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Financial Overview – June 2018


Sonic

Sonic Reports Preliminary Fiscal Third Quarter Sales Results Ahead of Conference Presentations

Announces Increase in Share Repurchase Authorization to $500 MillionSonic reported preliminary third quarter sales results, including a 2.5% increase in systemwide same-store sales and estimated adjusted earnings per share guidance between $1.43 and $1.50. Additionally, the company reported the refranchising of 41 locations in two markets during the third quarter, making the company 95% franchised. June 7, 2018--(BusinessWire) Sonic Corp. (NASDAQ:SONC), the nation's largest chain of drive-in restaurants, today provided a financial update in advance of two conference presentations in June. The company estimates that systemwide same-store sales for its third fiscal quarter ended May 31, 2018 were approximately flat with the prior-year quarter. The company reiterates its second-half fiscal year 2018 systemwide same-store sales guidance of flat to up 2%. The company also reiterates estimated adjusted earnings per share guidance for fiscal year 2018 of between $1.43 and $1.50. "Our third quarter same-store sales reflect solid, sequential improvement including a systemwide increase of approximately 2.5% during May," said Cliff Hudson, Sonic Corp. CEO. "Our focus on everyday value and refreshed marketing initiatives are resonating with guests and advancing our efforts to drive traffic and increase sales. We also remain focused on integrating technology into our guest experience with the ongoing rollout of mobile order ahead, making the Sonic customer experience the most personalized in the QSR industry." New Share Repurchase Authorization Sonic also announced that its Board of Directors has authorized a $500 million share repurchase program through August 31, 2021, replacing the company’s fiscal year 2018 authorization of $160 million. The company has repurchased approximately $110 million in stock through the end of its third fiscal quarter, leaving approximately $390 million on the new authorization. Share repurchases may be made from time to time in the open market or otherwise, including through an accelerated share repurchase program, under the terms of a Rule 10b5-1 plan, in privately negotiated transactions or in round lot or block transactions. “With the refranchising of 41 additional drive-ins in two markets during the fiscal third quarter, the Sonic system is now 95% franchised. The Board’s decision to increase and extend the share repurchase authorization reflects our confidence in the company’s ability to leverage our asset-light model to improve results and drive long-term growth and value creation. We believe that Sonic represents a compelling investment opportunity and remain committed to returning capital to shareholders through share repurchases and our ongoing dividend program while continuing to invest in the business,” concluded Hudson. About Sonic

SONIC, America's Drive-In is the nation's largest drive-in restaurant chain serving approximately 3 million customers every day. Ninety-five percent of SONIC's nearly 3,600 drive-in locations are owned and operated by local business men and women. For 65 years, SONIC has delighted guests with signature menu items, 1.3 million drink combinations and friendly service by iconic Carhops. Since the 2009 launch of SONIC's Limeades for Learning philanthropic campaign in partnership with DonorsChoose.org, SONIC has donated $10.7 million to public school teachers nationwide to fund essential learning materials and innovative teaching resources to inspire creativity and learning in their students. To learn more about Sonic Corp. (NASDAQ/NM: SONC), please visit sonicdrivein.com and please visit or follow us on Facebook and Twitter. To learn more about SONIC's Limeades for Learning initiative, please visit LimeadesforLearning.com.


Illegal

Illegal Burger Restaurants Announces 10% Increase in Q1 Sales Year Over YearIllegal Burger Restaurants reported results from quarter one of 2018, highlighted by a 10% increase in same store sales compared to quarter one of 2017. June 4, 2018--(RestaurantNewsResource) West Coast Ventures Group Corp. (OTCQB: WCVC), which wholly owns fast-casual dining concept Illegal Burger, offering hand-crafted burger + bar (menu also includes chicken, salads, and specialty desserts), announced today that Company online marketing and advertising initiatives are generating higher year over year sales. "We have produced a 10% increase in Q1 sales year over year. We launched an intensive online campaign across all our locations beginning with our downtown Denver restaurant, and we're very pleased with the results. As we are now in a position to utilize lower cost forms of marketing and advertising through social media, Facebook, YouTube, and Instagram, we have captured substantially more attention and following than utilizing traditional commercials and billboards, but at a much lower cost," said Jim Nixon, CEO of the Company. The Company is utilizing price discounted forms of digital advertising and reaching more potential customers on a consistent basis at a lower cost per view. "The online marketing campaigns that we have implemented along with our new customer service programs now in place have led to the Company's marketing and advertising "gone viral" in the communities shared by our customers living around or in close proximity to our stores. Consistent monthly increases over last years' sales will provide the necessary data to implement our online campaigns on a larger scale as we execute our multi restaurant acquisition expansion plan throughout Colorado and beyond," said Andrew Machol, Director of Marketing, Training, and Customer Service at the Company.

Based in Denver, Colo., West Coast Ventures Group Corp. (WCVC) develops, owns and operates two contemporary restaurant concepts: Illegal Burger, a quick-casual burger + bar concept, and El Señor Sol, a full-service fresh Mexican restaurant.


Zoes Logo

Zoës Kitchen Announces First Quarter 2018 Results

Total revenue increased 12.7% to $102.1 million. Comparable restaurant sales decreased 2.3%.Zoës Kitchen reported results from quarter one of 2018, including a 2.3% decrease in comparable store sales, a decrease in income from operations, and a 30.9% decrease in Adjusted EBITDA. The company also reported a 12.7% increase in total revenue, as well as the opening of 11 new company-owned locations. May 25, 2018--(RestaurantNewsResource) Zoës Kitchen, Inc. (NYSE:ZOES) yesterday reported financial results for the sixteen weeks ended April 16, 2018. Results for the sixteen weeks ended April 16, 2018, as compared to the sixteen weeks ended April 17, 2017:

  1. Total revenue increased 12.7% to $102.1 million.

  2. Comparable restaurant sales decreased 2.3%.

  3. 11 new Company-owned restaurants opened.

  4. Income from operations decreased from $1.7 million to a loss from operations of $1.8 million.

  5. Restaurant contribution* decreased 8.2% to $16.5 million, or 16.2% of restaurant sales.

  6. Net loss of $3.6 million, or $0.19 per basic and diluted share, compared to net income of $19.0 thousand, or $0.00 per basic and diluted share.

  7. Adjusted net loss* of $2.6 million, or $0.13 per diluted share, compared to adjusted net income of $0.3 million, or $0.01 per diluted share.

  8. Adjusted EBITDA* decreased 30.9% to $5.6 million. (*) Restaurant contribution, EBITDA, adjusted EBITDA, and adjusted net income (loss) are non-GAAP measures. For reconciliations of restaurant contribution to income (loss) from operations; EBITDA, adjusted EBITDA and adjusted net income (loss) to GAAP net income (loss); and why the Company considers these non-GAAP measures useful, see the reconciliation of non-GAAP measures accompanying this release. Kevin Miles, President and Chief Executive Officer of Zoës Kitchen, commented, “Our results in the first quarter were challenged as comparable restaurant sales declined 2.3%. Weather and calendar shifts aside, trends softened sequentially from the fourth quarter of 2017 primarily due to decelerating dine-in traffic. Early results in the second quarter have not shown significant improvement, necessitating a downward revision to our annual guidance.” Miles continued, “While we are encouraged by results coming from investments in digital, delivery, and menu innovation, it is imperative that we take aggressive actions to re-focus our efforts on building sales and improving financial performance. To do so, we will slow our future new unit growth and conduct a thorough review of under-performing restaurants. Additionally, we are taking steps to reduce our G&A infrastructure and will re-allocate resources towards marketing and technology initiatives to drive sales." Miles concluded, “We have a strong foundation of success at Zoës Kitchen, built on high-quality fresh food, inspired by the Mediterranean lifestyle and delivered with hospitality. We are fully committed to reversing our traffic trends and our team is laser focused on operational execution and sales driving initiatives. We believe the steps we are taking are right for the long-term health of the brand and to maximize shareholder value.” First Quarter 2018 Financial Results Total revenue, which includes restaurant sales from Company-owned restaurants and royalty fees, increased 12.7% to $102.1 million in the sixteen weeks ended April 16, 2018, from $90.6 million in the sixteen weeks ended April 17, 2017. Restaurant sales for the sixteen weeks ended April 16, 2018 were $102.0 million, an increase of 12.7% from $90.5 million in the sixteen weeks ended April 17, 2017. Comparable restaurant sales decreased 2.3% during the sixteen weeks ended April 16, 2018, consisting of a 4.4% decrease in transactions and product mix offset by a 2.1% increase in price. The comparable restaurant base includes those restaurants open for eighteen full periods or longer and included 199 restaurants as of April 16, 2018. Restaurant contribution decreased 8.2% to $16.5 million in the sixteen weeks ended April 16, 2018, from $18.0 million in the sixteen weeks ended April 17, 2017. As a percentage of restaurant sales, restaurant contribution margin decreased 3.7% to 16.2% as increases in labor and store operating expense rates were partially offset by lower cost of goods rates. The increase in labor and store operating expense rates was driven by the dilutive effect on margins from our newest restaurants, which, on average, initially operate at less than system-wide average sales volumes and incur some inefficiencies for a short period of time. In addition, labor rates increased because of hourly wage rate inflation while store operating expense rates increased due to costs related to marketing. Net loss for the sixteen weeks ended April 16, 2018 was $3.6 million, or $0.19 per diluted share, compared to net income of $19.0 thousand, or $0.00 per diluted share, for the sixteen weeks ended April 17, 2017. Adjusted net loss was $2.6 million, or $0.13 per diluted share, for the sixteen weeks ended April 16, 2018, compared to adjusted net income of $0.3 million, or $0.01 per diluted share, for the sixteen weeks ended April 17, 2017. Development The Company opened 11 new Company-owned restaurants during the sixteen weeks ended April 16, 2018. As of April 16, 2018, there were 251 Company-owned restaurants and three franchised restaurants. As of May 24, 2018, the Company has opened four additional restaurants, bringing the total restaurant count to 258. FY 2018 Outlook For the fiscal year ending December 31, 2018, the Company is revising its outlook as follows:

  9. Total revenue between $345 million and $352 million (revised from $358 million to $368 million).

  10. Comparable restaurant sales of negative 2.0% to negative 4.0% (revised from flat to 2.0%).

  11. Approximately 25 Company-owned restaurant openings (unchanged from previous guidance).

  12. Restaurant contribution margin between 16.0% and 17.0% (revised from 17.3% to 18.4%).

  13. General and administrative expenses between 10.8% and 11.0% of total revenue, inclusive of $3.7 million of non-cash equity based compensation expense (revised from 10.6% to 10.8%). The Company is initiating certain strategic actions to improve operations and financial performance. The full financial impact of these actions has not yet been determined and is not currently included in the Company’s revised outlook. These actions will include slowing new unit growth, evaluating under-performing restaurants, reducing general and administrative expenses, and increasing marketing and technology investments. These actions will likely have a material impact to our financial statements in fiscal year 2018.

About Zoës Kitchen

Founded in 1995, Zoës Kitchen is a fast-casual restaurant group serving a distinct menu of fresh, wholesome, made-from-scratch, Mediterranean-inspired dishes delivered with warm hospitality. With no microwaves, or fryers, grilling is the predominate method of cooking along with an abundance of fresh fruits and vegetables, fresh herbs, olive oil and lean proteins. With 258 locations in 20 states across the United States, Zoës Kitchen delivers goodness to its guests by sharing simple, tasty and fresh Mediterranean meals that inspire guests to lead a balanced lifestyle and feel their best from the inside out.


Red Robin Gourmet Burgers Reports Results for the Fiscal First Quarter Ended April 22, 2018Red Robin Gourmet Burgers reported results from quarter one of 2018, including a 0.9% decrease in comparable restaurant revenue. The company also highlighted a 0.2% increase in total revenue, a 9.4% increase in off-premise sales, a 0.1% increase in comparable restaurant guest counts, and a 34.5% improvement in restaurant labor costs. May 23, 2018--(RestaurantNewsResource) Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) yesterday reported financial results for the quarter ended April 22, 2018. First Quarter 2018 Financial Highlights Compared to First Quarter 2017

  1. Total revenues were $421.5 million, an increase of 0.2%;

  2. Off-premise sales increased to 9.4% of total food and beverage sales compared to 6.3%;

  3. Comparable restaurant revenue decreased 0.9% (using constant currency rates);

  4. Comparable restaurant guest counts increased 0.1%;

  5. Restaurant labor costs as a percentage of restaurant revenue improved 70 basis points to 34.5%;

  6. GAAP earnings per diluted share were $0.34 compared to $0.89; and

  7. Adjusted earnings per diluted share were $0.69 compared to $0.89 (see Schedule I). “While our sales were disappointing in the first quarter, we continued to do much better than casual dining on traffic according to Black Box Intelligence, outpacing the sector by 230 basis points. This makes our seventh quarter in a row of gaining market share. We did this by driving our off-premise sales by almost 40% year over year, increasingly going where the Guest wants us to be,” said Denny Marie Post, Red Robin Gourmet Burgers, Inc. chief executive officer. “We are taking steps to improve sales and traffic trends while continuing to make strides on productivity, which is critical to ensure we can deliver great service and value despite rising costs.” Operating Results Total revenues, which primarily include Company-owned restaurant revenue and franchise royalties, increased 0.2% to $421.5 million in the first quarter of 2018 from $420.6 million in the first quarter of 2017. Restaurant revenue increased $1.3 million due to a $5.9 million increase in revenue from new restaurant openings and a $0.6 million favorable foreign currency impact, partially offset by a $3.8 million, or 0.9%, decrease in comparable restaurant revenue and a $1.4 million decrease from closed restaurants. System-wide restaurant revenue (which includes franchised units) for the first quarter of 2018 totaled $498.0 million, compared to $498.8 million for the first quarter of 2017. Comparable restaurant revenue(1) decreased 0.9% in the first quarter of 2018 compared to the same period a year ago, driven by a 1.0% decrease in average guest check, partially offset by a 0.1% increase in guest counts. The decrease in average guest check comprised a 2.0% decrease in menu mix, offset by a 1.0% increase in pricing. The Company’s comparable revenue growth is calculated by comparing the same calendar weeks which, for the first quarter of 2017, exclude the first week of the first quarter of 2017 and include the first week of the second quarter of 2017. Net income was $4.4 million for the first quarter of 2018 compared to $11.6 million for the same period a year ago. Adjusted net income was $9.1 million for the first quarter of 2018 (see Schedule I). Restaurant-level operating profit margin (a non-GAAP financial measure) was 20.0% in the first quarter of 2018 compared to 21.3% in the same period a year ago. The 130 basis point decrease in the first quarter of 2018 resulted from a 90 basis point increase in cost of sales, a 70 basis point increase in other restaurant operating expenses, and a 40 basis point increase in occupancy costs, offset by a 70 basis point decrease in labor costs. Schedule II of this earnings release defines restaurant-level operating profit, discusses why it is a useful metric for investors, and reconciles this metric to income from operations and net income, in each case under GAAP.

  8. Comparable restaurants are those Company-owned restaurants that have operated five full quarters during the period presented, and such restaurants are only included in the comparable metrics if they are comparable for the entirety of both periods presented.

  1. Calculated using constant currency rates. Using historical currency rates, the average weekly sales per unit in the first quarter of 2017 for Company-owned – Total and Company-owned – Comparable was $55,408 and $55,362. The Company calculates non-GAAP constant currency average weekly sales per unit by translating prior year local currency average weekly sales per unit to U.S. dollars based on current quarter average exchange rates. The Company considers non-GAAP constant currency average weekly sales per unit to be a useful metric to investors and management as they facilitate a more useful comparison of current performance to historical performance

  2. Using the same calendar weeks as compared to the first quarter 2018, the average weekly sales per unit in the first quarter of 2017, using constant currency rates, was $54,503. Other Results Depreciation and amortization costs increased to $29.2 million in the first quarter of 2018 from $28.0 million in the first quarter of 2017. The increased depreciation was primarily related to new restaurant technology implemented beginning in third quarter 2017 and new restaurants opened since the first quarter of 2017. General and administrative costs were $28.6 million, or 6.8% of total revenues, in the first quarter of 2018, compared to $30.9 million, or 7.3% of total revenues in the same period a year ago. The decrease was primarily due to decreases in salaries related to the reorganization in the first quarter 2018 and project costs related to our off-premise dining initiatives. Selling expenses were $17.7 million, or 4.2% of total revenues, in the first quarter of 2018, compared to $17.1 million, or 4.1% of total revenues during the same period in the prior year. The increase was primarily due to additional spending in local restaurant marketing activities. Pre-opening costs were $1.1 million in the first quarter of 2018, compared to $1.9 million in the same period a year ago. The decrease was primarily due to the number of restaurant openings. Other charges in the first quarter of 2018 included $4.0 million litigation contingencies and $2.3 million reorganization costs. The Company’s effective tax rate in the first quarter of 2018 was 21.2% benefit, compared to an effective tax rate of 20.1% expense in the first quarter of 2017. The change in the effective tax rate is primarily due to the decrease in income as well as the decrease in the federal statutory rate from 35% to 21% in the first quarter of 2018 compared to the same period a year ago. Earnings per diluted share for the first quarter of 2018 was $0.34 compared to $0.89 in first quarter of 2017. Excluding charges of $0.22 per diluted share for litigation contingencies and $0.13 per diluted share for reorganization costs, adjusted earnings per diluted share for the first quarter ended April 22, 2018 were $0.69. See Schedule I for a reconciliation of adjusted net income and adjusted earnings per share (each, a non-GAAP financial measure) to net income and earnings per share. Balance Sheet and Liquidity As of April 22, 2018, the Company had cash and cash equivalents of $23.7 million and total debt of $231.4 million, excluding $10.8 million of capital lease liabilities. The Company funded construction of new restaurants and other capital expenditures with cash flow from operations and made net repayments of $35.0 million on its credit facility during the first quarter of 2018. As of April 22, 2018, the Company had outstanding borrowings under its credit facility of $230.5 million, in addition to amounts issued under letters of credit of $7.5 million, which reduce the amount available under its credit facility but are not recorded as debt. The Company’s lease adjusted leverage ratio was 3.96x as of April 22, 2018. The lease adjusted leverage ratio is defined in Section 1.1 of the Company’s credit facility, which is filed as Exhibit 10.32 in the Annual Report on Form 10-K filed on February 21, 2017. Outlook for the Second Quarter of 2018 Earnings per diluted share is projected to range from $0.55 to $0.75 for the second quarter of 2018.

About Red Robin Gourmet Burgers, Inc. 

Red Robin Gourmet Burgers, Inc. (www.redrobin.com), a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., and under the trade name Red Robin Gourmet Burgers and Brews, is the Gourmet Burger Authority™, famous for serving more than two dozen craveable, high-quality burgers with Bottomless Steak Fries® in a fun environment welcoming to guests of all ages. Whether a family dining with kids, adults grabbing a drink at the bar, or teens enjoying a meal, Red Robin offers an unparalleled experience for its guests. In addition to its many burger offerings, Red Robin serves a wide variety of salads, soups, appetizers, entrees, desserts, and signature beverages. Red Robin offers a variety of options behind the bar, including its extensive selection of local and regional beers, and innovative adult beer shakes and cocktails, earning the restaurant a VIBE Vista Award for Best Beer Program in a Multi-Unit Chain Restaurant. There are more than 570 Red Robin restaurants across the United States and Canada, including locations operating under franchise agreements


GR

Gordon Ramsay’s Restaurant Group Reports Loss as Sales Fall

Gordon Ramsay's restaurant group, which includes Savoy Grill and Petrus, has been burnt by weaker sales and plans to close Maze, in Mayfair, London.Gordon Ramsay’s Restaurant Group reported loss as sales fall and the company engages in an ongoing legal dispute with a partner in Los Angeles. May 17, 2018--(BBC) Holding group Kavalake reported a loss of £3.8m for the year to August 2017. While revenues rose at its 18 internationally licensed locations, overall the group's turnover was lower. Business was also hit by the five-month closure of its Plane Food outlet at Heathrow and an ongoing legal dispute with a partner in Los Angeles. As well as its high-profile up-market restaurants, the group owns casual dining venues including Bread Street Kitchen, Heddon Street Kitchen, London House and Union Street Cafe. The mid-market dining sector has seen a spate of closures this year, including the Byron burger chain and Italian outlets Prezzo and Jamie's Italian, as consumer spending faltered. Michelin-starred Maze, based in the London Marriott hotel in Grosvenor Square, will close in January 2019 and a new concept will be developed for the site opening later that year. The group said the 1% fall in total turnover was in large part down to the temporary closure of Plane Food at Terminal 5, Heathrow, which has now re-opened and is performing "ahead of expectation". The loss, which followed a profit of £102,000 in 2016, was also partly caused by a £1.75m legal bill relating to the business's Los Angeles-based Fat Cow restaurant which closed in 2014.

A long-running legal dispute between Mr. Ramsay and his father-in-law was also finally resolved last year. However, the group is now expanding overseas, opening a further five international venues, including its first outlet in mainland China, a Bread Street Kitchen in Sanya, and a new "concept" restaurant called Hell's Kitchen in Las Vegas.


JackintheBox

Jack in the Box Inc. Reports Second Quarter FY 2018 EarningsJack in the Box reported their second quarter earnings for 2018, including system-wide same-store sales decrease of 0.1%. The company also announced that 63 units were refranchised in the second quarter and 29 so far in the third quarter, bringing their franchise mix to 93%. Finally, the sale of Qdoba was completed during the second quarter. May 17, 2018--(RestaurantNewsResource) Jack in the Box Inc. (NASDAQ: JACK) today reported financial results for the second quarter ended April 15, 2018. The company completed the sale of Qdoba Restaurant Corporation ("Qdoba") on March 21, 2018. Qdoba® results are included in discontinued operations for all periods presented. Earnings from continuing operations were $25.0 million, or $0.85 per diluted share, for the second quarter of fiscal 2018 compared with $31.4 million, or $1.01 per diluted share, for the second quarter of fiscal 2017. Operating Earnings Per Share(1), a non-GAAP measure, were $0.80 in the second quarter of fiscal 2018 compared with $0.86 in the prior year quarter. A reconciliation of non-GAAP Operating Earnings Per Share to GAAP results is provided below, with additional information included in the attachment to this release. Figures may not add due to rounding.

Lenny Comma, chairman and chief executive officer, said, “Our second quarter operating results were in line with our expectations. We were pleased that a greater emphasis on value resulted in a sequential improvement in traffic during the quarter. And by balancing our value promotions with innovative premium products, we were able to protect restaurant margins. "With the refranchising of 63 Jack in the Box® restaurants in the second quarter and 29 thus far in the third quarter, our franchise mix now stands at 93 percent. We currently have signed non-binding letters of intent with franchisees to sell 17 additional restaurants, which would bring the Jack in the Box franchise mix to approximately 94 percent. In addition, we completed the sale of Qdoba during the quarter, which marks an important milestone in the actions we’re taking to enhance shareholder value. "We resumed share repurchases during the quarter, with the purchase of $100 million of stock, and last week our Board of Directors authorized an additional $200 million stock buyback program. We also completed an amendment and extension of our existing credit facility which is an interim step that provides an immediate increase in our borrowing capacity to 4.5 times EBITDA while we work with our advisors to evaluate longer-term financing alternatives. We remain comfortable with ultimately increasing our leverage up to 5.0 times EBITDA."

*Note: Due to the transition from a 53-week year in fiscal 2016 to a 52-week year in fiscal 2017, year-over-year fiscal period comparisons are offset by one week. The change in same-store sales presented in the 2017 column uses comparable calendar periods to balance the one-week shift from fiscal 2016 and to provide a clearer year-over-year comparison. Jack in the Box system same-store sales decreased 0.1 percent for the quarter and lagged the QSR sandwich segment by 1.0 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended April 15, 2018. Included in this segment are 16 of the top QSR sandwich and burger chains in the country. Company same-store sales increased 0.9 percent in the second quarter driven by average check growth of 2.6 percent, partially offset by a 1.7 percent decrease in transactions. (2) Adjusted EBITDA represents net earnings on a GAAP basis excluding earnings from discontinued operations, income taxes, interest expense, net, gains on the sale of company-operated restaurants, impairment and other charges, net, depreciation and amortization, and the amortization of franchise tenant improvement allowances. See "Reconciliation of Non-GAAP Measurements to GAAP Results." Restaurant-Level EBITDA(3), a non-GAAP measure, increased by 250 basis points to 26.4 percent of company restaurant sales in the second quarter of 2018 from 23.9 percent a year ago. The increase was due primarily to the benefit of refranchising, which was partially offset by wage and commodity inflation, and higher maintenance and repairs expenses. The decrease in food and packaging costs as a percentage of sales resulted from menu price increases and favorable product mix, partially offset by commodity inflation of approximately 3.6 percent in the quarter. Restaurant Operating Margin(3), a non-GAAP measure, increased to 22.7 percent of company restaurant sales in the second quarter of fiscal 2018 from 19.7 percent in the prior year quarter. Franchise EBITDA(3), a non-GAAP measure, as a percentage of total franchise revenues decreased to 59.8 percent in the second quarter from 61.2 percent in the prior year quarter. The decrease was due primarily to a decrease in franchise-operated restaurant same-store sales of 0.2 percent in the current quarter, and incremental costs incurred in 2018 related to the implementation of a mystery guest program. Franchise Margin(3), a non-GAAP measure, decreased to 51.5 percent of total franchise revenues in the second quarter of fiscal 2018 compared with 53.1 percent in the second quarter of fiscal 2017. SG&A expenses for the second quarter increased by $1.2 million and were 12.9 percent of revenues compared with 9.7 percent in the prior year quarter. Advertising costs, which are included in SG&A, were $7.3 million in the second quarter compared with $9.1 million in the prior year quarter. The $1.8 million decrease in advertising costs was due to a $3.3 million decrease resulting from refranchising, which was partially offset by an incremental $1.5 million of spending in the quarter. The $3.0 million increase in G&A excluding advertising was attributable to mark-to-market adjustments on investments supporting the company's non-qualified retirement plans resulting in a $1.8 million year-over-year increase in SG&A, and a $1.6 million increase in incentive compensation. These increases were partially offset by reductions related to refranchising. As a percentage of system-wide sales, G&A excluding advertising was 2.5 percent in the second quarter of 2018 compared with 2.1 percent in the 2017 quarter. (3) Restaurant Operating Margin, Restaurant-Level EBITDA, Franchise Margin, and Franchise EBITDA are non-GAAP measures. These non-GAAP measures are reconciled to earnings from operations, the most comparable GAAP measure, in the attachment to this release. See "Reconciliation of Non-GAAP Measurements to GAAP Results." In fiscal 2018, the company began presenting depreciation and amortization as a separate line item in its condensed consolidated statements of earnings to better align with similar presentation made by many of its peers and to provide additional disclosure that is meaningful for investors. The prior year condensed consolidated statement of earnings was adjusted to conform with this new presentation. Depreciation and amortization was previously presented within company restaurant costs, franchise occupancy expenses, selling, general and administrative expenses, and impairment and other charges, net, in the company's condensed consolidated statements of earnings. Restructuring charges of $2.6 million, or approximately $0.06 per diluted share, were recorded during the second quarter of fiscal 2018 compared with $0.2 million, or less than $0.01 per diluted share, in the prior year quarter. Restructuring charges are included in "Impairment and other charges, net" in the accompanying condensed consolidated statements of earnings. Including these charges, impairment and other charges, net, increased in the second quarter to $4.9 million from $1.4 million in the year ago quarter. Interest expense, net, increased by $1.4 million in the second quarter primarily due to a higher effective interest rate for 2018. The company allocated $1.6 million and $2.0 million of interest expense to Qdoba in the second quarters of 2018 and 2017, respectively. The Tax Cuts and Jobs Act (the "Tax Act"), enacted into law on December 22, 2017, reduced the federal statutory rate from 35 percent to 21 percent as of January 1, 2018. As a company with a fiscal year-end of September 30, the tax rate reduction will be phased in, resulting in a blended statutory federal tax rate of 24.5 percent for the fiscal year ending September 30, 2018. In addition, the Tax Act resulted in a non-cash increase to the provision for income taxes of $0.6 million, or $0.02 per diluted share, for the second quarter of fiscal 2018, and $31.2 million, or $1.05 per diluted share, for the 28 weeks ended April 15, 2018, related primarily to the revaluation of deferred tax assets and liabilities at the new lower rates. This revaluation was based upon estimates and interpretations of the Tax Act which may be refined as further guidance is issued. Qdoba Discontinued Operations In the first quarter of fiscal 2018, the company entered into a definitive agreement to sell Qdoba, a wholly owned subsidiary of the company, to certain funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, "Apollo"). The transaction closed on March 21, 2018, and operating results for Qdoba are included in discontinued operations for all periods presented. However, the company did not allocate any general and administrative shared services expenses to discontinued operations. Qdoba generated net earnings of $22.7 million for the second quarter, including an after-tax gain on the sale of $20.0 million compared with net earnings of $1.8 million in the prior year quarter. Capital Allocation The company repurchased approximately 1,111,000 shares of its common stock in the second quarter of 2018 at an average price of $89.98 per share for an aggregate cost of $100.0 million. The company currently has approximately $281.0 million remaining under stock-buyback programs authorized by its Board of Directors, including approximately $81.0 million that expires in November 2018 and an additional $200 million authorized by the Board last week that expires in November 2019. The company also announced today that on May 11, 2018, its Board of Directors declared a cash dividend of $0.40 per share on the company's common stock. The dividend is payable on June 11, 2018, to shareholders of record at the close of business on May 29, 2018. Guidance The following guidance and underlying assumptions reflect the company’s current expectations for the third quarter ending July 8, 2018, and fiscal year ending September 30, 2018. Fiscal 2018 and fiscal 2017 are 52-week years, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters. Third quarter fiscal year 2018 guidance

  1. Same-store sales of approximately flat to up 1.0 percent at Jack in the Box system restaurants versus a 0.2 percent decrease in the year-ago quarter. Fiscal year 2018 guidance

  2. Same-store sales increase of approximately flat to up 1.0 percent at Jack in the Box system restaurants.

  3. Commodity cost inflation of approximately 3.0 percent.

  4. Restaurant-Level EBITDA of approximately 26.0 to 27.0 percent, depending on the timing of refranchising transactions and the margins associated with the restaurants sold.

  5. SG&A as a percentage of revenues of approximately 12.0 to 12.5 percent, which includes incremental advertising spending on behalf of the system.

  6. G&A as a percentage of system-wide sales of approximately 2.3 to 2.5 percent.

  7. Approximately 25 new Jack in the Box restaurants opening system-wide, the majority of which will be franchise locations.

  8. Capital expenditures of approximately $30 to $35 million.

  9. Tenant improvement allowances of approximately $25 million.

  10. Tax rate of approximately 29.0 percent, excluding the non-cash impact of the Tax Act and the tax impact of excess tax benefits from share-based compensation arrangements which are now recorded as a component of income tax expense versus equity previously.

  11. Adjusted EBITDA of approximately $260 to $270 million. About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam.


The ONE Group Reports First Quarter 2018 Results

Comparable sales for owned and managed US STK restaurants increased 7.3%The ONE Group reported first quarter results for 2018, highlighted by a global comparable sales increase of 6.6%, including a 7.3% increase in domestic comparable sales and 4.5% increase in international comparable sales for STK restaurants. May 16, 2018--(RestaurantNewsResource) The ONE Group Hospitality, Inc. (NASDAQ:STKS), yesterday reported financial results for the first quarter ended March 31, 2018. Highlights for the first quarter ended March 31, 2018 were as follows:

  1. Total GAAP revenue was $19.5 million compared to $20.4 million in the same period last year;

  2. Comparable sales* globally increased 6.6% compared to the same period last year. Domestic comparable sales for STK restaurants rose 7.3% and international comparable sales rose 4.5%;

  3. GAAP net income from continuing operations before income taxes was $143,000 compared to a loss of $511,000 for the same period last year;

  4. GAAP net income attributable to The ONE Group Hospitality, Inc. was $231,000 or $0.01 per share compared to GAAP net loss of $402,000 or $0.02 loss per share for the same period last year;

  5. Adjusted EBITDA** increased 11.6% to $1.8 million compared to $1.6 million the same period last year; and,

  6. Total restaurant expenses decreased 410 basis points to 89.0% from 93.1% as a percentage of revenues. Emanuel “Manny” Hilario, Chief Executive Officer, said, “The ONE Group is off to a strong start this year with a notable 6.6% gain in comparable sales coupled with an 11.6% increase in Adjusted EBITDA despite a non-recurring Super Bowl event from 2017 that negatively impacted year over year revenues by $1.7 million and Adjusted EBITDA by $0.7 million. We are particularly pleased with the 7.3% increase in comparable sales for the domestic STK restaurants and the 410 basis points increase in margin for our domestic STK restaurants. Our results demonstrate that we are making headway executing our four-point strategy of driving comparable sales; focusing growth on license and management deals; improving operational efficiency in the restaurants; and reducing corporate G&A expenses, excluding stock-based compensation. We believe that the momentum we have achieved should continue and that there is still room for further sales improvements and greater profitability. We believe that 2018 is poised to be a highly productive year for our business.” *Comparable sales or same store sales (“SSS”), represents total food and beverage sales at owned and managed units opened for a full 18-month period. This metric includes total revenue from our US owned and managed STK locations as well as the revenue reported to us with respect to comparable sales at our international locations (measured in constant currency), and excludes revenues where we do not directly control the event sales force (Royalton Hotel in NY and The W Hotel in Westwood, CA). Total food and beverage sales at owned and managed units, a non-GAAP measure, represents our total revenue from our owned operations as well as the revenue reported to us with respect to sales at our managed locations, where we earn management and incentive fees at these locations. For a reconciliation of our GAAP revenue to total food and beverage sales at our owned and managed units and a discussion of why we consider it useful, see the financial information accompanying this release. ** Adjusted EBITDA, a non-GAAP measure, represents net loss before interest expense, provision for income taxes, depreciation and amortization, non-cash impairment loss, deferred rent, pre-opening expenses, non-recurring gains and losses, stock based compensation, losses from discontinued operations and certain transactional costs. Not all of the aforementioned items defining Adjusted EBITDA occur in each reporting period, but have been included in our definitions of terms based on our historical activity. For a reconciliation of Adjusted EBITDA to the most directly comparable financial measure presented in accordance with GAAP and a discussion of why we consider it useful, see the financial information accompanying this release. Unaudited First Quarter 2018 Financial Results Total GAAP Revenues were $19.5 million in the first quarter of 2018 compared to $20.4 million in the same period last year. This decrease was primarily driven by a Super Bowl event hosted in Houston, TX in the prior year that generated $1.7 million in revenues. We did not host a Super Bowl event in 2018. This was partially offset by the increase in comparable sales and increased revenues from management, license and incentive fee revenues. Total owned restaurant net revenues increased 6.0% to $15.1 million in the first quarter of 2018 compared to $14.2 million in the first quarter of 2017. The increase was primarily due an increase in comparable sales. Comparable sales from owned STK units increased 8.7%, while comparable sales from both owned and managed STK units increased 7.3%. These increases reflect strong performances of the STK brand. Management, license and incentive fee revenues increased 5.3% to $2.4 million in the first quarter of 2018 compared to $2.3 million in the first quarter of 2017. The increase was driven by higher management and incentive fees reflecting the strong performances of our European locations along with the launch of the licensed STK in Dubai in December 2017. GAAP net income attributable to The ONE Group Hospitality, Inc. in the first quarter of 2018 was $231,000 or $0.01 per share compared to GAAP net loss of $402,000 or $0.02 loss per share in the first quarter of 2017. Adjusted EBITDA** increased 11.6% to $1.8 million in the first quarter of 2018 from $1.6 million in the first quarter of 2017. The Super Bowl event hosted in the prior year’s first quarter in Houston, TX generated $700,000 in Adjusted EBITDA and we did not participate in a Super Bowl Event during 2018. Development Update - Projected 2018 Owned Restaurants - STK San Diego Licensed Units - STK Dubai- Downtown, STK Doha, STK Puerto Rico, and STK Mexico City 2018 Targets The Company is providing the following targets for 2018:

  7. Total GAAP revenues between $80 million and $85 million;

  8. Total food and beverage sales at all our owned and managed units to be between $170 million and $180 million;

  9. Comparable sales growth of about 2% to 3%;

  10. Total food and beverage costs to be approximately 25% to 26%;

  11. Adjusted EBITDA between $9 million and $10 million, representing approximately 30% - 40% growth compared to the prior year; and,

  12. Total capital expenditures of approximately $3 million, which is significantly less than prior years and reflective of our capital-light strategy. Long-Term Growth Targets The Company is reiterating the following long-term growth targets:

  13. Three to five licensed restaurant units and one to two food and beverage hospitality deals annually;

  14. Comparable sales growth of 2% to 3%;

  15. Consistent Adjusted EBITDA growth of at least 20%; and,

  16. Continued focus on our asset light model and disciplined G&A management, while benefitting from economies of scale and operating efficiencies. We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure are not available without unreasonable effort. About The ONE Group

The ONE Group (NASDAQ:STKS) is a global hospitality company that develops and operates upscale, high-energy restaurants and lounges and provides hospitality management services for hotels, casinos and other high-end venues both nationally and internationally. The ONE Group’s primary restaurant brand is STK, a modern twist on the American steakhouse concept with locations in major metropolitan cities throughout the U.S. and Europe. ONE Hospitality, The ONE Group’s food and beverage hospitality services business, provides the development, management and operations for premier restaurants and turn-key food and beverage services within high-end hotels and casinos.


Arc

ARC Group, Inc. Announces Record Q1 2018 Financial ResultsARC Group reported first quarter results for 2018, including a 14% increase in revenue. However, income from operations, adjusted income from operations, net income, adjusted net income, and cash flows from operations were all down compared to the first quarter of 2017. May 16, 2018--(RestaurantNewsResource) ARC Group, Inc. (OTC: ARCK), the owner, operator and franchisor of the award-winning Dick's Wings & Grill® concept, announced financial results for its first fiscal quarter of 2018 highlighted by record revenue. The Company achieved the following financial results for its first fiscal quarter of 2018:

  1. Revenue increased 14% to $1,246,662 for Q1 2018 from $1,088,796 for Q1 2017.

  2. Income from operations was $48,308 during Q1 2018 compared to $210,392 during Q1 2017.

  3. Adjusted income from operations, a non-GAAP measure, was $76,364 during Q1 2018 compared to $226,853 during 2016.

  4. Net income was $47,614, or $0.01 per share, during Q1 2018 compared to 206,077, or $0.03 per share, during Q1 2017.

  5. Adjusted net income, a non-GAAP measure, was $76,364 during Q1 2018 compared to $226,853 during Q1 2017.

  6. Adjusted net income per share was $0.01 for Q1 2018 compared to $0.03 for Q1 2017.

  7. Cash flows from operations was $96,620 during Q1 2018 compared to 168,446 during Q1 2017. A reconciliation of adjusted income from operations, adjusted net income, and adjusted earnings per share on a GAAP and non-GAAP basis is included in the table below entitled "Reconciliation of GAAP to non-GAAP Financial Measures". During Q1 2018, the Company adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) which changed the timing of recognition of initial franchise fees as well as the reporting of advertising fund contributions and related expenditures.  ARC Group implemented this guidance using the modified retrospective transition method.  Under this method, the cumulative effect of initially adopting the guidance was recognized as an adjustment to the opening balance of equity at January 1, 2018. Therefore, the comparative period has not been adjusted and continues to be reported under the previous revenue recognition guidance. The adoption. "Our Q1 2018 results show continued strength in our business," stated Richard W. Akam, Chief Executive Officer of ARC Group.  "We expect to open additional Dick's Wings restaurants during the remainder of 2018, and are currently evaluating potential acquisitions of multiple leading restaurants brands. In anticipation of this, we are fortifying our management team and employee base with key hires and will be reorganizing our business to better position us for our upcoming growth.  We are committed to achieving our long-term goal of transforming ARC Group into a holding company comprised of a diversified portfolio of leading brands and profitable businesses that are all strong contributors to our bottom line." "As a result of the adoption of ASU 2014-09, we recognized deferred franchise fees in the amount of $196,478 on our balance sheet as of January 1, 2018 and an increase in our accumulated deficit by the same amount on that date," stated Seenu G. Kasturi, Chief Financial Officer of ARC Group.  "The adoption of ASU 2014-09 had the effect of increasing franchise and other revenue from related and unrelated parties by $8,625 for franchise fees and $53,232 for ad fund fees.  The effect of the ad fund fees on our revenue was negated by the recognition of $53,232 for ad fund expenses.  Accordingly, the net effect of ASU 2014-09 on our Q1 2018 operating results was to increase our revenue, income from operations and net income by $8,625." Dick's Wings restaurants are family fun fooderys® where both families and sports fans can go to enjoy a unique restaurant experience from first bite to last call®.  Dick's Wings offers a variety of boldly-flavored menu items highlighted by its award-winning, Buffalo, New York-style chicken wings and hog wings and its Dick's Blingz® boneless chicken wings, for which it boasts 365 mouth-watering flavors.  It also offers customers a variety of fresh sandwiches, burgers, wraps, salads and signature waffle fries.  Guests enjoy these menu items in an elevated sports-themed environment that includes flat screen TVs located throughout each restaurant and children's areas filled with video games and other forms of children's entertainment. Dick's Wings is actively offering franchise opportunities in Florida, Georgia, Alabama, Louisiana, North Carolina and South Carolina. About ARC Group, Inc.   

ARC Group, Inc., headquartered in Jacksonville, Florida, is the owner, operator and franchisor of the Dick's Wings & Grill concept. Now in its 23rd year of operation, Dick's Wings prides itself on its award-winning chicken wings, hog wings and duck wings spun in its signature sauces and seasonings. It also offers its own proprietary line of craft beers under the name "Dick's Craft Beers". Dick's Wings has 15 restaurants in Florida and five restaurants in Georgia. It also has two concession stands at TIAA Bank Field (formerly EverBank Field), home of the NFL's Jacksonville Jaguars, as well as a concession stand at Jacksonville Veterans Memorial Arena, home of the National Arena League's Jacksonville Sharks.


Ark

Ark Restaurants Announces Financial Results for the Second Quarter of 2018Ark Restaurants announced second quarter results for 2018, including an increase in total revenue, a 2.4% increase in company-wide same store sales, and an increase in company EBITDA compared to the second quarter of 2017. May 15, 2018--(RestaurantNewsResource) Ark Restaurants Corp. (NASDAQ:ARKR) yesterday reported financial results for the second quarter ended March 31, 2018. Total revenues for the three-month period ended March 31, 2018 were $35,276,000 versus $34,640,000 for the three months ended April 1, 2017. The three-month period ended March 31, 2018 includes revenues of $1,272,000 related to Sequoia DC which was closed for renovation for the entire three-month period ended April 1, 2017. The three-month period ended April 1, 2017 includes revenues of $1,762,000 related to three properties that were closed prior to fiscal 2018. Total revenues for the six-month period ended March 31, 2018 were $74,628,000 versus $73,059,000 for the six months ended April 1, 2017. As noted above, the six-month period ended March 31, 2018 includes revenues of $1,273,000 generated during the second quarter of 2018 related to Sequoia DC which was closed for renovation for the entirety of the second quarter of 2017. The six-month period ended April 1, 2017 includes revenues of $3,258,000 related to three properties that were closed prior to fiscal 2018. Company-wide same store sales increased 2.4% for the three-month period ended March 31, 2018 compared to the same three month period last year. The Company’s EBITDA, adjusted for non-controlling interests, for the three-month period ended March 31, 2018 was $769,000 versus $694,000 during the same three-month period last year. The Company’s EBITDA, adjusted for non-controlling interests, for the six-month period ended March 31, 2018 was $2,841,000 versus $4,794,000 during the same six-month period last year. EBITDA for the six-months ended April 1, 2017 includes a gain of $1,637,000 recognized in connection with the sale of the real estate underlying our Rustic Inn, Jupiter, FL property. Net loss for the three-month period ended March 31, 2018, after a tax benefit, was ($637,000), or ($0.19) per basic and diluted share compared to ($393,000) after a tax benefit, or ($0.11) per basic and diluted share for the same three-month period last year. Net income for the six-month period ended March 31, 2018 was $990,000 or $0.29 per basic, $0.28 per diluted share, compared to $1,341,000, or $0.39 per basic share, $0.38 per diluted share, for the same six-month period last year.

On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law and the new legislation contains several key tax provisions that affected us, including a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. We were required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring our U.S. deferred tax assets and liabilities, and reassessing the net realizability of our deferred tax assets and liabilities. In December 2017, the Securities and Exchange Commission (the “SEC”) staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. As a result, income tax expense reported for the six-months ended March 31, 2018 was adjusted to reflect the effects of the change in the tax law and resulted in a discrete income tax benefit of approximately $1.2 million. While we were able to make a reasonable estimate of the impact of the reduction in the corporate tax rate, it may be affected by other analyses related to the Tax Act. Accordingly, the Company’s accounting for impact of the Tax Act remains incomplete as of March 31, 2018. Ark Restaurants owns and operates 20 restaurants and bars, 19 fast food concepts and catering operations primarily in New York City, Florida, Washington, D.C, Las Vegas, NV and the gulf coast of Alabama. Five restaurants are located in New York City, two are located in Washington, D.C., five are located in Las Vegas, Nevada, three are located in Atlantic City, New Jersey, one is located in Boston, Massachusetts, two are located on the east coast of Florida and two are located on the Gulf Coast of Alabama. The Las Vegas operations include four restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and six food court concepts; and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino and a restaurant in the Tropicana Hotel and Casino. The operations at the Foxwoods Resort Casino consist of one fast food concept. In Boston, Massachusetts, the Company operates a restaurant in the Faneuil Hall Marketplace. The Florida operations include the Rustic Inn in Dania Beach, Florida and Shuckers, located in Jensen Beach and the operation of five fast food facilities in Tampa, Florida and seven fast food facilities in Hollywood, Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations. In Alabama, the Company operates two Original Oyster Houses, one in Gulf Shores, Alabama and one in Spanish Fort, Alabama.

Except for historical information, this news release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve unknown risks, and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Important factors that might cause such differences are discussed in the Company's filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results could differ materially from those anticipated in these forward-looking statements, if new information becomes available in the future.


Jamba

Jamba, Inc. Reports Results for Fiscal 2017, Provides Q1 Business Update, and Nears Return to a Standard Reporting CadenceJamba Juice reported results for fiscal year 2017, including an $8.7 million decline in total revenue to $70.9 million and a 0.4% decline in system-wide comparable store sales (decrease of 0.3% for franchise-owned stores, decrease of 1.4% at company-owned stores). The company also reported the opening of 50 new stores, including 40 domestic and 10 international locations. For the first quarter of 2018, the company reported a 2.3% increase in comparable store sales and the opening of 5 locations so far this year. May 11, 2018--(BusinessWire) Jamba, Inc. (NASDAQ:JMBA) (the “Company”) today reported financial results for the fiscal year ended January 2, 2018 (“fiscal 2017”), provided an update of results for the fiscal quarter ended April 3, 2018 (“first quarter”) and announced its expected timeline to return to a standard reporting cadence. Highlights for fiscal 2017 as compared to the 53 weeks ended January 3, 2017 (“fiscal 2016”):

  1. Total Revenue declined $8.7 million to $70.9 million, primarily due to the Company’s continued transition to an asset light business model, the exit of non-core business units, and the return to a 52-week fiscal calendar.

  2. On a comparable calendar basis, system-wide comparable store sales declined 0.4%.

  3. Comparable store sales declined 0.3% at franchise-owned stores and declined 1.4% at company-owned stores.

  4. Net Income (Loss) improved $19.7 million, to a loss of $2.7 million.

  5. Non-GAAP Adjusted EBITDA increased 33.1% to $14.7 million.

  6. Non-GAAP Adjusted EBITDA Marginincreased to 20.7%, compared to 13.8% in fiscal 2016.

  7. Opened 50 new stores, of which 40 were domestic and 10 international. Highlights for the first quarter of 2018:

  8. System-wide comparable store sales increased 2.3%.

  9. Comparable store sales increased 2.4% at franchise-owned stores and increased 1.6% at company-owned stores.

  10. Opened 5 new stores. Openings were limited in the first quarter primarily because the Company did not have an active Franchise Disclosure Document (“FDD”) with which to solicit prospective franchisees, due to the delayed financial reporting. The Company has implemented single store and drive thru initiatives that are expected to deliver sequential increases in new store opening counts.

  11. Closed 25 stores, resulting from continued efforts to optimize and reshape the portfolio. Average unit volume for the 25 closed stores is below $300,000 and less than half of the average unit volume of the remaining store base.

  12. Held $7.5 million in cash and had no outstanding principal balance on its line of credit, as of April 3, 2018. The reported balance is unaudited. The Company anticipates the following timeline to return to a standard reporting cadence:

  13. File Form 10-Q for the first quarter of fiscal 2018 on or before June 26, 2018.

  14. Hold a combined 2016 and 2017 shareholder meeting on June 26, 2018.

  15. Return to a standard reporting cadence with the filing of Form 10-Q for the fiscal quarter ended July 3, 2018 (“second quarter”) on or before the standard reporting timeline requirement of August 13, 2018. CEO Comments Dave Pace, President and Chief Executive Officer, stated: “Today’s filing of our 2017 10-K completes another important step on our path to return to a standard reporting cadence. We anticipate being back on track after the filing of our first quarter 10-Q and the completion of our annual shareholder meeting planned for late June.” Pace continued: “Financial results for 2017 delivered on our previously communicated guidance and demonstrate the progress being made in our revitalization of the Jamba business. Notably, despite the anticipated decline in total revenues related to our pivot to an asset-light model, Adjusted EBITDA grew by over 33%. The concrete actions we have taken to reinvigorate our core system have continued to drive performance into early 2018. Comparable store sales in the first quarter increased 2.3% and beat the industry benchmark for the eighth consecutive quarter.” Pace concluded: “Our efforts in 2018 will continue to be focused on enhancing the customer experience, driving transaction growth, increasing store level margins and rebuilding the momentum behind our new store pipeline. We have repositioned this iconic brand for sustainable growth and significant value-creation for our shareholders and continue to be optimistic about our performance in 2018 and beyond.” Fiscal 2017 Financial Results Results are in line with prior guidance expectations.

First Quarter of Fiscal 2018

  1. Comparable store sales: The increase of 2.3% in the first quarter of 2018 was the result of favorability from overlapping severe weather in the first quarter of 2017, tempered by cooler weather across much of the country in March, 2018.

  2. New Store Openings: New store openings in the first quarter were limited because the Company did not have an active Franchise Disclosure Document (“FDD”) to solicit prospective franchisees through much of 2017, due to the delayed financial reporting. As a result, new store openings in 2018 will be led by existing franchisees. The Company launched its single store franchise recruiting efforts in the first quarter, following the filing of the 2016 Form 10-K and issuance of an active FDD, and has received significant interest from prospective franchisees. The Company expects the positive response to the single store franchise option coupled with existing franchisee development agreements and drive thru initiatives, will deliver sequential increases in new store opening counts.

  3. Store Closures: Counts were elevated in the first quarter as the Company continues to work with franchisees to optimize and reshape the portfolio. The optimization effort will continue in order to enhance the financial health of the franchisee network and the long-term benefit of the Jamba system. The Company expects closure rates will decline in the remainder of 2018 from the elevated first quarter levels.

  4. Marketing: The Company successfully introduced coffee smoothies and all day breakfast sandwiches that will remain on the menu. Additionally, the Company successfully tested a revised marketing approach during the fourth quarter of 2017 and first quarter of 2018, to optimize media weight, medium, and content. The Company intends to deploy this marketing approach in the remainder of 2018, supporting a pipeline of consumer researched and tested products.

About Jamba, Inc.

Jamba, Inc. (NASDAQ:JMBA) through its wholly-owned subsidiary, Jamba Juice Company, is a global healthy lifestyle brand that inspires and simplifies healthful living through freshly blended whole fruit and vegetable smoothies, bowls, juices, cold-pressed shots, boosts, snacks, and meal replacements. Jamba’s blends are made with premium ingredients free of artificial flavors and preservatives so guests can feel their best and blend the most into life. Jamba Juice® has more than 800 franchised and company-owned locations worldwide, as of April 3, 2018.


Noodles & Company Announces First Quarter 2018 Financial ResultsNoodles & Company announced first quarter 2018 results, including a 5.3% decrease in total revenue and a 0.2% decrease in system-wide comparable restaurant sales (0.3% decrease for company-owned restaurants and 0.9% increase for franchise restaurants). The company also reported a 46.3% increase in Adjusted EBITDA and an increase in restaurant contribution margin. Noodles & Company opened one new location (company-owned) during the first quarter. May 10, 2018--(GlobeNewswire) Noodles & Company (Nasdaq:NDLS) today announced financial results for its first quarter ended April 3, 2018. Key highlights for the first quarter of 2018 versus the same quarter a year ago include:

  1. Total revenue decreased 5.3% to $110.5 million from $116.7 million, due primarily to the closure of 55 restaurants during the first quarter of 2017, partially offset by additional restaurant openings since the beginning of 2017.

  2. Net loss was $3.6 million, or $0.09 loss per diluted share, compared to net loss of $26.8 million, and net loss attributable to common stockholders (further reduced by the accretion of the preferred stock to its redemption value) of $27.8 million, or $0.99 loss per diluted share in the first quarter of 2017. (1)

  3. Adjusted EBITDA(2) increased 46.3% to $5.6 million from $3.8 million.

  4. Restaurant contribution margin(1)increased 190 basis points to 12.9%.

  5. Adjusted net loss (2) was $1.8 million, or $0.04 loss per diluted share, compared to adjusted net loss of $2.5 million, or $0.08 loss per diluted share.

  6. Comparable restaurant sales decreased 0.2% system-wide, decreased 0.3% for company-owned restaurants and increased 0.9% for franchise restaurants.

  7. One new company-owned restaurant opened in the first quarter of 2018. ______________________ (1) In the first quarter of 2018, the Company recorded a $0.4 million impairment charge related to one restaurant and incurred $0.6 million of ongoing costs related to closed restaurants, primarily the restaurants that closed in the first quarter of 2017 and fourth quarter of 2015. In the first quarter of 2017, the company recorded $19.9 million of charges related to the closure of 55 restaurants, and $1.9 million of charges related to impairment of four restaurants. (2) Adjusted EBITDA, restaurant contribution margin, and adjusted net income (loss) are non-GAAP measures. Reconciliations of GAAP net income (loss) to adjusted EBITDA and adjusted net income (loss) and of GAAP operating income (loss) to restaurant contribution margin are included in the accompanying financial data. See “Non-GAAP Financial Measures.” Dave Boennighausen, Chief Executive Officer of Noodles & Company, stated, “We are pleased with our performance in the first quarter, in which we continued to see sequential improvement in major metrics, resulting in a 46.3% increase in adjusted EBITDA versus the comparable quarter in the prior year. Comparable restaurant sales continued to improve and were nearly flat in the first quarter, despite an approximate 50 basis point (“bps”) negative impact due to the shift in the Easter holiday from the second quarter to first quarter of 2018. Exclusive of this shift, comparable restaurant sales were positive for the quarter. As momentum has built throughout the early stages of 2018, we continue to gain traction as we execute on our strategic roadmap.” Paul Murphy, Executive Chairman of Noodles & Company, remarked, “Last week we launched several key initiatives that we believe will continue to drive improved financial results, including new, enhanced service procedures and processes that improve our execution of off-premise sales as well as allow our talented team members to better engage with guests. We are particularly excited that with this launch we became the first national fast-casual restaurant to offer Zucchini noodles. This low-calorie, low-carb option tastes great and affirms our position as the authority on noodles in the fast-casual space. The organization has made significant progress in recent quarters, and together we are excited about the opportunity to grow our sales through the nationwide introduction of Zoodles, our off-premise business and continued innovation around the core strengths of the brand.” First Quarter 2018 Financial Results Total revenue was $110.5 million in the first quarter of 2018, compared to $116.7 million in the first quarter of 2017.  This decrease was due to the impact of closing 55 company-owned restaurants in the first quarter of 2017, partially offset by additional restaurant openings since the beginning of the first quarter of 2017. Average unit volumes (“AUVs”) for the quarter overall increased $13,000 compared to the first quarter of 2017. AUVs for the trailing twelve months were $1,080,000. In the first quarter of 2018, comparable restaurant sales decreased 0.2% system-wide, decreased 0.3% for company-owned restaurants and increased 0.9% for franchise restaurants. Comparable sales in the quarter were negatively impacted approximately 50 bps by a shift in the timing of the Easter holiday. One new company-owned restaurant opened and three restaurants closed system-wide in the first quarter of 2018, including two company-owned restaurants and one franchise restaurant. The Company had 476 restaurants at the end of the first quarter 2018, comprised of 411 company-owned and 65 franchise restaurants. Loss from operations for the first quarter of 2018 improved 89.6% to $2.7 million, compared to a loss of $25.6 million in the first quarter of 2017. In the first quarter of 2018, the Company recorded a $0.4 million impairment charge related to one restaurant and incurred $0.6 million of ongoing costs related to closed restaurants, primarily the restaurants that closed in the first quarter of 2017 and fourth quarter of 2015. In the first quarter of 2017, the Company recorded $19.9 million of closure costs related to the 55 restaurants closed during the first quarter of 2017 and $1.9 million of charges related to impairment of four restaurants. For the first quarter of 2018, the Company reported a net loss of $3.6 million, or $0.09 loss per diluted share, compared with a net loss of $26.8 million in the first quarter of 2017. Restaurant contribution margin increased to 12.9% in the first quarter of 2018, compared to 11.0% in the first quarter of 2017. This increase was primarily due to the closure of underperforming restaurants in the first quarter of 2017, as well as labor savings initiatives and favorable commodity pricing during the first quarter of 2018. Exclusive of restaurant closures from 2017, restaurant contribution margin increased 20 bps relative to the first quarter of 2017. Adjusted net loss was $1.8 million in the first quarter of 2018, compared to adjusted net loss of $2.5 million in the first quarter of 2017. Adjusted EBITDA increased to $5.6 million in the first quarter of 2018 from $3.8 million in the first quarter of 2017. 2018 Outlook Based upon management’s current assessment following first quarter results, the Company is reiterating targets related to its 2018 performance. The following continues to be expected for the full year 2018: Approximately one to five new restaurants system-wide, including one to four company-owned restaurants:

  8. Total revenue of $440 million to $450 million;

  9. Modestly positive comparable restaurant sales;

  10. Restaurant contribution margin of 14.5% to 15.0%;

  11. Adjusted EBITDA of $31.0 million to $33.0 million;

  12. Adjusted diluted EPS of ($0.01) to $0.03; and

  13. Capital expenditures of approximately $10.0 million The Company believes that a quantitative reconciliation of the Company’s non-GAAP financial measures guidance to the most comparable financial measures calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to provide guidance for various reconciling items that are outside of the Company’s control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. A reconciliation of certain non-GAAP financial measures also would require the Company to predict the timing and likelihood of outcomes that determine future impairments and the tax benefit thereof. None of these measures, nor their probable significance, can be reliably quantified. These non-GAAP financial measures have limitations as analytical financial measures, as discussed below in the section entitled “Non-GAAP Financial Measures.”  In addition, the guidance with respect to non-GAAP financial measures is a forward-looking statement, which by its nature involves risks and uncertainties that could cause actual results to differ materially from the Company’s forward-looking statement, as discussed below in the section entitled “Forward-Looking Statements.” Non-GAAP Financial Measures To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company uses the following non-GAAP financial measures: EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, restaurant contribution and restaurant contribution margin (collectively, the “non-GAAP financial measures”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or to be superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Adjusted net income (loss) is presented because management believes it helps convey supplemental information to investors regarding the Company’s operating performance excluding the impact of restaurant impairment and closure costs, dead deal or registration statement costs, severance costs and stock-based compensation expense and the tax effect of such adjustments. However, the Company recognizes that non-GAAP financial measures have limitations as analytical financial measures. The Company compensates for these limitations by relying primarily on its GAAP results and using non-GAAP metrics only supplementally. There are numerous of these limitations, including that: adjusted EBITDA does not reflect the Company’s capital expenditures or future requirements for capital expenditures; adjusted EBITDA does not reflect interest expense or the cash requirements necessary to service interest or principal payments, associated with our indebtedness; adjusted EBITDA does not reflect depreciation and amortization, which are non-cash charges, although the assets being depreciated and amortized will likely have to be replaced in the future, and do not reflect cash requirements for such replacements; adjusted EBITDA does not reflect the cost of stock-based compensation; adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; adjusted net income (loss) does not reflect cash expenditures, or future requirements, for lease termination payments and certain other expenses associated with reduced new restaurant development; and restaurant contribution and restaurant contribution margin are not reflective of the underlying performance of our business because corporate-level expenses are excluded from these measures. When analyzing the Company’s operating performance, investors should not consider non-GAAP financial metrics in isolation or as substitutes for net income (loss) or cash flow from operations, or other statement of operations or cash flow statement data prepared in accordance with GAAP. The non-GAAP financial measures used by the Company in this press release may be different from the measures used by other companies. For more information on the non-GAAP financial measures, please see the “Reconciliation of Non-GAAP Measurements to GAAP Results” tables in this press release. These accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.

About Noodles & Company

Noodles & Company is a fast-casual restaurant chain where globally inspired dishes come together to create a World Kitchen. Recognized by Parents Magazine as a Top Family Friendly Restaurant and Health Magazine as one of America’s Healthiest Fast Food Restaurants, Noodles & Company is a restaurant where Japanese Pan Noodles rest comfortably next to Penne Rosa and Wisconsin Mac & Cheese, but where world flavors don’t end at just noodles. Inspired by some of the world’s most celebrated flavor combinations, Noodles & Company’s menu offers soups, salads and shareables, too. Everything is made fresh to order, just as you like it, using quality ingredients. Dishes are delivered to the table allowing guests time to sit and relax or grab a quick bite.


Good Times Restaurants Reports Q2 Results

Total Revenues increased 29% to $23.5 million in Q2 Net Loss for the Quarter Narrows by $280,000 to $431,000 ($.03 per share) Good Times Restaurants reported second quarter results for 2018, including increases in same store sales for both restaurants, 7.1% for Good Times and 0.2% for Bad Daddy’s. The company also reported the opening of one new location during the quarter. May 10, 2018--(BusinessWire) Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Good Times Burgers & Frozen Custard, a regional quick service restaurant chain focused on fresh, high quality, all-natural products, and Bad Daddy’s Burger Bar, a full-service, upscale concept, today announced its preliminary unaudited financial results for the fiscal quarter ended March 27, 2018. Key highlights of the Company’s financial results include:

  1. Same store sales for company-owned Good Times restaurants increased 7.1% for the quarter

  2. Same store sales for company-owned Bad Daddy’s restaurants increased 0.2% for the quarter on top of last year’s increase of 3.2%

  3. Total revenues increased 29% to $23,509,000 for the quarter from the prior year

  4. The Company opened one new Bad Daddy’s restaurant during the quarter, the fourth of the year

  5. Restaurant Sales for the Bad Daddy’s restaurants for the quarter increased 42.6% to $15,953,000 from the prior year with Bad Daddy’s Restaurant Level Operating Profit* (a non-GAAP measure) increasing to 16.9% of sales for the quarter

  6. Adjusted EBITDA* (a non-GAAP measure) for the quarter increased 88.5% to $1,167,000 from $619,000 for the same quarter last year and increased 89.8% year to date over the prior year

  7. The Company ended the quarter with $3.9 million in cash and $5.1 million drawn against its senior credit facility, with approximately $6.9MM of availability on the facility Boyd Hoback, President & CEO, said, “Good Times’ sales were quite impressive during the quarter as we continue to see a general overall increase due to the better burger initiatives implemented a year ago. We were only on television media for 3 weeks out of the quarter and we had comparable weather to last year, so we believe there is a renewed underlying strength in the brand as we are seeing traffic growth along with taking price increases.” Regarding Bad Daddy’s, Hoback added, “We saw some near-term cannibalization of a couple of existing stores in Charlotte and one in Raleigh from the opening of new, very high-volume stores earlier this year in each market, which impacted the same store sales percentage growth on our very small base of stores in the index, but even with that we posted our twelfth consecutive quarter of same store sales growth. What is particularly gratifying is the continued sales performance of our class of 2017 and 2018 new stores versus our system average. We opened our Chattanooga store during the quarter and are opening our second Atlanta store in early June with two additional North Carolina stores, one South Carolina store and the third Atlanta store to open this summer.” Commenting on the Company’s guidance for fiscal 2018, Ryan Zink, Chief Financial Officer, stated, “Strong same-store sales at our Good Times brand and our recently-opened Bad Daddy’s restaurants, coupled with easing of commodity costs and improving controls around labor scheduling, have enabled us to generally reaffirm our guidance for fiscal 2018, despite being slightly under our guidance for Bad Daddy’s same-store sales for the second quarter. We continue to project 2018 revenues of approximately $100 million, and are slightly raising the lower end of our Adjusted EBITDA guidance, which is now between $5.2 and $5.5 million. We are maintaining our comparable sales guidance for Good Times at approximately 3.0% - 3.5% and 0.5% - 1.0% for Bad Daddy’s through the end of fiscal 2018. We anticipate an annualized Adjusted EBITDA run rate as of the end of the fiscal year of approximately $7 million.” Fiscal 2018 Outlook: The Company updated its guidance for fiscal 2018:

  8. Total revenues of approximately $99 million to $101 million with a year-end revenue run rate of approximately $108 million to $110 million

  9. Total revenue estimates assume same store sales of approximately +3.5% for Good Times for the balance of the year, and approximately 5.0% for FY2018 in total. We expect same store sales of 0.5% - 1.0% in the remaining two quarters of the year for Bad Daddy’s, excluding the impact of the two and a half weeks closure of the original Bad Daddy’s for building renovations.

  10. General and administrative expenses of approximately $7.7 million to $7.9 million, including approximately $600,000 of non-cash equity compensation expense

  11. The opening of 6 new Bad Daddy’s restaurants during Q3 and Q4 (one being a joint venture unit)

  12. Total Adjusted EBITDA* of approximately $5.2 million to $5.5 million

  13. Restaurant pre-opening expenses of approximately $2.6 – $2.7 million

  14. Capital expenditures (net of tenant improvement allowances) of approximately $9.0 – $9.5 million including approximately $1.2 million related to fiscal 2019 development

  15. Fiscal year end long term debt of approximately $10.0 to $10.5 million *For a reconciliation of restaurant level operating profit and Adjusted EBITDA to the most directly comparable financial measures presented in accordance with GAAP and a discussion of why the Company considers them useful, see the financial information schedules accompanying this release.

About Good Times Restaurants Inc.:  Good Times Restaurants Inc. (GTIM) operates Good Times Burgers & Frozen Custard, a regional chain of quick service restaurants located primarily in Colorado, in its wholly-owned subsidiary, Good Times Drive Thru Inc. Good Times provides a menu of high quality all-natural hamburgers, 100% all-natural chicken tenderloins, fresh frozen custard, natural cut fries, fresh lemonades and other unique offerings. Good Times currently operates and franchises a total of 36 restaurants.

GTIM owns, operates, franchises and licenses 28 Bad Daddy’s Burger Bar restaurants through its wholly-owned subsidiaries. Bad Daddy’s Burger Bar is a full service, upscale, “small box” restaurant concept featuring a chef driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft microbrew beers in a high energy atmosphere that appeals to a broad consumer base.


FatBrands

FAT Brands Inc. Announces Fiscal First Quarter 2018 Financial ResultsFAT Brands reported positive first quarter results for 2018, including a 6.3% increase in same store sales for Fatburger, a 0.9% increase for Buffalo’s Café, and a 1.2% increase for Ponderosa & Bonanza Steakhouse. The company reported total revenues of $3.6 million for the first quarter. May 9, 2018--(BusinessWire) FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ:FAT) (“FAT Brands” or the “Company”) today announced financial results for the 13-week period ended April 1, 2018. Andy Wiederhorn, President and CEO of FAT Brands, commented, “First quarter results provided a strong start to 2018, with particularly impressive momentum at our flagship Fatburger brand, where same-store sales grew 6.3%, inclusive of 2.1% transaction growth. Fatburger results continue to be driven by successful cobranding with Buffalo’s Express, increases in delivery, and the strong reception to the plant-based Impossible Burger. During the quarter, we also made great progress in integrating Ponderosa and Bonanza into the FAT Brands platform. We have stabilized Ponderosa and Bonanza same-store sales, reduced the overhead required to support the brand going forward, and rejuvenated the existing franchisee base with new marketing and operational initiatives.” “Additionally, we have taken significant steps towards closing the previously announced acquisition of Hurricane Grill & Wings, a brand known for its jumbo fresh wings, which has over 60 restaurants open or under construction across eight states. We expect to complete the Hurricane acquisition in the next 30 days. Pro forma for this acquisition, and after full integration of anticipated synergies, we continue to expect to achieve an annualized revenue run-rate of over $18.5 million, and an annualized EBITDA run-rate of $11 million, or $1.10 per share, beginning in the third quarter of 2018.” Wiederhorn concluded, “Our Company’s foundation is strong and our platform is highly scalable. The financing we are securing will facilitate future acquisitions of strong brands with long track records of sustainable operating performance and steady cash flows. FAT Brands is poised for growth.” Wiederhorn concluded. The Company was formed as a Delaware corporation on March 21, 2017 as a wholly-owned subsidiary of Fog Cutter Capital Group Inc. (“FCCG”). The Company was formed for the purpose of completing a public offering and related transactions, and to acquire and continue certain businesses previously conducted by subsidiaries of FCCG. These transactions occurred on October 20, 2017. Because this is our initial year of operation, comparative information is not available for the first quarter of 2017. Fiscal First Quarter 2018 Highlights

  1. Total revenues of $3.6 million(1)

  2. EBITDA of $940,000

  3. Net income of $509,000, or $0.05 per share (1) In the first quarter of 2018, the Company adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which changed the timing of recognition of franchise fees, including development fees, territory fees, renewal and transfer fees. Adoption of ASU 2014-09 also changed the reporting of advertising fund contributions and related expenditures. Please see the “Adoption of New Accounting Guidance” section below for additional information Fiscal First Quarter 2018 Segment Performance

  4. Fatburger & Buffalo’s Express

  5. Same-store sales growth in core domestic market of 9.6%

  6. System-wide same-store sales growth of 6.3%

  7. Total revenues of $2.0 million

  8. EBITDA of $851,000

  9. Net income of $705,000

  10. 2 new store openings

  11. Buffalo’s Cafe

  12. System-wide same-store sales growth of (0.9%)

  13. Total revenue of $457,000

  14. EBITDA of $103,000

  15. Net income of $180,000

  16. 1 new store opening

  17. Ponderosa & Bonanza Steakhouse

  18. System-wide same-store sales growth of 1.2%

  19. Total revenue of $1.1 million

  20. EBITDA of $210,000

  21. Net income of $166,000 Subsequent Events On April 27, 2018, FAT Brands established a $5 million credit facility with TCA Global Credit Master Fund, LP. A total of $2 million was funded by TCA as part of the initial closing on April 27, 2018, and the proceeds are being used for working capital. Key Financial Definitions New store openings - The number of new store openings reflects the number of stores opened during a particular reporting period. The total number of new stores per reporting period and the timing of stores openings has, and will continue to have, an impact on our results. Same-store sales growth – Same-store sales growth reflects the change in year-over-year sales for the comparable store base, which we define as the number of stores open for at least one full fiscal year. Given our focused marketing efforts and public excitement surrounding each opening, new stores often experience an initial start-up period with considerably higher than average sales volumes, which subsequently decrease to stabilized levels after three to six months. Thus, we do not include stores in the comparable base until they have been open for at least one full fiscal year. We expect that this trend will continue for the foreseeable future as we continue to open and expand into new markets.

About FAT (Fresh. Authentic. Tasty.) Brands

FAT Brands (NASDAQ:FAT) is a leading global franchising company that strategically acquires, markets and develops fast casual and casual dining restaurant concepts around the world. The Company currently owns five restaurant brands, Fatburger, Buffalo’s Cafe, Buffalo’s Express and Ponderosa & Bonanza Steakhouses, that have approximately 300 locations open and 300 under development in 32 countries.


Chuy’s Holdings, Inc. Announces First Quarter 2018 Financial Results

Revenue increased 8.0% to $93.9 million from $86.9 million in the first quarter of 2017. Revenue was negatively impacted by approximately $1.4 million as a result of a one-week calendar shift due to a 53rd week in fiscal 2017.Chuy’s reported first quarter results for 2018, including a 1.5% decrease in comparable store sales, a decrease of net income to $3.2 compared to quarter one of 2017, and an 8.0% increase in revenue to $93.9 million. The company also reported the opening of two locations during the first quarter of 2018. May 9, 2018--(RestaurantNewsResource) Chuy’s Holdings, Inc. (NASDAQ:CHUY)  announced financial results for the first quarter ended April 1, 2018. Highlights for the first quarter ended April 1, 2018 were as follows:

  1. Revenue increased 8.0% to $93.9 million from $86.9 million in the first quarter of 2017. Revenue was negatively impacted by approximately $1.4 million as a result of a one-week calendar shift due to a 53rd week in fiscal 2017.

  2. On a fiscal basis, comparable sales decreased 1.5%. On a calendar basis, comparable restaurant sales decreased 0.6%. The Company estimates that comparable sales were negatively impacted in total by approximately 170 basis points from unfavorable weather conditions, timing of Easter and strategic cannibalization.

  3. Net income was $3.2 million, or $0.19 per diluted share, compared to $4.6 million, or $0.27 per diluted share, in the first quarter of 2017.

  4. Restaurant-level operating profit(1)was $15.3 million compared to $16.6 million in the first quarter of 2017.

  5. Two restaurants opened during the first quarter of 2018. (1) Restaurant-level operating profit is a non-GAAP measure. For a reconciliation of restaurant-level operating profit to the most directly comparable GAAP measure see the accompanying financial tables. For a discussion of why we consider restaurant-level operating profit useful, see “Non-GAAP Measures” below. Steve Hislop, President and Chief Executive Officer of Chuy’s Holdings, Inc. stated, “While our first quarter results reflected multiple weather interruptions, a negative impact from the timing of Easter and the loss of the week after Christmas, which is our highest volume and most profitable week of the year, we continue to reaffirm our earnings per share guidance for the year. We saw positive signs in the underlying sales trends of our business, which have continued into the second quarter. We are also making progress with regard to several of our strategic initiatives, including marketing of our value message, on-line ordering to provide our customers more convenience and labor initiatives to build stronger teams and mitigate labor costs. We believe these initiatives, as well as our continued push on technology and catering, will further strengthen our brand and bolster our long-term profitability.” First Quarter 2018 Financial Results Revenue increased $6.9 million, or 8.0%, to $93.9 million in the first quarter of 2018 compared to the first quarter of 2017. The increase was driven by $9.4 million in incremental revenue from an additional 135 operating weeks provided by 13 new restaurants which opened during and subsequent to the first quarter of 2017. This increase was partially offset by a decrease in revenue related to our comparable restaurants as well as our non-comparable restaurants that are not included in the incremental revenue discussed above. Revenue for non-comparable restaurants is historically lower as the restaurants transition out of the 'honeymoon' period that follows a restaurant's initial opening. In addition, there was a one-week calendar shift in the comparison of the fiscal first quarter of 2018 to the fiscal first quarter of 2017 due to a 53rd week in fiscal 2017. As a result of this shift, the week between Christmas and New Year’s, traditionally a high-volume week for the Company’s restaurants, was included in the first quarter of 2017 but was replaced with an average volume week in the first quarter of 2018. This shift reduced revenue by approximately $1.4 million during the first quarter of 2018. Adjusting for the timing of the 53rd week of 2017 and measuring performance on a comparable calendar basis, comparable restaurant sales decreased 0.6% for the 13-week period ended April 1, 2018 as compared to the 13-week period ended April 2, 2017. The decrease in comparable sales was driven by a 2.4% decrease in average weekly customers offset by a 1.8% increase in average check. The Company estimates that comparable restaurant sales were negatively impacted by approximately 130 basis points as a result of unfavorable weather conditions, 20 basis points as a result of Easter falling in the first quarter of 2018 as compared to the second quarter of 2017 and approximately 20 basis points as a result of strategic cannibalization. The comparable restaurant base consisted of 74 restaurants at the end of the first quarter of 2018. The comparable restaurant sales calculation above is based upon comparing the sales in the first fiscal quarter of 2018 to sales in the corresponding calendar period of 2017. As a result of the 53rd week in fiscal 2017 and the one-week calendar shift, previously noted, sales for the same restaurants in the comparable restaurant base in the first fiscal quarter ended April 1, 2018 decreased 1.5% as compared to the first fiscal quarter ended March 26, 2017. Total restaurant operating costs as a percentage of revenue increased to 83.8% in the first quarter of 2018 from 80.9% in the first quarter of 2017. In addition to the deleverage resulting from the loss of the high volume week previously noted, the increase in operating costs as a percentage of revenue was primarily driven by higher labor costs due to new store labor inefficiencies and hourly labor rate inflation on comparable stores and higher hourly rates in new markets; higher operating costs due to increases in general utility and repairs and maintenance costs, as well as higher marketing expenses as a result of our new national-level marketing initiatives. The Company also incurred increased occupancy costs as a result of higher rental expense on certain newly opened restaurants as a result of continued expansion into larger markets and increases in rents on extended lease terms on some existing restaurants. Total general and administrative expenses increased $0.6 million, or 12.3%, to $5.5 million for the first quarter of 2018 as compared to the same period in 2017. This increase was primarily driven by higher management salaries and benefits due to additional headcount needed to support our growth. Net income was $3.2 million, or $0.19 per diluted share, compared to $4.6 million, or $0.27 per diluted share, in the first quarter of 2017. Development Update During the first quarter, two new Chuy’s restaurants were opened in Doral, Florida and Orland Park, Illinois. Subsequent to the end of the first quarter, two additional Chuy’s restaurants were opened in Lakewood, Colorado and New Tampa, Florida. Share Repurchase Program During the first quarter, the Company repurchased approximately 65,000 shares of its common stock for a total cost of $1.6 million. As of the end of the fiscal first quarter, the Company had $28.4 million remaining under the current $30.0 million repurchase authorization through December 31, 2019. 2018 Outlook The Company reaffirms its expectation of the 2018 net income per diluted share of $1.12 to $1.16. This compares to adjusted net income(1) per diluted share of $0.89, after excluding approximately $0.07 per diluted share from the extra week in 2017. The net income guidance for fiscal year 2018 is based, in part, on the following annual assumptions:

  6. Comparable restaurant sales growth of approximately 1.0% versus a previous range of 1.0% to 1.5% (on a 52-week fiscal basis);

  7. Restaurant pre-opening expenses of $3.7 million to $5.5 million;

  8. General and administrative expense of $21.3 million to $21.8 million;

  9. An effective tax rate of 13% to 14%;

  10. The opening of 8 to 12 new restaurants;

  11. Annual weighted average diluted shares outstanding of 17.1 million to 17.2 million shares; and

  12. Net capital expenditures (net of tenant improvement allowances) of $30.0 million to $40.0 million. As a result of the Tax Cuts and Jobs Act (“Tax Act”) we intend to reinvest approximately $1.5 million or 40 basis points of savings into national-level marketing initiatives and investments in our off-premise initiatives including to-go packaging, on-line ordering and catering. We report our financial statements on a fiscal calendar basis. Due to the 53rd week in fiscal year 2017, our financial statement comparison will be one week different year over year. However, we believe that reporting our comparable restaurant sales on a comparable calendar basis will help facilitate period-over-period comparisons.

  13. Adjusted net income is a non-GAAP measure. For a reconciliation of adjusted net income to the most directly comparable GAAP measure see the accompanying financial For a discussion of why we consider adjusted net income useful, see “Non-GAAP Measures” below.

About Chuy’s

Founded in Austin, Texas in 1982, Chuy’s owns and operates 95 full-service restaurants across 19 states serving a distinct menu of authentic, made from scratch Tex-Mex inspired dishes. Chuy’s highly flavorful and freshly prepared fare is served in a fun, eclectic and irreverent atmosphere, while each location offers a unique, “unchained” look and feel, as expressed by the concept’s motto “If you’ve seen one Chuy’s, you’ve seen one Chuy’s!”.


arcos

Arcos Dorados Reports First Quarter 2018 Financial Results

Comparable Sales growth of 9.8% supports 12.5% growth in Adjusted EBITDA and 60 basis point expansion in Adjusted EBITDA Margin (excluding Venezuela).Arcos Dorados reported first quarter results for 2018, including a 9.8% increase in systemwide comparable sales, a 5.5% increase in revenue, and a 12.5% increase in Adjusted EBITDA. May 9, 2018—(RestaurantNewsResource) Arcos Dorados Holdings, Inc. (NYSE:ARCO), Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, today reported unaudited results for the first quarter ended March 31, 2018. First Quarter 2018 Key Results – Excluding Venezuela

  1. As reported consolidated revenues increased 5.5% to $802.8 million versus the first quarter of 2017. On a constant currency basis1, consolidated revenues grew 10.7%.

  2. Systemwide comparable sales1rose 9.8% year-over-year.

  3. As reported Adjusted EBITDA1increased 12.5% to $68.0 million compared with the prior-year quarter.

  4. Consolidated Adjusted EBITDA margin expanded 60 basis points to 8.5%.

  5. As reported General and Administrative (G&A) expenses remained flat as a percentage of revenues.

  6. As reported net income decreased to $13.6 million, from $41.0 million in the first quarter of 2017, primarily due to re-development proceeds of $51.9 million in the year ago period. “The positive momentum continued in the first quarter of 2018 as Arcos Dorados posted strong operating results. An improved macroeconomic environment, favorable consumer trends, and compelling product offerings across our menu contributed to an important shift in mix and increased traffic, driving top line growth, profitability and gains in market share throughout Latin America. We are leveraging our leading market share, streamlined cost structure and unmatched scale to capture the opportunity in front of us. We are deriving additional margin and cash generation by maintaining our focus on bringing more guests to our restaurants more often. I am confident that our strong restaurant portfolio, popular menu items and outstanding team will continue to deliver sustainable growth and significant shareholder value creation," said Sergio Alonso, Chief Executive Officer of Arcos Dorados.

Arcos Dorados’ consolidated results continue to be heavily impacted by Venezuela’s macroeconomic volatility, including the ongoing hyperinflationary environment and the country’s heavily regulated currency. As such, reported results in the quarter reflect significant non-cash accounting impacts from operations in that market. Thus, the discussion of the Company’s operating performance is focused on consolidated results, excluding Venezuela.

Excluding the Company’s Venezuelan operation, as reported revenues increased 5.5% year-over-year. The result primarily reflects constant currency revenue growth of 10.7%, partially offset by a negative impact from currency translation, which mainly resulted from the 25.7% and 3.3% year-over-year average depreciation of the Argentine peso and the Brazilian real, respectively. Constant currency revenue growth was supported by a 9.8% increase in systemwide comparable sales, supported by a favorable shift in mix and positive traffic in all divisions. First quarter consolidated as reported Adjusted EBITDA, excluding Venezuela, increased 12.5% or 15.9% in constant currency terms, with revenue growth and margin expansion in all divisions, except for the Caribbean. The Adjusted EBITDA margin expanded by 60 basis points to 8.5%, driven by efficiencies in Food and Paper (F&P), Payroll, and Occupancy and Other Operating Expenses, partially offset by higher Royalty Fees. As reported, consolidated G&A increased by 5.1% year-over-year, and remained flat as a percentage of revenues. Main variations in other operating income (expenses), net Included in Adjusted EBITDA: In the first quarter of 2018, the Company recorded an inventory write down of $41.3 million, related to the devaluation in Venezuela, compared to an inventory write down of $0.1 million in the first quarter of 2017. Proceeds from refranchising were less than $0.9 million in the first quarter of 2018 as well as in the prior year comparable quarter. Excluded from Adjusted EBITDA: In the first quarter of 2018, the Company recorded $0.2 million from its re-development initiative, compared with $51.9 million in the first quarter of 2017. Non-operating Results Non-operating results for the first quarter reflected a non-cash $1.8 million foreign currency exchange loss, versus a non-cash loss of $8.4 million last year. Net interest expense was $1.8 million lower year-over-year. The Company reported an income tax expense of $12.9 million in the quarter, compared to an income tax expense of $21.4 million in the prior year period. First quarter net income attributable to the Company totaled $13.6 million ($0.5 million, including Venezuela), compared to net income of $41.0 million ($40.6 million, including Venezuela) in the same period of 2017. The prior year result included $51.9 million from the Company’s re-development initiative compared with $0.2 million this year. The Company concluded the redevelopment program in 2017. The Company reported earnings per share of $0.06 ($0.00, including Venezuela) in the first quarter of 2018, compared to earnings per share of $0.19 (also $0.19, including Venezuela) in the previous corresponding period. Total weighted average shares for the first quarter of 2018 were 211,072,508, as compared to 210,711,224 in the prior year quarter. About Arcos Dorados

Arcos Dorados is the world’s largest independent McDonald’s franchisee in terms of systemwide sales and number of restaurants, operating the largest quick service restaurant chain in Latin America and the Caribbean. It has the exclusive right to own, operate and grant franchises of McDonald’s restaurants in 20 Latin American and Caribbean countries and territories, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guyana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, St. Croix, St. Thomas, Trinidad & Tobago, Uruguay and Venezuela. The Company operates or franchises over 2,190 McDonald’s-branded restaurants with over 90,000 employees and is recognized as one of the best companies to work for in Latin America. Arcos Dorados is traded on the New York Stock Exchange (NYSE: ARCO).


Diversified Restaurant Holdings Reports First Quarter 2018 Results

Revenue totaled $39.5 million; Same-store sales declined 8.5%Diversified Restaurant Holdings reported first quarter results for 2018, including an 8.5% decrease in same-store sales. The company also reported total revenue of $39.5 million, restaurant-level EBITDA of $6.9 million, and Adjusted EBITDA of $5.1 million. May 9, 2018--(RestaurantNewsResource) Diversified Restaurant Holdings, Inc. (NASDAQ:SAUC), one of the largest franchisees for Buffalo Wild Wings with 65 stores across five states, today announced results for its first quarter ended April 1, 2018. First Quarter Information (from continuing operations)

  1. Revenue totaled $39.5 million; Same-store sales declined 8.5%

  2. Net income was $0.2 million, or $0.01 per diluted share

  3. Restaurant-level EBITDA(1)was $6.9 million, or 17.4% of sales

  4. Adjusted EBITDA(1)was $5.1 million

  5. Total debt was reduced by $2.9 million to $111.1 million at quarter end “It was a challenging quarter with difficult weather, calendar shifts and promotional changes. However, new ownership at Buffalo Wild Wings is working to create a renewed energy and excitement around the brand. We are seeing progress behind the scenes on many fronts including marketing, advertising, information technology, menu and more. We expect that these efforts will begin to be realized in our results later in the year as the changes are implemented and gain traction. Our first quarter results do not have that benefit and are more reflective of the corporate promotional, marketing and media strategies carried over from the latter half of 2017,” commented David G. Burke, President and CEO. “There are a number of initiatives currently being tested and evaluated that give us confidence, and early indications and feedback have been positive. We just need to be patient and allow the efforts to take hold.” Mr. Burke added, “Over the past 18 months, in addition to our efforts focused on driving high level customer satisfaction and improving the top line, we have implemented significant, sustainable reductions of overhead to improve our profitability and financial strength. With a new and improved media strategy roll-out planned for this fall in concert with additional traction from other initiatives, we anticipate achieving higher average unit volumes in the future. And, importantly, we expect to see measurable leverage from our leaner and more efficient organization along with the improved commodity cost environment.”

There were significant unfavorable calendar shifts in the quarter, as Easter, a holiday on which each of the DRH restaurants is closed, fell within the 2018 first quarter versus the second quarter in 2017. This shift added an additional 1.0% to our same-store sales decline in the quarter. Additionally, the week between Christmas and New Year's Day, a significant sales week given the sports calendar, fell into the first quarter of 2017 but not in the first quarter of 2018 as a result of the 53rd week in fiscal 2017. Balance Sheet Highlights - Continuing Operations Cash and cash equivalents were $4.5 million at April 1, 2018, compared with $4.4 million at 2017 year-end. Capital expenditures were $0.5 million during the first three months of 2018 and were for minor facility upgrades and general maintenance-type investments, as well as improvements to prepare an open space for sub-lease adjacent to one of our restaurants. DRH does not expect to build any new restaurants nor is it expected to complete any major remodels in 2018. As a result, the Company anticipates its capital expenses will approximate $1.5 million or less in fiscal 2018. Total debt was $111.1 million at the end of the quarter, down $2.9 million since 2017 year-end. About Diversified Restaurant Holdings, Inc.

Diversified Restaurant Holdings, Inc. is one of the largest franchisees for Buffalo Wild Wings with 65 franchised restaurants in key markets in Florida, Illinois, Indiana, Michigan and Missouri. DRH’s strategy is to generate cash, reduce debt and leverage its strong franchise operating capabilities for future growth.


Papa John’s Announces First Quarter 2018 Results and Reaffirms 2018 Outlook

North America comparable sales decrease of 5.3%Papa Johns reported first quarter results for 2018, including a 5.3% decrease in comparable sales for North America, while international same store sales increased 0.3%. a highlight was a 21.1% increase in international franchise sales and 13 net unit openings in the first quarter. May 9, 2018--(RestaurantNewsResource) Papa John’s International, Inc. (NASDAQ: PZZA) yesterday announced financial results for the first quarter ended April 1, 2018. Highlights

  1. First quarter earnings per diluted share of $0.50 in 2018 compared to $0.77 in the first quarter of 2017

  2. North America comparable sales decrease of 5.3%

  3. International comparable sales increases of 0.3%; international franchise sales increase of 21.1%, excluding the impact of foreign currency

  4. 13 net unit openings in first quarter of 2018 driven by International operations

  5. Free cash flow of $31.7 million in the first quarter as compared to $32.3 million in the first quarter of 2017

  6. 2018 outlook reaffirmed “Although first quarter results were lower than the prior year, they were consistent with our expectations. We remain focused on enhancing our value perception and driving our strategic initiatives,” said Steve Ritchie, President and CEO of Papa John’s.

All operating highlights are compared to the same period of the prior year, unless otherwise noted. Consolidated revenues decreased $21.9 million, or 4.9%, for the first quarter of 2018 primarily due to lower comparable sales for North America restaurants and lower North America commissary sales due to lower volumes. These decreases were partially offset by higher International revenues due to an increase in equivalent units and the favorable impact of foreign exchange rates of approximately $2.8 million. Additionally, the first quarter of 2018 included an increase in Other revenues of approximately $2.7 million primarily due to the required reporting of franchise marketing fund contributions as revenues (previously netted with expenses) under the newly adopted revenue recognition standard, Revenue from Contracts with Customers (“Topic 606”); see the “Revenue Recognition and Income Statement Presentation” section below for more details. Consolidated income before income taxes of $22.4 million for the first quarter of 2018 decreased $19.5 million, or 46.6%, compared to the first quarter of 2017. Income before income taxes, as a percentage of consolidated revenues, was 5.2% for the first quarter of 2018, as compared to 9.3% for the first quarter of 2017. Significant changes in the components of income before income taxes are as follows:

  1. Domestic Company-owned restaurants operating margin decreased $8.6 million, or 2.7% as a percentage of related revenues, primarily due to lower comparable sales, increased labor costs including higher minimum wages and increased non-owned automobile costs.

  2. North America franchise royalties and fees decreased $2.8 million, or 10% as compared to the first quarter of 2017, primarily due to lower comparable sales, and an increase in royalty waivers to franchisees.

  3. North America commissary operating margin decreased $1.4 million, or 0.4% as a percentage of related revenues, primarily due to lower sales volumes.

  4. International operating margin increased $1.3 million primarily due to higher royalties from increased equivalent units and the favorable impact of foreign exchange rates.

  5. Other operating margin decreased $718,000, or 3.7%, primarily due to higher advertising spend in the United Kingdom. The “Revenue Recognition and Income Statement Presentation” section below provides more information on our newly reported “Other revenues” and “Other expenses” income statement line items.

  6. General and administrative (“G&A”) costs increased $3.3 million, or 9.1%, primarily due to an increase in bad debt expense, higher legal fees and an increase in various technology initiative costs.

  7. Net interest expense increased $3.1 million for the first quarter due to an increase in average outstanding debt, which is primarily due to share repurchases, as well as higher interest rates. The first quarter 2018 effective income tax rate was 22.3%, representing a decrease of 6.3% from the prior year comparable period rate of 28.6%. This decrease was primarily due to the reduction of the U.S. corporate tax rate effective January 1, 2018 as part of the Tax Cuts and Jobs Act. This decrease was offset by an approximate 3.8% increase in the income tax rate for share based compensation tax deductions, which were unfavorable in 2018 due to the lower stock price of the company as restrictions lapsed on equity awards. Diluted earnings per share decreased 35.1% to $0.50 for the first quarter of 2018. This decrease was primarily due to a decrease in net income as previously discussed.

  1. Includes both company-owned and franchised restaurant sales.

  2. Represents the change in year-over-year sales for the same base of restaurants for the same fiscal periods. Comparable sales results for restaurants operating outside of the United States are reported on a constant dollar basis, which excludes the impact of foreign currency translation. We believe North America, international and global restaurant and comparable sales growth information, as defined in the table above, is useful in analyzing our results since our franchisees pay royalties that are based on a percentage of franchise sales. Franchise sales also generate commissary revenue in the United States and in certain international markets. Franchise restaurant and comparable sales growth information is also useful for comparison to industry trends and evaluating the strength of our brand. Management believes the presentation of franchise restaurant sales growth, excluding the impact of foreign currency, provides investors with useful information regarding underlying sales trends and the impact of new unit growth without being impacted by swings in the external factor of foreign currency. Franchise restaurant sales are not included in company revenues. Cash Dividend We paid a cash dividend of approximately $7.6 million ($0.225 per common share) during the first quarter of 2018. Subsequent to the first quarter, on May 2, 2018, our Board of Directors declared a second quarter dividend of $0.225 per common share (approximately $7.3 million based on the number of shares outstanding as of May 1, 2018). The dividend will be paid on May 25, 2018 to shareholders of record as of the close of business on May 14, 2018. The declaration and payment of any future dividends will be at the discretion of our Board of Directors, subject to the company’s financial results, cash requirements, and other factors deemed relevant by our Board of Directors. Revenue Recognition and Income Statement Presentation On January 1, 2018, we adopted the new revenue recognition standard using the modified retrospective method. Under the modified retrospective method, prior period results were not restated to reflect the impact of Topic 606, resulting in reduced comparability between 2018 and 2017 operating results. The impact of adoption includes the following:

  3. $21.5 million reduction in retained earnings for the opening balance sheet cumulative adjustment.

  4. $2.4 million increase in total revenues primarily due to the requirement to present revenues and expenses related to marketing funds we control on a “gross” basis. This gross up is reported in the new financial statement line items, Other revenues and Other expenses, as discussed further below; this change in reporting had no significant impact on consolidated pre-tax income results.

  5. $485,000 decrease in pre-tax income for the first quarter primarily due to the revised method of accounting for franchise fees.

  6. EPS decrease of approximately $0.01 in the first quarter. Additional detail on the adoption and 2018 impact of the new revenue recognition standard can be found in our Form 10-Q for the three months ended April 1, 2018 filed with the SEC.

While not required as part of the adoption of Topic 606, our income statement includes newly created Other revenues and Other expenses line items. Other revenues and Other expenses include the Topic 606 “gross up” of revenues and expenses derived from certain domestic and international marketing fund co-ops we control, as previously discussed. Additionally, Other revenues and Other expenses include various reclassifications from North America commissary and other, International expenses and General and administrative expenses to better reflect and aggregate various domestic and international services provided by the company for the benefit of franchisees. Related Quarter 1 of 2017 amounts have also been reclassified to conform to the new 2018 presentation, as detailed in the “Summary of Income Statement Presentation Reclassifications” included with this press release. These reclassifications had no impact on reported total revenues or total costs and expenses. Refer to the ‘Investor Relations’ section on our company website for details of income statement presentation reclassifications for each quarter of 2017.


carrols

Carrols Restaurant Group First Quarter Restaurant Sales Increased 13.2%

Carrols Restaurant Group, Inc. Reports Financial Results for the First Quarter 2018Carrols Restaurant Group reported first quarter results for 2018, including a 13.2% increase in restaurant sales and a 6.3% increase in comparable restaurant sales. The company acquired 64 restaurants in 2017, now owning and operating 807 Burger King restaurants as of the end of the first quarter. May 8, 2018--(RestaurantNewsResource) Carrols Restaurant Group, Inc. (NASDAQ:TAST) today announced financial results for the first quarter ended April 1, 2018 and updated its full year 2018 outlook. Highlights for first quarter of 2018 versus first quarter of 2017 include:

  1. Restaurant sales increased 13.2% to $271.6 million from $239.9 million in the first quarter of 2017 including contributions from 64 restaurants acquired in 2017;

  2. Comparable restaurant sales increased a solid 6.2% compared to a 0.6% decrease in the prior year quarter;

  3. Adjusted EBITDA(1)increased 36.3% to $18.9 million from $13.9 million in the prior year quarter;

  4. Net loss was $3.1 million, or $0.09 per diluted share, compared to net loss of $5.6 million, or $0.16 per diluted share, in the prior year quarter; and

  5. Adjusted net loss(1)was $2.8 million, or $0.08 per diluted share, compared to adjusted net loss of $4.8 million, or $0.14 per diluted share, in the prior year quarter. (1) Adjusted EBITDA, Restaurant-level EBITDA and Adjusted net income (loss) are non-GAAP financial measures. At the end of the first quarter of 2018, Carrols owned and operated 807 BURGER KING® restaurants. Daniel T. Accordino, the Company's Chief Executive Officer said, “Our strong start to 2018 included double-digit top line growth, a robust 6.2% increase in comparable restaurant sales, and solid improvements in restaurant-level EBITDA and Adjusted EBITDA as we successfully leveraged these sales increases against most expenses. We are pleased that BURGER KING’s impactful marketing strategy, effective balance of premium, value and limited time menu items, and its pipeline of innovation continues to resonate with consumers in a highly competitive QSR environment as evidenced by our sales performance. Notable promotions during the first quarter included the 2 for $6 WHOPPER® or Crispy Chicken Sandwich promotion, the extension of the KING™ Sandwich line, and the launch of the new Spicy Crispy Chicken Sandwich. These products positively contributed to both average check and transaction growth.” Accordino added, “Given our first quarter performance and continued sales momentum early in the second quarter, we are increasingly confident in our ability to meet our sales and Adjusted EBITDA outlook as updated for our first quarter results. Although labor costs continue to rise as expected, we now forecast that commodity inflation should be somewhat lower than our earlier guidance. With respect to acquisitions, we closed a small transaction in the first quarter and have two small transactions expected to close in the next few weeks. We also continue to focus on our acquisition pipeline and believe that as the year progresses that we will close additional transactions.” First Quarter 2018 Financial Results Restaurant sales increased 13.2% to $271.6 million in the first quarter of 2018 compared to $239.9 million in the first quarter of 2017. Comparable restaurant sales increased 6.2%, including an average check increase of 5.9% and customer traffic increase of 0.3% from the prior year period. Restaurant-level EBITDA was $33.4 million in the first quarter of 2018 and increased 19.8% from $27.9 million in the first quarter of 2017. Restaurant-Level EBITDA margin was 12.3% of restaurant sales and increased 67 basis points from the prior year period. Nearly all operating costs were favorably leveraged due to the strong sales performance in the quarter. Cost of sales, however, increased slightly as a percentage of restaurant sales as higher ground beef costs and increased promotional activity compared to the prior year quarter were offset by 3.3% of effective pricing and improved operating performance. General and administrative expenses were $16.1 million in the first quarter of 2018 compared to $15.6 million in the prior year period. As a percentage of restaurant sales, general and administrative expenses decreased 55 basis points to 5.9% compared to the prior year period. Adjusted EBITDA increased 36.3% to $18.9 million in the first quarter of 2018 compared to $13.9 million in the first quarter of 2017. Adjusted EBITDA margin increased 118 basis points to 7.0% of restaurant sales. Income from operations was $2.7 million in the first quarter of 2018 compared to a loss from operations of $1.4 million in the prior year period. Interest expense increased to $5.9 million in the first quarter of 2018 from $4.8 million in the same period last year due to the Company’s $75 million add-on offering and issuance of senior secured second lien notes completed in the second quarter of 2017. Cash balances totaled $34.5 million at the end of the first quarter of 2018. Net loss was $3.1 million for the first quarter of 2018, or $0.09 per diluted share, compared to net loss of $5.6 million, or $0.16 per diluted share, in the prior year period. Net loss in the first quarter of 2018 included $0.3 million of impairment and other lease charges and $0.1 million of acquisition expenses. For the same period last year, net loss included $0.5 million of impairment and other lease charges and $0.7 million of acquisition expenses. Adjusted net loss in the first quarter of 2018 was $2.8 million, or $0.08 per diluted share, compared to adjusted net loss of $4.8 million, or $0.14 per diluted share, in the prior year period. Full Year 2018 Outlook The Company is updating its guidance for 2018. As a reminder, while the Company may acquire additional BURGER KING® restaurants, this guidance does not include any impact from such potential acquisitions:

  6. Total restaurant sales are expected to be $1.15 billion to $1.17 billion (previously $1.14 billion to $1.17 billion), including a comparable restaurant sales increase of 3% to 5%;

  7. Commodity costs are now expected to increase 1% to 2% (previously 2% to 3%) including a 2% to 3% increase in beef costs (previously 3% to 5%);

  8. General and administrative expenses are expected to be $58 million to $60 million, excluding stock compensation expense and acquisition-related costs;

  9. Adjusted EBITDA is now expected to be $95 million to $102 million (previously $93 million to $100 million);

  10. An effective income tax rate of 0% to 5%.

  11. Capital expenditures before discretionary growth-related expenditures (i.e., new restaurant development and acquisitions) are expected to be $50 million to $60 million (previously $45 million to $50 million). In addition, capital expenditures for the construction of 10 to 15 new units and remaining costs from 2017 construction late in the year are expected to be $15 million to $25 million;

  12. Proceeds from sale/leasebacks are expected to be $10 million to $15 million; and

  13. The Company expects to close 20 to 25 existing restaurants, three of which were closed during the first quarter. The Company has not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because it does not provide guidance for net income or for the various reconciling items. The Company is unable to provide guidance for these reconciling items since certain items that impact net income are outside of the Company’s control or cannot be reasonably predicted. About the Company

Carrols is the largest BURGER KING® franchisee in the United States with 807 restaurants as of April 1, 2018 and has operated BURGER KING® restaurants since 1976

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