WINTER PARK, Fla.–(BUSINESS WIRE)–Ruth’s Hospitality Group, Inc. (the “Company”) (Nasdaq: RUTH) today reported unaudited financial results for its second quarter ended June 26, 2022 and provided a business update.
Second Quarter and Recent Business Highlights (1)
- Delivered positive second quarter comparable sales versus both fiscal years 2021 and 2019. By period, comparable restaurant sales and average weekly sales for Company-owned restaurants for the second quarter 2022 were as follows:
(dollar amounts in thousands)
Comparable Restaurant Sales vs. 2021
Comparable Restaurant Sales vs. 2019
Average Weekly Sales (all restaurants)(2)
- Approved a new $60 million share repurchase program and a $0.14 per share quarterly dividend
- Reduced the outstanding balance on our revolving credit facility to $40 million
- On August 1st, opened two new Company-owned restaurants in Worcester, MA and Long Beach, CA
Second Quarter 2022
- Restaurant sales in the second quarter of 2022 were $120.8 million compared to $104.2 million in the second quarter of 2021. Comparable sales increased 12.6% compared to the second quarter of 2021 and 18.6% compared to the second quarter of 2019.
- Franchise income in the second quarter of 2022 was $5.1 million compared to $4.5 million in the second quarter of 2021. Second quarter 2022 comparable restaurant sales at franchisee-owned restaurants increased 12.3% compared to 2021 and 19.1% compared to the second quarter of 2019.
- Food and beverage costs, as a percentage of restaurant sales, decreased 56 basis points to 29.8% compared to the second quarter of 2021. Total beef costs decreased 6% compared to the second quarter of 2021.
- Marketing and advertising plus general and administrative costs were 10.9% as a percentage of revenue compared to 10.8% in the second quarter of 2021.
- Net income in the second quarter of 2022 was $10.3 million, or $0.31 per diluted share, compared to net income of $12.4 million, or $0.36 per diluted share, in the second quarter of 2021.
- Net income in the second quarter of 2022 included a $6 million loss on legal settlement and an $8 thousand income tax expense related to the impact of discrete income tax items. Net income in the second quarter of 2021 included a $65 thousand employee retention payroll tax credit, which reduced restaurant operating expenses, a $394 thousand impairment loss and a $26 thousand income tax benefit related to the impact of discrete income tax items.
- Excluding these items, non-GAAP adjusted earnings per common share was $0.44 in the second quarter of 2022, compared to a non-GAAP adjusted earnings per common share of $0.36 in the second quarter of 2021. The Company believes that non-GAAP adjusted earnings per common share provides a useful alternative measure of financial performance to improve comparability of diluted earnings per common share between periods. Investors are advised to see the attached Reconciliation of Non-GAAP Financial Measure table for additional information.
Cheryl Henry, President, Chief Executive Officer and Chairperson of the Board of the Company commented, “We were very pleased to deliver record performance for the quarter driven by strong demand from our guests. We generated double-digit comparable sales and solid margins, which led to adjusted earnings per share growth of 20% compared to 2021 and 41% compared to 2019. These results are made possible by our world-class teams serving the highest quality food with genuine hospitality each and every day.” Henry continued, “We also continued to invest in our future success with various initiatives, including enhanced training, technology and data analytics. Combined with our balanced and consistent approach to capital allocation, we believe Ruth’s Chris is ideally positioned to drive value for shareholders over the long run.”
DENVER–(BUSINESS WIRE)–The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the second quarter ended June 30, 2022.
Highlights for the second quarter compared to the same period in 2021 are as follows:
- Total GAAP revenues increased 14.6% to $81.1 million from $70.8 million;
- GAAP net income attributable to The ONE Group was $4.3 million, or $0.13 per share ($0.15 adjusted net income per share) ****, compared to GAAP net income of $13.8 million, or $0.41 per share ($0.19 adjusted net income per share)****
- Restaurant Operating Profit*** decreased 16.7% to $12.8 million from $15.3 million; and
- Adjusted EBITDA** decreased 19.6% to $10.4 million from $12.9 million.
Comparable sales* for the second quarter compared to the same periods in 2021 and 2019:
- Compared to 2021:
- Consolidated comparable sales* increased 12.8%;
- Comparable sales* for STK increased 19.8%; and
- Comparable sales* for Kona Grill increased 3.7%.
- Compared to 2019:
- Consolidated comparable sales* increased 53.5%;
- Comparable sales* for STK increased 81.9%; and
- Comparable sales* for Kona Grill increased 27.6%.
“I am extremely pleased with our top-line performance, as the strong momentum we experienced during the first quarter continued into the second quarter. This was demonstrated by leading comparable store sales growth of 12.8% when compared to 2021 and 53.5% when compared to pre-pandemic 2019. In addition, I am very proud that we were able to deliver $4.3 million of net income during a quarter in which our industry was facing tremendous headwinds. We continue to be fully staffed in order to continue our top-line momentum, deliver exceptional and unforgettable guest experiences and create long-term shareholder value. Going forward, we will continue to remain laser focused on driving sales and managing our restaurant-level margins as we navigate this dynamic environment,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.
Hilario continued, “We believe we are early in our growth strategy with significant whitespace ahead. Our 2022 pipeline is the strongest in our history, with nine new venues expected to open in the back half of the year. Looking ahead, we foresee a total addressable market of at least 400 restaurants including 200 STK restaurants globally and at least 200 Kona Grills domestically with best in class returns. We are targeting between 40% and 50% ROIs for new Company-Owned STKs and for Company-Owned Kona Grills.”
LOUISVILLE, Ky.–(BUSINESS WIRE)–Papa John’s International, Inc. (NASDAQ: PZZA) (“Papa Johns®”) today announced financial results for the second quarter ended June 26, 2022.
- Total revenues increased 1.5% to $522.7 million in the second quarter versus prior year second quarter. Revenues increased 5.2% excluding the impact of refranchising 90 restaurants in the first quarter of 2022.
- Comparable sales increased 0.9% in North America and decreased 8.0% Internationally, lapping prior year gains of 5.2% and 21.2%, respectively.
- Global system-wide restaurant sales were $1.2 billion, a 2.6%1 increase over the prior year second quarter.
- 47 net unit openings in the second quarter driven by International openings; expected net unit openings in 2022 remain 280 to 320 units.
- Earnings per diluted share of $0.70; non-GAAP adjusted diluted earnings per share of $0.74 excluding Special items, compared with $0.93 a year ago.
- Announced 20% increase in annual dividend rate to $1.68 per share; declared third quarter dividend of $0.42 per share.
“Papa Johns delivered a 12th consecutive quarter of positive North American comparable sales in the second quarter, building on gains of more than 30% over the two years prior,” said President and CEO Rob Lynch. “Our momentum over the past three years is the direct result of our differentiated brand, menu innovations and digital investments which focus on delivering premium value for our customers. The proven agility of our business model, our scale and our data advantage give us confidence in our ability to sustain positive North American comps in the second half of this year and into the future as we continue to navigate a dynamic macroeconomic environment.”
Lower year-over-year net income and earnings per diluted share in the second quarter primarily reflected further acceleration in commodity costs and labor inflation, in addition to lower international sales. The decrease in international sales was largely attributable to softening economic conditions in the UK.
“Like companies across our industry and the global economy, we are experiencing high inflation coupled with lapping economic stimulus a year ago,” continued Lynch. “While we expect these headwinds to persist into the second half of 2022, the targeted actions we are taking today are focused on optimizing results in the near term, while leaning into our differentiated strategy and securing our growing market share position for the long term. When current headwinds eventually normalize, we will be in a significantly better position for long-term growth and margin accretion.”
Based on its resilient cash flow profile and strong balance sheet, the Company announced a 20% increase in the annual dividend rate to $1.68 per share. During the second quarter, Papa Johns also repurchased approximately $42.8 million of its outstanding shares under its current share repurchase authorization.
“The foundation of our strategy and success remains in providing better value to our customers, our franchisees and our team members. We will continue driving long-term shareholder value through winning innovations, accelerating unit growth, increasing operations productivity, and making strategic capital investments,” concluded Lynch.
Global System-wide sales grow 14%, up nearly $1 billion year-over-year to over $10 billion
Consolidated comparable sales accelerate to 9% with 14% growth at Tim Hortons Canada, 18% at Burger King International
Digital sales grow double-digits year-over-year to over $3 billion, representing 33% of system-wide sales
Over $400 million of capital returned to shareholders in Q2 through dividends and share buybacks
TORONTO, Aug. 4, 2022 /PRNewswire/ – Restaurant Brands International Inc. (TSX: QSR) (NYSE: QSR) (TSX: QSP) today reported financial results for the second quarter ended June 30, 2022.
“We made significant progress across our business in the second quarter, accelerating consolidated comparable sales to 9% and driving 14% growth in global system-wide sales. These results reflect benefits from our dedicated investments in key areas of the business, including people, technology, operations and marketing,” said José Cil, Chief Executive Officer of RBI.
“The team at Tim Hortons Canada delivered exceptional results this quarter, aided by investments against our Back to Basics plan and strong execution from our committed group of restaurant owners. In the second quarter, we drove sales above pre-pandemic levels for the first time since the onset of the pandemic and continue to build strong momentum as we move to accelerate growth. We believe there is a long runway for Tim’s in Canada, anchored by great product quality, menu and digital innovation, and a strong group of restaurant owners,” continued Cil.
“We continue to see steady improvements in our Burger King U.S. business and will be sharing the details of our plan to accelerate home market growth with all of our franchisees in early September. In addition, the Burger King international business had another strong quarter, posting an impressive 18% comparable sales and 28% system-wide sales growth. Meanwhile, the Popeyes’ team has been successful delivering strong unit growth and at Firehouse Subs, the team is focused on building the capabilities to execute on our vision of rapid growth for this loved brand in the U.S. and around the world,” continued Cil.
“Our second quarter results demonstrate the benefits of our diversified, global business model and strong free cash flow generating capability which allows us to continue investing in important areas of the business while returning capital to shareholders. I am incredibly proud of the hard work of our franchisees, team members and employees who remain focused on executing against our long-term plans to drive sustainable growth,” concluded Cil.
CHICAGO, Aug. 04, 2022 (GLOBE NEWSWIRE) — Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today reported financial results for the second quarter ended June 26, 2022.
Michael Osanloo, President and Chief Executive Officer of Portillo’s, said, “Our second quarter results demonstrated the consistency and durability of our brand. We remain hyperfocused on team member engagement, our value proposition and our overall guest experience. This, in turn, drove solid top line and bottom-line results that are in-line with our long-term targets.”
Financial Highlights for the Second Quarter 2022 vs. Second Quarter 2021:
- Total revenue increased 7.0% or $9.9 million to $150.6 million;
- Same restaurant sales increased 1.9%;
- Operating income decreased $7.0 million to $17.4 million;
- Net income decreased $3.0 million to $10.8 million;
- Restaurant-Level Adjusted EBITDA* decreased $4.7 million to $38.4 million; and
- Adjusted EBITDA* decreased $4.9 million to $27.6 million.
*Adjusted EBITDA and Restaurant-Level Adjusted EBITDA are non-GAAP measures. Please see definitions and the reconciliations of these non-GAAP measures in the accompanying financial information below.
Drove significant year-over-year profitability improvements with positive net income of $0.6 million, up $4.5 million, and adjusted EBITDA of $5.8 million, up $3.9 million
Same-store-sales improved +17.2%, leading to record AUVs of $22,902 for the quarter
Company remains on track to achieve its full-year 2022 outlook
CHICAGO, Aug. 04, 2022 (GLOBE NEWSWIRE) — Potbelly Corporation (NASDAQ: PBPB), (“Potbelly” or the “Company”) the iconic neighborhood sandwich shop concept, today reported financial results for the second fiscal quarter ended June 26, 2022.
Second Quarter Strategic Successes:
- Positive same-store sales (SSS) for the fifth consecutive quarter, ending the second quarter at +17.2% supported by outsized performance from Central Business District (CBD) and Airport shops
- Income from operations improved by $4.5 million driven by shop-level margins expanding to 11.4%, up from 9.7%, as a result of strong sales, improved operational efficiencies and strategic pricing actions
- Achieved success driving customer traffic and engagement with targeted digital promotional offerings and limited time only menu offerings (LTOs)
- Achieved positive net income of $0.6 million, marking the Company’s first quarter of positive net income since pre-pandemic conditions
Key highlights for the quarter ended June 26, 2022 compared to June 27, 2021:
- Total revenues increased by 18.9% to $116.0 million compared to $97.5 million.
- GAAP net income attributable to Potbelly Corporation was $0.6 million, compared to a GAAP net loss of ($3.9) million. GAAP diluted income per share was $0.02 compared to a GAAP diluted loss per share of ($0.14).
- Adjusted net income1 attributable to Potbelly Corporation was $1.5 million compared to an adjusted net loss of ($2.9) million. Adjusted diluted EPS1 was $0.05 compared to an adjusted diluted EPS loss of ($0.10).
- EBITDA1 improved to $3.9 million from $1.0 million.
- Adjusted EBITDA1 improved to $5.8 million compared to $1.9 million.
Bob Wright, President and Chief Executive Officer of Potbelly Corporation, commented, “I am pleased to report another notably strong quarter for Potbelly as evidenced by continued top-line growth and margin expansion. This was supported by sustained recovery in our Central Business District and Airport locations, as well as a meaningful step-up in performance within our catering channel. During the quarter, we further executed against our strategic growth objectives and were thrilled to see the business return to profitability, with our first quarter of positive net income since pre-pandemic conditions, despite macro-economic pressures. We have continued to stimulate customer engagement within our Perks loyalty program through various successful marketing promotions leveraging our high-quality food and LTO menu offerings along with targeted digital offers including one day only BOGOs. Customers loved our Cubano sandwich, Lemon Cheesecake cookie, and Cold Brew milkshake, all of which have contributed to our top-line. Potbelly’s Five-Pillar strategy has served as our roadmap from recovery to growth, and we look forward to building further on our growth momentum in the coming quarters.”
Mr. Wright continued, “We are excited by both the pace and quality of the discussions we are having with our franchise candidates as we strive towards our 2024 and long-term Franchise Growth Acceleration Initiative. Recently, we held two Discovery Days, which are on-site events designed to attract and educate potential franchisees on Potbelly’s business model. We have developed positive momentum, including a strong pipeline of qualified candidates, and we look forward to announcing our first franchising deals as well as new signed Shop Development Area Agreements (SDAAs) as soon as they are finalized. Our franchise-oriented goals remain a key priority, and we look forward to making meaningful progress in Potbelly’s next phase of growth.”
COSTA MESA, Calif., Aug. 04, 2022 (GLOBE NEWSWIRE) — El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced financial results for the 13-week period ended June 29, 2022
Highlights for the second quarter ended June 29, 2022 compared to the second quarter ended June 30, 2021 were as follows:
- Total revenue was $124.1 million compared to $122.0 million.
- System-wide comparable restaurant sales(1) increased 7.5%.
- Income from operations was $10.4 million compared to $12.7 million.
- Restaurant contribution(1) was $15.9 million, or 15.0% of company-operated restaurant revenue, compared to $22.2 million, or 20.8% of company-operated restaurant revenue.
- Net income was $7.1 million, or $0.20 per diluted share, compared to net income of $8.8 million, or $0.24 per diluted share.
- Pro forma net income(1) was $7.6 million, or $0.21 per diluted share, compared to $10.7 million, or $0.29 per diluted share.
- Adjusted EBITDA(1) was $15.4 million, compared to $19.9 million.(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, Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “We were very pleased with our second quarter sales performance as our focus on brand differentiation and awareness through social media is paying off. This was reflected most recently in the success of our Shredded Beef Birria promotion, which contributed to our system-wide comparable restaurant sales growth of 7.5%.”
Roberts added, “While system-wide comparable restaurant sales growth remains positive, similar to others in our industry, we are seeing some softening of consumer traffic and store-level margins continue to be challenged by the inflationary environment. Nevertheless, we continue to make meaningful and tangible progress towards our strategic initiatives, including improvement in our restaurants’ staffing levels, four-wall operational execution, and embedding our Familia culture across the organization. These efforts are highlighted by significant improvements in company-operated restaurant drive thru times and consumer metrics that are the strongest we have seen in a long time. As we look ahead, we expect these initiatives to strengthen our average unit volumes, improve our profitability and position us to accelerate growth of the El Pollo Loco brand.”
Operating Margin of 7.7% and Restaurant-Level Operating Margin (1) of 19.1%
AUSTIN, Texas, Aug. 04, 2022 (GLOBE NEWSWIRE) — Chuy’s Holdings, Inc. (NASDAQ:CHUY) (the “Company”) today announced financial results for the second quarter ended June 26, 2022.
Highlights for the second quarter ended June 26, 2022 were as follows:
- Revenue increased 2.6% to $110.9 million compared to $108.2 million in the second quarter of 2021.
- Comparable restaurant sales increased 1.7% as compared to fiscal 2021 and increased 0.6% as compared to fiscal 2019.
- Net income was $7.9 million, or $0.41 per diluted share, as compared $11.5 million, or $0.57 per diluted share, in the second quarter of 2021. Net income increased $1.6 million from pre-pandemic net income of $6.2 million, or $0.37 per diluted share, in the second quarter of 2019.
- Adjusted net income(1) was $8.4 million, or $0.44 per diluted share, as compared to $12.6 million, or $0.62 per diluted share, in the second quarter of 2021. Adjusted net income increased $1.4 million from pre-pandemic adjusted net income of $7.0 million, or $0.42 per diluted share, in the second quarter of 2019.
- Restaurant-level operating profit(1) was $21.1 million and restaurant-level operating profit(1) was 19.1%, compared to $27.6 million and 25.6%, respectively, in the second quarter of 2021. Restaurant-level operating profit increased 8.4% from pre-pandemic restaurant-level operating profit of $19.5 million in the second quarter of 2019 and restaurant-level operating margin increased 190 basis points from pre-pandemic restaurant-level operating margin of 17.2% in the second quarter of 2019.
- Cash and cash equivalents were $96.3 million and the Company had no debt outstanding with $35.0 million available under its 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 measure see the accompanying financial tables. For a discussion of why we consider them useful, see “Non-GAAP Measures” below.|
Steve Hislop, President and Chief Executive Officer of Chuy’s Holdings, Inc. stated, “Our momentum carried into the second quarter, with solid comparable sales growth, particularly in April and May as compared to both last year and 2019. Furthermore, despite the unprecedented inflationary environment, our team’s ongoing focus on cost management and operating efficiencies resulted in over 19% restaurant-level operating margin, one of the best in the casual dining segment. We also successfully opened a new restaurant in Midland, TX during the quarter and are thrilled with the store performance to date.”
Hislop added, “While the external environment has become increasingly challenging, as we look ahead, we believe our underlying business remains strong and we will continue to focus on what we do best – taking care of our customers by providing high-quality, made-from-scratch food and drinks, all offered at a great value and in a unique atmosphere of our restaurants.”
LOUISVILLE, Ky.–(BUSINESS WIRE)–Yum! Brands, Inc. (NYSE: YUM) today reported results for the second quarter ended June 30, 2022. Worldwide system sales excluding foreign currency translation grew 3%, with 4% unit growth and 1% same-store sales growth. Second quarter GAAP EPS was $0.77, a decrease of 40% year-over-year. Second quarter EPS excluding Special Items was $1.05, a decrease of 9% year-over-year.
DAVID GIBBS COMMENTS
David Gibbs, CEO, said “Our second quarter system sales grew 5% excluding Russia, driven by sustained development momentum. Despite a complex operating environment and lapping the strongest same-store sales growth in our history, our global business continues to perform well, led by industry-leading results at Taco Bell U.S. including 8% same-store sales growth and in-line margins year-over-year. We are pleased with the continued growth of our digital business with digital sales of nearly $6 billion, fueled by the adoption of our global platforms and capabilities. Our second quarter results demonstrate the resilience and power of our unmatched global scale, unrivaled talent and world-class franchise partners that are the driving force behind the success of our iconic brands.”
- Record Las Vegas Strip Adjusted Property EBITDAR and record second quarter Regional Operations Adjusted Property EBITDAR
- Acquired the operations of The Cosmopolitan of Las Vegas; announced the sale of the operations of Gold Strike Tunica for $450 million
- Repurchased $1.1 billion of shares of common stock during the second quarter, or 8% of outstanding shares
- Continue to pursue a commercial gaming license in New York and development of an Integrated Resort in Osaka, Japan
LAS VEGAS, Aug. 3, 2022 /PRNewswire/ — MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter ended June 30, 2022.
“Our second quarter results were outstanding, representing the best ever Adjusted Property EBITDAR quarter at the Company’s Las Vegas Strip Resorts and best second quarter Adjusted Property EBITDAR at our Regional Operations driven by consistent strong demand from the leisure consumer and a return from our convention customers,” said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International. “We announced several important portfolio changes during the quarter, with the acquisition of the operations of The Cosmopolitan of Las Vegas and the announcement of the sale of Gold Strike Tunica. We look to the future with optimism, as our convention and event calendar for the next year remain notably strong and BetMGM continues to be a market leader with a roadmap for growth. We remain focused on achieving our vision to be the world’s premier gaming entertainment company.”
“We see exceptional value in our Company’s shares and have returned capital to our shareholders by repurchasing over $1.1 billion of our stock in the second quarter,” said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts International. “Since early 2021, the execution of our asset light strategy has allowed us to repurchase 31% of our market cap while accumulating domestic cash in excess of debt on our balance sheet.”
SPARTANBURG, S.C., Aug. 02, 2022 (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 second quarter ended June 29, 2022 and provided a business update on the Company’s operations.
Kelli Valade, Chief Executive Officer and President, stated, “We were pleased to have delivered Adjusted EBITDA* within our guided range despite the many inflationary pressures weighing on our performance and impacting consumer trends as we moved through the second quarter. While there is a level of volatility within the macroeconomic environment, we take pride in Denny’s being an iconic brand that is cycle-tested and resilient with deeply embedded value attributes. Moreover, our company has a solid foundation with significant competitive advantages that we believe can help us unlock shareholder value.”
Ms. Valade continued, “Last month, we welcomed the Keke’s Breakfast Café team and franchisees to the Denny’s family. We believe Keke’s has attractive unit economics and strong potential within the fast-growing A.M. eatery segment which provides expansion opportunities as a complementary concept to the Denny’s brand. We are excited to have Keke’s as part of our restaurant portfolio.”
Second Quarter 2022 Highlights
- Total operating revenue grew 8.3% to $115.0 million compared to the prior year quarter.
- Domestic system-wide same-store sales** grew 2.5% compared to the equivalent fiscal period in 2021, including a 2.4% increase at domestic franchised restaurants and a 3.8% increase at company restaurants.
- Opened four franchised restaurants, including one international location.
- Completed 11 remodels, including 7 franchised restaurants.
- Operating income was $13.9 million compared to $18.3 million in the prior year quarter.
- Franchise Operating Margin* was $30.6 million, or 46.4% of franchise and license revenue, and Company Restaurant Operating Margin* was $4.3 million, or 8.8% of company restaurant sales.
- Net income was $23.0 million, or $0.37 per diluted share.
- Adjusted Net Income* and Adjusted Net Income Per Share* were $7.0 million and $0.11, respectively.
- Adjusted EBITDA* was $17.2 million.
- Cash provided by (used in) operating, investing, and financing activities was $16.7 million, ($2.9) million, and ($18.5) million, respectively.
- Adjusted Free Cash Flow* was $6.6 million.
- Repurchased $37.4 million of common stock.
Second Quarter Results
Denny’s total operating revenue increased 8.3% to $115.0 million compared to $106.2 million in the prior year quarter.
Franchise and license revenue was $65.9 million compared to $58.6 million in the prior year quarter. Royalties were $28.8 million compared to $27.1 million in the prior year quarter. Advertising revenue was $19.5 million compared to $18.6 million in the prior year quarter. Initial and other fees were $7.8 million, including $5.7 million related to the kitchen modernization rollout, compared to $2.1 million in the prior year. Occupancy revenue was $9.8 million compared to $10.8 million in the prior year quarter.
Conference call and webcast today at 5:00 p.m. ET
LOS ANGELES, July 28, 2022 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) today reported fiscal second quarter 2022 financial results for the 13-week period ending June 26, 2022.
Andy Wiederhorn, President and CEO of FAT Brands, commented, “The second quarter marked yet another strong performance for FAT Brands, characterized by robust unit development and profitable revenue growth. After a very active acquisition strategy in 2021, I am particularly pleased with the momentum of our organic growth strategy for the first half of this year.”
“Year to date, we have opened 62 restaurants, including 26 that opened in the second quarter, and remain on track to open 120 new restaurants in 2022, which represents a 5% unit expansion year over year. We are seeing strong new franchisee activity as well as continued demand from existing franchise partners to develop other brands within our portfolio, which is very encouraging as we look beyond our current unit development pipeline of over 900 locations representing 50% EBITDA growth over the next several years.”
“As we have stated, 2022 is a year to digest the acquisitions of 2021 and capitalize on the potential synergies they present. That being said, our acquisition strategy is one of the core pillars of FAT Brands, and we will continue to evaluate and capitalize on potential candidates as we see fit. In May 2022, we saw great value in acquiring the Nestlé® Toll House® Café by Chip® Franchise Business, which will be rebranded as Great American Cookies. This tuck-in acquisition not only increases our foothold in the dessert category, but also allows us to continue to grow our manufacturing business. We anticipate the first store conversion to be completed in September 2022 and we look forward to increasing the profitability of the franchisees that have joined us through this acquisition via our increased scale and the cost savings generated from our manufacturing facility.”
Fiscal Second Quarter 2022 Highlights
- Total revenue improved 1,141% to $102.8 million compared to $8.3 million in the second quarter of 2021
- System-wide sales growth of 284% in the second quarter of 2022 compared to the prior year quarter
- System-wide same-store sales growth of 5.6% in the second quarter of 2022 compared to the prior year quarter
- 26 new store openings during the second quarter of 2022 bringing our system-wide store count to 2,354 as of June 26, 2022
- Net loss of $8.2 million or $0.50 per diluted share compared to $5.9 million or $0.48 per diluted share in the second quarter of 2021
- Adjusted EBITDA(1) of $29.5 million compared to $2.1 million in the second quarter of 2021
- Adjusted net loss(1) of $3.1 million, or $0.19 per diluted share, compared to $1.1 million, or $0.09 per diluted share in the second quarter of 2021
(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.