be determined with any specificity at this time. As such, the final liquidation of the Company is subject to future events and uncertainties. Liabilities are carried at their contractual amounts due as adjusted for the impact of timing of the planned liquidation. It is not possible to predict with certainty the timing or aggregate amount which may ultimately be distributed to our shareholders and no assurance can be given that the distributions will equal or exceed the estimate presented in this release.
The Company currently operates 58 Luby’s Cafeterias and 24 Fuddruckers, as well as Culinary Contract Services at 26 locations, while pursuing sales of these businesses as part of its liquidation plan. Operationally, it is business as usual as we progress through this plan to find new stewards for these iconic brands.
Comments related to our operations in the context of COVID-19
The novel coronavirus disease (“COVID-19”) pandemic has had a significant impact on our level of operations, guest behavior, guest traffic, and the number of locations where we and our Fuddruckers franchisees operate. As a result, at the onset of the COVID-19 pandemic in the spring of 2020, we modified our business operations within our restaurants and significantly reduced staffing at our corporate support office.
While the development of a vaccine for COVID-19 announced in December 2020 presents an encouraging sign, we continue to see rising cases of COVID-19 infection throughout the U.S. As we execute on our Plan of Liquidation, we are still operating a number of restaurants as described above. Uncertainty remains regarding the rate of immunization in the public and timing of an economic recovery. The COVID-19 pandemic could continue to materially impact our cash flows and value of net assets in liquidation, while we execute on our Plan of Liquidation.
About Luby’s
Luby’s, Inc. (NYSE: LUB) operates two core restaurant brands: Luby’s Cafeterias and Fuddruckers. Luby’s is also the franchisor for the Fuddruckers restaurant brand. In addition, through its Luby’s Culinary Contract Services business segment, Luby’s provides food service management to sites consisting of healthcare, corporate dining locations, sports stadiums, and sales through retail grocery stores.
View source version at Luby’s
Starbucks Reports Q1 Fiscal 2021 Results
January, 28 2021
Starbucks Corporation (NASDAQ: SBUX) reported financial results for its 13-week fiscal first quarter ended December 27, 2020. GAAP results in fiscal 2021 and fiscal 2020 include items that 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.
“I am very pleased with our start to fiscal 2021, with meaningful, sequential improvements in quarterly financial results despite ongoing business disruption from the pandemic. Investments in our partners, beverage innovation and digital customer relationships continued to fuel our recovery and position Starbucks for long-term, sustainable growth,” said Kevin Johnson, president and ceo.
“Our results demonstrate the continued strength and relevance of our brand, the effectiveness of the actions we’ve taken to adapt to changes in consumer behavior and the steadfast commitment of our green apron partners to serve our customers and communities. We remain optimistic about our robust operating outlook for fiscal 2021 as well as our ability to unlock the full potential of Starbucks to create value for our stakeholders,” concluded Johnson.
Q1 Fiscal 2021 Highlights
- Global comparable store sales declined 5%, driven by a 19% decrease in comparable transactions, partially offset by a 17% increase in average ticket
- Americas comparable store sales declined 6%, driven by a 21% decrease in comparable transactions, partially offset by a 20% increase in average ticket; U.S. comparable store sales declined 5%, driven by a 21% decrease in comparable transactions, partially offset by a 19% increase in average ticket
- International comparable store sales were down 3%, driven by a 10% decline in comparable transactions, partially offset by an 8% increase in average ticket; China comparable store sales were up 5%, driven by a 9% increase in average ticket, partially offset by a 3% decline in transactions; International and China comparable store sales are inclusive of a benefit from value-added tax exemptions of approximately 3% and 5%, respectively
- The company opened 278 net new stores in the first quarter of fiscal 2021, yielding 4% year-over-year unit growth, ending the period with 32,938 stores globally, of which 51% and 49% were company-operated and licensed, respectively
- Stores in the U.S. and China comprised 61% of the company’s global portfolio at the end of the first quarter of fiscal 2021, with 15,340 and 4,863 stores, respectively
- Consolidated net revenues of $6.7 billion declined 5% from the prior year primarily due to the impact of the COVID-19 pandemic
- Impact included the effects of reduced customer traffic, modified operations, reduced store operating hours and temporary store closures
- GAAP operating margin of 13.5%, down from 17.2% in the prior year primarily due to the COVID-19 pandemic, mainly sales deleverage, as well as growth in wages and benefits and Americas store portfolio optimization expenses, partially offset by labor efficiency and the impact of pricing in the Americas
- Non-GAAP operating margin of 15.5%, down from 18.2% in the prior year
- GAAP earnings per share of $0.53, down from $0.74 in the prior year primarily due to unfavorable impacts related to the COVID-19 pandemic
- Non-GAAP earnings per share of $0.61, down from $0.79 in the prior year
- Starbucks® Rewards loyalty program 90-day active members in the U.S. increased to 21.8 million, up 15% year-over-year
Q1 Americas Segment Results
| Quarter Ended | Change (%) | ||||
| ($ in millions) | Dec 27, 2020 | Dec 29, 2019 | |||
| Change in Comparable Store Sales (1) | (6)% | 6% | |||
| Change in Transactions | (21)% | 2% | |||
| Change in Ticket | 20% | 3% | |||
| Store Count | 18,308 | 18,203 | 1% | ||
| Revenues | $4,703.2 | $5,010.9 | (6)% | ||
| Operating Income | $813.5 | $1,098.8 | (26)% | ||
| Operating Margin | 17.3% | 21.9% | (460) bps | ||
| (1) | Includes only Starbucks® company-operated stores open 13 months or longer. Comparable store sales exclude the effects of fluctuations in foreign currency exchange rates and Siren Retail stores. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales while stores identified for permanent closure have been removed. |
Net revenues for the Americas segment of $4.7 billion in Q1 FY21 were 6% lower relative to Q1 FY20, primarily due to a 6% decline in comparable store sales as well as lower product sales to and royalty revenues from our licensees primarily due to the impact of the COVID-19 pandemic. These declines were slightly offset by 105 net new store openings, or 1% store growth, over the past 12 months.
The Americas segment reported operating income of $813.5 million in Q1 FY21, compared to $1.1 billion in Q1 FY20. Operating margin of 17.3% contracted 460 basis points, primarily due to the impact of the COVID-19 pandemic, including sales deleverage and additional costs incurred, growth in retail partner wages and benefits as well as expenses relating to the Americas store portfolio optimization, partially offset by labor efficiency and pricing.
View full version at Starbucks
McDonald’s Reports Fourth Quarter And Full Year 2020 Results
– McDonald’s delivered its strongest quarter of the year, recovering nearly 99% of fourth quarter 2019 global comparable sales
– U.S. comparable sales were 5.5% in the fourth quarter and 0.4% for the year, marking 6 consecutive years of positive comparable sales
Jan 28, 2021, 07:00 ET
CHICAGO, Jan. 28, 2021 /PRNewswire/ — McDonald’s Corporation today announced results for the fourth quarter and year ended December 31, 2020.
“2020 will be remembered as one of McDonald’s most challenging, yet inspiring, moments in our long history. The resilience of the McDonald’s System was on display – making safety and service a priority, putting our customers and people first, and running great restaurants,” said McDonald’s President and Chief Executive Officer Chris Kempczinski. “Against an uncertain backdrop, we are committed to staying true to our values and our brand purpose to feed and foster communities. By investing for the future and leveraging competitive strengths within our Accelerating the Arches strategy in drive-thru, delivery, and our growing digital presence, we’re confident we can continue to capture market share and drive long-term sustainable growth for all stakeholders.”
Fourth quarter financial performance:
- Global comparable sales declined 1.3% while improving from the prior quarter, reflecting positive comparable sales in the U.S. of 5.5%, and negative comparable sales in the International Operated segment and International Developmental Licensed segment of 7.4% and 3.6%, respectively.
- Consolidated revenues decreased 2% (3% in constant currencies).
- Systemwide sales increased 1% (flat in constant currencies).
- Consolidated operating income decreased 7% (9% in constant currencies) and included $142 million of strategic gains primarily related to the sale of McDonald’s Japan stock. Excluding these gains, operating income decreased 13% (15% in constant currencies).
- Diluted earnings per share of $1.84 decreased 12% (13% in constant currencies). Excluding $0.14 per share of current year strategic gains primarily related to the sale of McDonald’s Japan stock, diluted earnings per share was $1.70 for the quarter, a decrease of 14% (15% in constant currencies) when also excluding $0.11 per share of prior year income tax benefit due to regulations issued in the fourth quarter of 2019.
Full year financial performance:
- Global comparable sales declined 7.7%, reflecting positive comparable sales in the U.S. of 0.4%, and negative comparable sales in the International Operated segment and International Developmental Licensed segment of 15.0% and 10.5%, respectively.
- Consolidated revenues decreased 10% (10% in constant currencies).
- Systemwide sales decreased 7% (7% in constant currencies).
- Consolidated operating income decreased 19% (20% in constant currencies) and included $268 million of net strategic gains. Excluding these items, operating income decreased 23% (23% in constant currencies), when also excluding $74 million of net strategic charges from the prior year.*
- Diluted earnings per share of $6.31 decreased 20% (20% in constant currencies).*
* See page 3 for additional details on full year strategic gains and charges.
|
FOURTH QUARTER COMPARABLE SALES |
||||||||
|
Increase/(Decrease) |
||||||||
|
Quarters Ended December 31, |
||||||||
|
2020 |
2019 |
|||||||
|
U.S. |
5.5% |
5.1% |
||||||
|
International Operated Markets |
(7.4) |
6.2 |
||||||
|
International Developmental Licensed Markets & Corporate |
(3.6) |
6.6 |
||||||
|
Total |
(1.3)% |
5.9% |
||||||
- Comparable Sales: Quarterly global comparable sales results improved sequentially since the second quarter of 2020. Comparable guest counts remained negative across all segments for the quarter.
- U.S.: Comparable sales results benefited from strong average check growth with positive comparable sales across all major dayparts. The Company’s strategic marketing investments and promotional activity, including those featuring core menu items, had a positive impact on comparable sales.
- International Operated Markets: Comparable sales remained negative in most markets as restaurant operating channels and hours were significantly impacted by COVID-19 resurgences and the related government restrictions that have carried into 2021 in most countries. The comparable sales decline in the quarter was primarily driven by France, Germany, Italy and Spain. While comparable sales remained negative in most markets, comparable sales were positive for Australia and the U.K. throughout the quarter.
- International Developmental Licensed Markets: Comparable sales results were impacted by negative comparable sales primarily in Asia and Latin America, partly offset by strong comparable sales in Japan.
|
KEY FINANCIAL METRICS – CONSOLIDATED |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Quarters Ended December 31, |
Years Ended December 31, |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
2020 |
2019 |
Inc/ |
Inc/ (Dec) |
2020 |
2019 |
Inc/ |
Inc/ (Dec) |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Revenues |
$ |
5,313.8 |
$ |
5,428.2 |
(2)% |
(3)% |
$ |
19,207.8 |
$ |
21,364.4 |
(10)% |
(10)% |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Operating income |
2,142.9 |
2,292.6 |
(7) |
(9) |
7,324.0 |
9,069.8 |
(19) |
(20) |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Net income* |
1,377.2 |
1,572.2 |
(12) |
(14) |
4,730.5 |
6,025.4 |
(21) |
(22) |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Earnings per share-diluted* |
$ |
1.84 |
$ |
2.08 |
(12)% |
(13)% |
$ |
6.31 |
$ |
7.88 |
(20)% |
(20)% |
|||||||||||||||||||||||||||||||||||||||||||||||
* See page 3 for additional details.
Results for the quarter and year reflected sales declines in the International Operated Markets and International Developmental Licensed Markets segments as a result of COVID-19 resurgences and government restrictions. For the quarter, these results were partly offset by stronger operating performance in the U.S. due to higher sales-driven restaurant margins.
View full version at McDonald’s
Brinker International Reports Second Quarter Of Fiscal 2021 Results
Jan 27, 2021, 06:45 ET
DALLAS, Jan. 27, 2021 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) today announced results for the second quarter of fiscal 2021 ended December 23, 2020.
“I’m proud of our operators and their focus on providing our guests the best possible experience,” said Wyman Roberts, CEO and President. “We know even more guests are excited to come back as the country emerges from the pandemic. We have continued to invest in our business and are well positioned for growth.”
Fiscal 2021 Highlights – Second Quarter
Financial metrics for the second quarter of fiscal 2021 compared to the second quarter of fiscal 2020 were negatively impacted by the ongoing COVID-19 pandemic. Total revenues declined due to capacity limitations and personal safety preferences, partially offset by increased off-premise sales.
- Net income per diluted share, on a GAAP basis, in the second quarter of fiscal 2021 decreased 64.4% to $0.26 compared to $0.73 in the second quarter of fiscal 2020
- Net income per diluted share, excluding special items, in the second quarter of fiscal 2021 decreased 65.3% to $0.35 compared to $1.01 in the second quarter of fiscal 2020
- Net cash provided by operating activities in the twenty-six week period ended December 23, 2020 was $130.0 million, and capital expenditures totaled $37.1 million resulting in free cash flow of $92.9 million
- Net repayments of $66.6 million were made on the revolving credit facility in the twenty-six week period ended December 23, 2020 resulting in total available liquidity of $657.8 million as of December 23, 2020
- As of January 20, 2021, approximately 82% of Chili’s and 69% of Maggiano’s restaurants were operating with open dining rooms
For comparable restaurant sales details and non-GAAP reconciliations, please refer to the Non-GAAP Information and Reconciliations section of this release.
|
Financial Metrics |
||||||||||
|
Second Quarter |
||||||||||
|
2021(2) |
2020 |
% Change |
||||||||
|
Company sales |
$ |
746.2 |
$ |
847.5 |
(12.0) |
% |
||||
|
Total revenues |
$ |
760.7 |
$ |
869.3 |
(12.5) |
% |
||||
|
Operating income |
$ |
22.1 |
$ |
43.5 |
(49.2) |
% |
||||
|
Operating income as a percentage of Total revenues |
2.9 |
% |
5.0 |
% |
(2.1) |
% |
||||
|
Restaurant operating margin, non-GAAP(1) |
$ |
80.2 |
$ |
107.9 |
(25.7) |
% |
||||
|
Restaurant operating margin as a percentage of Company sales, non-GAAP |
10.7 |
% |
12.7 |
% |
(2.0) |
% |
||||
|
Net income per diluted share |
$ |
0.26 |
$ |
0.73 |
(64.4) |
% |
||||
|
Net income per diluted share, excluding special items, non-GAAP |
$ |
0.35 |
$ |
1.01 |
(65.3) |
% |
||||
|
Comparable Restaurant Sales – Company Owned |
Q2:21 vs 20(2) |
Q2:20 vs 19 |
|||||
|
Brinker |
(12.1) |
% |
1.5 |
% |
|||
|
Chili’s |
(6.3) |
% |
2.0 |
% |
|||
|
Maggiano’s |
(47.0) |
% |
(1.4) |
% |
|||
|
(1) |
Restaurant operating margin is defined as Company sales less Company restaurant expenses which includes Food and beverage costs, Restaurant labor and Restaurant expenses, and excludes Depreciation and amortization, General and administrative and Other (gains) and charges (see non-GAAP reconciliation below) |
|
(2) |
Company sales and Comparable Restaurant Sales include the results of It’s Just Wings® |
Second Quarter of Fiscal 2021 Operating Performance
Segment Performance
The rise in COVID-19 cases during the second quarter resulted in some dining room closures and capacity restrictions which have negatively impacted our results. Capacity restrictions related to the ongoing COVID-19 pandemic vary by location due to state and local mandates. These capacity restrictions and personal safety preferences have resulted in lower dining room guest traffic and many guests have shifted to our off-premise dining options. This shift has changed our staffing requirements, expenses associated with off-premise and other operational expenses which are noted below.
View full version at Brinker
CiCi’s Pizza Declares Bankruptcy
The brand sold itself to lender D&G Investors.
JANUARY 26, 2021 | BEN COLEY
CiCi’s said that in addition to the COVID pandemic, fast casuals and third-party delivery have brought pressure to its buffet model, which depends on in-store dining for 99 percent of revenue.
CiCi’s Pizza declared bankruptcy Monday as the COVID pandemic and economic downturn “severely strained” finances.
The 318-unit pizza chain agreed to sell itself to D&G Investors as part of a pre-packaged and expedited bankruptcy process. The move came after D&G acquired $81.6 million in debt from CiCi’s previous lenders. The firm will convert 100 percent of its secured debt into equity in CiCi’s and provide $9 million in debtor-in-possession financing to help the company through the bankruptcy process.
CiCi’s attempted to combat the unpredictable environment with a four-pronged strategy: reopening with the goal of health and safety; pursuing off-premises opportunities; repositioning the marketing strategy to focus on digital, the value-oriented experience, and the company’s target demographic; and optimizing cost structure by reducing supply chain costs, negotiating rent reductions, reducing overall square footage and corporate overhead, and managing commodity costs.
The effort wasn’t enough to soften the blows. In 2019, the brand earned $177.3 million in revenue and $14.2 million in adjusted EBITDA. However in 2020, revenue declined to $76.3 million and adjusted EBITDA lowered to a negative $2.7 million.
CiCi’s said that in addition to the COVID pandemic, fast casuals and third-party delivery have brought pressure to its buffet model, which depends on in-store dining for 99 percent of revenue.
Digital ordering and delivery at CiCi’s has grown 300 percent faster than dine-in traffic since 2014, according to court documents.
“CiCi’s introduction of digital ordering and delivery services has amplified its ability to reach customers, but the Company’s reliance on third party dispatch and delivery platforms has impacted margins and may reduce customer loyalty over the longer term by lowering switching costs,” said CFO Richard Peabody in the court filing. “As such, and because the in-store experience features less prominently today in the overall customer value proposition, CiCi’s must work harder and more creatively to differentiate its offerings from the competition.”
In 2019 and early 2020, CiCi’s management team initiated a strategy to improve efficiency and flexibility. In 2019, it closed three company-run stores and transferred 29 to franchisees. In 2020, it began the process of refranchising its remaining stores, including the closure of seven restaurants and transfer of 10 to franchisees. The pizza brand also planned to close one of its three distribution centers to consolidate operations. CiCi’s was in the middle of this turnaround strategy when COVID hit in March.
The instability caused CiCi’s to default under its credit agreement. For several months, the pizza chain negotiated with lenders on a path forward to address debt and defaults. According to court documents, CiCi’s lenders didn’t want to own the company, so the brand started a sales process in consultation with those lenders. While that process was ongoing, the lender group sold all of its debt to D&G.
CiCi’s then engaged D&G about a transaction. After a stalemate over costs, the two sides reached an agreement that contemplates a 45-day bankruptcy process.
D&G’s acquisition marks the fourth time CiCi’s has exchanged hands in less than 20 years. CiCi’s was purchased in a management buyout by Levine Leichtman Capital Partners in 2003, which then sold the pizza chain to ONCAP Management Partners in 2007. Under ONCAP, CiCi’s grew to roughly 650 stores in 33 states by 2009. Seven years later, CiCi’s was purchased by Arlon Food and Agriculture Partners. By then, the footprint had declined to 430 stores.
At the beginning of 2020, CiCi’s was down to 395 units. As of bankruptcy, the total slid to 318, including 307 franchises.
Buffet concepts have suffered greatly during the pandemic. Garden Fresh Restaurants, owner of Souplantation and Sweet Tomatoes, filed Chapter 7 bankruptcy last spring and permanently closed all 97 of its stores. In October, Golden Corral’s largest franchisee, 1069 Restaurant Group, declared bankruptcy with $49.7 million in unsecured debt.
View source version at CiCi’s Pizza
BJ’s Restaurants, Inc. Provides Business Update and Reports Preliminary Fiscal 2020 Fourth Quarter Results
HUNTINGTON BEACH, Calif., Jan. 21, 2021 (GLOBE NEWSWIRE) — BJ’s Restaurants, Inc. (NASDAQ: BJRI) today provided a business update and reported preliminary unaudited financial results for its 2020 fourth quarter ended December 29, 2020.
“BJ’s fourth quarter results were impressive in light of the increasing restrictions on our dining room capacity,” commented Greg Trojan, Chief Executive Officer. “October results were strong with weekly sales per restaurant averaging over $83,000 and comparable restaurant sales of -20.6%, despite being limited to only outdoor seating and off-premise sales at 34 of our 62 California restaurants for at least part of the month and dining room capacity limitations at our remaining 175 restaurants. Beginning in November, rising COVID-19 cases caused numerous states to rollback dine-in re-openings, while in December, California closed all outdoor patio seating, limiting our sales in the state to only delivery and take-out. As such, sales in November and December averaged $77,600 and $60,300 per restaurant week, respectively, which equated to comparable restaurant sales of -27.0% in November and -45.3% in December. Despite these challenges, the productivity and efficiency initiatives implemented at the start of the pandemic allowed us to generate positive cash flow from operations for the quarter.
“Sales have been improving in the new year, which we believe reflects both high levels of pent-up guest demand and the easing of certain capacity restrictions,” continued Trojan. “Comparable restaurant sales improved significantly to -37.2% for the first three weeks of January from -45.3% in December. Notably, excluding California where most restaurants remain limited to only delivery and take-out, comparable restaurant sales improved to -22.5% for the first three weeks of January. In Texas, Florida and Ohio, our three largest markets after California, comparable restaurant sales improved to -14.3% in aggregate during this same period. Colorado and Pennsylvania, where we have 10 total restaurants, re-opened their dining rooms for limited seating starting in the first week of January and outdoor seating resumed last week at five of our California restaurants. Our teams are excited to continue re-opening dining rooms when conditions permit. As we experienced in 2020 when our dining rooms re-opened for a limited time, our guests are eager to return to the differentiated, high quality and high energy BJ’s dining experience.
“As we manage near-term challenges and demonstrate continuous sales growth in markets that have remained open, we are confident in our ability to outperform the casual dining sector and generate long-term growth through a differentiated dining experience. We have several exciting sales building initiatives underway, including a subscription-based beer club and a virtual brand focused on our slow roast and other protein centric products. Both of these sales driving initiatives are performing well in early test. We also plan to continue leveraging the strong quality and value of the BJ’s brand through our catering business, which we believe offers significant upside for our off-premise sales channel. The contraction in casual dining supply resulting from the pandemic, coupled with our sales driving initiatives and long-term opportunity to expand our concept to at least 425 restaurants nationally, positions us to continue taking market share as the vaccine becomes more widely available and the pandemic eases,” concluded Trojan.
Business Update
Recent sales performance and open dining rooms by period for the fourth quarter of 2020 and by fiscal week for the first three weeks of fiscal 2021 were as follows:
| Period Ended | Week Ended | ||||||||||||||||||
| 10/27/20 | 11/24/20 | 12/29/20 | 01/5/21 | 01/12/21 | 01/19/21 | ||||||||||||||
| Weekly Sales Average | $ | 83,467 | $ | 77,587 | $ | 60,347 | $ | 67,626 | $ | 63,724 | $ | 70,005 | |||||||
| Off Premise Weekly Sales Average | $ | 23,442 | $ | 23,547 | $ | 24,582 | $ | 30,914 | $ | 27,977 | $ | 29,123 | |||||||
| Comparable Restaurant Sales | -20.6 | % | -27.0 | % | -45.3 | % | -36.2 | % | -38.4 | % | -36.9 | % | |||||||
| % of Dining Rooms Open | 88 | % | 64 | % | 59 | % | 64 | % | 64 | % | 64 | % | |||||||
Comparable restaurant sales by key geography by period for the fourth quarter of 2020 and by fiscal week for the first three weeks of fiscal 2021 were as follows:
| Restaurant | Period Ended | Week Ended | |||||||||||||
| Count (1) | 10/27/20 | 11/24/20 | 12/29/20 | 01/5/21 | 01/12/21 | 01/19/21 | |||||||||
| California | 62 | -21.7 | % | -28.9 | % | -62.0 | % | -60.2 | % | -64.2 | % | -61.7 | % | ||
| Texas | 34 | -19.7 | % | -21.8 | % | -24.3 | % | -10.7 | % | -15.7 | % | -13.2 | % | ||
| Florida | 22 | -20.6 | % | -24.7 | % | -25.7 | % | -16.5 | % | -15.2 | % | -18.3 | % | ||
| Ohio | 14 | -18.3 | % | -26.3 | % | -31.3 | % | -12.5 | % | -14.9 | % | -11.4 | % | ||
| Other States (2) | 77 | -20.3 | % | -28.1 | % | -44.8 | % | -30.6 | % | -30.6 | % | -30.2 | % | ||
| Total | 209 | -20.6 | % | -27.0 | % | -45.3 | % | -36.2 | % | -38.4 | % | -36.9 | % | ||
| Total (excl. California) | 147 | -20.0 | % | -25.8 | % | -35.5 | % | -21.9 | % | -23.2 | % | -22.5 | % | ||
| (1) | Does not include our temporarily closed restaurant. | |
| (2) | Dining room closures in other states that impacted the fourth quarter of 2020 and recent results include: | |
|
- In calculating comparable restaurant sales, we include a restaurant in the comparable base once it has been open for 18 months.
- Weekly sales averages for the period ended December 29, 2020 included two holidays (Thanksgiving Day and Christmas Day) on which our restaurants were closed.
- Off-premise sales continue at more than 2.5 times pre-COVID-19 pandemic levels.
- At the current weekly sales average of $70,000 for the week ending January 19, 2021, we generate modest positive weekly adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, stock based compensation, other income, gains from lease transactions and loss on disposal and impairment of assets) and weekly cash flow of approximately -$0.3 million after interest expense and maintenance capital expenditures. We expect positive weekly cash flow once average weekly sales return to the upper $70,000s.
- As of January 21, 2021, we have cash and cash equivalents of approximately $40.8 million and $79.0 million available on our line of credit.
- We have made capital expenditure investments in recent months across the majority of our restaurants, including upgrading outdoor patios and installing glass dividers to increase safety and to enhance our guest’s dining experience.
Preliminary Unaudited Sales and Key Operating Results for the 2020 Fourth Quarter
- Total revenues of $197.0 million.
- Comparable restaurant sales declined 32.3%.
- Restaurant level operating profit (including stock based compensation) in the range of $12.5 million to $13.5 million.
- Operating loss, excluding any disposal and impairment charges and gains from lease transactions, in the range of $18.0 million to $20.0 million.
- The Company anticipates impairment charges for the fourth quarter between $2.5 million and $4.5 million related primarily to handheld tablets disposal costs and an impairment charge related to one or two restaurants.
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, stock based compensation, other income, gains from lease transactions and loss on disposal and impairment of assets) in the range of $2.0 million and $3.0 million.
The preliminary information and estimates with respect to the Company’s 2020 fourth quarter performance and financial position set forth herein constitute forward-looking statements, upon which investors should not place undue reliance because they may prove to be materially inaccurate. The preliminary information and estimates have not been compiled or examined by the Company’s independent auditors and they are subject to revision as the Company prepares its quarterly financial statements, and as the Company’s auditors conduct their annual audit thereof. While the Company believes that such preliminary information and estimates are based on reasonable assumptions, actual results may vary, and such variations may be material. Factors that could cause our preliminary information and estimates to differ from the information and estimates presented above include, but are not limited to: (i) additional adjustments in the calculation of, or application of accounting principles for, the financial results for the fourth quarter of 2020, and (ii) discovery of new information that impacts these results.
About BJ’s Restaurants, Inc.
BJ’s Restaurants, Inc. (“BJ’s”) is a national brand with brewhouse roots and a menu where craft matters. BJ’s broad menu has something for everyone: slow-roasted entrees, like prime rib, BJ’s EnLIGHTened Entrees® including Cherry Chipotle Glazed Salmon, signature deep dish pizza and the often imitated, but never replicated world-famous Pizookie® dessert. BJ’s has been a pioneer in the craft brewing world since 1996, and takes pride in serving BJ’s award-winning proprietary handcrafted beers, brewed at its brewing operations in five states and by independent third party craft brewers. The BJ’s experience offers high-quality ingredients, bold flavors, moderate prices, sincere service and a cool, contemporary atmosphere. Founded in 1978, BJ’s owns and operates 210 casual dining restaurants in 29 states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and Washington. All restaurants offer dine-in, take-out, delivery and large party catering. Due to the COVID-19 pandemic, one of our 210 restaurants remains temporarily closed, 133 of our restaurants are serving guests in our dining rooms in a limited capacity, 16 of our restaurants are serving guests only on the patio or in other outdoor seating, and 60 of our restaurants are operating in a take-out and delivery only capacity, all while adhering to social distancing protocols, and hours are limited. For more BJ’s information, visit http://www.bjsrestaurants.com.
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Walk-On’s Sports Bistreaux Proves Unstoppable Amid Pandemic, Seeks to Double Restaurant Openings in 2021
Leading Franchise Accelerates Development with Growth Equity Investment, New Prototype, Multi-Unit Strategy
Jan 19, 2021, 13:05 ET
BATON ROUGE, La., Jan. 19, 2021 /PRNewswire/ — Walk-On’s, a leading full-service family sports bar that provides gourmet takes on game day favorites, has announced an aggressive 2021 franchise development strategy planning to open upwards of 25 new restaurants across the country. Fueled by a recent growth equity investment from 10 Point Capital, the brand is poised for long-term success as it seeks qualified franchise partners to join the Walk-On’s team.
Despite the challenges to the industry brought on by the pandemic, Walk-On’s has been able to remain steadfast through its keen focus on growth and is set to open its milestone 50th restaurant in Q1 in result. Recent multi-unit agreements confirm rapid expansion plans as Walk-On’s continues to target strategic franchise development in key markets throughout the Southeast and Midwest with over 150 locations in development. The brand sees tremendous growth opportunity specifically in Indiana, Iowa, Kansas, Kentucky, Nebraska, North Carolina, Ohio, Virginia and Wisconsin.
“Our 2020 success was a collective effort of our determined leadership team and committed group of franchisees,” said Brandon Landry, Founder & CEO of Walk-On’s. “By prioritizing the needs of our franchisees, team members and communities, we were able to successfully innovate, adapt and come out on top. 2021 will prove to be a fruitful year as we rollout new initiatives, achieve major company milestones and continue our strategic nationwide expansion. Our team is committed to the long game – growing strategically with the right franchise partners who are a cultural fit – and aspiring to be more than just a restaurant.”
Amid the pandemic, Walk-On’s immediately jumped into action and suspended its royalty payments, with the suggestion that owners pour those funds into homegrown efforts and support their team members. Notably, Walk-On’s joined forces with Front Burner Restaurants’ Furlough Kitchen to debut “Furlough Kitchen by Walk-On’s,” a non-profit organization that provides furloughed hospitality workers free meals, no matter their former employer. The movement continues to gain momentum now having served over 30,000 meals across five states. Staying consistent to the Walk-On’s mission of supporting the communities it serves – the team recently pledged $100,000 to the Barstool Fund in the hopes of helping small businesses and other restaurants in their markets.
Meanwhile, the brand has adapted its business operations to offer Curbside ‘To-Geaux,’ online ordering, the debut of its mobile app, and third-party delivery partnerships while rolling out all-new family value meals, take & bake options, grocery to-geaux and more.
“Not only did the pandemic inspire a new wave of creative innovation, but it forced leaders to be aggressive in rolling out new products and services – realizing the value of not only preparing for the future, but acting on it sooner,” said Scott Taylor, President & COO of Walk-On’s. “By quickly pivoting and rolling out these new revenue streams, we have since clawed back at sales with takeout remaining approximately two times what it was pre-COVID, with indoor capacity limits still ranging from 50 to 75%.”
As teamwork and innovation remain a top priority in 2021, Walk-On’s has plans to debut several new initiatives including a new menu rollout and all-new team member uniforms. Additionally, Walk-On’s will embark on construction of its first nontraditional location on Purdue University’s West Lafayette campus as a result of a partnership with Aramark that will open the door for further development opportunities. The brand will also debut a new restaurant prototype – The Bulldog – that is centered around creating a larger-than-life experience in a smaller than typical sub-7,500 square foot space.
The success and innovation efforts have not gone unnoticed as the franchise industry has honored Walk-On’s with several recent award wins – earning the #1 spot in Entrepreneur’s prestigious 2020 Top New Franchises Ranking, jumping 36 spots on Entrepreneur’s 2021 Franchise 500 Ranking, making an appearance on The Inc. 5000 list, named a Top Franchise for 2021 by Franchise Business Review and landing #18 on Franchise Times’ Fast & Serious List ranking the smartest-growing brands in the industry.
Popular for being both the go-to place for game day and an eatery known for quality, scratch-made dishes, Walk-On’s has carved its own vertical to best support what fans love most. Whether it’s for date night, girl’s-night-out or a family dinner, Walk-On’s is the place for everyone – because everyone needs a little playing time. As the franchise has continued its explosive growth across the country, it has its eyes set on opening 150 new locations over the next five years.
“We have a strong culture, the best quality product in the industry and winning business model with huge opportunities for growth,” said Landry. “When these factors come together, we become an unstoppable force.”
For more information on Walk-On’s Sports Bistreaux and its franchise opportunity, please visit https://walk-ons.com/franchising.
About Walk-On’s Sports Bistreaux
Based in Baton Rouge, La., Walk-On’s Sports Bistreaux was founded in 2003 by Brandon Landry, a former walk-on basketball player at Louisiana State University. Leaning on the true spirit of a walk-on and building a winning culture, the brand is rapidly expanding across the United States with 46 locations currently open and operating and over 150 in development. Its Louisiana-inspired menu combines food and drinks made from scratch, daily. Walk-On’s All-American team serves up a game day experience in a fun, welcoming family-friendly atmosphere that ensures every guest is a winner. For more information, visit www.walkons.com. To inquire about franchise opportunities, please visit www.walkons.com/franchising or contact Kelly Parker, Director of Franchise Sales & Real Estate, at 225-330-4533.
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Mountain Mike’s Pizza Reports Record Sales in 2020
Leading Family-Style Pizza Chain Achieves Momentous Growth & Milestones
Newport Beach, CA (RestaurantNews.com) Mountain Mike’s Pizza, a leading family-style pizza chain known for its legendary crispy, curly pepperoni, Mountain-sized pizzas, fresh cut toppings from edge-to-edge and dough made fresh daily for over 40 years, announces that 2020 was the best sales year yet for the fast-growing franchise; beating out 2019 which held the previous record. The brand ended its fiscal year 2020 with total system sales (TSS) up 13.3% and same store sales (SSS) up 7.3 percent over 2019. This strong sales growth was achieved despite its dining rooms being closed for most of the year, a testament to the resilience of its franchisees, loyalty of its fans and the underlying strength of its carry out and delivery business.
“We are so proud of our franchisees who responded to every challenge during this most difficult of years,” said Chris Britt, co-CEO/owner of Mountain Mike’s Pizza. “Remarkably, this year we had a handful of franchised restaurants break the $2 million annual sales barrier for the first time in the brand’s history, with the average sales of our top 50% of restaurants achieving close to $1.2 million in annual sales. It really has been breathtaking to see the growth in restaurant count and sales that many of our franchisees have experienced over the past few years.”
Amidst the pandemic, Mountain Mike’s Pizza opened 15 new restaurants, and signed agreements to expand into new western states including a 60+ unit development deal in Arizona and Utah. Ed St. Geme, co-CEO/owner of Mountain Mike’s Pizza, added, “despite the many challenges in 2020, from lockdowns and fires and all the related impacts, we were unwavering in our dedication to serving our communities, supporting our franchisees, and providing our guests with the exceptional pizza experience they’ve come to know and love in the safest way possible.”
A variety of factors contributed to the brand’s success in 2020 including growing digital orders by more than 120% during the year, reaching nearly 40% of total orders by year end, continued advancement of a more flexible, data driven and digital focused marketing strategy, and rapid implementation of contactless delivery, tamper free packaging and other safety protocols at the outset of the pandemic. Additionally, franchise support capabilities were expanded in the areas of operations, development and marketing at the brand’s new Franchise Support Center in Newport Beach, Calif., with support including royalty and marketing fee relief for five weeks in March and early April. Equally, if not most important, was the brand’s franchise owners doubling down on expanded community outreach during 2020 with Mountain Mike’s franchisees stepping up for their communities by donating thousands of meals to health care workers and first responders in their area, including hospital, fire, police and teachers.
“It’s no secret that 2020 was a big year for pizza, but it became our goal early on to set a standard in the segment and lead by example, which meant allowing our values as a brand to guide us in every decision we made,” said Jim Metevier, Mountain Mike’s President and COO. “As a family-focused brand committed to the communities we serve, we went to work finding ways to bring added value and convenience to our guests while doing everything in our power to make them feel safe when choosing Mountain Mike’s Pizza. Equally committed to our franchise partners, we amped up communication to ensure they were informed and had the tools to pivot and continue running their business with confidence.”
The brand’s ongoing partnerships with national sports teams, including its role as the Official Pizza of the San Francisco 49ers, allowed for some exciting activations during the year, culminating with a run at Super Bowl LIV in February. Value-added promotions throughout the year including the “Share the Love” campaign featuring heart-shaped pizzas, which led to Valentine’s Day competing with Halloween, New Year’s Eve and Super Bowl Sunday for the top sales day of the year. Additionally, Mountain Mike’s ramped up third party delivery integration with new guest incentives and launched a Brand Reputation/Guest Relations Department, which responded to 99% of all guest feedback submitted via email and telephone, leading to stronger guest engagement in all markets. Ownership and the franchise leadership team were also busy developing new store design prototypes which continue into 2021. Some of these new design elements were introduced in two new Orange County, Calif. restaurants over the summer, while others will follow throughout 2021 in multiple markets.
“There are many exciting developments for Mountain Mike’s in 2021; the planned launch of our new mobile app and guest loyalty program, active development into additional western states including Oregon, Nevada, Arizona and Utah with the help of new franchise partners, our existing franchisees continuing to open more restaurants, and the development and launch of new technologies to provide added support for our franchise partners while enhancing the guest experience,” continued Britt and St. Geme. “With all that our leadership team and brand have to offer, there has never been a better time to join the Mountain Mike’s Pizza family!”
With approximately 25 new Mountain Mike’s Pizza restaurants planned for 2021, the over 230-unit franchised pizza brand is primed to continue expansion throughout the western U.S. by extending opportunities to new franchise partners looking to diversify their franchise portfolios with a popular family pizza concept. To learn more about new franchise opportunities in your market of interest, please, visit www.mountainmikespizza.com/franchising.
About Mountain Mike’s Pizza
Since 1978, Mountain Mike’s Pizza has been serving “Pizza the Way it Oughta Be!®” to its growing legion of fans in the Western U.S. Known for its legendary pepperoni pizza covered from edge to edge with mini crispy, curly pepperonis and its 20-inch Mountain-sized pizzas, Mountain Mike’s has been a popular choice for families and communities for over 40 years. Each of the brand’s more than 230 locations across California, Oregon and Utah feature in house and third party carry out and delivery platforms, and a welcoming yet modern family-friendly dine-in atmosphere complete with big screen TVs throughout and a kids’ activity area with arcade games, making it the ideal location for sports teams, family gatherings, group fundraisers and private parties. With a menu of classic and signature pizzas, oven-roasted bone-in and boneless wings with a range of signature sauces, salads, and dessert and cookie pizzas, and a selection of beer and wine, there’s something for everyone. No matter how you slice it, whether it be dine-in, carry-out or contactless delivery, guests can always count on Mountain Mike’s to deliver on safety, freshness, quality and value. For a complete list of locations and the full menu, visit www.mountainmikespizza.com or follow Mountain Mike’s on Instagram, Facebook, and Twitter.
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Amici Partners Group Acquires Friendly’s Restaurants
Group dedicated to reinvigorating 130-store restaurant chain
Plano, TX (RestaurantNews.com) Amici Partners Group, LLC (“Amici”), an entity comprised of experienced restaurant investors and operators who have been involved with some of the best-known QSR and casual dining chains for more than 25 years, has completed the acquisition of Friendly’s Restaurants. Comprised of 130 corporate-owned and franchised restaurant locations, Friendly’s has been a fixture on the East Coast for more than 80 years, and the Amici group plans to continue to keep all locations open, delighting guests and preserving thousands of restaurant-workers’ jobs.
“The investors of Amici Partners Group, LLC have been involved with the Friendly’s Restaurant brand in many capacities over the years, not only as owners/operators and leaders in the system, but also as longtime loyal customers of this iconic brand,” said Craig Erlich, President and CEO of Amici Partners and its affiliated company BRIX Holdings, LLC, a multi-brand franchising company. “Based on our personal connection to the chain, strong investment capabilities, and seasoned management team, we believe we will be able to continue to reinvigorate this much-loved brand for both loyal patrons and new customers alike.”
Friendly’s Restaurants have delighted generations of guests by serving signature sandwiches, burgers and ice cream desserts. The new ownership will bring back many of Friendly’s favorites while also focusing on menu innovation, including new ice cream flavors, reestablishing Friendly’s as a family-friendly destination, and delivering an elevated guest experience, as well as enhancing Friendly’s app for online ordering, take-out, delivery and a new loyalty program.
“Friendly’s holds a special place in the hearts of its many loyal patrons, and we look forward to nurturing that legacy and creating new programs and menu items to meet the changing needs of our customers,” added Erlich.
To learn more about Friendly’s Restaurants, visit www.friendlysrestaurants.com.
About Amici Partners Group, LLC
Amici Partners Group, LLC is an experienced investor group with a national and international franchisor background specializing in the restaurant industry. Amici acquired the assets of FIC Restaurants, Inc. and certain of its affiliates and is the current owner, operator and franchisor of over 130 Friendly’s® restaurants. Amici is an entity affiliated with BRIX Holdings, which focuses on brands that are both attractive to the single-unit and multi-unit owner/operator franchisee and have the potential to grow into national and international award-winning chains. The current BRIX Holdings franchise portfolio includes Red Mango® Yogurt Café Smoothie & Juice Bar, Smoothie Factory® Juice Bar, RedBrick Pizza® Kitchen Café, Orange Leaf®, Humble Donut Co.® and Souper Salad® chains.
View source version at Amici Partners