Financials – November 2021

Restaurant Brands International Inc. to Acquire Firehouse Subs for $1.0 Billion

November, 15 2021

Restaurant Brands International Inc. to Acquire Firehouse Subs for $1.0 Billion

Restaurant Brands International Inc. (TSX: QSR) (NYSE: QSR) (TSX: QSP) and Firehouse Restaurant Group Inc. announced today that they have reached an agreement for RBI to acquire Firehouse Subs for $1.0 billion in an all-cash transaction. The transaction offers significant long-term unit growth potential to drive attractive returns for all stakeholders and is expected to be immediately accretive to RBI’s diluted net earnings per share.

Firehouse Subs adds a strong and loved restaurant brand with attractive unit economics in a complementary category to RBI’s existing family of iconic quick service restaurant (“QSR”) brands, Tim Hortons®, Burger King®, and Popeyes®.

Founded in Jacksonville, Florida in 1994 by brothers and former firefighters Chris Sorensen and Robin Sorensen, Firehouse Subs is a brand built on decades of culture rooted in public service, creating hot and hearty subs piled high with the highest quality meats and cheeses and a commitment to saving lives through the establishment of the non-profit Firehouse Subs Public Safety Foundation®.

The brand is a strong and growing player within the $30 billion U.S. QSR sandwich category and since 2010 has increased its number of restaurants 3x to ~1,200 and its system-wide sales¹ 4x to an expected approximately $1.1 billion for 2021. This momentum extends into 2021, with October year to date U.S. comparable sales² versus 2019 of 20%. The brand benefits from a strong family of franchisees who own and operate 97% of the brand’s restaurants across 46 U.S. States, Canada and Puerto Rico. Firehouse Subs is expected to generate roughly $50 million of 2021E Adjusted EBITDA³.

Firehouse Subs is frequently rated the #1 brand in its QSR sandwich category for food quality and has one of the strongest brand-love ratings in its category – driven by the Foundation that has now granted $62.5 million in essential life-saving equipment and other support to public safety organizations.

José Cil, Chief Executive Officer of RBI commented, “Firehouse Subs is a special brand with a talented team, impressive culture and community focus that resonates with guests and closely aligns with our core values at RBI. We see tremendous potential to accelerate U.S. and international growth at Firehouse Subs with RBI’s development expertise, global franchisee network and digital capabilities. We are excited to welcome the Firehouse Subs team to the RBI family and to continue our ambitious dream of building the world’s most loved restaurant brands.”

Don Fox, Chief Executive Officer of Firehouse Subs said, “At Firehouse Subs we are united in our commitment to and passion for hearty and flavorful food, heartfelt service, and public safety. Joining the RBI family of brands provides an energizing opportunity to assist more communities, not only across America and Canada, but around the globe. The donations we generate for our Foundation through our restaurants means changing and saving lives, so we can’t wait to accelerate our journey at home and around the world.”

View source version at RBI

Fiesta Restaurant Group, Inc. Reports Third Quarter 2021 Results

Taco Cabana Divestiture Completed During Third Quarter of 2021

Sequential Improvement in Pollo Tropical Third Quarter 2021 Comparable Restaurant Sales from Second Quarter 2021

November 11, 2021 04:05 PM Eastern Standard Time

DALLAS–(BUSINESS WIRE)–Fiesta Restaurant Group, Inc. (“Fiesta” or the “Company”) (NASDAQ: FRGI), parent company of the Pollo Tropical® restaurant brand, today reported results for the 13-week third quarter, which ended on October 3, 2021, and provided a business update related to current operations.

Fiesta President and Chief Executive Officer Richard Stockinger said, “We announced the sale of Taco Cabana on July 1, and successfully closed the transaction on August 16. We are now debt free with a cash balance of $55.8 million as of October 3, and our leadership team is fully focused on achieving what we believe are significant growth opportunities for Pollo Tropical.”

Stockinger added, “We were pleased with Pollo Tropical’s third quarter sales performance despite reduced operating hours from staffing shortages throughout the quarter. Third quarter 2021 comparable restaurant sales were 13.8% vs. the third quarter of 2020, and increased to 0.9% vs. the third quarter of 2019, an improvement from the second quarter 2021 comparable restaurant sales vs. 2019 of -1.8%⁽¹⁾. Comparable restaurant sales results were much stronger in markets that had adequate staffing – those markets realized third quarter 2021 comparable restaurant sales of approximately 16.7% vs. the third quarter of 2020 and 4.3% vs. the third quarter of 2019. Our positive comparable restaurant sales growth compared to 2019 continued in October, and we are optimistic about accelerating sales momentum as we reach full staffing levels.”

Stockinger continued, “Staff availability has been an industry-wide challenge. We have approached this issue with a very disciplined and forward thinking approach, and took proactive action that included wage rate increases and offering hiring incentives. In addition, we are enhancing our medical plans and increasing other benefits such as emergency child-care and commute assistance so that we can remain a preferred employer. We achieved adequate staffing levels at a total company level by September and continued to realize staffing improvement in October.”

Stockinger added, “In order to improve margins after the wage rate increases, we implemented a phased approach to price increases of 3.7% in mid-third quarter with approximately 4% to 6% planned for the fourth quarter along with accelerating our ongoing actions to optimize restaurant labor efficiency. Those actions have already resulted in Restaurant-level Adjusted EBITDA⁽²⁾ margin improvement, a non-GAAP financial measure, based on preliminary October 2021 results⁽³⁾ compared to the third quarter of 2021. Restaurant-level Adjusted EBITDA margins declined during the third quarter compared to 2020 primarily due to hourly wage rate increases, short-term hiring incentives, and additional overtime and training. A large portion of those increases are short term only, estimated at $0.9 million, or approximately 100 basis points as a percentage of sales. Third quarter 2021 loss from continuing operations was $3.2 million compared to income from continuing operations in the third quarter of 2020 of $4.4 million.”

Stockinger concluded, “As we look toward the balance of the year, we are focused on continuing efforts to be a preferred employer and accelerating our margin improvement above the third quarter of 2021. We are targeting Restaurant-level Adjusted EBITDA margins returning to the 18% to 20% range in the first half of 2022, barring unforeseen changes in our cost structure and operating environment. In addition, we will continue enhancing the customer experience across all service channels, further investing in our growing digital platform, and refining our brand proposition and new unit design features in remodel tests to drive future growth.”

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BurgerFi Reports Third Quarter 2021 Results

November 11, 2021 07:00 ET

Total Revenue and Systemwide Sales Increased 25%, Corporate-Owned Restaurant Sales Up 34%,
Corporate-Owned Restaurant Same Store Sales Up 7%

Completed Acquisition of Anthony’s Coal Fired Pizza & Wings for $156.6 million

Conference Call today, November 11, at 8:30 a.m. ET

PALM BEACH, Fla., Nov. 11, 2021 (GLOBE NEWSWIRE) — BurgerFi International Inc. (Nasdaq: BFI, BFIIW) (“BurgerFi” or the “Company”), owner of one of the nation’s fastest-growing premium fast-casual and casual dining concepts through the BurgerFi brand, and the high-quality, casual dining brand Anthony’s Coal Fired Pizza & Wings (“Anthony’s”), today reported financial results for the third quarter ended September 30, 2021.

Third Quarter 2021 Key Metrics¹ Summary

*(in thousands except for percentage data)*	Three Months Ended September 30, 2021
Systemwide Restaurant Sales	$	41,407
Systemwide Restaurant Sales Growth		25	%
Systemwide Restaurant Same Store Sales Growth		8	%
Corporate-Owned Restaurant Sales	$	8,470
Corporate-Owned Restaurant Sales Growth		34	%
Corporate-Owned Restaurant Same Store Sales Growth		7	%
Franchise Restaurant Sales	$	32,937
Franchise Restaurant Sales Growth		23	%
Franchise Restaurant Same Store Sales Growth		9	%
Digital Channel Systemwide Sales	$	15,383
Digital Channel Sales Growth		(4	)%
Digital Channel Orders		586
Digital Channel Orders % of Systemwide Sales		37	%

1 Refer to “Key Metrics Definitions” and “About Non-GAAP Financial Measures” sections below.

Management Commentary

Ophir Sternberg, Executive Chairman of BurgerFi, stated “The third quarter continued the positive momentum for BurgerFi driven by strong sales growth resulting from the addition of new units, same-store sales growth, improved operating margins and continued unit re-openings in our franchise network. We are also excited to have closed on the acquisition of Anthony’s Coal Fired Pizza & Wings on November 3, 2021, which we purchased from L Catterton for $156.6 million. We look forward to our ongoing strategic partnership with L Catterton as we set out on building this premium multi-brand platform as they have become one of BurgerFi’s largest shareholders and Andrew Taub, Managing Partner at L Catterton, has joined our board.”

Ian Baines, who became Chief Executive Officer of the Company on November 8, 2021, added “The Anthony’s transaction is a historic moment for BurgerFi as it marks our first acquisition on our long- term growth strategy. We are thrilled to combine the BurgerFi and Anthony’s brands and see enhanced profitability and growth opportunities as we look out over the next several years. We are encouraged by the sales and operational recovery in performance of both of our brands despite a very challenging operating environment. I have the utmost confidence in our management teams leading these brands as we begin the integration process, take advantage of strategic synergies and execute on the combined company strategy.”

Julio Ramirez, who became Chief Executive Officer and President of the BurgerFi brand on November 8, 2021, stated, “During the third quarter, we opened 2 corporate-owned restaurants, bringing our new restaurant count to 11 so far this year including one franchised location in October. Leases are signed for another 32 locations, 17 corporate owned and 15 franchised within our development pipeline, of which, 14 are in various stages of construction. While the restaurant industry is facing macro headwinds, we are resilient and continue to be proud of our operations teams and franchisee’s focus leading through the challenges presented in this unprecedented time. I’m very pleased with the team’s continued progress in driving improvements in restaurant operating margins through the effective management of price and cost programs and look forward to the benefits they will bring when challenges presented by COVID-19 subside.”

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BBQ Holdings, Inc. Reports Results for Third Quarter 2021

Company Reaffirms Revenue and Increases Earnings Guidance for Fiscal Year 2021

November 10, 2021 16:05 ET

MINNEAPOLIS, Nov. 10, 2021 (GLOBE NEWSWIRE) — BBQ Holdings, Inc. (NASDAQ: BBQ) (the “Company”), an innovating global franchisor, owner and operator of restaurants, today reported financial results for the third fiscal quarter ended October 3, 2021.

Third Quarter 2021 Highlights:

Financial:

Total revenue of $55.4 million vs. $35.5 million in the third quarter of 2020.
Net income of $4.8 million vs. $0.3 million in the third quarter of 2020.
Adjusted EBITDA, a non-GAAP measure, was $4.4 million vs. $2.0 million in the third quarter of 2020.
Combined brands restaurant-level margins of 8.6% vs 3.4% last year.
Prime costs were 62.6% of sales vs. 67.8% third quarter 2019.

	Third Quarter Same Store Sales
	2021 vs. 2020		2021 vs. 2019
Famous Dave’s Company-owned	19.3	%	12.4	%
Famous Dave’s Franchise-operated*	18.0	%	6.9	%
Granite City	31.4	%	(0.5	)%
Village Inn Company-owned**	37.0	%	(8.1	)%
Village Inn Franchise-operated*	48.2	%	NA	%
Bakers Square**	32.4	%	(20.2	)%

* as reported by franchisees
** includes sales under prior ownership

Executive Comments

Jeff Crivello, CEO, commented, “This was a quarter of strong execution for BBQ Holdings, as our growth strategies continue to deliver positive top and bottom-line results, including a steady improvement in same store sales and solid free cash flow. Management is focused on executing against our three core growth initiatives, including accretive M&A, opening new units, and filling the latent capacity of our current restaurants. During the third quarter, we completed the highly accretive acquisition of Village Inn and Bakers Square. Subsequent to the end of the quarter, we also acquired Tahoe Joe’s. Our goal now is to reinvigorate these brands and drive consistent unit-level improvements as we have at Famous Dave’s and other brands. In addition, the month of October also brought the opening of the first Famous Dave’s Quick Que in Minnesota. We are excited to continue to rollout this quick service format, providing a new, efficient way for our guests to experience Famous Dave’s. Finally, we launched a virtual burger concept during the quarter, $5 Burgers, providing incremental revenue in the Famous Dave’s system.”

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Dutch Bros Inc. Reports Third Quarter 2021 Financial Results

Surpassed 500 shops, Company-owned shops revenue expands 62.9%

Reiterates long-term potential of at least 4,000 shops nationwide

November 10, 2021 04:05 PM Eastern Standard Time

GRANTS PASS, Ore.–(BUSINESS WIRE)–Dutch Bros Inc. (NYSE: BROS), one of the fastest-growing brands in the food service and restaurant industry in the United States by location count, today reported financial results for the third quarter ended September 30, 2021. We also provided our fourth quarter 2021 financial outlook and our preliminary outlook for 2022 new shop openings.

Joth Ricci, Chief Executive Officer and President of Dutch Bros Inc., stated, “We are very pleased with the strength of our third quarter and year-to-date results which are exceeding the optimistic set of expectations we established going into 2021. While we are excited to have recently begun our journey as a public company, we are already focused on a clear set of growth-minded objectives that make Dutch Bros a national brand. This includes expanding what is already a strong pipeline of homegrown regional operators and combining that with a disciplined, people-led growth strategy that creates the potential for at least 4,000 shops nationwide. As we open new stores in both existing and new markets, we will provide our customers with unique drive-thru experiences based upon Speed, Quality and Service while solidifying our strong commitment to communities.”

Third Quarter 2021 Highlights:

Surpassed 500 operating shops with our Hutto, Texas opening (Northeast of Austin).
Opened 33 new shops, of which 30 were company-operated
Total revenues grew 49.8% to $129.8 million as compared to the same period last year.
Company-operated shops revenues increased 62.9% to $108.7 million as compared to $66.7 million in the same period last year.
System same shop sales grew 7.3% in the third quarter and 10.7% on a two-year basis. Company-operated same shop sales grew 4.7% in the third quarter and 10.1% on a two-year basis.
Company-operated shop gross profit grew 18.0% to $22.8 million as compared to $19.3 million in the same period last year. Company-operated contribution¹, excluding pre-opening and COVID costs grew 23.8% to $27.1 million as compared to $21.9 million in the same period last year.
Net income (loss) was $(117.1) million, or $(0.15) per diluted share as compared to $6.7 million in the same period last year. In the third quarter of 2021, we recognized $124.8 million of non-cash equity-based compensation related to our initial public offering.
Adjusted net income¹ was $11.0 million, or $0.23 per diluted share, as compared to $16.2 million in the same period last year.
Adjusted EBITDA¹ decreased 2.6% to $20.6 million as compared to $21.2 million in the same period last year. The decrease was primarily due to abnormally low systemwide discounts last year during the initial COVID-19 pandemic outbreak.

Initial Public Offering

On September 17, 2021, we successfully closed our initial public offering (“IPO”) of 24,210,526 shares of Class A common stock, including the exercise in full of the underwriters’ option to purchase 3,157,894 additional shares, at a price to the public of $23.00 per share. Proceeds from the IPO were approximately $556.8 million, before deducting underwriting discounts and commissions and other offering expenses.

Our Class A common stock began trading on The New York Stock Exchange (“NYSE”) under the symbol “BROS” on September 15, 2021.

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Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal Third Quarter Ended October 3, 2021

November 10, 2021 04:05 PM Eastern Standard Time

GREENWOOD VILLAGE, Colo.–(BUSINESS WIRE)–Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) (“Red Robin” or the “Company”), a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the quarter ended October 3, 2021.

Key Highlights

Restaurant revenue of $270.2 million and Restaurant Level Operating Profit as a percentage of restaurant revenue (a non-GAAP metric) of 12.5%;
Third quarter 2021 comparable restaurant revenue⁽¹⁾ increased 34.3% over the same period in 2020, and increased 0.6% compared to the same period in 2019;
Improving comparable restaurant revenue⁽¹⁾during the Company’s third fiscal quarter, and positive 4.0% for the first period of the fourth fiscal quarter⁽³⁾ compared to 2019, with the improving trajectory driven by strategic growth initiatives, and improvements in staffing levels;
Off-premises sales continue to sustain at high levels and comprised $81.0 million, $80.7 million and $35.0 million of comparable restaurant revenue for the third quarters of 2021, 2020 and 2019, respectively;
On track to launch two new mobile apps, iOS and Android, a new website ordering experience, and a new loyalty platform before the end of the year, creating an integrated digital ecosystem which we expect will improve traffic, order completion and average guest check; and
Restaurants that have been serving Donatos® pizza prior to 2021 are continuing to benefit from growing incremental sales beyond their first year as operations mature and brand affinity grows, with comparable restaurant revenue up 8.7% in the third quarter compared to 2019 in restaurants without supply chain impacts.

Comparable Restaurant Revenue for Third Quarter 2021 and First Fiscal Period for Fourth Quarter 2021 Compared to 2020 and 2019

The following table presents comparable restaurant revenue for the eighth, ninth, and tenth fiscal periods that comprised our third fiscal quarter, as well as the eleventh fiscal period, the first fiscal period of our fourth fiscal quarter:

2021 Comparable Restaurant Revenue Increase/Decrease, Compared to:	Period 8			Period 9			Period 10		Period 11⁽²⁾⁽³⁾
2020	50.5		%	31.9		%	22.1	%	24.0	%
2019	(0.8	)	%	(0.9	)	%	4.0	%	4.0	%

⁽²⁾	Period 11, which ended on October 31, 2021, includes the combined impact of reduced traffic due to storms on the West Coast and the Halloween shift from a Thursday to a Sunday, together negatively impacted comparable restaurant revenues by approximately (1.0)% to (2.0)%, compared to 2019.
⁽³⁾	The period ended October 31, 2021 falls within our fourth fiscal quarter, and amounts presented for the period are preliminary.

Paul J. B. Murphy III, Red Robin’s President and Chief Executive Officer, said, “Our confidence is strengthened by the positive trajectory in our sales and traffic trends over the past eight weeks, despite softness earlier in the third quarter due to concerns about the Delta variant and continued staffing and supply chain challenges. In fact, we believe there is more opportunity for upside through the remainder of the year and beyond by ensuring that each restaurant is effectively managed, optimally staffed, and our Team Members are well trained, enabling us to capture the full benefits of our proven strategic growth initiatives.”

Murphy continued, “We have now sustained six consecutive quarters of off-premises sales at more than double 2019 levels, even as Guests return for in-person dining, while we continue to benefit from our value proposition and menu offerings, and our enhancements to the efficiency and accuracy of this burgeoning channel. Additionally, our successes with key initiatives this year, including continued Donatos pizza expansion, advancements in our digital ecosystem, and menu innovation demonstrate how we are differentiating Red Robin, expanding our market share and frequency, and supporting the ongoing execution of our business strategy.”

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Savory Fund Makes Investment in Hash Kitchen, Innovative Phoenix-Based Brunch Concept

November 10, 2021

Savory to expand elevated, highly experiential restaurant concept into leading player in brunch category throughout western United States

Scottsdale, AZ (RestaurantNews.com) Savory Fund announced today that it has invested in the popular brunch concept Hash Kitchen. The Scottsdale-based chain, creatively designed around a social dining experience, is the latest brand to attract growth capital from Mercato Partners’ $200 million Savory Restaurant Fund, which was formed to back promising emerging restaurant concepts. Savory Fund has allocated $20M to this investment and will scale the concept across the western United States.

Founded in 2015 by celebrity chef Joey Maggiore, his wife Cristina, and partner Flora Tersigni of The Maggiore Group, Hash Kitchen’s menu features high-quality and next-level breakfast and boozy brunch offerings. Its chef-driven, curated menu is distinctively paired with an Instagram-worthy dining atmosphere, making Hash Kitchen the go-to spot for locals and a culinary destination for visitors.

“Hash Kitchen uniquely captures the demand from today’s consumer for restaurant experiences that combine consistently outstanding food with upbeat music and a highly experiential atmosphere,” said Andrew K. Smith, managing partner and co-founder of the Savory Fund. “We intend to amplify the Hash Kitchen brand by melding its strengths into Savory’s growth-and-scale playbook, thereby creating synergies and unleashing its inherent potential. The Maggiore Group is a force with exceptionally creative operators, and we believe that by combining our talents and resources, we can make Hash Kitchen the breakfast/brunch category’s dominant player west of the Mississippi.”

Limited daypart concepts have been growing in popularity over the last decade. Hash Kitchen is fast becoming a leader in the category thanks to its unparalleled build-your-own Bloody Mary bar experience and flavorful comfort food, including such signature items as the Cannoli Pancakes, Billionaire Bacon, Banana Split Brioche French Toast, Short Rib Breakfast Burrito and Carnitas Hash. Plus, the lively, communal vibe that sets it apart from the rest.

Chef Joey and The Maggiore Group will remain involved in the development of the brand, working alongside the Savory team to integrate its proven platform for unlocking additional enterprise value through a high level of execution and acceleration of scale. Maryam Chaney, Vice President of Food & Beverage for Savory Management, Robert Gardner, lead investor on the transaction for the Savory Fund, and Andrew K. Smith, Managing Director, will join the Hash Kitchen Board of Directors, alongside co-founders Joey Maggiore and Flora Tersigni of The Maggiore Group.

“We are really excited that Savory has recognized the potential in Hash Kitchen and is going to work side-by-side with our team to bring our unique brand of social dining experiences to a wider audience,” Chef Joey Maggiore said. “We think Savory is the perfect partner for us, and we can’t wait to implement their proven growth model as we reach beyond our home base to profitably and aggressively expand our footprint to neighboring states.”

Hash Kitchen currently operates five locations in Arizona with two others currently in development. Savory’s investment will be used to form the new partnership, unify operations, and provide fuel and additional human capital for rapid expansion into new markets. The expectation is to open 30 new locations over the next four years.

About The Savory Fund

The Savory Fund, a $200 million F&B practice managed by Andrew K. Smith and Greg Warnock of Mercato Partners, focuses on delivering outsized returns through strategic investments in the food and beverage industry. Savory partners with high-potential, profitable, emerging restaurant brands to deliver financial capital, industry expertise, revenue opportunities, profitability enhancements and new location development. The Savory team contributes directly to all aspects of growth and replication by using a proven playbook and methodology along with its 70-person veteran restaurant operations team. For more information, visit savoryfund.com.

About Hash Kitchen

Breakfast classics are remixed and reimagined at Hash Kitchen, a buzzy brunchery with Instagrammable, creative daytime dishes and an exceptional, interactive build-your-own Bloody Mary bar where guests can customize their cocktail from start to finish with house made Bloody Mary mixes, house-infused spirits and over 50 craft toppings. The innovative concept combines chef-driven food and an elevated cocktail program with a next-level, brunch-centric atmosphere complete with social-media-worthy wall art and rotating guest DJs and turntables on the weekends. To learn more, visit www.hashkitchen.com.

View source version at Savory Fund

Danny Meyer’s USHG Acquisition Corp. to Be Cornerstone Partner Alongside Panera Brands IPO

Panera Brands will pursue a traditional IPO with Mr. Meyer and USHG Acquisition Corp. as key partners

Mr. Meyer to become Lead Independent Director of Panera Brands Board

November 09, 2021 07:31 AM Eastern Standard Time

ST. LOUIS & NEW YORK–(BUSINESS WIRE)–Panera Brands, which includes the iconic fast casual and hospitality brand Panera Bread as well as Caribou Coffee and Einstein Bros. Bagels, and USHG Acquisition Corp. (NYSE:HUGS) (“HUGS”), a company sponsored by an affiliate of Union Square Hospitality Group, LLC, one of the world’s leading hospitality businesses, announced today that they have signed an agreement through which HUGS will become a cornerstone partner with Panera Brands (the “Transaction”). Danny Meyer will also invest directly in Panera Brands at the time of the previously announced Panera Brands IPO and become Lead Independent Director of Panera Brands’ board following completion of the IPO.

The closing of the Transaction will take place following the completion of the Panera Brands IPO, which will be undertaken via a customary IPO process, and approval of HUGS shareholders. Pursuant to the Transaction, HUGS shareholders will become direct shareholders in Panera Brands, alongside current and future shareholders of Panera Brands after the Panera Brands IPO. JAB, which is Panera Brands’ primary shareholder, subject to completion of the Panera Brands IPO, has agreed to make a dollar-for-dollar investment in shares of Panera common stock in an amount equal to the amount of any redemptions of HUGS shares.

Danny Meyer, Chairman of HUGS and founder of Union Square Hospitality Group said, “Under CEO Niren Chaudhary’s leadership, Panera Brands embodies values consistent with HUGS and our Enlightened Hospitality roots, demonstrating that shareholder success is dependent on and driven by an employee-first stakeholder culture. Importantly, Panera Brands meets our investment criteria to combine with a purpose-driven business that is scalable and built for the long-term; a market leader whose greatest strength is its talent and heart; a company where people love to work and with which customers, suppliers and partners love doing business. We are excited to partner with Panera Brands alongside JAB.”

Niren Chaudhary, Chief Executive Officer of Panera Brands, stated, “We’ve long admired Danny’s work as he built some of today’s most beloved brands with a relentless focus on hospitality and culture. The values of Panera Brands, which are based on a belief that we can be force multipliers for good, creating a positive impact on our communities and the planet, are values shared with Union Square Hospitality Group. We look forward to partnering to capitalize on the global growth opportunity for our brands.”

David Bell, Senior Partner at JAB said, “We are excited to have Danny Meyer and HUGS as key partners with Panera Brands and for Danny to join Niren and the team as an active participant in its long-term success alongside Panera Brands shareholders. This transaction unites two of the world’s leading hospitality organizations to work together on a successful transaction.”

Adam Sokoloff, Chief Executive Officer of HUGS, said, “We went public with a focus on finding a category-leading business that embraces ‘Enlightened Hospitality’, including attracting and retaining the best talent by putting employees first, creating deep and emotional connections with customers and community, and being mindful of all stakeholders. We believe we found the ideal fit in Panera Brands.”

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Toast Announces Third Quarter 2021 Financial Results

Third quarter revenue grew 105% year-over-year to $486.4 million

Annualized recurring run-rate (ARR) as of September 30, 2021 grew 77% year-over-year to $543.8 million

Third quarter gross payment volume (GPV) grew 123% year-over-year to $16.5 billion

November 09, 2021 04:05 PM Eastern Standard Time

BOSTON–(BUSINESS WIRE)–Toast (NYSE: TOST), the all-in-one platform built for restaurants, today reported financial results for the third quarter ended September 30, 2021.

“In the third quarter, we delivered strong results across the board,” said Chris Comparato, CEO, Toast. “Toast’s performance is a result of our relentless focus on driving restaurant success with our all-in-one technology platform, unique go-to-market strategy and powerful business model. As restaurants invest more in technology to meet new expectations from guests, employees and partners, Toast is uniquely positioned to capture a growing share of its market opportunity.”

Financial Highlights for the Third Quarter of 2021

Revenue for the third quarter of 2021 was $486.4 million, an increase of 105% from the third quarter of 2020.
ARR as of September 30, 2021 was $543.8 million, an increase of 77% as compared to September 30, 2020.
GPV for the third quarter of 2021 was $16.5 billion, an increase of 123% from the third quarter of 2020.
Gross profit for the third quarter of 2021 was $83.3 million, an increase of 72% from the third quarter of 2020.
Non-GAAP gross profit for the third quarter of 2021 was $88.5 million, an increase of 75% from the third quarter of 2020.
Net loss for the third quarter of 2021 was $252.5 million, as compared to $62.6 million in the third quarter of 2020.
Adjusted EBITDA for the third quarter of 2021 was $(9.7) million, as compared to Adjusted EBITDA of $(0.3) million in the third quarter of 2020.
Net cash (used in) provided by operating activities for the third quarter of 2021 was $(17.2) million, as compared to $11.2 million for the third quarter of 2020.
Free Cash Flow for the third quarter of 2021 was $(21.1) million, as compared to Free Cash Flow of $0.4 million for the third quarter of 2020.

For more information on the non-GAAP financial measures and key metrics discussed in this press release, please see the sections titled “Key Business Metrics” and “Non-GAAP Financial Measures,” as well as the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.

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First Watch Restaurant Group, Inc. Reports Third Quarter Financial Results

Robust Same-Restaurant Sales Growth of 46.2% and Traffic Growth of 40.1%

November 08, 2021 19:18 ET

BRADENTON, Fla., Nov. 08, 2021 (GLOBE NEWSWIRE) — A previous version of this press release incorrectly stated in the Outlook section that First Watch intends to open 7 company-owned and 2 franchise-owned restaurants in Q4. While the concept does intend to open 9 restaurants during the quarter, the release should have stated the mix as 5 company-owned and 4 franchise-owned restaurants.

First Watch Restaurant Group, Inc. (NASDAQ: FWRG), (“First Watch” or the “Company”) the Daytime Dining concept serving breakfast, brunch and lunch, today reported financial results for the third fiscal quarter ended September 26, 2021.

Highlights for the third fiscal quarter ended September 26, 2021 compared to the third fiscal quarter ended September 27, 2020:

Total revenues increased 57.8% to $157.4 million
Same-restaurant sales growth of 46.2% (19.7% growth compared to 2019^(*))
Same-restaurant traffic growth of 40.1% (4.8% growth compared to 2019^(*))
Income (Loss) from operations margin of 4.6% compared to (8.8)% ((3.4)% in 2019^(*))
Restaurant level operating profit margin^(**) increased to 19.5% from 9.9% (16.0%, in 2019^(*))
Net income of $0.8 million, or $0.02 per diluted share, compared to Net loss of $11.1 million, or $(0.25) per diluted share (Net loss of $7.0 million, or $(0.16) per diluted share in 2019^(*))
Adjusted EBITDA^(**) increased to $17.0 million from $2.6 million ($7.7 million in 2019^(*))
Five system-wide restaurant openings in the quarter, resulting in a quarter-end count of 428 system-wide restaurants (337 company-owned and 91 franchise-owned) across 28 states

___________________
* Comparison to the third fiscal quarter ended September 29, 2019 is provided for enhanced comparability.
** See “Non-GAAP Financial Measures” below.

Third Fiscal Quarter 2021 Financial Results

“Our third quarter performance reflects the strength and resiliency of our brand as evidenced by the exceptional same-restaurant sales and traffic growth, improved restaurant level operating profit margin and increased Adjusted EBITDA when compared to the same periods in both 2020 and 2019,” said Chris Tomasso, Chief Executive Officer and President of First Watch. “I want to personally thank the dedicated individuals throughout our organization for their commitment to delivering an elevated experience at every opportunity and for their efforts in establishing the third quarter of fiscal 2021 as one of the strongest quarters in First Watch’s nearly 40-year history.”

Total revenues for the quarter increased 57.8% to $157.4 million from $99.7 million during the same period in 2020 primarily due to (i) same-restaurant sales growth of 46.2%, which was driven by same-restaurant traffic growth of 40.1%, (ii) sales from 19 new company-owned restaurants that have opened since September 27, 2020 and (iii) menu price increases.

Labor and other related expenses for the quarter was 32.6% of restaurants sales as compared to 34.7% during the same period in 2020 and 35.2% during the same period in 2019. The percentage is lower than the same periods in 2020 and 2019 principally due to the challenging labor environment. As the pace of job applications and hiring is improving, labor as a percentage of restaurant sales is expected to increase 100 to 150 basis points in the fourth fiscal quarter of 2021.

Income from operations for the quarter was $7.2 million as compared to Loss from operations of $8.6 million for the same period in 2020. This was primarily due to (i) the increase in same-restaurant sales growth, driven by same-restaurant traffic growth, which had declined in 2020 due to the impacts of the COVID-19 pandemic, (ii) operations of 19 new company-owned restaurants that have opened since September 27, 2020, partially offset by (iii) the increase in food and beverage costs, labor and other related expenses and other restaurant operating expenses as restaurant sales and traffic increased and (iv) the increase in general and administrative expenses primarily as a result of the increase in employee headcount and performance-related bonuses.

Restaurant level operating profit for the quarter increased to $30.2 million from $9.8 million during the same period in 2020 primarily due to (i) the rapid and steady recovery of our in-restaurant dining sales and traffic, which had declined in 2020 due to the impacts of the COVID-19 pandemic and (ii) the operations of 19 new company-owned restaurants that have opened since September 27, 2020, partially offset by (iii) the increase in food and beverage costs, labor and other related expenses and other restaurant operating expenses as restaurant sales and traffic increased.

Net income for the quarter was $0.8 million, or $0.02 per diluted share, as compared to Net loss of $11.1 million, or $(0.25) per diluted share, during the same period in 2020. The increase was primarily due to (i) the increase in income from operations mainly driven by the rapid and steady recovery of our in-restaurant dining sales and traffic, partially offset by (ii) income tax expense. Net income (loss) margin for the quarter increased to positive 0.5% as compared to (11.2)% in the same period in 2020.

Adjusted EBITDA for the quarter increased $14.4 million to $17.0 million from $2.6 million during the same period in 2020 primarily due to (i) the rapid and steady recovery of our in-restaurant dining sales and traffic, which had declined in 2020 due to the impacts of the COVID-19 pandemic and (ii) the operations of 19 new company-owned restaurants that have opened since September 27, 2020, partially offset by (iii) the increase in general and administrative expenses mainly as a result of the increase in employee headcount and performance-related bonuses. Adjusted EBITDA margin increased to 10.8% from 2.6% in the same period in 2020.

For additional financial information related to the third fiscal quarter ended September 26, 2021, refer to the Company’s Quarterly report on SEC form 10-Q filed on November 8, 2021, which can be accessed at investors.firstwatch.com in the Financials & Filings section.

View full version at First Watch

Starbird Chicken Closes $12 Million Capital Raise

November 8, 2021

Led by KarpReilly, Capital Raise to Fuel Super-Premium Fast Food’s Next Phase of Growth

San Francisco, CA (RestaurantNews.com) Starbird Chicken, the nation’s first super-premium fast food concept, announced today the closing of a $12 million capital raise. The fundraise was led by KarpReilly and will ignite Starbird Chicken’s next phase of growth, which includes development of additional company-owned restaurants and ghost kitchens, increasing licensing engagements, and launching its franchise offering.

“This year has been a phenomenal one for Starbird and this capital infusion is evidence that our mission to reimagine what fast food can and should be has potential for exponential growth,” said Aaron Noveshen, founder and CEO of Starbird Chicken. “When we created Starbird five years ago, we saw consumers were looking for more out of fast food and that there was an enormous opportunity for someone to step up and establish a new segment, which Starbird calls super-premium fast food. We’re incredibly proud to be a leader in the innovation of this space and are energized by what’s to come.”

The significant fundraise comes on the heels of Starbird Chicken reporting strong third-quarter results, including year-to-date same-store sales growth of 26% over 2020 and 75% over 2019. The brand, which operates in streetside storefronts, stadiums, airports, and ghost kitchens, has increased its footprint this year throughout the San Francisco Bay Area and is slated to enter Southern California by the end of the year.

“Over the last 18 months, consumers’ needs and wants have changed dramatically. They’re interacting with restaurants in a different way and have become even more particular about what they eat and how they purchase it. Starbird has clearly demonstrated it can deliver premium, high-quality food and an unrivaled customer experience even in the most difficult operating environment,” said Ryan Greene, a Principal at KarpReilly. “We are proud to partner with Starbird on this investment and look forward to its continued growth as it expands its business to reach more customers in the U.S.”

Greg Dollarhyde of Dollarhyde Investment Group III, an original investor in Starbird and the previous lead investor said, “From day one, we saw something special in Starbird. This innovative concept is in a league all its own. I truly admire the passion that Aaron and his team have for delivering their vision, and welcome KarpReilly as thoughtful investors and partners. Starbird continues to beat every expectation.”

In addition to this continued success, Starbird Chicken has also earned top industry awards such as Nation’s Restaurant News’ Most Influential CEOs in the Country, being named “Best Restaurant” on ICX Association Elevate Awards, and ranking #21 on Fast Casual’s Movers & Shakers list.

Known for its hand-crafted, feel good crispy chicken, bold flavors and chef-driven innovation, Starbird Chicken offers an unrivaled customer experience, optimized menu, and tech-enabled convenience designed to meet consumers’ increasing need for convenience and accessibility. Starbird Chicken also operates a suite of virtual brands under the Starbird name, including Starbird Wings, Starbird Salads, Starbird Bowls, and the brand’s new plant-based concept, Gardenbird. Strategically tailored to maximize digital real estate and drive sales through different channels, Starbird’s virtual brands are trending at double digits of company-wide sales in Q3 2021.

To learn more about Starbird Chicken and investment opportunities, visit www.starbirdchicken.com. Follow Starbird Chicken on Facebook, TikTok and Instagram for the latest news and trends.

About Starbird Chicken

Starbird Chicken is fundamentally changing the future of fast food by delivering feel good crispy chicken and a positive, tech-driven customer experience. Starbird was founded in 2016 by restaurant innovators at The Culinary Edge (TCE), when the restaurant consultancy recognized that chicken consumption was on the rise and set out to reimagine fast food to meet the needs of a new America and their tastebuds. Built upon pillars of culinary innovation, a frictionless service model, and operational excellence, Starbird has successfully established a forward-thinking concept, leading the super-premium fast food marketplace and national brand recognition within the $34-billion U.S. chicken marketplace. A scalable concept from day one, Starbird has grown rapidly from one location to nine, with four more openings planned in 2021. See www.starbirdchicken.com for more information.

About KarpReilly

KarpReilly, LLC is a private investment firm, founded by Allan Karp and Chris Reilly, whose primary mission is to partner with premier small to mid-size growth companies and help them achieve their long-term vision. KarpReilly currently manages funds and affiliates with capital commitments in excess of $800 million. Over the past 10 years, the principals of KarpReilly have invested in, sat on the boards of and nurtured over 60 growth companies. For more information, please visit www.karpreilly.com.

View source version at Starbird Chicken

FAT BRANDS INC. REPORTS THIRD QUARTER 2021 FINANCIAL RESULTS

November 04, 2021 16:25 ET

Conference call and webcast today at 5:00 p.m. ET

LOS ANGELES, Nov. 04, 2021 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) today reported fiscal third quarter 2021 financial results for the 13-week period ending September 26, 2021.

Andy Wiederhorn, President and CEO of FAT Brands, commented, “We want to thank our franchise partners and employees for their efforts in delivering yet another strong quarter and further momentum for FAT as we emerge from the challenging operating environment of the past year.”

“We successfully closed the acquisition of the Twin Peaks sports lodge for $300 million on October 1, our third acquisition in the past year, and another historic moment for FAT Brands as it is our entrance into the polished casual dining category. This transaction furthers the rapid diversification of our restaurant portfolio, expands our store base to more than 2,100 franchised and corporate-owned stores globally and increases our combined system-wide sales to approximately $1.8 billion annually. We are excited to integrate Twin Peaks into our portfolio, and believe we can effectively enhance the strong growth the sports-lodge brand achieved under Garnett Station. From this transaction, we expect our post-COVID normalized EBITDA to increase by approximately $25-$30 million.”

“We continue to execute on our acquisition strategy here in the fourth quarter as on November 2, 2021 the Company announced it had agreed to acquire Fazoli’s, the largest premium QSR Italian chain in the U.S., from Sentinel Capital Partners for $130 million. We believe this is a fantastic addition to our portfolio as Fazoli’s further enhances our profitability, adding an estimated $14.5 to $15.0 million to our post-COVID normalized EBITDA in 2022.”

“The third quarter saw a significant progression in sales improvements across our brands as the Delta variant continues to wane and restrictions ease throughout the world. We continue to report positive same store sales compared to 2019 with a 4% increase for the third quarter of 2021. We are particularly excited that international same store sales compared to 2019 improved 715 basis points in the third quarter when compared to the second quarter of 2021. In addition, same store sales of domestic locations in the third quarter grew 7% compared to the third quarter of 2019. Our franchise sales team had a record quarter, closing nine deals that account for 166 locations, which will further enhance our organic growth strategy. We expect unit growth to continue increasing in the coming months with plans to open 26 additional stores by the end of the year for a total of 85 for 2021.”

Fiscal Third Quarter 2021 Highlights

●		Total revenue improved 628% to $29.8 million compared to $4.1 million the third quarter of 2020

			○	System-wide sales growth of 378% Q3 2021/Q3 2020 and 237% Q3 2021/Q3 2019
					■	United States sales growth of 418% Q3 2021/Q3 2020 and 289% Q3 2021/Q3 2019
					■	Rest of world sales growth of 237% Q3 2021/Q3 2020 and 97% Q3 2021/Q3 2019
			○	System-wide same-store sales growth of 16.2% Q3 2021/Q3 2020
					■	United States same-store sales growth of 17.3% Q3 2021/Q3 2020
					■	Rest of world sales growth of 11.9% Q3 2021/Q3 2020
			○	25 new franchised store openings during the third quarter of 2021
					■	Store count as of September 26, 2021: 2,058 stores system-wide plus 26 locations to open in 2021

●		Net loss of $3.6 million or $0.26 per diluted share compared to net loss of $0.6 million or $0.04 per diluted share in the third quarter of 2020
●		Adjusted net loss⁽¹⁾ of $2.0 million, or $0.14 per diluted share, compared to adjusted net income of $0.3 million, or $0.02 per diluted share in the third quarter of 2020
●		EBITDA⁽¹⁾of $4.8 million compared to EBITDA of $0.1 million in the third quarter of 2020
●		Adjusted EBITDA⁽¹⁾ of $7.2 million compared to adjusted EBITDA of $0.6 million in the third quarter of 2020

(1	)	EBITDA, Adjusted EBITDA and adjusted net loss are non-GAAP measures defined below, under “Non-GAAP Measures”. Reconciliation of GAAP net income to EBITDA, adjusted EBITDA and adjusted net loss are included in the accompanying financial tables.

Summary of Third Quarter 2021 Financial Results

Total revenue was $29.8 million in the third quarter of 2021 compared to $4.1 million in the third quarter of 2020, reflecting revenue from Global Franchise Group (“GFG”), which was acquired during the third quarter of 2021, revenue from Johnny Rockets, which was acquired during the third quarter of 2020, and the recovery from the negative effects of the COVID-19 pandemic on royalties from restaurant sales.

Costs and expenses increased to $27.4 million in the third quarter of 2021 compared to $5.4 million in the third quarter of 2020. General and administrative expenses increased $10.0 million primarily due to higher compensation expense with the acquisition of GFG and increased professional fees.

Advertising expense increased to $5.5 million in the third quarter of 2021 compared to $0.8 million in the third quarter of 2020, reflecting advertising expenses from GFG and Johnny Rockets and the increase in customer activity as the recovery from recovery from COVID continues.

Other expense of $7.2 million in the third quarter of 2021 was comprised primarily of interest expense of $7.1 million.
Adjusted net loss was $2.0 million, or $0.14 per diluted share, in the third quarter of 2021 compared to adjusted net income of $0.3 million, or $0.02 per diluted share, in the third quarter of 2020.

View full version at FAT Brands

BurgerFi Completes $156.6 Million Acquisition of Anthony’s Coal Fired Pizza & Wings

Establishes Multi-Brand Platform of Premium Restaurant Concepts

November 04, 2021 07:00 ET

PALM BEACH, FL and FORT LAUDERDALE, FL, Nov. 04, 2021 (GLOBE NEWSWIRE) — BurgerFi International Inc. (Nasdaq: BFI, BFIIW) (“BurgerFi” ), the owner of one of the nation’s fastest-growing premium fast-casual concepts through the BurgerFi brand, is announcing the successful completion of its pending acquisition of Anthony’s Coal Fired Pizza & Wings (“Anthony’s”) from L Catterton for $156.6 million. Ophir Sternberg, Executive Chairman of BurgerFi commented, “This acquisition marks a significant step forward in BurgerFi’s ongoing growth strategy and transition into a premium multibrand platform.”

Anthony’s, founded in 2002 and headquartered in Fort Lauderdale, FL, is a leading operator of casual dining pizza restaurants with a very loyal fan base and, like BurgerFi, a high concentration of restaurants in the state of Florida. As previously announced, Ian Baines, Chief Executive Officer of Anthony’s, will become the Chief Executive Officer of BurgerFi, while Julio Ramirez will remain Chief Executive Officer and President of the BurgerFi brand and Patrick Renna will become President of the Anthony’s brand. With the successful acquisition, BurgerFi has 177 systemwide restaurant locations mostly across the Eastern seaboard as of September 30, 2021. L Catterton will also become one of BurgerFi’s largest shareholders. The transaction is expected to be accretive to EPS to common shareholders and EBITDA in 2022.

“We are very excited to officially welcome Anthony’s into the BurgerFi family,” continued Ophir Sternberg. “Anthony’s is our first acquisition in our long term inorganic growth strategy to build a premium multibrand platform. It represents a fantastic complement to the BurgerFi brand, and we are well positioned to strategically grow Anthony’s as it fits in our focus on high quality fast-casual dining restaurants. L Catterton was an excellent partner in finalizing this transaction, and we look forward to the strategic benefits of adding Andrew Taub, Managing Partner at L Catterton to our board.”

Ian Baines, incoming Chief Executive Officer of BurgerFI, commented, “The acquisition of Anthony’s marks the beginning of a new chapter for BurgerFi as we establish a restaurant platform well-positioned for growth and success. The BurgerFi and Anthony’s brands are strategically aligned, bringing premium ingredients and loyal fanbases to fast-casual and casual dining restaurants. We are committed to our growth strategy here at BurgerFi, and will continue to scan the market for potential M&A opportunities that we can leverage and unlock value from.”

About BurgerFi International (Nasdaq: BFI, BFIIW)

Established in 2011, BurgerFi is among the nation’s fastest-growing better burger concepts with 116 BurgerFi restaurants domestically and internationally as of September 30, 2021. The concept is chef-founded and is committed to serving fresh food of transparent quality. BurgerFi uses 100% American Angus Beef with no steroids, antibiotics, growth hormones, chemicals, or additives. BurgerFi’s menu also includes high quality wagyu beef, antibiotic and cage-free chicken offerings, fresh, hand-cut sides and custard shakes and concretes. In October 2021, BurgerFi announced the acquisition of Anthony’s Coal Fired Pizza & Wings with 61 company-owned locations in eight states. BurgerFi was named QSR Magazine’s Breakout Brand of 2020, Fast Casual’s 2021 #1 Brand of the Year, a “Top Restaurant Brand to Watch” by Nation’s Restaurant News in 2019 and is included in Inc. Magazine’s Fastest Growing Private Companies List. In 2021, in Consumer Report’s Chain Reaction Report, BurgerFi was praised for serving “no antibiotic beef” across all of its restaurants and Consumer Reports awarded BurgerFi an “A-Grade Angus Beef” rating for the third consecutive year. To learn more about BurgerFi or to find a full list of locations, please visit www.burgerfi.com. Download the BurgerFi App on iOS or Android devices for rewards and ‘Like’ BurgerFi on Facebook or follow @BurgerFi on Instagram and Twitter.

BurgerFi® is a Registered Trademark of BurgerFi IP, LLC, a wholly-owned subsidiary of BurgerFi.

About Anthony’s Coal Fired Pizza & Wings
Anthony’s is a casual dining pizza and wing brand that, as of September 30, 2021, operated 61 company-owned restaurant locations along the east coast, with a strong presence in Florida (28 units), Pennsylvania (12 units), and New Jersey (8 units). Anthony’s prides itself on serving fresh, never frozen, high-quality ingredients. Their menu offers “well-done” pizza, coal fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads. The pizzas are prepared using a unique coal fired oven to quickly seal in natural flavors while creating a lightly-charred crust. The restaurants feature a deep wine and craft beer selection to round out the menu. To learn more about Anthony’s, please visit www.acfp.com.

View source version at BurgerFi

Farmer Bros. Co. Reports Fiscal First Quarter 2022 Financial Results

November 04, 2021 16:01 ET

NORTHLAKE, Texas, Nov. 04, 2021 (GLOBE NEWSWIRE) — Farmer Bros. Co. (NASDAQ: FARM) (the “Company”) today reported financial results for its first fiscal quarter ended September 30, 2021.

First Quarter Fiscal 2022 Highlights:

Net sales were $108.4 million, an increase of $11.1 million, or 11.4%, from the prior year period due to continued improvement in the direct-store-delivery (“DSD”) channel compared to the prior year period
Gross margin increased to 29.0% from 23.0% in the prior year period
Net loss was $2.4 million compared to a net loss of $6.3 million in the prior year period
Adjusted EBITDA was $3.5 million compared to $5.7 million in the prior year period*
As of September 30, 2021, total debt outstanding was $89.0 million and cash and cash equivalents was $6.0 million

(*Adjusted EBITDA, a non-GAAP financial measure, is reconciled to its corresponding GAAP measure at the end of this press release.)

Deverl Maserang, Chief Executive Officer, commented, “We’re pleased to see the efficiencies that we’ve built into the business over the past twelve months continue to materialize, and we’re encouraged by the continued sequential improvement in sales trends. These factors are resulting in continued gross margin expansion and these benefits are beginning to flow through our improved operating cost structure. We experienced our highest DSD volume during the quarter since the onset of COVID, and our DSD sales volumes have continued to trend favorably in recent weeks. As sales continue to rebound, we’ve been ramping up our inventory, adding roasting capacity, and continuing our optimization efforts across our distribution and production network. While there continue to be lingering challenges associated with the pandemic, we’re excited to see how the business responds as we enter our busy season and look to the balance of the year.”

First Quarter Fiscal 2022 Results:

Selected Financial Data

The selected financial data presented below under the captions “Income statement data,” “Operating data” and “Other data” summarizes certain performance measures for the three months ended September 30, 2021 and 2020 (unaudited).


	Three Months Ended September 30,
	2021			2020
(In thousands, except per share data)
Income statement data:
Net sales	$	108,362		$	97,270
Gross margin	29.0		%	23.0		%
Loss from operations	$	(1,780	)	$	(11,443	)
Net loss	$	(2,424	)	$	(6,270	)
Net loss available to common stockholders per common share—diluted	$	(0.14	)	$	(0.37	)

Operating data:
Total Green Coffee pounds sold
Sold through DSD and Other	6,164			4,773
Sold through Direct Ship	13,712			16,160
EBITDA (1)	$	6,089		$	2,906
EBITDA Margin (1)	5.6		%	3.0		%
Adjusted EBITDA (1)(2)	$	3,489		$	5,693
Adjusted EBITDA Margin (1)	3.2		%	5.9		%

Other data:
Capital expenditures related to maintenance	$	2,243		$	1,595
Total capital expenditures	$	2,542		$	4,366
Depreciation and amortization expense	$	6,279		$	7,041

(1)	EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures; a reconciliation of these non-GAAP measures to their corresponding GAAP measures is included at the end of this press release.
(2)	Adjusted EBITDA for the three months ended September 30, 2020 includes $7.2 million of higher amortized gains resulting from the curtailment of the postretirement medical plan in March 2020, which is further described in our consolidated financial statements in the 2021 Form 10-K.

Net sales in the first quarter of fiscal 2022 were $108.4 million, an increase of $11.1 million, or 11.4%, from the prior year period. The increase in net sales was driven primarily by continued recovery from the COVID-19 pandemic as local governments across the country eased restrictions and vaccines were distributed and rolled out successfully. During the quarter ended September 30, 2021, our average weekly DSD sales were down 25% compared to pre-COVID levels, which represents continued improvement from the quarter ended June 30, 2021 and quarter ended September 30, 2020 when sales were down 27% and 41%, respectively. Although we experienced improvement in several markets during the first fiscal quarter, the recovery in certain regions and markets was negatively impacted by the recent increase in COVID-19 cases which caused certain government restrictions to be reimplemented.

View full version at Farmer Bros

El Pollo Loco Holdings, Inc. Announces Third Quarter 2021 Financial Results

November 04, 2021 16:05 ET

COSTA MESA, Calif., Nov. 04, 2021 (GLOBE NEWSWIRE) — El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced financial results for the 13-week period ended September 29, 2021.

Highlights for the third quarter ended September 29, 2021 compared to the third quarter ended September 23, 2020 were as follows:

Total revenue was $115.7 million compared to $111.0 million.
System-wide comparable restaurant sales⁽¹⁾ increased 9.3%.
Income from operations was $14.2 million compared to $12.2 million.
Restaurant contribution⁽¹⁾ was $20.4 million, or 20.4% of company-operated restaurant revenue, compared to $21.8 million, or 22.4% of company-operated restaurant revenue.
Net income was $10.2 million, or $0.28 per diluted share, compared to net income of $9.9 million, or $0.28 per diluted share.
Pro forma net income⁽¹⁾ was $10.0 million, or $0.27 per diluted share, compared to $9.9 million, or $0.28 per diluted share.
Adjusted EBITDA⁽¹⁾ was $18.9 million, compared to $19.3 million.
During the third quarter, under the CARES Act, the Company recognized a $3.2 million employee retention credit.

^{(1) System-wide comparable restaurant sales, restaurant contribution, pro forma net income and adjusted EBITDA are not presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and are defined below under “Key Financial Definitions.” A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure is included in the accompanying financial data. See also “Non-GAAP Financial Measures.”}

Larry Roberts, Interim Chief Executive Officer and Chief Financial Officer of El Pollo Loco Holdings, Inc., stated, “We are pleased to see that our strong sales continued during the third quarter as we posted a 9.3% growth in system-wide comparable restaurant sales, or 11.9% growth on a two-year basis. The year over year system sales results were driven by a 5.9% increase in transactions, further demonstrating the strength of the brand. As we look to the future, we could not be more excited about our brand positioning today and the growth opportunity we have ahead of us. Moreover, our focus on the acceleration agenda will continue to build momentum in our core business for rapid and successful growth over the next three years. In the near term, as with many in the restaurant industry, we continue to work through supply chain challenges and are particularly focused on ensuring that our restaurants are fully staffed so that they can continue to provide the service levels our customers expect from El Pollo Loco.”

Third Quarter 2021 Financial Results

Company-operated restaurant revenue in the third quarter of 2021 increased to $100.0 million, compared to $97.3 million in the third quarter of 2020, primarily due to a 4.8% increase in company-operated comparable restaurant sales. The company-operated comparable restaurant sales increase consisted of an approximately 3.5% increase in average check size and a 1.2% increase in transactions. In addition, company-operated restaurant revenue was favorably impacted by $0.9 million of additional sales from restaurants opened during or after the third quarter of the prior year and a $0.4 million increase in revenue from restaurants that were temporarily closed due to the COVID-19 pandemic during the third quarter of the prior year. This restaurant sales increase was partially offset by a $2.6 million decrease in revenue from the eight company-operated restaurants sold by the Company to an existing franchisee during the quarter and a $0.4 million decrease in revenue recognized for our loyalty points program.

Franchise revenue in the third quarter of 2021 increased 14.6% to $8.9 million, compared to $7.8 million in the third quarter of 2020. This increase was primarily due to a 12.6% increase in franchise comparable restaurant sales, the opening of one new franchise restaurant during or subsequent to the third quarter of 2020 and revenue generated from eight company-operated restaurants sold by the Company to an existing franchisee during the quarter. The increase in franchise revenue was partially offset by the closure of two franchise locations during or subsequent to the third quarter of 2020.

Income from operations in the third quarter of 2021 was $14.2 million, compared to $12.2 million in the third quarter of 2020. Restaurant contribution was $20.4 million, or 20.4% of company-operated restaurant revenue, compared to $21.8 million, or 22.4% of company-operated restaurant revenue in the third quarter of 2020. The decrease in restaurant contribution was largely due to the impact of wage increases and higher operating costs, partially offset by higher company-operated restaurant revenue and a $3.2 million employee retention credit, which was recorded as an offset to the corresponding payroll tax expense and was classified as part of labor and related expenses on the condensed consolidated statements of income during the thirteen weeks ended September 29, 2021. Restaurant contribution is a non-GAAP measure defined below under “Key Financial Definitions.”

General and administrative expenses in the third quarter of 2021 were $9.4 million, compared to $9.8 million in the third quarter of 2020. The decrease of $0.4 million for the quarter was due primarily to a $1.3 million decrease in labor related costs, primarily related to a decrease in estimated management bonus expense. This general and administrative expenses decrease was partially offset by a $0.6 million increase in recruiting and other outside services fees and a $0.3 million increase in legal and professional expenses.

Net income for the third quarter of 2021 was $10.2 million, or $0.28 per diluted share, compared to net income of $9.9 million, or $0.28 per diluted share, in the third quarter of 2020. Pro forma net income was $10.0 million, or $0.27 per diluted share, during the third quarter of 2021, compared to $9.9 million, or $0.28 per diluted share, during the third quarter of 2020.

During the third quarter, the Company maintained its debt balance at $40.0 million and had $24.7 million in cash and cash equivalents.

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Dine Brands Global, Inc. Reports Third Quarter 2021 Results

Third Quarter 2021 Domestic Average Weekly Unit Sales for Both Brands Exceed Pre-Pandemic Levels

Both Brands Outperformed Their Respective Categories for the Second Consecutive Quarter, According to Black Box Intelligence™

Company Declared Dividend for the Fourth Quarter 2021 and Announced Intent to Resume Share Repurchases

November 04, 2021 06:00 AM Eastern Daylight Time

GLENDALE, Calif.–(BUSINESS WIRE)–Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee’s Neighborhood Grill + Bar^® and IHOP^®restaurants, today announced financial results for the third quarter of 2021.

“This was another strong quarter for Dine Brands. We recorded a second consecutive period of both IHOP and Applebee’s beating their competitive sets, average weekly sales for both brands exceeded 2019 pre-pandemic levels, and we delivered a 48% increase in quarter-over-quarter EBITDA. The strength of our two world-class brands, combined with the benefits of our asset-lite business model, is fueling the acceleration in system-wide sales growth across each of our brands and driving long-term sustainable growth in the business,” said John Peyton, chief executive officer of Dine Brands Global, Inc.

Mr. Peyton added, “Our asset-light structure allows us to keep our operations lean and our movements agile; it reduces complexity, requires less capital and is a significant generator of cash. Our highly franchised model allows us to invest in what we do best—menu, marketing, and technology innovation.”

Vance Chang, chief financial officer, added, “The sequential improvement in our business continued in the third quarter and helped us maintain a strong cash position and financial flexibility. While we are pleased with our progress to date, we remain focused on accelerating growth and making disciplined investments in our brands to support sustainable growth. We are confident that we have the right strategy in place to create long-term shareholder value.”

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Papa John’s Announces Third Quarter 2021 Financial Results and Additional $425 Million Share Repurchase Program

November 04, 2021 07:00 AM Eastern Daylight Time

LOUISVILLE, Ky.–(BUSINESS WIRE)–Papa John’s International, Inc. (NASDAQ: PZZA) today announced financial results for the three and nine months ended September 26, 2021.

Third quarter 2021 highlights compared to prior year

Total company revenues increased 8.4% to $512.8 million
Comparable sales up 6.9% in North America and 8.3% Internationally; Global system-wide restaurant sales of $1.2 billion, up 11.2% driven by continued benefit from innovation strategies and accelerating unit growth
46 net unit openings driven by strong International openings
Earnings per diluted share of $0.79; Adjusted earnings per diluted share grew to $0.83 from $0.35 a year ago
For first nine months of 2021, cash flow from operations of $193.6 million, up from $168.5 million a year ago; free cash flow of $145.9 million up from $134.0 million
New $425 million share repurchase program authorized

“With hard work, dedication and the support of our customers, Papa John’s team members and franchisees delivered another quarter of industry outperformance in Q3, as system-wide sales grew 11.2% and adjusted EPS more than doubled. Comparable sales in North America and internationally grew 6.9% and 8.3%, respectively, on top of last year’s tremendous results, as our innovation strategy continues to attract new customers and engage our loyal ones, while also driving sustainable ticket growth,” said President & CEO Rob Lynch. “Escalating interest and excitement among new and existing franchisees continues to accelerate unit growth and led to signing our largest international and domestic development deals ever last quarter.”

Mr. Lynch continued, “We also are delivering on our commitment to optimize our capital structure and allocation priorities to support long-term value creation and growth. Last quarter we strategically refinanced our debt and this morning announced a new $425 million share repurchase program. Now, more than two years into our brand’s return to positive results, with the foundations of our business stronger than ever, Papa John’s has passed the inflection point from turn-around to long-term growth story. I’m excited to say that we are all firmly focused on the future and realizing our enormous global opportunity.”

Financial Highlights

	Three Months Ended						Nine Months Ended
In thousands, except per share amounts	Sept. 26, 2021		Sept. 27, 2020		Increase		Sept. 26, 2021			Sept. 27, 2020		Increase (Decrease)

Revenue	$	512,782	$	472,941	$	39,841	$	1,539,536		$	1,343,423	$	196,113
Operating income		38,577		24,549		14,028		130,076			70,555		59,521
Net income		29,256		15,708		13,548		95,393			44,765		50,628
Diluted earnings (loss) per share		0.79		0.35		0.44		(0.59	)		0.99		(1.58	)
Adjusted diluted earnings per share (a)		0.83		0.35		0.48		2.76			0.99		1.77

(a)

Adjusted diluted earnings per share is a non-GAAP measure that excludes “Special items,” which impact comparability. Special items include strategic corporate reorganization costs associated with the company’s new office in Atlanta, Georgia of $2.2 million and $9.4 million for the three and nine months ended September 26, 2021, respectively. For the nine months ended September 26, 2021, Special items also include $109.9 million of one-time charges associated with the repurchase and conversion of all shares of the company’s Series B Convertible Preferred Stock (“Series B Preferred Stock”) during the second quarter. The reconciliation of GAAP to non-GAAP financial results is included in “Reconciliation of Non-GAAP Financial Measures” below.

Revenues

Consolidated revenues of $512.8 million increased $39.8 million, or 8.4%, in the third quarter of 2021 compared to the prior year primarily as a result of higher comparable sales of 6.9% for North America restaurants, which benefited from continued execution of our innovation strategies and customer retention as reflected in higher company-owned restaurant revenues, franchise royalties and commissary sales. International revenues also increased primarily due to higher royalties from strong comparable sales results of 8.3% for the quarter and higher unit counts.

View full version at Papa John’s

Shake Shack Announces Third Quarter 2021 Financial Results

Total Revenue grew 48.7% year-over-year to $193.9 million, and system-wide sales grew 53.1% to nearly $299 million.
Third quarter Same-Shack Sales were up 24.8% versus 2020.
Momentum versus 2019 continued into fiscal October with overall Same-Shack Sales down 1% and suburban Same-Shack Sales up 7%. All regions outside of NYC surpassed 2019 levels.
Retained nearly 80% of digital sales in fiscal September from high in fiscal January 2021. Acquired 14% more first time purchasers through Company-owned digital channels versus the prior quarter.

November 04, 2021 04:05 PM Eastern Daylight Time

NEW YORK–(BUSINESS WIRE)–Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) today reported its financial results for the third quarter ended September 29, 2021, a period that included 13 weeks.

Randy Garutti, Chief Executive Officer of Shake Shack, stated, “We are pleased with the positive sales performance seen during the third quarter. This quarter marks our highest revenue quarter ever, with total revenues of $193.9 million and system-wide sales of $298.6 million. We saw benefits to our urban Shacks as more of our guests returned to offices, events, commuting and tourism-based locations. Our suburban Shacks continue to recover and, on average, perform above 2019 levels. As of fiscal September, we had retained nearly 80% of our digital channel sales, compared to fiscal January 2021, even as in-Shack sales return. Sales strength aside, we are not immune to the margin pressures that are still being felt across our industry. Inflation in commodity prices and investments across team members are pressuring our margins. We remain committed to investing in our team members to ensure we are retaining and developing the best talent in our industry, and these pressures are likely to persist for the foreseeable future. Our team is working harder than ever to take care of each other, bring hospitality to our neighborhoods, transform our Shack formats, invest in critical digital infrastructure, and uplift everyone in the Shack community along the way.”

Financial Highlights for the Third Quarter of 2021:

Total revenue in the third quarter of 2021 increased 48.7% to $193.9 million versus the same period last year.
Shack sales in the third quarter of 2021 increased 48.1% to $187.0 million versus the same period last year.
Same-Shack sales⁽¹⁾ improved to up 24.8% in the third quarter of 2021 versus the same period last year.
Licensed revenue in the third quarter of 2021 increased 68.3% to $6.9 million versus the same period last year.
Shack system-wide sales in the third quarter of 2021 increased 53.1% to $298.6 million versus the same period last year.
Operating loss in the third quarter of 2021 was $2.6 million compared to an Operating loss of $6.8 million in the same period last year.
Shack-level operating profit⁽²⁾ increased 58.6% in the third quarter of 2021 versus the same period last year, to $29.6 million, or 15.8% of Shack sales.
Net loss was $2.4 million and adjusted EBITDA⁽²⁾ was $15.8 million in the third quarter of 2021, compared to a Net loss of $6.1 million and adjusted EBITDA of $8.2 million in the same period last year.
Net loss attributable to Shake Shack Inc. was $2.2 million and adjusted pro forma net loss⁽²⁾ was $2.0 million, or a loss of $0.05 per fully exchanged and diluted share in the third quarter of 2021, compared to Net loss attributable to Shake Shack Inc. of $5.6 million and adjusted pro forma net loss of $4.4 million, or a loss of $0.11 per fully exchanged and diluted share, in the same period last year.
Net system-wide Shack openings, comprised of five net domestic Company-operated Shacks and six net licensed Shacks.
Cash and cash equivalents and marketable securities on hand was $401.5 million as of September 29, 2021.


(1)	In order to compare like-for-like periods for fiscal 2021, Same-Shack sales will compare the 52 weeks from December 31, 2020 through December 29, 2021 to the 52 weeks from January 2, 2020 through December 30, 2020. For Q3 2021, Same-Shack sales compares the thirteen weeks from July 1, 2021 through September 29, 2021 to the thirteen weeks from July 2, 2020 through September 30, 2020. Refer to the materials included in the Supplemental Financial Information, dated November 4, 2021, for illustrative monthly and quarterly comparative periods.
(2)	Shack-level operating profit, adjusted EBITDA and adjusted pro forma net income (loss) are non-GAAP measures. Reconciliations of Shack-level operating profit to Loss from Operations and adjusted EBITDA to Net income (loss), and adjusted pro-forma net income (loss) to Net income (loss) attributable to Shake Shack, Inc., the most directly comparable financial measures presented in accordance with GAAP, are set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures.”

Third Quarter 2021 Review

Total revenue, which includes Shack sales and Licensing revenue, increased 48.7% versus the third quarter of 2020, to $193.9 million in the third quarter of 2021. Shack sales for the third quarter of 2021 were $187.0 million compared to $126.3 million in the third quarter of 2020, reflecting an increase of $60.7 million, or 48.1%, due in part to the opening of 30 net new domestic Company-operated Shacks between September 23, 2020 and September 29, 2021, as well as continued sales recovery across Shack markets.

Same-Shack Sales grew 24.8% year-over-year in the third quarter of 2021, compared to up 52.7% in the second quarter of 2021. This year-over-year growth in the third quarter was driven by a strong recovery across traffic, offset slightly by mix as we saw more of our guests return to in-Shack dining. We also saw improvement in our comparisons to 2019, improving from down 12.4% in the second quarter to down 7.3% in the third quarter. Throughout the third quarter we continued to see a steady recovery across our urban markets, likely led by the return to offices and increased travel. Markets such as New York City, Los Angeles, Chicago and Boston were the main drivers behind our urban growth. We also saw sequential improvement across our suburban Shacks, which span a variety of formats, with Same-Shack sales across this base exiting the quarter up 2% in fiscal September versus 2019. Suburban sales grew in the quarter despite being impacted by inclement weather and COVID related closures.

Average weekly sales were $72,000 in the third quarter of 2021, exceeding our historical seasonal expectations by coming in flat quarter-over-quarter. The third quarter also grew when compared to the first quarter of 2021, which saw average weekly sales of $64,000.

During the third quarter of 2021, total digital sales, including orders placed on the Shake Shack app, website and third-party delivery platforms, represented approximately 42% of Shack sales. Our retention of digital sales continues to hold steady at nearly 80% in fiscal September compared to fiscal January when digital sales peaked. The third quarter also saw the launch of our redesigned website, which is another key component of our omnichannel digital ecosystem. Not only does this redesign better showcase the Shake Shack brand and direct users to our Shake Shack app, it also improves the ease of ordering for our guests, especially on mobile web use cases. We are already beginning to see more web users download the Shake Shack app, an encouraging sign for the future of our digital business.

Licensing revenue for the third quarter of 2021 was $6.9 million, reflecting an increase of 68.3% versus the same period last year. Our domestic Shacks benefited from more air travel and lesser restrictions on capacity at major US sports venues while our international Shacks benefited from the relaxation of COVID restrictions in select markets. While we continue to benefit from the overall global recovery, conditions still remain volatile and ever-changing. As a reminder, as of fiscal October end, 6 of our airport locations around the world were still temporarily closed.

View full version at Shake Shack

Chuy’s Holdings, Inc. Announces a New $50 Million Share Repurchase Program and Third Quarter 2021 Financial Results

November 04, 2021 04:05 PM Eastern Daylight Time

AUSTIN, Texas–(BUSINESS WIRE)–Chuy’s Holdings, Inc. (NASDAQ:CHUY) today announced financial results for the third quarter ended September 26, 2021.

Highlights for the third quarter ended September 26, 2021 were as follows:

Revenue increased 24.3% to $101.9 million compared to $82.0 million in the third quarter of 2020.
Comparable restaurant sales increased 20.5% as compared to fiscal 2020 and decreased approximately 2.4% as compared to fiscal 2019. The comparable restaurant sales as compared to 2019 were negatively impacted by increased COVID-19 infection cases and locally mandated capacity restrictions in our core markets during August 2021.
Net income increased 112.3% to $6.0 million, or $0.30 per diluted share, compared to net income of $2.8 million, or $0.14 per diluted share, in the third quarter of 2020.
Adjusted net income⁽¹⁾ increased 48.8% to $9.1 million, or $0.45 per diluted share, compared to $6.1 million, or $0.31 per diluted share, in the third quarter of 2020.
Restaurant-level operating profit⁽¹⁾ increased 34.2% to $23.7 million compared to $17.7 million in the third quarter of 2020. Restaurant-level operating margin⁽¹⁾ increased 180 basis points to 23.3% compared to 21.5% in the third quarter of 2020.
Cash and cash equivalents were $105.1 million and the Company had no debt outstanding with $35.0 million available under the revolving credit facility.

(1) Adjusted net income, restaurant-level operating profit and restaurant-level operating margin are non-GAAP measures. For reconciliations of adjusted net income, restaurant-level operating profit and restaurant-level operating margin to the most directly comparable GAAP measures see the accompanying financial tables. For a discussion of why we consider adjusted net income, restaurant-level operating profit and restaurant-level operating margin useful, see “Non-GAAP Measures” below.

Steve Hislop, President and Chief Executive Officer of Chuy’s Holdings, Inc. stated, “We are pleased with our third quarter results, which included solid top line growth and continued improvement in restaurant-level profitability. Our restaurant-level margin increased by approximately 180 basis-points to over 23% as compared to 2020 and even greater improvement as compared to 2019, all despite industry-wide staffing challenges and inflationary pressures. Our third quarter top line growth remained strong, despite the emergence of the COVID-19 delta variant in our core markets, and as we enter the fourth quarter, we have been able to further narrow our comparable sales gap from 2019.”

Hislop added “Our ability to generate industry leading profitability is a direct testament to the hard work and dedication of our team who continues to tirelessly execute our business at the highest levels. Ultimately, we believe our underlying business recovery continues to be very strong and we are ready to capitalize on the healthy pent-up demand for our high-quality, made-from-scratch offerings.”

Third Quarter 2021 Financial Results

Revenue increased 24.3% to $101.9 million in the third quarter of 2021 compared to $82.0 million in the third quarter of 2020. The increase was primarily related to growth in customer traffic as the Company continued to relax indoor dining capacity restrictions throughout its restaurants, as well as $3.1 million of incremental revenue from new restaurants opened during fiscal year 2021. For the third quarter of 2021, off-premise sales were approximately 26% of total revenue compared to approximately 33% and 12% in the same period last year and two years ago, respectively.

Comparable restaurant sales increased 20.5% for the thirteen weeks ended September 26, 2021 compared to the thirteen weeks ended September 27, 2020. The increase in comparable restaurant sales as compared to 2020 was primarily driven by a 22.2% increase in average weekly customers, partially offset by a 1.7% decrease in average check. Comparable restaurant sales decreased 2.4% as compared to the same period in fiscal 2019. The comparable restaurant sales during the quarter as compared to 2019 were negatively impacted by a significant increase in COVID-19 cases throughout the country and locally mandated capacity restrictions in our core markets during August 2021.

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The ONE Group Reports Third Quarter 2021 Financial Results

The Company Reports All-Time Record for Quarterly Revenues

Consolidated Comparable Sales Compared to 2019 Increased 44.7% for the Third Quarter and 59.2% for the Month of October

November 04, 2021 04:05 PM Eastern Daylight Time

DENVER–(BUSINESS WIRE)–The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the third quarter ended September 30, 2021.

Financial highlights for the third quarter compared to the same period last year are as follows:

Total GAAP revenues increased 81.6% to $71.9 million from $39.6 million, a quarterly record.
GAAP net income attributable to The ONE Group was $11.7 million, or $0.34 net income per share ($0.11 adjusted net income per share)****, compared to GAAP net loss of $0.9 million, or $0.03 net loss per share ($0.01 adjusted net income per share)****.
Adjusted EBITDA** increased to $10.0 million from $4.7 million.

Sales highlights for the third quarter and October 2021 compared to the same periods in 2019 are as follows:

Consolidated comparable sales* increased 44.7% for the quarter and 59.2% for the month of October.
Comparable sales* for STK increased 63.8% for the quarter and 73.7% for the month of October.
Comparable sales* for Kona Grill increased 26.9% for the quarter and 42.9% for the month of October.

“Achieving all-time high revenues for the second consecutive quarter during a pandemic is an incredible accomplishment and we could not be more pleased with our results. We generated significant comparable sales increases compared to both 2020 and 2019 as our guests demonstrated their eagerness for differentiated VIBE dining experiences. The strong comparable sales drove our average weekly volumes during the quarter to $285,000 and $99,000 for STK and Kona Grill respectively. In addition, this quarter, we broke the $100 million mark in total food and beverage sales at owned and managed locations, a Company first, and leveraged that top-line revenue into strong adjusted EBITDA despite ongoing commodity cost and labor staffing headwinds. This quarter, we prioritized our restaurant staffing levels in anticipation of a busy fourth quarter, and I’m proud to announce that our restaurants, at this time, are fully staffed. Our performance has certainly strengthened our leadership position in the high-end and polished casual segments, and we also have a robust pipeline of development opportunities, including new Kona Grill locations, which drive our continued confidence going forward,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.

*Comparable sales represent total U.S. food and beverage sales at owned and managed units opened for at least a full 18-months. This measure includes total revenue from our owned and managed locations. Two-year comparable sales relate to the comparison of comparable sales for the period of 7/1/2021 through 9/30/2021 to the period of 7/1/2019 through 9/30/2019 and for the period of 10/1/2021 through 10/31/2021 to the period of 10/1/2019 through 10/31/2019. The Company monitors sales growth at its established restaurant base in addition to growth that results from restaurant acquisitions; the Company has presented two-year comparable sales to illustrate how sales at its restaurant base before the COVID-19 pandemic compare to sales as COVID-19 restrictions have eased and the Company has begun to recover lost sales.

** Adjusted EBITDA. We define Adjusted EBITDA as net income before interest expense, provision for income taxes, depreciation and amortization, non-cash impairment loss, non-cash rent expense, pre-opening expenses, non-recurring gains and losses including incremental costs related to COVID-19, stock-based compensation and certain transactional costs. Adjusted EBITDA has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of Net Income to Adjusted EBITDA in this release.

View full version at The ONE Group

Potbelly Corporation Reports Results for Third Fiscal Quarter 2021

November 03, 2021 17:00 ET

Achieved same-store-sales of +33.7% and higher AUVs, reaching annualized level of $1.05 million during the third quarter

Achieved third consecutive quarter of shop-level profitability

Finalizing 3-year value driving growth objectives including 1) accelerating AUVs, 2) significantly expanding margins, and 3) escalating new unit development as we transition to more of a franchised system

CHICAGO, Nov. 03, 2021 (GLOBE NEWSWIRE) — Potbelly Corporation (NASDAQ: PBPB) (“Potbelly” or the “Company”), the iconic neighborhood sandwich shop concept, today reported financial results for the third fiscal quarter ended September 26, 2021.

Third Quarter Strategic Successes:

Same-store sales (SSS) trends continued to show improvement, ending the third quarter at +33.7% compared to the year ago period; SSS exceeded 2019 levels, at +4.5% compared to the third quarter of 2019.
Third consecutive quarter of Average Unit Volumes (AUV) growth, exceeding $20K/week in the third quarter.
National rollout of new menu drove increased revenue, traffic, and higher average check during the quarter.
Furthered progress against The Company’s Five-Pillar strategy, with continued revenue strength in digital channels supported by the new tech stack rolled out in the quarter.
Finalized staffing the executive leadership team with the appointment of David Daniels as Chief Marketing Officer.
Same-store traffic improved +21.3% for the third quarter compared to the third quarter 2020, with Suburban, Drive-Thru and University shops reporting positive same-store traffic growth compared to the third quarter 2019.

Key highlights for the thirteen weeks ended September 26, 2021 compared to September 27, 2020:

Total revenues increased by 40% to $101.7 million compared to $72.7 million.
GAAP net loss attributable to Potbelly Corporation was ($2.9) million, compared to a GAAP net loss of ($13.4) million. GAAP diluted loss per share was ($0.10) compared to a GAAP diluted loss per share of ($0.56).
Adjusted net loss¹ attributable to Potbelly Corporation was ($1.5) million compared to an adjusted net loss of ($10.0) million. Adjusted diluted EPS¹ was a loss of ($0.05) compared to an adjusted diluted EPS loss of ($0.42).
EBITDA¹ increased significantly to $0.9 million compared to an EBITDA loss of ($11.4) million.
Adjusted EBITDA¹ improved meaningfully to $2.7 million compared to Adjusted EBITDA loss of ($7.3) million. Adjusted EBITDA¹ improved for the fifth sequential quarter, despite macro-economic challenges.
Company paid approximately $2.0 million of $11.3 million of 2020 deferred cash payments in the quarter, bringing the cumulative amount paid to approximately $8.0 million.
On September 26, 2021, total liquidity was $28.3 million, including $9.8 million of cash on hand and $18.5 million available under the revolving credit facility.

Bob Wright, President and Chief Executive Officer of Potbelly Corporation, commented, “I am extremely proud of our team, and I’m pleased with our performance in the third quarter, which delivered notable top-line expansion. Our disciplined focus on Potbelly’s five-pillar strategy, including the successful rollout of our upgraded menu and new tech stack drove strong results for the quarter, helping us offset labor and other inflationary headwinds impacting the restaurant industry and the broader economy. During the quarter, we continued to see strong sales growth across our Urban, Suburban, Drive-Thru, and University locations. CBD and Airport shops made further progress on their path towards recovery as well. Potbelly’s continued digital strength coupled with sequential growth in dine-in business further contributed to the Company’s success in the quarter. Importantly, we continue to see positive responses from customers since the rollout of our new menu, release of our new tech stack and scaling of our digital media campaigns.”

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The Cheesecake Factory Reports Results for Third Quarter of Fiscal 2021 and Provides Business Update

Fourth quarter-to-date through November 2nd comparable sales at The Cheesecake Factory restaurants increased 10.5% over 2019 levels

November 03, 2021 04:15 PM Eastern Daylight Time

CALABASAS HILLS, Calif.–(BUSINESS WIRE)–The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the third quarter of fiscal 2021, which ended on September 28, 2021.

Total revenues were $754.5 million in the third quarter of fiscal 2021 compared to $517.7 million in the third quarter of fiscal 2020. Net income available to common stockholders and diluted net income per common share were $32.7 million and $0.64, respectively, in the third quarter of fiscal 2021. These results reflect the impact of $3.3 million in higher than anticipated group medical insurance costs, as well as $4.6 million in incremental costs associated with the pandemic environment. Excluding the after-tax impact of the non-cash acquisition-related contingent consideration and amortization expense, adjusted net income and adjusted net income per share for the third quarter of fiscal 2021 were $33.2 million and $0.65, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.

Comparable restaurant sales at The Cheesecake Factory restaurants increased 41.1% year-over-year in the third quarter of fiscal 2021. Relative to the third quarter of fiscal 2019, comparable restaurant sales at The Cheesecake Factory restaurants increased 8.3%.

As of today, nearly all of the Company’s restaurants across its concepts are operating with no indoor dining restrictions. Fiscal 2021 fourth quarter-to-date through November 2nd comparable sales for The Cheesecake Factory restaurants increased approximately 20% year-over-year and 10.5% relative to the same period in fiscal 2019, supported by approximately 28% off-premise sales mix. Average weekly sales quarter-to-date are approximately $213,000 and off-premise average weekly sales of $60,000 are nearly double the level seen during the same period in fiscal 2019.

“We drove strong sales performance at The Cheesecake Factory restaurants and across our concepts during the third quarter despite the surge in COVID-19 cases from the Delta variant,” said David Overton, Chairman and Chief Executive Officer. “Our teams also generated solid profitability in the face of higher than anticipated group medical insurance costs and pandemic environment cost pressures during the quarter.”

Overton continued, “Sales across our concepts further strengthened early in the fourth quarter with continued strong contribution from the off-premise channel. We also opened eight new restaurants during the third quarter and fourth quarter-to date periods, meeting our development objective to open as many as 14 new restaurants across our concepts this year. With a strong pipeline in place, we believe we are well-positioned to achieve our targeted 7% unit growth next year, while we continue to focus on driving comparable sales growth and managing through the continued volatility in the operating environment.”

View full version at The Cheesecake Factory

FAT Brands Inc. to Acquire Fazoli’s Restaurant Chain for $130 Million

November 2, 2021

Premium, Quick-Service Chain Marks FAT Brands’ Debut into Italian Dining Category

Los Angeles, CA (RestaurantNews.com) FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) announced today that it has agreed to acquire Fazoli’s, an Italian chain known for its freshly prepared pasta, Submarinos® sandwiches and unlimited signature breadsticks, for $130 million from funds under management by Sentinel Capital Partners. This acquisition brings to FAT Brands the largest premium QSR Italian chain in the U.S., and will be funded with cash from the issuance of new notes from the Company’s securitization facilities. The transaction is expected to close by mid-December 2021.

The planned acquisition of Fazoli’s further speaks to FAT Brands’ recent diversification of their restaurant portfolio, making a foray into the Italian quick-service dining category. With over 200 stores currently open and a development pipeline of 100 units over the next several years, the purchase of Fazoli’s will increase FAT Brands’ footprint to 2,300 franchised and corporate-owned stores around the world, bringing 2022 expected systemwide sales at FAT Brands to more than $2.1 billion. The addition of Fazoli’s, including the new stores due to open and under development, is expected to increase the Company’s post-COVID normalized EBITDA by approximately $14.5 to $15 million in 2022.

“Fazoli’s has a great growth story, in particular, over the last year. They continue to surpass sales expectations across the board,” said FAT Brands CEO Andy Wiederhorn. “We have been eyeing this category for some time; however, we were waiting for the right brand – one that is high-growth, with almost all restaurants having drive-thru access, in addition to, the synergies that we will achieve adding Fazoli’s to our portfolio of brands. We look forward to building off of the success of Sentinel Capital Partners.”

“We have had an outstanding year and we couldn’t be more pleased to join forces with FAT Brands, a company that has the same growth-oriented mentality as us at Fazoli’s,” said Carl Howard, CEO of Fazoli’s. “From co-branding to virtual kitchens to menu development opportunities, we see great value in being a part of FAT Brands.”

For FAT Brands, Duff & Phelps Securities, LLC served as financial advisor and Foley & Lardner LLP acted as legal counsel. For Sentinel Capital Partners, North Point Mergers and Acquisitions Inc. served as financial advisor and Winthrop & Weinstine, P.A. acted as legal counsel.

About FAT (Fresh. Authentic. Tasty.) Brands

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets and develops fast casual, casual and polished casual dining restaurant concepts around the world. The Company currently owns 15 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises over 2,100 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.

About Fazoli’s

Founded in 1988 in Lexington, KY, Fazoli’s owns and operates nearly 220 restaurants in 28 states, making it the largest premium QSR Italian chain in America. Fazoli’s prides itself on serving premium quality Italian food, fast, fresh and friendly. Menu offerings include freshly prepared pasta entrees, Submarinos® sandwiches, salads, pizza and desserts – along with its unlimited signature breadsticks.

View source version at FAT Brands

Denny’s Corporation Reports Results for Third Quarter 2021

November 02, 2021 16:05 ET

SPARTANBURG, S.C., Nov. 02, 2021 (GLOBE NEWSWIRE) — Denny’s Corporation (NASDAQ: DENN), franchisor and operator of one of America’s largest franchised full-service restaurant chains, today reported results for its third quarter ended September 29, 2021 and provided a business update on the Company’s operations.

John Miller, Chief Executive Officer, stated, “Our third quarter domestic system-wide same-store sales** were impacted due to increasing COVID-19 case counts during the period, however we are encouraged to see sales returning in October as cases have improved. Additionally, we gained great momentum through the launch of our revamped Dennys.com website and Denny’s mobile app, our multicultural recruitment tour and the successful refinancing of our credit facility. Looking ahead, we are excited about initiating the next phase of our technology transformation with the rollout out of a new restaurant technology platform, in addition to beginning our new kitchen modernization initiative that will propel our menu innovation.”

Third Quarter 2021 Highlights

Total operating revenue increased 44.9% to $103.8 million, primarily due to the COVID-19 recovery as compared to the prior year quarter.
Domestic system-wide same-store sales** decreased 0.1% compared to the equivalent fiscal period in 2019, including a 0.3% decrease at domestic franchised restaurants and a 1.9% increase at company restaurants.
Domestic system-wide same-store sales** increased 50.2% compared to the equivalent fiscal period in 2020.
Opened seven franchised restaurants, including four international locations.
Operating income was $17.7 million compared to $3.2 million in the prior year quarter.
Franchise Operating Margin* was $29.9 million, or 52.1% of franchise and license revenue, and Company Restaurant Operating Margin* was $7.9 million, or 17.0% of company restaurant sales.
Net income was $12.3 million, or $0.19 per diluted share.
Adjusted Net Income* was $10.5 million, or $0.16 per share.
Adjusted EBITDA* was $24.4 million compared to $8.0 million in the prior year quarter.
Cash provided by (used in) operating, investing, and financing activities was $19.9 million, ($1.9) million, and ($18.6) million, respectively.
Adjusted Free Cash Flow* was $14.3 million compared to $2.1 million in the prior year quarter.
Provided guidance for full year 2021.

Current Trends

As COVID-19 cases subsided in fiscal October, domestic system-wide same-store sales** returned to pre-pandemic levels. However, labor availability continues to impact the Company’s effective operating hours with approximately 45% of domestic restaurants currently open 24/7. Off-premise sales have remained strong at approximately 23% of total sales, compared to the pre-pandemic trend of 12%, supported by our two new virtual brands, The Burger Den and The Meltdown.

View full version at Denny’s

Bloomin’ Brands Announces 2021 Q3 Financial Results and Strong Operating Margin Expansion

Q3 Diluted EPS of $0.03 and Adjusted Diluted EPS of $0.57

Q3 Comparable Restaurant Sales Growth of 18.3% at Outback Steakhouse and 25.5% Combined U.S.

Fourth Quarter-to-Date U.S. Comp Sales Trends Ahead of Industry

November 02, 2021 07:00 AM Eastern Daylight Time

TAMPA, Fla.–(BUSINESS WIRE)–Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the third quarter 2021 (“Q3 2021”) compared to the third quarter 2020 (“Q3 2020”).

CEO Comments

“Q3 represented another quarter of strong results with significant sales, margin and earnings growth,” said David Deno, Chief Executive Officer. “This performance is a result of the great work by our employees in the restaurants and the restaurant support center. Recently, we have seen inflationary pressures in our business and have levers available to combat these headwinds and achieve our margin targets. We remain confident in our strategy and are well positioned to deliver our long-term goals of growing healthy sales, optimizing margins, and increasing cash flow.”

Diluted EPS and Adjusted Diluted EPS

The following table reconciles Diluted earnings (loss) per share attributable to common stockholders to Adjusted diluted earnings (loss) per share for the periods indicated:

	Q3
	2021		2020			CHANGE		Q3 2019 (1)
Diluted earnings (loss) per share attributable to common stockholders	$	0.03	$	(0.20	)	$	0.23	$	0.11
Adjustments (2)		0.54		0.08			0.46		(0.01	)
Adjusted diluted earnings (loss) per share (2)	$	0.57	$	(0.12	)	$	0.69	$	0.10

___________________
(1) Presented for improved comparability.
(2) Includes a $61.9 million payment made to the founders of our Carrabba’s Italian Grill concept in the third quarter of 2021 in connection with an agreement to terminate future royalty payments. See Non-GAAP Measures later in this release.

Third Quarter Financial Results

(dollars in millions)	Q3 2021			Q3 2020			CHANGE		Q3 2019 (1)
Total revenues	$	1,010.5		$	771.3		31.0	%	$	967.1

Restaurant-level operating margin		10.3	%		10.7	%	(0.4	)%		12.9	%
Adjusted restaurant-level operating margin (2)		16.8	%		10.7	%	6.1	%		12.5	%

GAAP operating income (loss) margin		1.5	%		(1.8	)%	3.3	%		2.3	%
Adjusted operating income (loss) margin (2)		8.2	%		(1.3	)%	9.5	%		2.3	%
___________________
(1) Presented for improved comparability.
(2) See Non-GAAP Measures later in this release.

The increase in Total revenues was primarily due to: (i) higher comparable restaurant sales from in-restaurant dining and strong retention of off-premises sales, (ii) the net impact of restaurant openings and closures and (iii) higher franchise revenues.

GAAP restaurant-level operating margin decreased primarily due to: (i) the Carrabba’s Italian Grill royalty termination, (ii) higher labor costs and commodity inflation and (iii) higher utilities, rent and operating expense. These decreases were partially offset by higher comparable restaurant sales and lower advertising expense.

GAAP operating income margin increased primarily due to higher comparable restaurant sales from in-restaurant dining and strong retention of off-premises sales, and higher franchise revenues.

Adjusted restaurant-level operating margin and adjusted operating income margin exclude the impact of the Carrabba’s Italian Grill royalty termination and are up significantly on a two-year basis to 2019.

Third Quarter Comparable Restaurant Sales

Third quarter U.S. comparable restaurant sales results were positive on a two-year basis given strong retention of off-premises sales. In August 2021, sales began decelerating due to traditional seasonality and concerns over the Delta variant. In addition, there was significant promotional activity during 2019 at Outback Steakhouse that we chose not to replicate in 2021 given the evolving consumer environment, including offers tied to the launch of our third party delivery channel. Despite these headwinds in Q3, U.S. comparable restaurant sales increased 9.5% when compared to Q3 2019.

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Texas Roadhouse, Inc. Announces Third Quarter 2021 Results

October 28, 2021 16:03 ET

LOUISVILLE, Ky., Oct. 28, 2021 (GLOBE NEWSWIRE) — Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 39 weeks ended September 28, 2021.

Financial Results

Financial results for the 13 and 39 weeks ended September 28, 2021, September 29, 2020, and September 24, 2019 were as follows:

	Third Quarter
($000’s)							% change
	2021		2020		2019		vs. 2020		vs. 2019
Total revenue	$	868,943	$	631,185	$	650,489	37.7	%	33.6	%
Income from operations		61,698		34,976		44,884	76.4	%	37.5	%
Net income		52,606		29,230		36,531	80.0	%	44.0	%
Diluted earnings per share	$	0.75	$	0.42	$	0.52	79.3	%	43.6	%


	Year to Date
							% change
	2021		2020		2019		vs. 2020		vs. 2019
Total revenue	$	2,568,360	$	1,760,134	$	2,030,925	45.9	%	26.5	%
Income from operations		232,353		3,448		158,612	6638.8	%	46.5	%
Net income		192,236		11,706		131,766	1542.2	%	45.9	%
Diluted earnings per share	$	2.74	$	0.17	$	1.85	1535.1	%	48.3	%

Results for the third quarter included the following:

Comparable restaurant sales at company restaurants increased 30.2% and 22.3% compared to 2020 and 2019, respectively¹. Comparable restaurant sales at domestic franchise restaurants increased 33.5% and 20.4% compared to 2020 and 2019, respectively;
Average weekly sales at company restaurants were $120,094 of which 15.1% were to-go sales;
Seven company restaurants, including one Bubba’s 33 were opened;
Restaurant margin, as a percentage of restaurant and other sales, increased 111 basis points to 15.7% compared to the prior year as the increase in comparable restaurant sales was partially offset by higher food and beverage costs. The higher costs were driven by commodity inflation of 13.9% primarily related to higher beef costs. Restaurant margin dollars increased to $135.1 million from $91.1 million in the prior year;
Diluted earnings per share increased to $0.75 from $0.42 in the prior year due to the increase in restaurant margin dollars partially offset by an increase in general and administrative expenses;
The Company resumed the repurchase of shares under the stock repurchase program, purchasing 161,034 shares of common stock for $14.7 million; and,
The Company ended the quarter with $436.6 million of cash on hand and continued to maintain debt of $190.0 million.

Results for the year-to-date period included the following highlights:

Comparable restaurant sales at company restaurants increased 39.5% and 17.3% compared to 2020 and 2019, respectively¹. Comparable restaurant sales at domestic franchise restaurants increased 38.5% and 14.8% compared to 2020 and 2019, respectively;
Average weekly sales at company restaurants were $120,271 of which 18.0% were to-go sales;
18 company restaurants, including four Bubba’s 33, and two franchise restaurants were opened;
Restaurant margin, as a percentage of restaurant and other sales, increased 690 basis points to 17.3% compared to the prior year as the increase in comparable restaurant sales was partially offset by higher food and beverage costs as well as the prior year impact of the pandemic. Restaurant margin dollars increased to $440.9 million from $181.6 million in the prior year; and,
Diluted earnings per share increased to $2.74 from $0.17 in the prior year due to the increase in restaurant margin dollars partially offset by an increase in general and administrative expenses and income tax expense.

Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc. commented, “The demand for our brands has never been stronger, as our operators continue to provide a legendary experience to a historic number of guests. There is no doubt that our industry is being challenged in a number of ways including higher food costs, supply chain shortages, and a tight labor market. We are managing through these pressures and staying committed to our long-term fundamentals. I want to thank our entire team for their legendary dedication and commitment.”

Morgan continued, “Our strong cashflow continues to solidify our financial position and allowed us to resume the repurchase of common stock this quarter, continue our payment of quarterly dividends, open new restaurants, and grow our development pipeline. In addition, we signed the first franchise development agreement for our fast-casual Jaggers concept this quarter. We remain excited about our growth opportunities across all three of our brands.”

¹ Comparable restaurant sales reflect the change in year-over-year sales for restaurants open a full 18 months before the beginning of the period measured for comparison to 2020 and for restaurants open a full 30 months before the beginning of the period measured for comparison to 2019.

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Yum! Brands Reports Third-Quarter Results; Record 760 Net-New Units and Same-Store Sales Growth of 5%, Driving System Sales Growth of 8%; Sustained Digital System Sales of Over $5 Billion

October 28, 2021 07:00 AM Eastern Daylight Time

LOUISVILLE, Ky.–(BUSINESS WIRE)–Yum! Brands, Inc. (NYSE: YUM) today reported results for the third-quarter ended September 30, 2021. Worldwide system sales excluding foreign currency translation grew 8%, with 5% same-store sales and 4% unit growth. Third-quarter GAAP EPS was $1.75, an increase of 90% over the prior year quarter. Third-quarter EPS excluding Special Items was $1.22, an increase of 21% over the prior year quarter.

DAVID GIBBS COMMENTS

David Gibbs, CEO, said “Our third quarter results, led by record-breaking unit development and sustained momentum in digital sales, are a testament to the strength of our Brands and the unmatched commitment and capability of our best-in-class franchise partners. I am proud that each of our global divisions contributed to delivering 760 net-new units in the quarter. Our 5% same store sales growth for the third quarter, or 3% same-store sales growth on a 2-year basis, demonstrates the resilience of our diversified global business model despite the headwind of the Delta variant in certain key markets.

During the quarter, we advanced our digital capabilities with the acquisition of Dragontail and its AI-based integrated kitchen order management and delivery technologies that strengthens store operations, enhances the customer experience and makes it easier for team members to run a restaurant. As we continue to navigate the short-term uncertainties of the COVID recovery, we are incredibly confident in the ability of our iconic brands and our world-class talent to drive growth and maximize stakeholder value by delivering on our long-term growth algorithm.”

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Chipotle Announces Third Quarter 2021 Results

Record Quarterly Sales Driven By Comparable Restaurant Sales Increasing 15.1%

Oct 21, 2021, 16:10 ET

NEWPORT BEACH, Calif., Oct. 21, 2021 /PRNewswire/ — Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its third quarter ended September 30, 2021.

Third quarter highlights, year over year:

Total revenue increased 21.9% to $2.0 billion
Comparable restaurant sales increased 15.1%
Digital sales grew 8.6% and accounted for 42.8% of sales
Operating margin was 12.3%, an increase from 6.7%
Restaurant level operating margin was 23.5% ¹, an increase of 400 basis points
Diluted earnings per share was $7.18, a 154.6% increase from $2.82. Excluding a $0.16 after-tax net impact resulting from a tax benefit, which was partially offset by certain stock compensation expenses, corporate restructuring costs, restaurant asset impairment and closure costs, and certain other expenses, adjusted diluted earnings per share was $7.02, an 86.7% increase from $3.76¹
Opened 41 new restaurants including 2 relocations

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

“Chipotle’s third quarter results demonstrate strong momentum in our business fueled by a multi-pronged strategy and a passionate team that’s delighted to welcome more guests back into our restaurants,” said Brian Niccol, Chairman and CEO, Chipotle. “Our team has proven their ability to be resilient and successfully execute against macro complexities. As a result, I believe we are better positioned to drive sustainable long-term growth than ever before, which makes me excited about what we can accomplish in the years ahead.”

COVID-19 and Liquidity Update:

The health and well-being of our employees and guests continues to be our top priority. Beyond the investments made in our people, restaurants, and supply chain, we are closely following the recommendations of the CDC and local health departments. We have implemented and enhanced numerous protocols that give our employees and guests confidence that Chipotle remains steadfast in our commitment to keep them safe as in-restaurant ordering and dining increases.

As of September 30, 2021, Chipotle continues to maintain a strong financial position with $1.2 billion in cash, investments and restricted cash, and no debt. We also have access to a $500 million untapped credit facility. 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.

Results for the three months ended September 30, 2021:

Revenue in the third quarter was $2.0 billion, an increase of 21.9% compared to the third quarter of 2020 and includes a 15.1% increase in comparable restaurant sales. We believe on-going strength in digital sales, the strong recovery of in-restaurant sales, and positive customer reception to our new menu items contributed to the strong revenue growth. For Q4, while uncertainty remains on several fronts including the potential impact of COVID-19 as well as inflationary and staffing pressures, we’re encouraged by our strong underlying business momentum and if this trend continues, we expect our comparable restaurant sales to be in the low to mid double-digits range. This assumes about 200 basis points less pricing contribution during the fourth quarter versus the third quarter as we lap some of our delivery menu price increases, and our brisket limited time offer will be for a partial quarter this year as compared to the full quarter of carne asada last year.

Digital sales grew 8.6% year over year to $840.4 million and represented 42.8% of sales. A little more than half of the digital sales were from order ahead transactions as guests increasingly appreciate both the convenience and value offered by this channel, as well as the added convenience of more Chipotlanes.

We opened 41 new restaurants during the third quarter including two relocations, bringing the total restaurant count to 2,892. During the quarter, 36 of the 41 new restaurants included a Chipotlane. These formats continue to perform very well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins, and returns.

Food, beverage and packaging costs in the third quarter were 30.3% of revenue, a decrease of 200 basis points compared to the third quarter of 2020. The decrease was due primarily to leverage from menu price increases, partially offset by higher costs, most notably beef and freight.

Restaurant level operating margin was 23.5%, an increase from 19.5% in the third quarter of 2020. The improvement was driven primarily by leverage from comparable restaurant sales including menu price increases, partially offset by wage inflation and higher costs associated with beef and freight.

General and administrative expenses for the third quarter were $146.0 million on a GAAP basis, or $136.8 million on a non-GAAP basis, excluding $7.6 million for a COVID-19 related modification made in December 2020 to our 2018 performance shares, $1.5 million of transformation expenses, and $0.1 million of certain other expenses. GAAP and non-GAAP general and administrative expenses for the third quarter of 2021 also include $99.8 million of underlying general and administrative expenses, $27.8 million of non-cash stock compensation, $8.5 million related to higher bonus accruals as well as payroll taxes on equity vesting and stock option exercises, and $0.6 million related to our upcoming all-manager conference.

The GAAP effective income tax rate for the third quarter was 14.7%, which is lower than our expected effective income tax rate for the full year 2021, due to elevated excess tax benefits related to option exercises and equity vesting and a return to provision tax benefit from a net operating loss generated on our 2020 federal income tax return and carried back to prior years that was recorded in the third quarter. On a non-GAAP basis, the 2021 third quarter effective tax rate was 19.7%.

Net income for the third quarter was $204.4 million, or $7.18 per diluted share, an increase from $80.2 million, or $2.82 per diluted share, in the third quarter of 2020. Excluding the impact of a tax benefit, PSU modification expenses, corporate restructuring expenses, and restaurant asset impairment and closure costs, adjusted net income was $199.8 million and adjusted diluted earnings per share was $7.02.

During the quarter, our Board of Directors approved the investment of up to an additional $100 million, exclusive of commissions, to repurchase shares of our common stock, subject to market conditions. Including this repurchase authorization, $209.8 million was available as of September 30, 2021. The repurchase authorization may be modified, suspended, or discontinued at any time. We repurchased $98.7 million of stock at an average price per share of $1,813 during the third quarter.

More information will be available in our Quarterly Report on Form 10-Q, which will be filed with the SEC by the end of October.

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BJ’s Restaurants, Inc. Reports Fiscal 2021 Third Quarter Results

October 21, 2021 16:03 ET

HUNTINGTON BEACH, Calif., Oct. 21, 2021 (GLOBE NEWSWIRE) — BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for its fiscal 2021 third quarter that ended Tuesday, September 28, 2021.

Third Quarter 2021 Highlights Compared to Third Quarter 2020

Total revenues increased 41.9% to $282.2 million
Total restaurant operating weeks increased 1.7%
Comparable restaurant sales improved 41.8%
Net loss of $2.2 million compared to $6.6 million and diluted net loss per share of $0.09 compared to $0.30
- Third quarter 2021 includes a $3.1 million pretax, or $0.10 per share, benefit related to the Employee Retention Tax Credit in conjunction with the CARES Act and a $2.2 million pretax, or $0.07 per share, impairment charge for one restaurant.
- Third quarter 2020 includes a $1.9 million pretax, or $0.07 per share, gain related to a sale-leaseback transaction and a $2.3 million pretax, or $0.07 per share, gain related to a settlement with credit card providers pertaining to interchange fees and a settlement related to the repair of handheld tablets.
Adjusted EBITDA of $16.4 million, compared to $6.6 million

“I am proud of the resilience of our restaurant teams during this continued challenging operating environment, as their unwavering commitment to our Gold Standard of Operational Excellence continues to create memorable experiences for our guests during every visit,” commented Greg Levin, Chief Executive Officer and President. “We entered the quarter encouraged by positive July comparable restaurant sales across our portfolio, compared to the same period in 2019. However, we experienced the same pullback of sales as the entire industry from the spread of the COVID-19 Delta variant that began in August. The COVID resurgence also exacerbated staffing related challenges during the quarter and resulted in reduced dining room capacities and limited menus and hours in certain locations. As a result, we finished the third quarter with comparable restaurant sales down 0.5%, compared to the same period in 2019. Additionally, pandemic induced supply chain shortages caused rapid commodity food cost inflation, resulting in lower than anticipated restaurant operating margins.

“Staffing remains a major driver of BJ’s performance and our greatest opportunity to grow sales. Our restaurants operating close to 2019 staffing levels generated mid-single digit positive comparable restaurant sales in the third quarter, as compared to the same period in 2019, and continue generating positive comparable restaurant sales in October. Looking forward, as our staffing levels improve, we expect sales to benefit as we seat more tables, expand back to pre-pandemic hours, and return all of our restaurants to full menus by early November. We continue to operate with an offensive mindset focused on top line growth, while managing through the industry labor, inflation and supply chain challenges triggered by the pandemic to provide leverageable opportunities to grow the BJ’s business profitably,” continued Levin.

The Company re-opened its Richmond, Virginia restaurant in August and currently plans to open at least eight restaurants in fiscal 2022. “The two new restaurants we opened this year, Lansing, Michigan and Merrillville, Indiana, both continue to perform above our high expectations and generated sales of $119,000 and $114,000, respectively, in our most recent week or more than 10% higher than our system on average. We remain confident that there is capacity for at least 425 BJ’s restaurants domestically and we are focused on executing our national expansion plan in a careful and controlled manner that balances new restaurant growth with top-tier locations, new restaurant quality, and hospitality our guests know and love,” concluded Levin.

Investor Conference Call and Webcast

BJ’s Restaurants, Inc. will conduct a conference call on its third quarter 2021 earnings release today, October 21, 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 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 212 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. For more BJ’s information, visit http://www.bjsrestaurants.com.

View source version at BJ’s Restaurants

Brinker International Releases Selected First Quarter Of Fiscal 2022 Results

Oct 19, 2021, 17:00 ET

DALLAS, Oct. 19, 2021 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) today announced selected business results for the first quarter of fiscal 2022 and provided a business update for the second quarter of fiscal 2022 in advance of the Brinker International Investor Day to be held on October 20, 2021.

“Brinker’s first quarter delivered positive sales and continued to significantly outpace the industry in traffic,” said Wyman Roberts, Chief Executive Officer and President. “But the COVID surge starting in August exacerbated the industry-wide labor and commodity challenges and impacted our margins and bottom line more than we anticipated. We are responding to these COVID headwinds with increased focus on hiring and retention efforts, and working with our partners to gain further stabilization of the supply chain environment. In addition, we have taken immediate incremental pricing actions, increasing our full year target to 3% – 3.5%, to offset inflationary costs and protect margins as we move forward.”

Fiscal 2022 Highlights – First Quarter

Brinker International’s Company sales in the first quarter of fiscal 2022 increased to $859.6 million as compared to $728.2 million in the first quarter of fiscal 2021.
Operating income in the first quarter of fiscal 2022 increased to $25.6 million as compared to $24.4 million in the first quarter of fiscal 2021. Operating income, as a percentage of Total revenues, in the first quarter of fiscal 2022 decreased to 2.9% as compared to 3.3% in the first quarter of fiscal 2021.
Restaurant operating margin, as a percentage of Company sales, in the first quarter of fiscal 2022 decreased to 10.4% as compared to 11.6% in the first quarter of fiscal 2021.
The primary drivers of the decline in Restaurant operating margin were 150 bps of higher restaurant labor costs and 60 bps of higher commodity costs. Restaurant labor costs increased due to market rate and merit increases. Temporary incremental overtime and training costs also contributed to the increase.
Net income per diluted share, on a GAAP basis, in the first quarter of fiscal 2022 increased to $0.28 as compared to $0.23 in the first quarter of fiscal 2021.
Net income per diluted share, excluding special items, in the first quarter of fiscal 2022 increased to $0.34 as compared to $0.28 in the first quarter of fiscal 2021.

For non-GAAP reconciliations, please refer to the Non-GAAP Information and Reconciliations section of this release.

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OTG Management, LLC Secures Funding to Continue Growth

$1.25 billion debt refinancing delivers a path to geographical and technical expansion to drive a superior travel experience

Oct 14, 2021, 09:59 ET

NEW YORK, Oct. 14, 2021 /PRNewswire/ — OTG Management, LLC, the leading provider of dining in airports and hospitality in North America, successfully completed a new round of financing. With $1.25 billion of new senior secured debt, the company will target expansion opportunities. The move will provide OTG with liquidity and flexibility as well as additional committed capital to continue technological innovation, development of new markets, dining concepts, and locations in airports.

“We now have the committed growth capital to execute on our long-term strategic plan, at a time when the travel industry is poised to regain normalcy after the shut-downs caused by the COVID-19 pandemic,” said Rick Blatstein, Chief Executive Officer of OTG. “As OTG continues to learn the preferences of travelers and guests, this move positions us to offer innovative solutions to meet their evolving demands, safely and efficiently – whenever they are away from home.”

OTG’s refinancing was led by funds managed by affiliates of Centerbridge Partners, L.P., Oaktree Capital Management, L.P. Sculptor Capital Management, Inc. and CPPIB Credit Americas, Inc. as well as Oak Hill Advisors, L.P. The new facility is comprised of a $1.05 billion First Lien Senior Secured Term Loan and a $200mm Delayed Draw Term Loan Facility.

Centerbridge and Oaktree jointly stated, “We are excited to partner with OTG as it continues to provide an excellent customer experience for travelers. We look forward to supporting OTG’s goals to grow and innovate the airport experience.”

Moelis & Company acted as exclusive financial advisor and placement agent to OTG for this transaction.

About OTG Management, LLC
OTG develops and operates restaurants and retail markets in airports throughout North America. With more than 350 locations across 22 terminals in 10 of the world’s busiest airports, OTG is an industry leader. OTG combines world-class hospitality, award-winning cuisine, innovative design, and state-of-the-art technology to deliver a superior guest experience. Founded in Philadelphia in 1996, OTG serves hundreds of millions of passengers annually. For more information, visit OTGexp.com.

View source version at OTG