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Financial Overview – November 2018


FCPT Announces Acquisition of Six Restaurant Properties from Brookfield Properties for $7.5 Million November 21, 2018--(Restaurant News Resource) Four Corners Property Trust (NYSE:FCPT) announced the acquisition of six restaurant properties for $7.5 million from Brookfield Properties. The transaction spans five brands, including Texas Roadhouse (2), Applebee's, Olive Garden, Panera Bread and Sonic. The properties are outparcels to four Brookfield owned malls located in CA (3 outparcels at the same mall), AZ, IL, and MI and are a mix of corporate-operated (3) and franchisee-operated (3) locations. The sites are on high traffic frontage roads with attractive demographics and in strong retail areas of their respective markets. The leases have an average of 5 years of term remaining and are largely triple-net ground leases (Panera Bread is under a double net lease). The transaction was priced at a similar going-in cash capitalization rate as previously announced transactions. Bill Lenehan, CEO of FCPT, stated, "This acquisition built on FCPT's expertise in acquiring outparcel properties from mall and shopping center companies. Brookfield was a tremendous partner on the transaction and we look forward to continuing to work with their team." FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties.

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Jack in the Box Inc. Reports Fourth Quarter FY2018 Earnings; Issues Guidance for FY 2019

Jack in the Box system same-store sales increased 0.5 percent for the quarter and lagged the QSR sandwich segment by 1.5 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended September 30, 2018. November 20, 2018--(Restaurant News Resource) Jack in the Box Inc. (NASDAQ: JACK) yesterday reported financial results for the fourth quarter and fiscal year ended September 30, 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 $18.3 million, or $0.68 per diluted share, for the fourth quarter of fiscal 2018 compared with $31.3 million, or $1.05 per diluted share, for the fourth quarter of fiscal 2017. Fiscal 2018 earnings from continuing operations totaled $104.3 million, or $3.62 per diluted share, compared with $128.6 million, or $4.16 per diluted share in fiscal 2017. Operating Earnings Per Share(1), a non-GAAP measure, were $0.77 in the fourth quarter of fiscal 2018 compared with $0.73 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. For fiscal year 2018, operating earnings per share were $3.79 compared with $3.46 last year. Figures may not add due to rounding. Lenny Comma, chairman and chief executive officer, said, “Same-store sales were positive in the fourth quarter, although we experienced a slowdown in September along with the rest of the category. The competitive environment remains extremely aggressive, but we continue to avoid deep discounting which we believe is not in the best interests of the long-term health of the brand. “We completed our refranchising initiative during the quarter with the sale of 8 Jack in the Box® restaurants, and our franchise mix now stands at approximately 94 percent. “We remain firmly committed to returning cash to shareholders with the purchase of $140 million of stock in the quarter and $340 million during the year. Following the completion of our longer-term financing plans, we plan to increase our leverage up to 5.0 times EBITDA and expect to return more than $1 billion through fiscal year 2022 to our shareholders in the form of share repurchases and dividends. “Our long-term goals are centered around meeting evolving consumer needs, with emphasis on improving operations consistency and targeted investments designed to maximize our returns. We remain focused on balancing the interests of all our stakeholders, including our franchisees, customers, employees and shareholders.” Jack in the Box system same-store sales increased 0.5 percent for the quarter and lagged the QSR sandwich segment by 1.5 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended September 30, 2018. Included in this segment are 16 of the top QSR sandwich and burger chains in the country. Company same-store sales increased 0.8 percent in the fourth quarter driven by average check growth of 2.8 percent, partially offset by a 2.0 percent decrease in transactions. Restaurant-Level EBITDA(3), a non-GAAP measure, increased by 300 basis points to 26.1 percent of company restaurant sales in the fourth quarter of fiscal 2018 from 23.1 percent a year ago. The increase was due primarily to the benefit of refranchising, partially offset by wage inflation, higher costs for food and packaging and higher maintenance and repairs expenses. Food and packaging costs, as a percentage of company restaurant sales, increased in the quarter due primarily to unfavorable product mix and higher costs for ingredients, partially offset by menu price increases. Commodity costs increased 1.3 percent in the quarter as compared with the prior year. Restaurant Operating Margin(3), a non-GAAP measure, increased to 22.5 percent of company restaurant sales in the fourth quarter of fiscal 2018 from 19.2 percent in the prior year quarter. Franchise EBITDA(3), a non-GAAP measure, as a percentage of total franchise revenues decreased to 58.6 percent in the fourth quarter of fiscal 2018 from 60.3 percent in the prior year quarter. The decrease was due primarily to a decrease in franchise fees resulting from a decrease in the number of restaurants sold to franchisees, an increase in costs associated with franchisee restaurant remodels, and incremental costs incurred in 2018 related to the implementation of a mystery guest program. Franchise Margin(3), a non-GAAP measure, decreased to 50.0 percent of total franchise revenues in the fourth quarter of fiscal 2018 compared with 52.1 percent in the fourth quarter of fiscal 2017. SG&A expenses for the fourth quarter of fiscal 2018 decreased by $1.0 million and were 14.0 percent of revenues compared with 11.2 percent in the prior year quarter. Advertising costs, which are included in SG&A, were $6.8 million in the fourth quarter compared with $7.2 million in the prior year quarter. The $0.4 million decrease in advertising costs was due to a $3.2 million decrease resulting from refranchising, which was partially offset by an incremental $2.8 million of spending in the quarter. The $0.6 million decrease in G&A excluding advertising was primarily driven by $3.2 million in transition services income resulting from the sale of Qdoba, which was reflected as a reduction to SG&A. The decrease was further attributable to a $1.1 million decrease in share-based compensation, a $0.9 million decrease due primarily to workforce reductions related to refranchising, and a $0.4 million decrease in pension and postretirement benefits. These decreases were partially offset by a $4.0 million increase in bonus due to higher levels of performance in 2018 versus the prior year as compared to target bonus levels and mark-to-market adjustments on investments supporting the company's non-qualified retirement plans resulting in a $0.8 million year-over-year increase in SG&A. As a percentage of system-wide sales, G&A excluding advertising was 2.3 percent in the fourth quarter of fiscal 2018 compared with 2.4 percent in the 2017 quarter. In fiscal 2018, the company began presenting depreciation and amortization as a separate line item in its 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 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 consolidated statements of earnings. Restructuring charges of $5.8 million, or approximately $0.17 per diluted share, were recorded during the fourth quarter of fiscal 2018, primarily relating to severance costs, compared with $1.4 million, or $0.03 per diluted share, in the prior year quarter. Restructuring charges are included in "Impairment and other charges, net" in the accompanying consolidated statements of earnings. Including these charges, impairment and other charges, net, increased in the fourth quarter to $8.0 million from $4.3 million in the year ago quarter. Interest expense, net, increased by $2.2 million in the fourth quarter due primarily to a higher effective interest rate for 2018 and higher debt levels. 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 was phased in, resulting in a blended statutory federal tax rate of 24.5 percent for the fiscal year ended September 30, 2018. In addition, the Tax Act resulted in a non-cash increase to the provision for income taxes of $0.5 million, or $0.02 per diluted share, for the fourth quarter of fiscal 2018, and $32.5 million, or $1.13 per diluted share, for fiscal year 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. In the first quarter of fiscal 2018, the company adopted Accounting Standards Update No. 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). As required by the updated accounting standard, excess tax benefits or deficiencies are now recorded to the provision for income taxes in the consolidated statement of earnings, on a prospective basis, instead of additional paid-in capital in the consolidated balance sheet. The adoption resulted in an increase to the provision for income taxes of $0.1 million, or less than $0.01 per diluted share, for the fourth quarter of fiscal 2018, and a reduction to the provision for income taxes of $2.0 million, or $0.07 per diluted share, for fiscal year 2018, but had no additional impact on cash paid for income taxes. Excess tax benefits will vary in future periods, as such amounts are dependent on the number of shares released related to employee stock compensation arrangements and fluctuations in the company’s stock price. 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. 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 prior to the sale. 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. ____________________________ (1) Operating Earnings Per Share represents diluted earnings per share from continuing operations on a GAAP basis excluding gains on the sale of company-operated restaurants, restructuring charges, the non-cash impact of the Tax Cuts and Jobs Act, and the excess tax benefits from share-based compensation arrangements which are now recorded as a component of income tax expense versus equity previously. See "Reconciliation of Non-GAAP Measurements to GAAP Results." (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."

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Starbucks to cut 5% of its corporate workforce

Starbucks is laying off 5 percent of its corporate workforce, according to a memo obtained by CNBC. The coffee giant had previously indicated it would cut non-retail employees as it shakes up its organizational structure. CEO Kevin Johnson says impacted employees were in roles connected to work that had been "eliminated" or "deprioritized" in Starbucks' streamlining efforts. November 13, 2018--(CNBC) Starbucks is planning to cut approximately 5 percent of its global corporate workforce, according to a memo sent by CEO Kevin Johnson on Tuesday. About 350 employees in marketing, creative, product, technology and store development will be impacted, Johnson said in the memo obtained by CNBC. Johnson said affected divisions will undergo "significant changes" as Starbucks narrows its priorities and aims to become a more nimble company. While the decisions were "incredibly difficult," he said they were made after "very careful consideration." Johnson said impacted roles were related to work that had been "eliminated" or "deprioritized." The Wall Street Journal first reported the layoffs. The news comes after Starbucks said in September it would cut corporate staff as it shuffles its organizational structure. Starbucks has been plagued with lagging U.S. sales for several quarters. The coffee giant has scaled back on store growth and closed underperforming company-owned locations. While the company still sees positive same-store sales, investors have been looking for a faster pace of sales growth. As Starbucks executes its plan, its results have improved. Chief Operating Officer Roz Brewer previously told CNBC that Starbucks shifted a number of "remedial tasks" that baristas were doing during the day to after closing, giving them more time to work with customers. By streamlining some of these operations, Starbucks aims to encourage customers to spend more time in its locations. In its fiscal fourth quarter, Starbucks said sales in the U.S. and Americas that had been open for at least a year grew 4 percent. That topped Wall Street expectations for growth of about 2.7 percent. Johnson said it was the company's strongest same-store-sales growth in the U.S. in five quarters. Starbucks said its loyalty program grew 15 percent year over year, hitting 15.3 million members. The company said Starbucks Rewards members drove nearly 40 percent of sales in the U.S.


Sweetgreen Announces its Second Act with $200 Million in Financing Led By Fidelity Investments

Funding Round Will Fuel Sweetgreen In Leading The Future of Food through Technology, Supply Chain and Social Impact November 13, 2018--(Business Wire) Sweetgreen, the seasonal restaurant with the mission of connecting people to real food, today announced a $200 million financing round led by Fidelity Investments, one of the world’s largest asset management companies. JPMorgan acted as sole placement agent for this offering. This funding round values sweetgreen at over $1 billion. This round will bring total equity raised to approximately $365 million since inception and positions the company to create a new food platform with expanded menu categories and innovative retail formats. "As a company we are focused on democratizing real food,” said Jonathan Neman co-founder and CEO of sweetgreen. “Our vision is to evolve from a restaurant company to a food platform that builds healthier communities around the world.” The capital will enable the brand to continue to invest in their supply chain, social impact, and a foundation of technology, focusing on the following key areas:

  1. Digital Platform: With over 1M people on its digital platform and almost 50% of customer orders processed through the app or online platforms, sweetgreen believes that software focused on personalization can help to meet customers growing demand for easily accessible, real food.

  2. Supply Chain + Blockchain: sweetgreen views blockchain as the most viable solution available to enable radical transparency at a systematic level, which in turn can create better tasting produce and insights around each ingredient from seed to restaurant.

  3. Restaurant Expansion: sweetgreen plans to expand their footprint in existing and new markets.

  4. Outpost: sweetgreen's solution for free food delivery at the office leverages their existing digital platform and mobile app, allowing companies to offer sweetgreen to their employees. The company plans to expand the program.

  5. Social Impact: sweetgreen plans to further its mission to “build healthier communities by connecting people to real food” by expanding its “sweetgreen in schools program”, which reimagines school cafeterias and food education. About sweetgreen: Founded in 2007, sweetgreen passionately believes that real food should be convenient and accessible to everyone. With a digital first approach, customers can access its unique, habitual, and health conscious offering. Every day, across 90 restaurants, over 4,000 team members make food from scratch, using fresh ingredients and produce delivered that morning. Sweetgreen’s strong food ethos and investment in local communities has enabled them to grow into a national brand with a mission to build healthier communities by connecting people to real food. Contacts Media: sweetgreen Maude Michel, 484-356-6202 maude.michel@sweetgreen.com


Luby's Reports Fiscal Year 2018 and Fourth Quarter Results November 12, 2018--(PR Newswire) Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its fifty-two week fiscal year 2018 and its twelve-week fourth quarter fiscal 2018, which ended on August 29, 2018. Comparisons in this press release for the fourth quarter fiscal 2018 are referred to as "fourth quarter". Comparisons to the fourth quarter fiscal 2017 are to the twelve-week period that ended August 30, 2017. Fiscal Year 2018 Summary:

  1. Total sales were $365.2 million, including $332.5 million in restaurant sales, compared to total sales of $376.0 million, including $350.8 million in restaurant sales, in fiscal 2017.

  2. Total same-store sales decreased 0.5%, including a 1.5% sales increase at the Luby's Cafeterias and a 3.6% sales decrease at Fuddruckers.

  3. Culinary contract services revenue increased $7.8 million, or 43.7%, to $25.8 million compared to fiscal 2017.

  4. Loss from continuing operations was $33.0 million, or $1.10 per diluted share, in fiscal 2018, compared to a loss of $22.8 million, or $0.77 per diluted share, in fiscal 2017. Excluding special items, loss from continuing operations was $19.4 million, or $0.65 per diluted share, in fiscal 2018, compared to a loss of $5.8 million, or $0.19 per diluted share, in fiscal 2017.

  5. Adjusted EBITDA was less than $0.1 million in fiscal 2018 compared to $13.3 million in fiscal 2017.

  6. The company announced an asset sales program of $25 million in April 2018 and expanded this program up to $45 million in July 2018, with the goal of reducing our debt balance. Ten owned property locations were sold in fiscal 2018 (eight after the announcement of the program) generating $14.8 million in net cash proceeds.

  7. 21 underperforming company-owned restaurants were closed in fiscal 2018 and nine were closed in fiscal 2017. These restaurants accounted for $3.3 million in pre-tax loss, or $2.4 million in after-tax loss, from continuing operations, in fiscal 2018. These same 30 restaurants accounted for $21.6 million in restaurant sales in fiscal 2018 and $38.6 million in fiscal 2017. Chris Pappas, President and CEO, commented, "While we are not pleased with our financial results in the quarter or the fiscal year, we are taking actions to improve our financial results and restaurant operating performance. Over the past several months we have embarked on a number of significant changes. "We continued our plan to pay down our debt significantly, by selling company-owned restaurants whose property values exceeded the unit economics of continued restaurant operations at the locations. We sold 10 properties in fiscal 2018 generating $14.6 million in proceeds, which is approximately 25% of the value of the assets in our asset sales program. As we execute on the asset sales program, we are also pursuing a refinancing of our debt under a new credit facility. "We continually review our portfolio of owned and leased restaurant locations, evaluating them on profitably. Based on that metric we have closed 21 restaurants in fiscal 2018. Along with the restaurant closures, asset sales program and pending refinancing, we have also made reductions in certain corporate support staffing in the fourth quarter. "Last month we announced an important executive management change, with the promotion of Todd Coutee to the position of Chief Operating Officer. Todd has over 30 years of experience in food service. He started at Luby's as a manager and through the years has held leadership positions of SVP for Luby's Cafeterias, Fuddruckers, and Culinary Contract Services. He is a proven team leader and sales builder of hospitality operations and we are excited to have him in this role. "We believe the right team and leadership are in place to grow our sales and margins, improve our corporate costs, reduce our debt, and enhance our returns. Each step we are taking is with the goal of establishing a foundation from which the company is poised for future profitability." Fourth Quarter Same-Store Sales:

  8. Luby's Cafeterias same-store sales increased 3.9% in the fourth quarter. A 10.3% increase in average spend per guest was partially offset by a 5.8% decrease in guest traffic.

  9. Fuddruckers Restaurants same-store sales decreased 3.9% in the fourth quarter. A 8.3% decrease in guest traffic was partially offset by a 4.8% increase in average spend per guest.

  10. Combo location same-store sales (representing all six Combo locations) decreased 1.5% in the fourth quarter.

  11. Cheeseburger in Paradise same-store sales (representing two Cheeseburger in Paradise locations) decreased 4.4% in the fourth quarter. About Luby's Luby's, Inc. (NYSE: LUB) operates 146 restaurants nationally as of August 29, 2018: 84 Luby's Cafeterias, 60 Fuddruckers, and 2 Cheeseburger in Paradise. The Company is also the franchisor for 105 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Panama, and Colombia. Luby's Culinary Contract Services provides food service management to 28 sites consisting of healthcare, higher education, sport stadiums, and corporate dining locations as of August 29, 2018.


Del Frisco’s Restaurant Group, Inc. Reports Third Quarter 2018 Results November 12, 2018--(Globe Newswire) Del Frisco’s Restaurant Group, Inc. (“Del Frisco’s”) (NASDAQ: DFRG) today reported financial results for the third quarter ended September 25, 2018 and updated its guidance for fiscal year 2018 to reflect in part the sale of Sullivan’s Steakhouse. On August 6, 2018 we closed on an underwritten public offering of 12,937,500 shares of common stock at a public offering price of $8.00 per share for total net proceeds of $97.8 million. On September 21, 2018, we completed the sale of Sullivan’s Steakhouse for total proceeds of $32 million. The proceeds from both the public offering and divestiture were used to repay a portion of our outstanding borrowings. As of the third quarter ended September 25, 2018, we had an outstanding balance on our senior secured term loan of $310 million and no outstanding borrowings on our revolving credit agreement. Given the sale of Sullivan’s Steakhouse, and a related impairment and loss on sale, operating results for Sullivan’s Steakhouse are included in discontinued operations for all periods presented. All numbers below are therefore for continuing operations unless otherwise stated. Key Highlights from the 13-Week Third Quarter 2018 Compared to the 12-Week Third Quarter 2017 Include:

  1. Consolidated revenues increased 73.7% to $105.3 million from $60.6 million due primarily to $39.9 million in contributions from Barcelona Wine Bar and bartaco (together, “Emerging Brands”), which were acquired on June 27, 2018 and the additional calendar week in the third quarter of 2018 compared to the third quarter of 2017.

  2. Total comparable restaurant sales decreased 1.9%.

  3. GAAP net loss of $41.2 million, or $1.49 per diluted share, compared to GAAP net loss of $1.1 million, or $0.05 per diluted share.

  4. Adjusted net loss* of $1.9 million, or $0.07 per diluted share, compared to adjusted net loss* of $0.8 million, or $0.04 per diluted share.

  5. Adjusted EBITDA* increased 113.8% to $6.8 million from $3.2 million. As a percentage of consolidated revenues, adjusted EBITDA margin increased 120 basis points to 6.4% from 5.2%.

  6. Restaurant-level EBITDA* increased 96.5% to $18.6 million from $9.5 million due primarily to $10.2 million in contributions from Emerging Brands. As a percentage of consolidated revenues, restaurant-level EBITDA margin increased 210 basis points to 17.7% from 15.6%.* Adjusted net loss, adjusted EBITDA, and restaurant-level EBITDA are non-GAAP measures. For a reconciliation of these non-GAAP measures to GAAP net income and operating (loss)/income, respectively, and a discussion of why we consider them useful, see the reconciliation of non-GAAP measures accompanying this release. Norman Abdallah, Chief Executive Officer of Del Frisco's, said, "We are positioning ourselves for long-term success by executing our brand strategies, ensuring liquidity and investment behind our three major growth brands -- Del Frisco’s Double Eagle Steakhouse, Barcelona Wine Bar and bartaco -- through capital restructuring, shedding underperforming assets, and divesting of Sullivan’s Steakhouse. ‘Front-end’ operations for Barcelona Wine Bar and bartaco have now been substantially integrated into the Del Frisco’s eco-system with their respective management teams working from our Irving, TX support center while ‘back-end’ support systems are on track to be fully integrated ahead of schedule by mid-year 2019. Encouragingly, G&A and purchasing synergies are now anticipated at the high end of our previous $3 million to $5 million range with significant savings run-rate beginning in the second half of 2019.” Abdallah continued, “Our restaurant portfolio is benefitting from greater diversification and balance than ever before with contributions from our Emerging Brands strengthening our top-line, enhancing restaurant-level EBITDA and margins and providing new restaurant opportunities to support Del Frisco’s growth targets. Barcelona Wine Bar and bartaco both experienced strong third quarter restaurant-level EBITDA growth with a smooth transition under Del Frisco’s first quarter of ownership. Barcelona and Vinoteca’s comparable restaurant sales rose 2.5%, revenues increased 10.7%, restaurant-level EBITDA rose 15.8%, and restaurant-level EBITDA margins improved by 100 basis points compared to the same thirteen week quarter in 2017. While bartaco’s comparable restaurant sales were affected by rains in the Northeast, a formidable 11.1% comparison from the prior-year period, and one underperforming location, encouragingly revenues still increased 11.8%. Restaurant-level EBITDA also rose 23.4%, and restaurant-level EBITDA margins improved by 260 basis points compared to the same thirteen week quarter last year.” Abdallah concluded, “Del Frisco’s Grille’s revenues and comparable restaurant sales held steady while restaurant-level EBITDA margins improved 70 bps on a thirteen week to thirteen week basis, while the Double Eagle’s restaurant-level margins were negatively impacted by 430 basis points from new store inefficiencies and 42 days of restaurant closure for two remodeling projects. These factors, along with the timing of marketing expenses, more than offset lower cost of sales benefits from a favorable commodity environment. The Double Eagle’s comparable restaurant sales decline primarily reflected anticipated sales transfer in Boston from our new Back Bay opening, a decline in patio sales and continued underperformance in Chicago, a market we now expect to exit early next year. Under new brand leadership, and despite these headwinds, comparable restaurant sales at the Double Eagle turned positive towards the end of the third quarter and this trend has continued though the first five weeks of the fourth quarter with comparable restaurant sales rising in the low single digits. We are particularly encouraged by our private dining sales momentum in our highest seasonality quarter of the year with comparable private dining restaurant sales up close to 20% through the first five weeks and bookings for the remaining weeks of the quarter more than 20% above where they were at the same time in 2017. Finally, bartaco’s comparable restaurant sales have turned strongly positive at the end of October, increasing 9.9% in the first 12 days since we lapped the incident in one underperforming bartaco location last year.” Review of Third Quarter 2018 Operating Results Consolidated revenues increased $44.7 million, or 73.7%, to $105.3 million in the third quarter of 2018 from $60.6 million in the third quarter of 2017. The increase in revenues reflects $39.9 million in contributions from the Emerging Brands, which were acquired on June 27, 2018, representing 441 additional operating weeks, coupled with 36 additional operating weeks from our Del Frisco’s Double Eagle Steakhouse and Del Frisco’s Grille brands. The incremental operating weeks from our Del Frisco’s Double Eagle Steakhouse and Del Frisco’s Grille brands were primarily due to the additional calendar week in the third quarter of 2018 compared to the third quarter of 2017 as a result of our change in the fiscal quarter calendar. General and administrative costs increased to $11.8 million in the third quarter of 2018 from $6.3 million in the third quarter of 2017. As a percentage of consolidated revenues, general and administrative costs increased to 11.2% from 10.4%. This increase was primarily related to the Emerging Brands, the additional calendar week in the third quarter of 2018 compared to the third quarter of 2017 as a result of our change in fiscal quarter calendar, and investments in the restaurant support center and regional management to support future growth, partially offset by the sale of Sullivan’s Steakhouse. In the third quarter of 2018, we had acquisition costs of $6.0 million, impairment costs of $2.1 million which were almost entirely related to our Chicago Double Eagle, consulting project costs of $1.0 million, lease termination costs of $0.9 million and reorganization severance costs of $0.7 million. In the third quarter of 2017, we had donations of $0.8 million, consulting project costs of $0.2 million and reorganization severance costs were $0.4 million. GAAP net loss was $41.2 million, or $1.49 per diluted share, in the third quarter of 2018, compared to GAAP net loss of $1.1 million, or $0.05 per diluted share, in the third quarter of 2017. Adjusted net loss* was $1.9 million, or $0.07 per diluted share, in the third quarter of 2018, compared to adjusted net loss* of $0.8 million, or $0.04 per diluted share in the third quarter of 2017. Adjusted EBITDA* from continuing operations increased 113.8% to $6.8 million from $3.2 million. As a percentage of consolidated revenues, Adjusted EBITDA margin increased 120 basis points to 6.4% from 5.2%. Restaurant-level EBITDA* increased $9.1 million, or 96.5%, to $18.6 million in the third quarter of 2018, primarily due to $10.2 million in contributions from Emerging Brands. As a percentage of consolidated revenues, restaurant-level EBITDA* increased to 17.7% from 15.6%. About Del Frisco’s Restaurant Group, Inc. Based in Irving, Texas, Del Frisco's Restaurant Group, Inc. is a collection of 69 restaurants across 16 states and Washington, D.C., including Del Frisco's Double Eagle Steakhouse, Barcelona Wine Bar, bartaco, and Del Frisco's Grille. Del Frisco's Double Eagle Steakhouse serves flawless cuisine that's bold and delicious, and offers an extensive award-winning wine list and level of service that reminds guests that they're the boss. Barcelona serves tapas both simple and elegant, using the best seasonal picks from local markets and unusual specialties from Spain and the Mediterranean, and offers an extensive selection of wines from Spain and South America featuring over 40 wines by the glass. bartaco combines fresh, upscale street food and award-winning cocktails made with artisanal spirits and freshly-squeezed juices with a coastal vibe in a relaxed environment. Del Frisco's Grille is modern, inviting, stylish and fun, taking the classic bar and grill to new heights, and drawing inspiration from bold flavors and market-fresh ingredients. For further information about our restaurants, to make reservations, or to purchase gift cards, please visit: www.DelFriscos.com, www.BarcelonaWineBar.com, www.bartaco.com, and www.DelFriscosGrille.com. For more information about Del Frisco's Restaurant Group, Inc., please visit www.DFRG.com.


FAT Brands, Inc. Announces Fiscal Third Quarter 2018 Financial Results

Fatburger & Buffalo’s Express - Same-store sales growth in California of 12.6% year-over-year, 13.3% YTD - Same-store sales growth domestically of 8.3% year-over-year, 9.1% YTD November 9, 2018--(Restaurant News Resource) FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ:FAT)yesterday announced financial results for the 13-week period ended September 30, 2018. Andy Wiederhorn, President and CEO of FAT Brands, commented, “Third quarter results demonstrated continued business momentum as we achieved acquisition synergies and positive same-store sales growth across our Fatburger & Buffalo’s Express, Buffalo’s Cafe, and Ponderosa and Bonanza Steakhouse brands. During the quarter we completed our previously announced acquisition of Hurricane Grill & Wings, our first acquisition following our IPO. The successful integration of the Hurricane restaurants onto our platform demonstrates the strength of our growth strategy and our ability to generate synergies. Inclusive of these acquisition synergies, we expect to achieve an annualized revenue run-rate of $22-24 million and an annualized EBITDA run-rate of $10-11 million beginning in the first quarter of 2019. Our pipeline of brands for acquisition remains robust, and we continue to actively work to complete additional transactions.” 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 third quarter of 2017. Fiscal Third Quarter 2018 Highlights

  1. Total revenues of $5.9 million(1)

  2. Net income of $10,000, or $0.00 per share on a basic and fully diluted basis

  3. EBITDA(2) of $1.8 million

  4. Adjusted EBITDA(2) of $2.1 million, excluding legal and accounting fees related to acquisitions(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. (2) EBITDA and Adjusted EBITDA are non-GAAP measures defined below, under “Non-GAAP Measures”. A reconciliation of GAAP net income to EBITDA and adjusted EBITDA is included in the accompanying financial tables. Fiscal Third Quarter 2018 Segment Performance

  5. Fatburger & Buffalo’s Express

  6. Same-store sales growth in California of 12.6% year-over-year, 13.3% YTD

  7. Same-store sales growth domestically of 8.3% year-over-year, 9.1% YTD

  8. System-wide same-store sales growth of 4.7% year-over-year, 7.8% YTD

  9. System-wide sales growth of 10.8% year-over-year, 15.5% YTD

  10. Total revenues of $2.9 million

  11. Net income of $1.5 million

  12. EBITDA of $1.9 million

  13. 2 new co-branded store openings

  14. Buffalo’s Cafe

  15. System-wide same-store sales growth of 6.4% year-over-year, 5.5% YTD

  16. System-wide sales growth of 8.0% year-over-year, 7.2% YTD

  17. Total revenue of $581,000

  18. Net income of $263,000

  19. EBITDA of $228,000

  20. Ponderosa & Bonanza Steakhouse

  21. System-wide same-store sales growth of 4.6% year-over-year, 2.2% YTD

  22. System-wide sales growth of 3.9% year-over-year, 2.9% YTD

  23. Total revenue of $1.0 million

  24. Net income of $53,000

  25. EBITDA of $217,000

  26. Hurricane Grill & Wings

  27. Completed the previously announced acquisition on July 3, 2018

  28. System-wide same-store sales decline of (2.4%) year-over-year

  29. System-wide sales growth of 4.7% year-over-year

  30. Total revenue of $1.3 million

  31. Net loss of $3,000

  32. EBITDA of $79,000Events in the Quarter On July 3, 2018, FAT Brands completed the previously announced acquisition of Hurricane AMT, LLC (“Hurricane”), the franchisor of Hurricane Grill & Wings and Hurricane BTW restaurants, for a purchase price of $12,500,000 comprised of $8,000,000 in cash and $4,500,000 in Series A-1 Mandatorily Redeemable Preferred Shares. Also on July 3, 2018, the Company entered into a new Loan and Security Agreement whereby the Company borrowed $16.0 million in a term loan. A portion of the net proceeds were used to fund the Hurricane acquisition, as well as to repay borrowings of $2.0 million plus interest and fees under an existing loan facility. The Company has been using the remaining proceeds for additional acquisitions, investments, and general working capital purposes. On September 20, 2018, the Company issued 10,482 shares of its common stock to its independent directors in satisfaction of accrued directors’ fees. These shares were valued at $8.59 per share, the closing price on September 20, 2018, the day that the independent directors elected to receive such shares. Quarterly Cash Dividend The Company’s Board of Directors approved the payment of a quarterly cash dividend to shareholders of $0.12 per share. The dividend was paid on October 31, 2018 to shareholders of record as of the close of business on October 18, 2018. On October 31, 2018, FCCG elected to reinvest its dividend for all 9,300,760 shares into newly issued shares of the Company’s common stock at the closing market price of common stock on the payment date. The Company issued 176,877 shares of common stock to FCCG at a price of $6.31 per share in satisfaction of the $1,116,091 dividend payable. 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 six restaurant brands, Fatburger, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, and Ponderosa and Bonanza Steakhouses, that have over 300 locations open and more than 300 under development in 32 countries.

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Bojangles’, Inc. Reports Financial Results for its Third Fiscal Quarter 2018

Returns to Positive System-Wide Comparable Restaurant Sales Provides Update on its Restaurant Portfolio Optimization Program November 8, 2018--(Globe Newswire) Bojangles’, Inc. (Bojangles’) (NASDAQ: BOJA) today announced financial results for the 13-week third fiscal quarter ended September 30, 2018. Bojangles’ also provided an update on its restaurant portfolio optimization program. Highlights for the Third Fiscal Quarter 2018 Compared to the Third Fiscal Quarter 2017*

  1. System-wide comparable restaurant sales increased 0.4%, while company-operated comparable restaurant sales increased 0.1% and franchised comparable restaurant sales increased 0.7%;

  2. Total revenues increased to $138.7 million from $136.0 million in the prior year fiscal quarter;

  3. Five system-wide restaurants were opened, consisting of one company-operated restaurant and four franchised restaurants;

  4. Net loss was $2.7 million (reflecting after-tax charges of $9.8 million related to our restaurant portfolio optimization program) as compared to net income of $6.9 million in the prior year fiscal quarter;

  5. Diluted Net Loss per Share was $0.07 (reflecting after-tax charges of $0.27 per share related to our restaurant portfolio optimization program) as compared to Diluted Net Income per Share of $0.18 in the prior year fiscal quarter;

  6. Adjusted Net Income** increased to $8.1 million as compared to $6.5 million in the prior year fiscal quarter;

  7. Adjusted Diluted Net Income per Share** increased to $0.21 as compared to $0.17 in the prior year fiscal quarter; and

  8. Adjusted EBITDA** increased to $16.5 million as compared to $16.1 million in the prior year fiscal quarter.* Certain amounts for the third fiscal quarter of 2017 have been restated to reflect the adoption of the new revenue recognition standard. See “Adoption of New Accounting Standard” for further details. ** Descriptions of Adjusted Net Income, Adjusted Diluted Net Income per Share, Adjusted EBITDA and other non-GAAP financial measures are provided in this release under “Use and Definition of Non-GAAP Measures,” and reconciliations to GAAP figures are provided in the tables at the end of this release. “We are pleased the Bojangles’® system returned to positive comparable restaurant sales during the third fiscal quarter despite the negative impact associated with Hurricane Florence in September,” said Bojangles’ Interim President and CEO Randy Kibler. “We believe our back to basics strategy of operating ‘well-run restaurants’ is elevating customer perceptions of Bojangles’. We are enhancing customers’ total brand experience through staffing and training initiatives, improving speed of service at the drive-thru, promoting high-quality signature menu items with value messaging, and building out our technological capabilities to support the use of our new mobile app and delivery test,” concluded Mr. Kibler. Third Fiscal Quarter 2018 Financial Review System-wide comparable restaurant sales increased 0.4%, consisting of a 0.1% increase in company-operated comparable restaurant sales and an increase of 0.7% in franchised comparable restaurant sales. The comparable restaurant sales increase at company-operated restaurants was composed of increases in price and mix that were partially offset by a decrease in transactions. Total revenues increased 1.9% to $138.7 million in the third fiscal quarter of 2018 from $136.0 million in the prior year fiscal quarter. The increase was due to a net additional 10 system-wide restaurants at September 30, 2018 compared to September 24, 2017 and an increase in system-wide comparable restaurant sales. Company-operated restaurant revenues increased 1.4% to $128.0 million in the third fiscal quarter of 2018 from $126.2 million in the prior year fiscal quarter. Franchise royalty revenues increased 2.2% to $7.2 million in the third fiscal quarter of 2018 from $7.0 million in the prior year fiscal quarter. Operating loss was $2.6 million in the third fiscal quarter of 2018 (reflecting pre-tax charges of $13.0 million related to our restaurant portfolio optimization program) as compared to Operating income of $10.6 million in the prior year fiscal quarter. Company-operated restaurant contribution, a non-GAAP measure, increased 3.3% to $18.2 million in the third fiscal quarter of 2018 as compared to $17.6 million in the prior year fiscal quarter. As a percentage of company-operated restaurant revenues, company-operated restaurant contribution margin, a non-GAAP measure, increased to 14.2% in the third fiscal quarter of 2018 from 13.9% in the prior year fiscal quarter. General and administrative expenses were $11.2 million in the third fiscal quarter of 2018 as compared to $9.8 million in the prior year fiscal quarter. The increase was due primarily to $1.0 million of professional and consulting fees associated with exploring strategic alternatives, $0.2 million of executive and officer separation expenses, as well as inflationary increases in wages. These were partially offset by $0.3 million of expense recorded during the third fiscal quarter 2017 in connection with the identification and due diligence of potential new locations for company-operated restaurants that we ultimately decided not to pursue. As a percentage of total revenues, general and administrative expenses were 8.1% in the third fiscal quarter of 2018 as compared to 7.2% in the prior year fiscal quarter. Impairment expenses were $0.7 million in the third fiscal quarter of 2018 as compared to $0.1 million in the prior year fiscal quarter. The increase was due to more restaurants being impaired in the third fiscal quarter of 2018 versus the third fiscal quarter of 2017. Restaurant closures and refranchising costs and related asset write-downs were $13.0 million in the third fiscal quarter of 2018 and primarily reflect $11.8 million in charges incurred related to ten company-operated restaurants that were closed in the third fiscal quarter of 2018 and $0.9 million of additional impairments to write-down assets to their estimated fair value related to our planned refranchising of 25 to 30 company-operated restaurants in fiscal year 2019. Net Loss was $2.7 million (reflecting after-tax charges of $9.8 million related to our restaurant portfolio optimization program) in the third fiscal quarter of 2018 as compared to Net Income of $6.9 million in the prior year fiscal quarter. Diluted Net Loss per Share was $0.07 (reflecting after-tax charges of $0.27 per share related to our restaurant portfolio optimization program) in the third fiscal quarter of 2018 as compared to Diluted Net Income per Share of $0.18 in the prior year fiscal quarter. Adjusted Net Income, a non-GAAP measure, increased 23.3% to $8.1 million in the third fiscal quarter of 2018 as compared to $6.5 million in the prior year fiscal quarter. Adjusted Diluted Net Income per Share increased 23.5% to $0.21 in the third fiscal quarter of 2018 as compared to $0.17 in the prior year fiscal quarter. Adjusted EBITDA, a non-GAAP measure, increased 2.1% to $16.5 million in the third fiscal quarter of 2018 as compared to $16.1 million in the prior year fiscal quarter. Restaurant Portfolio Optimization Program Bojangles’ continued executing its restaurant portfolio optimization program during the third fiscal quarter of 2018 and intends to make further progress over the coming year. The program includes identifying company-operated restaurants that may be refranchised and underperforming company-operated restaurants that would be closed.

  9. Bojangles’ closed 10 underperforming company-operated restaurants during the third fiscal quarter of 2018. As a result, we recorded a provision for closed stores of $11.8 million, net of amounts previously accrued, on the cease use date representing an estimate of the remaining obligations pursuant to non-cancelable leases, net of estimated sublease income.

  10. Bojangles’ refranchised two company-operated restaurants during the second fiscal quarter of 2018 and anticipates refranchising approximately 25 to 30 company-operated restaurants in Tennessee and Georgia to one of its largest franchisees. In connection with the expected refranchising of these 25 to 30 company-operated restaurants, we recorded an additional impairment charge of $0.9 million during the third fiscal quarter of 2018 related to the write-down of the assets to their estimated fair value. In addition, we expect to incur a pre-tax charge of $4.0 million to $5.0 million related to anticipated losses on operating leases associated with this potential refranchising transaction. The transaction, which remains subject to final negotiation and execution of a definitive sale and purchase agreement, due diligence and customary closing conditions, is expected to close in fiscal year 2019. Should this potential refranchising transaction fail to close, we will reassess our options under the restaurant portfolio optimization program. Adoption of New Accounting Standard In May 2014, the Financial Accounting Standards Board issued new guidance for revenue recognition related to contracts with customers, which supersedes nearly all existing revenue recognition guidance. We adopted this new guidance in fiscal year 2018 using the full retrospective transition method, which resulted in restating each prior reporting period presented in the year of adoption, including the third fiscal quarter of 2017. The adoption did not have a material impact on Company-operated restaurant revenues or Franchise royalty revenues. The new guidance requires Bojangles’ to recognize initial and renewal franchisee fees on a straight-line basis over the life of the franchise agreement, which impacts Other franchise revenues. In addition, funds contributed by franchisees to the advertising funds actively managed by Bojangles’, as well as the associated advertising fund expenditures, are reported on a gross basis, and the advertising fund revenues and expenses may be reported in different periods. See tables at the end of this release for details related to the impact of the adoption of the new revenue recognition standard on our previously reported results. Agreement to be Acquired On November 6, 2018, Bojangles’ announced that the Company has entered into a definitive agreement to be acquired by Durational Capital Management LP and The Jordan Company, L.P. Under the terms of the agreement, Durational Capital Management LP and The Jordan Company, L.P. will acquire the Company in an all cash transaction. Bojangles’ stockholders will receive $16.10 per share. The acquisition, which has been unanimously approved by Bojangles’ Board of Directors, is subject to stockholder approval and other customary closing conditions. The transaction is expected to be completed in the first quarter of fiscal year 2019. In light of the pending transaction, Bojangles’ has withdrawn its fiscal year 2018 guidance and will not host a conference call to discuss its third fiscal quarter earnings results. About Bojangles’, Inc. Bojangles’, Inc. is a highly differentiated and growing restaurant operator and franchisor dedicated to serving customers high-quality, craveable food made from our Southern recipes, including breakfast served All Day, Every Day. Founded in 1977 in Charlotte, N.C., Bojangles’ serves menu items such as made-from-scratch biscuit breakfast sandwiches, delicious hand-breaded bone-in chicken, flavorful fixin’s (sides) and Legendary Iced Tea®. At September 30, 2018, Bojangles’ had 759 system-wide restaurants, of which 316 were company-operated and 443 were franchised restaurants, primarily located in the Southeastern United States. For more information, visit www.bojangles.com or follow Bojangles’ on Facebook, Instagram and Twitter.


J. Alexander’s Holdings, Inc. Reports Results for Third Quarter Ended September 30, 2018

Higher Same Store Sales Posted By Both Concepts November 8, 2018--(Restaurant News Resource) J. Alexander’s Holdings, Inc. (NYSE: JAX) (the Company), owner and operator of a collection of restaurants which includes J. Alexander’s, Redlands Grill, Stoney River Steakhouse and Grill and selected other restaurants, today reported financial results for the third quarter ended September 30, 2018. Third Quarter 2018 Highlights Compared to the Third Quarter of 2017

  1. Net sales were $56,730,000, an increase of 5.3% from $53,879,000 recorded in the third quarter of 2017.

  2. For the J. Alexander’s/Grill restaurants, average weekly same store sales per restaurant(1) were $108,700, an increase of 2.6% from $105,900 reported in the third quarter of 2017. For the Stoney River Steakhouse and Grill restaurants, average weekly same store sales per restaurant were $71,800, up 5.6% from $68,000 recorded in the third quarter of 2017.

  3. The Company recorded a loss from continuing operations before income taxes of $713,000 for the third quarter of 2018 compared to a loss from continuing operations before income taxes of $1,597,000 in the same quarter of the prior year. The loss for the third quarter of 2017 included non-recurring transaction and integration expenses of $1,975,000.

  4. During the third quarter of 2018, the valuation of the Black Knight profits interest grant resulted in profits interest expense of $1,240,000. This compares to profits interest expense of $40,000 in the third quarter of 2017. The Black Knight profits interest grant, issued in October 2015, included a quarterly valuation requirement. The non-cash expense associated with this grant was required to be recognized over a three-year vesting period and was calculated each quarter based upon the most recent valuation performed using the Black-Scholes valuation model, with any cumulative change associated with the most recent valuation impacting the most recent quarter. Primarily due to the $11.90 per share closing price of the Company’s stock at the end of the most recent quarter, the grant’s valuation increased from $6,018,000 at July 1, 2018 to $6,761,000 at September 30, 2018. The Company also incurred consulting fees of $139,000 under its management agreement with Black Knight in the most recent quarter compared to consulting fees of $120,000 in the third quarter of 2017. The final valuation of the Black Knight profits interest grant was calculated at the completion of the vesting period on October 6, 2018 and resulted in a non-cash credit of approximately $450,000 that will be recognized in the fourth quarter of 2018.

  5. The Company posted a net loss of $633,000 for the third quarter of 2018 compared to a net loss of $876,000 in the comparable quarter of 2017. Results included an income tax benefit of $198,000 in the third quarter of 2018 compared to an income tax benefit of $832,000 in the corresponding quarter of the previous year.

  6. The basic and diluted loss per share was $0.04 for the third quarter of 2018 compared to $0.06 for the third quarter of 2017.

  7. Adjusted EBITDA(2) rose 10.1% from $3,725,000 in the third quarter of 2017 to $4,100,000 in the third quarter 2018.

  8. Restaurant Operating Profit Margin (3) as a percent of net saleswas 9.7% in the most recent quarter compared to 9.2% for the same quarter of 2017.

  9. Cost of sales as a percentage of net sales in the third quarter of 2018 was 31.5% compared to 32.0% in the corresponding quarter of 2017.(1) Average weekly same store sales per restaurant is computed by dividing total restaurant same store sales for the period by the total number of days all same store restaurants were open for the period to obtain a daily sales average. The daily same store sales average is then multiplied by seven to arrive at average weekly same store sales per restaurant. Days on which restaurants are closed for business for any reason other than scheduled closures on Thanksgiving and Christmas are excluded from this calculation. Sales and sales days used in this calculation and amounts of other “same store” figures in this release include only those for restaurants in operation at the end of the period which have been open for more than 18 months. Revenue associated with reduction in liabilities for gift cards, which is recognized in proportion to guest redemptions based on historical redemption rates and commonly referred to as gift card breakage, is not included in the calculation of average weekly same store sales per restaurant. Average weekly same store sales are computed from sales amounts that have been determined in accordance with U.S. generally accepted accounting principles (GAAP). (2) Please refer to the financial information accompanying this release for our definition of and a reconciliation of the non?GAAP financial measure Adjusted EBITDA to net (loss) income. Management uses Adjusted EBITDA to evaluate operating performance and the effectiveness of its business strategies. (3) “Restaurant Operating Profit Margin” is the ratio of Restaurant Operating Profit, a non?GAAP financial measure, to net sales. Please refer to the financial information accompanying this release for our definition of and a reconciliation of the non?GAAP financial measure Restaurant Operating Profit to Operating Income. Management uses Restaurant Operating Profit to measure operating performance at the restaurant level. For the third quarter of 2018, the Company’s restaurant labor and related costs as a percentage of net sales were 32.8% compared to 32.6% of net sales in the third quarter of 2017. Other restaurant operating expenses were 21.1% of net sales in the third quarter of 2018 and 21.5% of net sales in the third quarter of 2017. The Company’s operating loss for the third quarter of 2018 was $542,000 compared to an operating loss of $1,392,000 for the third quarter of 2017. The average weekly guest counts within the same store base of the Company’s J. Alexander’s/Grills collection were down 0.6% in the third quarter of 2018 compared to the third quarter of the prior year. Guest counts within the same store base at the Company’s Stoney River Steakhouse and Grill restaurants were up 4.5% for the third quarter of 2018 over the third quarter of 2017. With respect to average guest checks, which include alcoholic beverage sales, the average guest check within the J. Alexander’s/Grills same store base of restaurants during the third quarter of 2018 was $31.84, up 3.1% from $30.87 during the third quarter of 2017. The average guest check within the same store base of Stoney River Steakhouse and Grill restaurants was $42.67 during the third quarter of 2018, up 0.9% from $42.29 posted in the corresponding quarter of 2017. On a consolidated basis, average weekly guest counts within the Company’s J. Alexander’s/Grills locations in the third quarter of 2018 were down 2.4% from the third quarter of 2017, while average weekly guest counts within the Company’s Stoney River Steakhouse and Grill locations increased 5.2% for the third quarter of 2018 compared to the third quarter of 2017. Average guest checks for the combined J. Alexander’s/Grills concepts increased 3.4% from $30.90 in the third quarter of 2017 to $31.95 for the third quarter of 2018. Average guest checks for the Stoney River Steakhouse and Grill restaurants increased 0.5% from $42.19 in the third quarter of 2017 to $42.41 in the third quarter of 2018. The effect of menu pricing for the third quarter of 2018 was estimated to be a 2.3% increase for the J. Alexander’s/Grills restaurants and a 2.4% increase for the Stoney River Steakhouse and Grill restaurants compared to the corresponding quarter of 2017. Inflation in food costs for the third quarter of 2018 was estimated to total 0.9% for the J. Alexander’s/Grills restaurants, with beef costs increasing by an estimated 1.3% compared to the third quarter of 2017. For the Stoney River Steakhouse and Grill restaurants, inflation for the third quarter of 2018 was estimated to total 0.2%, with beef costs up by 0.5% from the comparable quarter of 2017. During the third quarter of 2017, six of the Company’s restaurants in Florida were closed for a total of 36 days due to the impact of Hurricane Irma. Management estimates the impact of such closures was approximately $650,000 in lost revenue, and a decrease to income from continuing operations before income taxes of approximately $400,000, consisting of approximately $300,000 of lost restaurant operating profit and approximately $100,000 of food spoilage losses, cleanup costs and expenses associated with reopening the restaurants. During the third quarter of 2018, the Company closed its restaurants in North Carolina for a total of three days due to the impact of Hurricane Florence. Management estimates lost revenue of approximately $30,000 in the third quarter of 2018 related to these closed days. Board Approves Stock Repurchase Program The Company’s board of directors has authorized a share repurchase program, replacing the program that has been in place since October 29, 2015. The board authorized the Company to purchase up to $15,000,000 of its common stock in the aggregate over a three-year period ending November 1, 2021. Under the prior program, the Company repurchased 305,059 shares of common stock over three years for an aggregate purchase price of $3,203,000, using cash on hand and operating cash flow to fund such purchases. Share repurchases under the newly authorized program are expected to be made solely from cash on hand and available operating cash flow. Repurchases will be made in accordance with applicable securities laws and may be made from time to time in the open market. The timing, prices and amount of repurchases will depend upon prevailing market prices, general economic and market conditions and other considerations. The repurchase program does not obligate the Company to acquire any particular amount of stock. Chief Executive Officer’s Comments “We were pleased with our results in virtually all areas,” said Lonnie J. Stout II, President and Chief Executive Officer of J. Alexander’s Holdings, Inc. “Historically, the third quarter of our fiscal year is the most challenging, so we were encouraged by higher same store sales in both restaurant groups, which has provided both concepts momentum in the final quarter of 2018.” Stout cited several highlights of the third quarter, including a decrease in cost of sales which resulted in a corresponding increase in Restaurant Operating Profit Margin. “We were pleased with our overall sales performance, but need to ramp up sales at some of our newer locations,” Stout said. “We are aggressively implementing various strategies to heighten guest awareness as we enter the 2018 holiday season in order to drive sales and generate more guest trial.” He added that the Company took a menu price increase of approximately one percent in June 2018 which has been met with no discernible guest resistance. “By almost all metrics, we recorded a good third quarter in our J. Alexander’s/Grills group,” Stout observed. The Company’s Stoney River Steakhouse and Grill collection turned in another strong quarter with respect to both increased guest counts and sales. Stout pointed out that, consistent with trends discussed in prior quarters of 2018, most of the increase generated during the most recent quarter within the Stoney River Steakhouse and Grill same store base of restaurants was organic. “Overall, we had a strong quarter at Stoney River,” Stout said. “As a result of a more normalized beef market in 2018, coupled with the continued strong momentum we’re experiencing across most of our Stoney River locations, we are encouraged about our prospects for the fourth quarter and into 2019.” Stout said the Company remains “guardedly optimistic” that the beef market will continue to perform as anticipated in the near term. “We do expect that there will be some upward pressure on demand and are not expecting any windfalls in pricing during the final quarter of 2018, but we anticipate our beef costs will remain within acceptable price points as we wrap up 2018.” “We are pleased with our momentum heading into the final quarter of the year. We continue to be committed to driving sales growth,” Stout concluded. About J. Alexander’s Holdings, Inc. J. Alexander’s Holdings, Inc. is a collection of restaurants that focus on providing high quality food, outstanding professional service and an attractive ambiance. The Company presently operates 46 restaurants in 16 states. The Company has its headquarters in Nashville, TN.

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Kona Grill Reports Third Quarter 2018 Results

Margin Improvements from Cost-Savings Initiatives Drives YTD Adjusted EBITDA Growth of 66% Focus on Driving Sales with the Appointment of Veteran Restaurateurs, Marcus Jundt and Steven Schussler as Co-Chief Executive Officers November 8, 2018--(Globe Newswire) Kona Grill, Inc. (NASDAQ: KONA), an American grill and sushi bar, reported financial results for the third quarter ended September 30, 2018. “Our efforts to achieve higher profits for fiscal year 2018 continue to take shape. During the first nine months of 2018, adjusted EBITDA increased 66% compared to the same period last year. The higher profitability is a result of Company initiatives implemented earlier this year and ongoing projects framed around our mission to make every experience exceptional for our guests,” said Marcus Jundt, Co-Chief Executive Officer of Kona Grill. “With Steve Schussler’s and my recent appointment as Co-Chief Executive Officers, our focus is on revitalizing the Kona Grill brand and the unique aspects which has made this brand successful over the years. These areas include becoming once again America’s best happy hour with items that provide a great value proposition as well as genuine hospitality and a passion for service,” he continued. "Our focus for the remainder of 2018 and fiscal year 2019 is driving guests into our restaurants. We recently launched our Konavore Rewards Program, implemented various marketing efforts, including mobile marketing and a Kona Grill app, and revamped our Happy Hour menu offerings. For the holiday season, we are rolling out a new gift card promotion with a strong bounce back offer to support first quarter 2019 sales," he continued. “As part of our ongoing evaluation of underperforming restaurants, we made the decision to close two restaurants during the third quarter. As we monitor our restaurants for underperformance, we continue to engage in discussions with our landlords regarding rent abatement, closing certain locations or strategic alternatives. Our success in addressing these opportunities and issues will put us in a better long-term financial position. We were in compliance with our financial covenants as of September 30, 2018,” he concluded. * For a reconciliation of 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 accompanying this release. About Kona Grill Kona Grill features a global menu of contemporary American favorites, award-winning sushi, and specialty cocktails in an upscale casual atmosphere. Kona Grill owns and operates 44 restaurants, guided by a passion for quality food and exceptional service. Restaurants are located in 22 states and Puerto Rico. Additionally, Kona Grill has two restaurants that operate under a franchise agreement in Dubai, United Arab Emirates, and Vaughan, Canada. For more information, visit www.konagrill.com


RAVE Restaurant Group, Inc. Reports First Quarter 2019 Financial Results

RAVE sees improvements in comparable store retail sales and net income November 7, 2018--(Restaurant News Resource) RAVE Restaurant Group, Inc. (NASDAQ: RAVE) reported financial results for the first quarter of fiscal 2019 ended September 23, 2018.

  1. RAVE total comparable store retail sales increased 1.1% in the first quarter of fiscal 2019 compared to the same period of the prior year.

  2. Pizza Inn domestic comparable store retail sales increased 2.3% in the first quarter of fiscal 2019 compared to the same period of the prior year despite adverse impacts from Hurricane Florence. Total domestic retail sales increased 0.4%.

  3. Pie Five comparable store retail sales decreased 1.8% in the first quarter of fiscal 2019 compared to the same period of the prior year, while total system-wide retail sales decreased 6.4%.

  4. Total revenue decreased by $2.4 million to $3.0 million for the first quarter of fiscal 2019 compared to $5.4 million for the same period of the prior year primarily driven by reduced Company-owned store count.

  5. Net income improved by $0.5 million to $0.1 million for the first quarter of fiscal 2019 compared to a net loss of $0.4 million for the same period of the prior year.

  6. On a fully diluted basis, the Company had net income of $0.01 per share for the first quarter of fiscal 2019 compared to a net loss of $0.03 per share for the same period of the prior year.

  7. EBITDA of $0.3 million for the first quarter of fiscal 2019 was an increase of $0.3 million from the same period of the prior year.

  8. Adjusted EBITDA of $0.5 million for the first quarter of fiscal 2019 was a $0.2 million decrease from the same period of the prior year primarily driven by the prior year's $0.7 million in revenue for franchise and development fees, including defaulted area development agreements, partially offset by savings in Corporate general and administrative expenses and income improvement in Company-owned stores.

  9. There was no net change in domestic Pizza Inn unit count during the first quarter of fiscal 2019, ending at 153 stores.

  10. International Pizza Inn unit count decreased by seven to 51 as of September 23, 2018.

  11. Pie Five unit count decreased by two to end the first quarter of fiscal 2019 at 71. RAVE total comparable store retail sales increased 1.1% in the first quarter of fiscal 2019 compared to the same period of the prior year. The Company's net income in the first quarter of fiscal 2019 of $0.1 million, or $0.01 per diluted share, was an increase of $0.5 million, or $0.04 per diluted share, compared to the same period of the prior year. EBITDA of $0.3 million for the first quarter of fiscal 2019 was a $0.3 million increase from the same period of the prior year. Adjusted EBITDA of $0.5 million for the first quarter of fiscal 2019 was a $0.2 million decrease from the same period of the prior year primarily driven by the prior year's $0.7 million in revenue for franchise and development fees, including defaulted area development agreements, partially offset by savings in Corporate general and administrative expenses and income improvement in Company-owned stores. "We are very pleased with the positive momentum at all Rave brands," said Scott Crane, Chief Executive Officer for RAVE Restaurant Group, Inc. "Our leadership team is seeing progress with new initiatives and positive trends in overall comparable store retail sales. We are confident that Pizza Inn, Pie Five, and PIE are now poised for accelerated growth." First Quarter Fiscal 2019 Operating Results Pizza Inn comparable store and total domestic retail sales increased by 2.3% and 0.4%, respectively, during the first quarter of fiscal 2019 compared to the same period of the prior year. "Despite negative impacts from Hurricane Florence, Pizza Inn had its seventh consecutive quarter of growth in comparable store retail sales. We can firmly say that we are on the right track," said Bob Bafundo, President of RAVE Restaurant Group, Inc. "Previous momentum from all-day buffet, online ordering, and remodeled franchise locations continued through the first quarter. This positive traction has reinvigorated our franchise base, providing tailwinds for higher sales. In addition, we've seen a strong adoption by franchisees of our new point-of-sale system which is giving us meaningful consumer data and analytics to further refine our strategy." The Company continued its growth of the Pizza Inn Express concept, or PIE, that it debuted in the last quarter with three additional units. "Enthusiasm for the PIE concept continued this quarter," said Bafundo. "Feedback from operators has been very optimistic and we have a pipeline of potential new licensees that should fuel growth. We also see the key opportunity for increased expansion with multi-unit licensees." Pie Five comparable store and system-wide retail sales decreased by 1.8% and 6.4%, respectively, for the first quarter of fiscal 2019 compared to the same period of the prior year. "We believe that Pie Five is turning a corner," said Crane. "The response to our low-carb cauliflower crust, online ordering, delivery, and 14" large shareable pizzas has exceeded our expectations. We are not slowing down and are already testing additional new products such as an innovative calzone concept that we hope to deliver to the system in the near future." Consolidated revenues decreased $2.4 million, or 44.9%, for the first quarter of 2019. The decrease in total revenues was driven by the reduction in the number of Company-owned stores and revenue recognized from defaulted area development agreements in the prior year, partially offset by advertising fund contributions and convention fund contributions that were previously recorded as an offset to franchise expenses prior to the adoption of ASU 2014-09 and Topic 606. See "Revenue Recognition and Income Statement Presentation" section below for more details.The improved net income in the quarter ended September 23, 2018 over the prior year of $0.5 million was primarily due to improvements in the Company-owned restaurants segment and reduced general and administrative expenses. "Our first location of the new 'Goldilocks' prototype opened last week," said Bafundo. "Our long-term plan is to continue to evolve this new model which we believe has tremendous potential for lowering start-up and operating costs. We are pushing the accelerator on this business model to take full advantage of the store-level economics and uptick in off-premise dining in the restaurant industry. We believe that speed and simplicity with a limited menu and an emphasis on carry-out, online ordering and third-party delivery will be a win for Pie Five." About RAVE Restaurant Group, Inc. Founded in 1958, Dallas-based RAVE Restaurant Group owns, operates, franchises and/or licenses approximately 275 Pie Five Pizza Co. and Pizza Inn restaurants and kiosks domestically and internationally. Pizza Inn is an international chain featuring freshly made pizzas, along with salads, pastas, and desserts. Pie Five Pizza Co. is a leader in the rapidly growing fast-casual pizza space offering made-to-order pizzas ready in under five minutes. The Company's common stock is listed on the Nasdaq Capital Market under the symbol "RAVE".

View source version on Restaurant News Resource: https://www.restaurantnewsresource.com/article102527.html


Papa John’s Announces Third Quarter 2018 Results

System-wide North America comparable sales decrease of 9.8% - International comparable sales decrease of 3.3% November 7, 2018--(Restaurant News Resource) Papa John’s International, Inc. (NASDAQ: PZZA) announced financial results for the three and nine months ended September 30, 2018. Highlights

  1. Loss per diluted share of ($0.41) and adjusted earnings per diluted share of $0.20 in the third quarter of 2018, excluding the impact of Special items; adjusted earnings per diluted share down 66.7% from the third quarter 2017 of $0.60

  2. System-wide North America comparable sales decrease of 9.8%

  3. International comparable sales decrease of 3.3%; total international sales increase of 10.0%, driven by unit growth

  4. Company completed the refranchising of 31 company-owned restaurants in Minnesota during the third quarter

  5. Cash flow from operations of $98.8 million; free cash flow of $68.2 million for the first nine months of 2018

  6. 2018 EPS outlook narrowed to a range of $1.30 to $1.60 Steve Ritchie, President and CEO of Papa John’s said, “During the quarter, we took important actions resulting in improved consumer sentiment and North America comp sales that were slightly ahead of expectations. While the operating environment remains challenging, these early indicators combined with our strong cash flow give us confidence in the consumer initiatives underway across the Company.” Cash Dividend We paid a cash dividend of approximately $7.1 million ($0.225 per common share) during the third quarter of 2018. Subsequent to the third quarter, on November 1, 2018, our Board of Directors declared a fourth quarter dividend of $0.225 per common share (approximately $7.1 million based on current shareholders of record). The dividend will be paid on November 23, 2018 to shareholders of record as of the close of business on November 12, 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. In addition, the amended Credit Agreement limits any increase in dividends per share when the Leverage Ratio (as defined in the Credit Agreement) is higher than 3.75 to 1.0.

View source version on Restaurant News Resource: https://www.restaurantnewsresource.com/article102513.html


Diversified Restaurant Holdings Reports Third Quarter 2018 Results November 7, 2018--(Restaurant News Resource) Diversified Restaurant Holdings, Inc. (Nasdaq: SAUC), one of the largest franchisees for Buffalo Wild Wings with 64 stores across five states, today announced results for its third quarter ended September 30, 2018. Third Quarter Information (from continuing operations)

  1. Revenue totaled $37.5 million; Same-store sales declined 5.2% (down 3.6% excluding major 2017 boxing event)

  2. Net loss was $1.8 million or $0.06 per diluted share

  3. Restaurant-level EBITDA was $5.3 million or 14.2% of sales

  4. Adjusted EBITDA was $3.3 million or 8.7% of sales

  5. Total debt of $105.3 million was down $8.7 million for the year-to-date period “New ownership at our franchisor has quickly put together a best-in-class team that has all of the right tools to drive the Buffalo Wild Wings brand forward. While our third quarter results are not at a level we are happy with and reflect the challenges we have faced this year, we are pleased to report that the efforts of new ownership continue to gain momentum and are starting to show positive results,” commented David G. Burke, President and CEO. “One of the first major initiatives has been the launch of our new fall football campaign that kicked off in September. Through the first month of our fourth quarter we have seen a nice uptick in sales, particularly on the weekends, with same-store sales for the month of October up 1.6%. While this performance is certainly a step in the right direction, we continue to believe that the more substantial effects will be realized as additional changes are implemented and gain traction. This includes improvements to food presentation, the menu, information technology and continued enhancements around advertising and promotions, especially as we move into the March Madness period early next year. And, as we approach the fall next year, we anticipate participating in a complete relaunch of the brand." Mr. Burke added, "We expect that these initiatives will drive increasingly positive sales momentum for the brand which, in turn, will result in margin expansion driven by our significant operating leverage." The decrease in sales in the third quarter was primarily the result of reduced traffic. The prior-year period also benefited from a significant boxing event that contributed 160 basis points to the same-store sales decline in the third quarter. General and administrative expenses as a percentage of sales decreased 60 basis points to 5.3% in the third quarter due to lower corporate overhead and other efficiency initiatives. Food, beverage, and packaging costs as a percentage of sales decreased 100 basis points to 28.5% primarily due to lower traditional chicken wing costs. Average cost per pound for traditional bone-in chicken wings, DRH’s most significant input cost, decreased to $1.67 in the 2018 third quarter compared with $2.14 in the prior-year period. Higher average wages due to a tight labor market combined with lower average unit volumes resulted in compensation costs as a percent of sales increasing 200 basis points to 27.4% in the third quarter. The Company recognized an impairment and loss on asset disposal of $0.9 million in the quarter, which reflects the impairment of fixed assets at one Missouri location. Balance Sheet Highlights - Continuing Operations Cash and cash equivalents were $7.1 million at September 30, 2018, compared with $4.4 million at the end of 2017. Capital expenditures were $1.3 million during the first nine 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 in the first quarter. 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 expenditures will approximate $1.5 million in fiscal 2018. Total debt was $105.3 million at the end of the quarter, down $8.7 million since 2017 year-end. On July 24, 2018 the Company completed an underwritten registered public offering of 6 million shares of common stock at a public offering price of $1.00 per share, including 700,000 shares offered by a certain selling stockholder, for total Company gross proceeds of $5.3 million. DRH intends to use the net proceeds from the offering for working capital and general corporate purposes, which may include repayment of debt. About Diversified Restaurant Holdings, Inc. Diversified Restaurant Holdings, Inc. is one of the largest franchisees for Buffalo Wild Wings with 64 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.

View source version on Restaurant News Resource: https://www.restaurantnewsresource.com/article102511.html


Bojangles’, Inc. to be Acquired by Durational Capital Management and The Jordan Company for $16.10 Per Share November 6, 2018--(Bojangles’) Bojangles’, Inc. (Bojangles’, the “Company”) (NASDAQ: BOJA) today announced that it has entered into a definitive agreement to be acquired by Durational Capital Management LP and The Jordan Company, L.P. Under the terms of the agreement, Durational Capital Management LP and The Jordan Company, L.P. will acquire the Company in an all cash transaction. Bojangles’ stockholders will receive $16.10 per share, representing a 39% premium to the closing share price of February 12, 2018, a day prior to initial speculation regarding a potential transaction involving Bojangles’ and a premium of approximately 30% to the 90-day volume weighted average price ending on February 12, 2018. The offer represents a 15% premium to the closing share price of September 27, 2018, a day prior to a published report that Bojangles’ is exploring strategic alternatives. Transaction Details The acquisition, which has been unanimously approved by Bojangles’ Board of Directors, is subject to stockholder approval and other customary closing conditions. Concurrently with the execution of the acquisition agreement, Bojangles’ majority stockholder executed a customary voting agreement whereby it agreed (among other things) to vote its shares in favor of the acquisition. The transaction is expected to be completed in the first quarter of fiscal year 2019. Upon closing of the transaction, Bojangles’ will continue to be operated as an independent, privately-held company and will remain based in Charlotte, N.C. Statements by Randy Kibler and William Kussell, Bojangles’ “For the Bojangles’ family of employees, franchisees, and our customers, today’s announcement represents an exciting next phase for this great brand. The new ownership group is committed to maintaining the qualities of this brand that have sustained it for over four decades,” said Randy Kibler, Bojangles’ Interim President and CEO. “In consultation with our outside advisors, the Board of Directors has been evaluating several strategic alternatives over the last several months. We are confident that this agreement offers a promising opportunity to realize the highest value for our stockholders while providing a strong path forward for the Bojangles’® brand, its employees, franchisees, and loyal customers,” said William A. Kussell, Director and Non-Executive Chairman of Bojangles’. Statements by Durational Capital Management and The Jordan Company “Bojangles’ is an iconic brand with an authentic Southern heritage and a deeply loyal following,” said Eric Sobotka, Managing Partner at Durational Capital Management. “We have admired the brand and its high quality and craveable food for years, and we look forward to partnering closely with the employees and franchisees to drive its future growth and continued success.” “Bojangles’ has a differentiated offering, a talented team of employees and dedicated franchisees that are committed to their businesses and their communities,” said Ian Arons, Partner at The Jordan Company. “We are excited to invest in a company with such great growth potential, and we believe that with our and our partners’ support, Bojangles’ will be well-positioned for long-term success.” Advisors BofA Merrill Lynch acted as financial advisor and Shearman & Sterling LLP acted as legal counsel to Bojangles’ and its Board of Directors. Houlihan Lokey also acted as financial advisor to Bojangles’ and its Board of Directors. Citigroup Global Markets Inc. served as financial advisor to the consortium and, together with KKR Capital Markets LLC, provided fully committed financing in support of the transaction. Akin, Gump, Strauss & Feld LLP, Kirkland & Ellis LLP, and Seyfarth Shaw LLP acted as legal counsel in connection with the transaction. About Bojangles’, Inc. Bojangles’, Inc. is a highly differentiated and growing restaurant operator and franchisor dedicated to serving customers high-quality, craveable food made from our Southern recipes, including breakfast served All Day, Every Day. Founded in 1977 in Charlotte, N.C., Bojangles’® serves menu items such as made-from-scratch biscuit breakfast sandwiches, delicious hand-breaded bone-in chicken, flavorful fixin’s (sides) and Legendary Iced Tea®. At July 1, 2018, Bojangles’ had 766 system-wide restaurants, of which 325 were company-operated and 441 were franchised restaurants, primarily located in the Southeastern United States. For more information, visit www.bojangles.com or follow Bojangles’ on Facebook, Instagram and Twitter. About Durational Capital Management LP Based in New York, Durational Capital Management LP is an investment firm that invests in high quality consumer companies. Durational approaches its investments with a strategic mindset and focuses on driving long-term value creation through partnership with top tier management teams and actively supporting management to drive operational improvements. The firm was founded in 2017, and its investment professionals have extensive experience investing in the consumer sector. For more information, visit: www.durational.com. About The Jordan Company, L.P. The Jordan Company, founded in 1982, is a middle-market private equity firm that has managed funds with original capital commitments in excess of $11 billion since 1987 and a 36-year track record of investing in and contributing to the growth of many businesses across a wide range of industries including Industrials, Transportation & Logistics, Healthcare, Consumer, and Telecom, Technology & Utility. The senior investment team has been investing together for over 20 years and it is supported by the Operations Management Group, which was established in 1988 to initiate and support operational improvements in portfolio companies. Headquartered in New York, TJC also has an office in Chicago. For more information, visit: www.thejordancompany.com. For Investor Relations Inquiries: Raphael Gross of ICR 203.682.8253 For Media Inquiries: Brian Little of Bojangles’ Restaurants, Inc. 704.519.2118 David Millar/Danya Al-Qattan Sard Verbinnen & Co 212.687.8080


Chuy’s Holdings, Inc. Announces Third Quarter 2018 Financial Results November 6, 2018--(Business Wire) Chuy’s Holdings, Inc. (NASDAQ:CHUY) today announced financial results for the third quarter ended September 30, 2018. Highlights for the third quarter ended September 30, 2018 were as follows:

  1. Revenue increased 9.7% to $101.2 million from $92.2 million in the third quarter of 2017.

  2. On a calendar basis, comparable restaurant sales increased 0.5%. The Company estimates that unfavorable weather conditions during the third quarter of 2018 more than offset the favorable impact from lapping Hurricanes Harvey and Irma last year by approximately 30 basis points.

  3. Net loss was $7.5 million, or $0.44 per diluted share, compared to net income of $3.2 million, or $0.19 per diluted share, in the third quarter of 2017. Net loss in the third quarter of 2018 included a $12.3 million ($11.0 million, net of tax or $0.64 per diluted share) non-cash loss related to an impairment of assets at six restaurants.

  4. Adjusted net income (1) was $3.5 million, or $0.20 per diluted share compared to net income of $3.2 million, or $0.19 per diluted share, in the third quarter of 2017.

  5. Restaurant-level operating profit(1) was $14.2 million compared to $14.7 million in the third quarter of 2017.

  6. Two restaurants opened during the third quarter of 2018.(1) Adjusted net income and restaurant-level operating profit are non-GAAP measures. For reconciliations of adjusted net income and restaurant-level operating profit to the most directly comparable GAAP measures see the accompanying financial tables. For a discussion of why we consider adjusted net income and restaurant-level operating profit useful, see “Non-GAAP Measures” below. Steve Hislop, President and Chief Executive Officer of Chuy’s Holdings, Inc. stated, “Despite top-line improvement, we experienced a challenging third quarter as we continued to face industry-wide labor cost pressure and heavier rainfall than normal that resulted in the wettest September in history in most of our core Texas markets, which further muted our results by reducing our patio sales by over 18%. As we look towards the remainder of the year, we are encouraged that our new marketing efforts, that are being tested in November and December, will build added awareness and frequency and set us up well for successful execution during 2019.” Hislop added, “Weathering the current short-term challenge is a key priority for us, and as a result, we will focus on labor efficiency, technology initiatives and other margin enhancements that should help us build a foundation for long-term sales growth and profitability. With this operating focus, front and center, we will also be limiting our development during 2019 to five to seven restaurants.” Third Quarter 2018 Financial Results Revenue increased $9.0 million, or 9.7%, to $101.2 million in the third quarter of 2018 compared to the third quarter of 2017. The increase was driven by $10.4 million in incremental revenue from an additional 144 operating weeks provided by 13 new restaurants which opened during and subsequent to the third quarter of 2017. This increase was partially offset by a decrease in our fiscal comparable restaurant sales as well as a decrease in sales at 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. Due to the inclusion of a 53rd week in fiscal 2017, there is a one-week calendar shift in the comparison of the third fiscal quarter of 2018 to the third fiscal quarter of 2017. After adjusting for the timing of the 53rd week, comparable restaurant sales, on a calendar basis, increased 0.5% for the thirteen weeks ended September 30, 2018 compared to the thirteen weeks ended October 1, 2017. The increase in comparable restaurant sales was primarily driven by a 1.7% increase in average check, partially offset by a 1.2% decrease in average weekly customers. The Company estimates the unfavorable weather conditions during the third quarter of 2018 more than offset the favorable impact from lapping Hurricanes Harvey and Irma last year by approximately 30 basis points. The comparable restaurant base consisted of 80 restaurants at the end of the third quarter of 2018. On a fiscal basis, which does not adjust for the one-week calendar shift, as previously noted, sales for the same restaurants in the comparable restaurant base in the thirteen weeks ended September 30, 2018 decreased 0.4% compared to the thirteen weeks ended September 24, 2017. Total restaurant operating costs as a percentage of revenue increased to 86.0% in the third quarter of 2018 from 84.1% in the third quarter of 2017. The increase in restaurant 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; higher insurance costs; higher delivery charges; an increase in marketing expenses as a result of new national-level marketing initiatives; and an increase in occupancy costs as a result of higher rental expense on certain newly opened restaurants and increases in rent on extended lease terms at some existing restaurants. These increases were partially offset by lower cost of sales as a result of favorable commodity pricing and lower training expense for our new managers. Total general and administrative expenses of $4.8 million is relatively flat for the third quarter of 2018 as compared to the same period in 2017. As a percentage of revenue, general and administrative expenses decreased approximately 40 basis points compared to the same period last year. During the third quarter of 2018, the Company incurred a non-cash loss of $12.3 million ($11.0 million, net of tax or $0.64 per diluted share) related to an impairment of assets at six restaurants. Income tax was a benefit of $1.6 million in the third quarter of 2018, compared to expense of $1.0 million in the third quarter of 2017. The tax benefit in the third quarter of 2018 was primarily due to the tax impact of non-cash loss on asset impairment of $1.3 million. Excluding the impact of the non-cash loss on asset impairment, the Company’s effective tax rate decreased to a benefit of 6.7% during the third quarter of 2018 from an expense of 23.4% for the same period in 2017. The decrease in our effective tax rate for the quarter is primarily related to a decrease in the federal statutory tax rate from 35% to 21% effective January 1, 2018 and an increase in employee tax credits in proportion to our taxable income. Our effective tax rate for the thirty-nine weeks ended September 30, 2018 was 6.9%. As a result of the foregoing, net loss in the third quarter of 2018 was $7.5 million, or $0.44 per diluted share, compared to net income of $3.2 million, or $0.19 per diluted share, in the third quarter of 2017. Adjusted net income increased to $3.5 million, or $0.20 per diluted share in the third quarter of 2018 compared to $3.2 million, or $0.19 per diluted share, in the third quarter of 2017. Please see the reconciliation from net income to adjusted net income in the accompanying financial tables. About Chuy’s Founded in Austin, Texas in 1982, Chuy’s owns and operates 100 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!”. For further information about Chuy’s, including the nearest location, visit the Chuy’s website at www.chuys.com.


ARC Group Enters Into Agreement to Acquire Tilted Kilt Pub and Eatery

The Acquisition Would Increase ARC Group’s Annual Revenue Run Rate to More Than $25 Million November 6, 2018--(Globe Newswire) ARC Group, Inc. (OTC: ARCK), a restaurant holding company with a focus on diversified, full service restaurants and brands, announced today that it has entered into an agreement to acquire the Tilted Kilt Pub and Eatery. ARC Group will acquire all of the assets of Tilted Kilt from SDA Holdings, LLC for $10. As part of the transaction, it will assume debt of approximately $1.8 million, will assume future payment obligations of approximately $1.5 million, and will issue approximately 1.4 million shares of common stock. Tilted Kilt generated almost $14 million in revenue during 2017. The closing is expected to occur by the end of the year. There are currently 34 Tilted Kilt restaurants operating in the United States and 8 additional Tilted Kilt restaurants subject to franchise agreements, for which operations have not yet commenced. Tilted Kilt restaurants are located in 17 states, including New York, New Jersey, Pennsylvania, Nevada, California, and Texas. The restaurants offer dinner entrees, traditional pub food, hamburgers, and salads made with fresh, quality ingredients, accompanied by full bar service, served up by uniquely kilt-clad wait staff in a lively, Celtic-themed atmosphere with numerous large screen televisions featuring sports programming. Seenu G. Kasturi, President and Chief Financial Officer of ARC Group, stated, “We are delighted by the upcoming addition of Tilted Kilt to ARC Group's portfolio of full-service restaurants. The Tilted Kilt acquisition is in line with our strategy of targeting undervalued/underperforming restaurant chains with immediate cash flow potential, where we have the ability to leverage our franchising, marketing, operational, logistics and financial expertise across brands, while maintaining a strict focus on driving sales, reducing costs, and expanding margins. Upon closing, this will be the second restaurant chain that we have acquired this year and will boost ARC Group’s combined annualized revenue run rate to in excess of $25 million. We look forward to acquiring similar restaurant chains at attractive multiples that are either growing and profitable, or can be turned around quickly and will add to both our top and bottom line.” Richard Akam, CEO of ARC Group, continued, “Tilted Kilt will be a strong addition to our platform and a brand for which we believe we can make a significant impact in its top and bottom line growth. From 2013 to 2017, we improved the average unit volume of our Dick’s Wings & Grill restaurants from $699,000 to $966,000. During this same period of time, we increased the number of Dick’s Wings units from 15 to 22 and system-wide sales from $10 million to $22 million. We look forward to replicating this success with Tilted Kilt.” ARC Group, which generated approximately $4.4 million of revenue and $340,000 of net income in 2017, recently acquired the Fat Patty’s franchise. Fat Patty’s is comprised of four restaurants located in West Virginia and Kentucky that generated more than $11 million in revenue and $700,000 in net income during 2017. About ARC Group, Inc. ARC Group, Inc., headquartered in Jacksonville, Florida, is a holding company with a focus on the quick serve restaurant industry. ARC is the owner, operator and franchisor of Dick’s Wings & Grill®, a family-oriented restaurant chain with locations in Florida and Georgia. Now in its 23rd year of operation, Dick’s Wings serves over 25,000 wings daily, and prides itself on its award-winning chicken wings, hog wings and duck wings spun in its signature sauces and seasonings. ARC operates four company-owned restaurants, three company-owned concession stands, and has 19 franchise locations. ARC also owns the Fat Patty’s® franchise, with four locations in West Virginia and Kentucky. Fat Patty’s offers a number of specialty burgers and sandwiches, wings, appetizers, salads, wraps, and steak and chicken dinners in a family friendly, casual dining environment. Pro Forma Financial Information The pro forma financial information included in this press release was prepared by management for illustrative purposes only using unaudited financial information for Tilted Kilt that was provided to ARC Group by Tilted Kilt. The pro forma financial information is not necessarily indicative of the financial position or results of operations that would have been realized had ARC Group completed the acquisition of Tilted Kilt on January 1, 2018, nor is it meant to be indicative of any anticipated financial position or future results of operations that ARC Group or Tilted Kilt will experience in the event the acquisition is completed in the future. In addition, the pro forma financial information does not include any pro forma adjustments to reflect any operational efficiencies, cost savings or economies of scale that may be achievable, or the impact of any non-recurring charges and transaction-related costs that result directly from the proposed acquisition. Future results of operations are also subject to risks and uncertainties that could cause such results to differ materially from those reflected in the pro forma financial information. Readers are cautioned not to place undue reliance on the pro forma financial information presented in this press release. See “Safe Harbor Provision” below regarding forward-looking statements presented in this press release. Safe Harbor Provision This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the Company's future financial position, business strategy, plans and objectives, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, those factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and its other filings and submissions with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements. Contact: Crescendo Communications, LLC Email: arck@crescendo-ir.com Tel: 212-671-1020


Fiesta Restaurant Group, Inc. Reports Third Quarter 2018 Results

Total revenues increased 10.1% from the prior year period to $174.6 million due primarily to comparable restaurant sales growth at both Pollo Tropical and Taco Cabana November 6, 2018--(Restaurant News Resource) Fiesta Restaurant Group, Inc. (NASDAQ: FRGI), parent company of the Pollo Tropical® and Taco Cabana® restaurant brands, today reported results for the 13-week third quarter of 2018, which ended on September 30, 2018. Fiesta President and Chief Executive Officer Richard Stockinger said, "Pollo Tropical extended its positive comparable restaurant sales trend to three consecutive quarters and ten consecutive months through September. Taco Cabana has now reported two consecutive quarters and six consecutive months of positive comparable restaurant sales growth through September. We attribute our momentum to the successful implementation of our Strategic Renewal Plan that has elevated important aspects of the guest experience including improved food quality, hospitality and an enhanced restaurant environment. While our prior year period results are distorted by the effects of the hurricanes last year and make comparison less meaningful, we are pleased with the continuation of our overall trajectory." Mr. Stockinger continued, "We have completed significant development of our digital platforms and are now proceeding to launch comprehensive catering plans and pilot new loyalty and delivery programs. In advance of the upcoming holiday season, we have made great progress building our catering infrastructure at Pollo Tropical. Our 'My TC' loyalty program has been rolled out systemwide at Taco Cabana with positive initial results. Also, in the coming weeks, Pollo Tropical will begin piloting our 'My Pollo' loyalty program and third-party delivery in South Florida." Mr. Stockinger concluded, "We celebrated Taco Cabana's 40th anniversary in September and will celebrate Pollo Tropical's 30th anniversary in November, true milestones for these iconic brands. Yet, we believe we remain in the early innings of the long-term opportunity of these two brands and we are looking ahead with optimism. The success of our Crispy Pollo Bites™ at Pollo Tropical and our shareable appetizers at Taco Cabana, including our Kickin' Grande Nachos, are examples of successful new product additions that broaden the appeal of our brands. With the stabilization of the topline, we are now focused on refining the Pollo Tropical brand in non-core markets and on improving Taco Cabana sales volumes and margins to ready the brands for future expansion." Third Quarter 2018 Financial Summary

  1. Total revenues increased 10.1% from the prior year period to $174.6 million due primarily to comparable restaurant sales growth at both Pollo Tropical and Taco Cabana;

  2. Comparable restaurant sales at Pollo Tropical increased 6.5%, the third consecutive quarter of positive comparable restaurant sales, and included the positive impact of lapping Hurricane Irma in the prior year period;

  3. Comparable restaurant sales at Taco Cabana increased 12.2%, the second consecutive quarter of positive comparable restaurant sales, and included the positive impact of lapping Hurricane Harvey in the prior year period;

  4. Net income of $2.0 million, or $0.08 per diluted share, compared to the prior year period net loss of $8.3 million, or $0.31 per diluted share;

  5. Adjusted net income of $3.0 million, or $0.11 per diluted share, compared to the prior year period adjusted net income of $1.7 million, or $0.06 per diluted share (see non-GAAP reconciliation table below); and

  6. Consolidated Adjusted EBITDA of $15.0 million compared to the prior year period Consolidated Adjusted EBITDA of $13.2 million (see non-GAAP reconciliation table below). Third Quarter 2018 Brand Results During the third quarter of 2018, we lapped the anniversaries of Hurricanes Harvey and Irma (the "Hurricanes") which occurred in the prior year period. Pollo Tropical restaurant sales increased 6.5% to $93.6 million in the third quarter of 2018 compared to the prior year period due primarily to a comparable restaurant sales increase of 6.5%. The increase in comparable restaurant sales resulted from a 5.2% increase in average check and a 1.3% increase in comparable restaurant transactions. The increase in average check was driven primarily by menu price increases of approximately 4.9%. In the prior year period, we estimated that the Hurricanes negatively impacted comparable restaurant sales and transactions by approximately 5.5% to 6.5%. Adjusted EBITDA for Pollo Tropical increased to $12.5 million in the third quarter of 2018 from $9.4 million in the third quarter of 2017. This was due primarily to the impact of the Hurricanes and closing unprofitable restaurants in 2017, higher comparable restaurant sales and lower advertising expenses in 2018, partially offset by an increase in cost of sales as a percentage of restaurant sales and general and administrative expenses. In the prior year period, we estimated that the Hurricanes negatively impacted Adjusted EBITDA and income (loss) from operations by approximately $3.0 million to $4.0 million. Taco Cabana restaurant sales increased 14.5% to $80.4 million in the third quarter of 2018 compared to the prior year period due primarily to a comparable restaurant sales increase of 12.2%. The increase in comparable restaurant sales resulted from a 12.1% increase in average check and a 0.1% increase in comparable restaurant transactions. Comparable restaurant transactions were negatively impacted primarily by the elimination of deep discounting related to the repositioning of the brand, and by the reduction in overnight operating hours which negatively impacted comparable restaurant sales by 0.9%. The increase in average check was primarily driven by menu price increases of 7.7% and positive sales mix associated with higher priced promotions and new menu items related to brand repositioning. In the prior year period, we estimated that the Hurricanes negatively impacted comparable restaurant sales and transactions by approximately 2.0% to 3.0%. Adjusted EBITDA for Taco Cabana decreased to $2.5 million in the third quarter of 2018 from $3.8 million in the third quarter of 2017 due primarily to higher cost of sales as a percentage of restaurant sales and higher advertising, operating and general and administrative expenses, partially offset by the impact of higher comparable restaurant sales in 2018 and the impact of Hurricane Harvey in 2017. In the prior year period, we estimated that the Hurricanes negatively impacted Adjusted EBITDA and income (loss) from operations by approximately $1.0 million to $1.5 million. About Fiesta Restaurant Group, Inc. Fiesta Restaurant Group, Inc., owns, operates and franchises the Pollo Tropical® and Taco Cabana® restaurant brands. The brands specialize in the operation of fast casual/quick service restaurants that offer distinct and unique flavors with broad appeal at a compelling value. The brands feature fresh-made cooking, drive-thru service and catering.

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Carrols Restaurant Group, Inc. Reports Financial Results for the Third Quarter 2018

Restaurant sales increased 4.1% to $296.9 million from $285.2 million in the third quarter of 2017 November 6, 2018--(Restaurant News Resource) Carrols Restaurant Group, Inc. (Nasdaq:TAST) today announced financial results for the third quarter ended September 30, 2018. Highlights for the Third Quarter of 2018 versus the Third Quarter of 2017 Include:

  1. Restaurant sales increased 4.1% to $296.9 million from $285.2 million in the third quarter of 2017;

  2. Comparable restaurant sales increased 1.6% (inclusive of an approximate 0.5% negative impact from Hurricane Florence) compared to a 7.5% increase in the prior year quarter;

  3. Adjusted EBITDA(1) increased 8.7% to $26.3 million from $24.2 million in the prior year quarter;

  4. Net income increased 29.2% to $3.6 million, or $0.08 per diluted share, from $2.8 million, or $0.06 per diluted share, in the prior year quarter; and

  5. Adjusted net income(1) increased 15.0% to $4.0 million, or $0.09 per diluted share, from $3.5 million, or $0.08 per diluted share, in the prior year quarter.(1) Adjusted EBITDA, Restaurant-level EBITDA and Adjusted net income are non-GAAP financial measures. Refer to the definitions and reconciliation of these measures to net income or to income from operations in the tables at the end of this release. At the end of the third quarter of 2018, Carrols owned and operated 838 BURGER KING® restaurants. It acquired 10 additional BURGER KING® restaurants on October 2, 2018 following the end of the quarter. Daniel T. Accordino, the Company's Chief Executive Officer said, “We view our 1.6% increase in third quarter comparable restaurant sales positively considering the approximate 0.5% negative impact from Hurricane Florence and the formidable 7.5% comparison from the prior year. Product promotions included heightened value offerings such as the $3.49 King's Meal deal, $1.69 chicken nuggets and $0.79 sausage biscuit, balanced by premium items such as the 2 for $6 mix and match, the Brewhouse KING™ and our Sourdough sandwiches. We were further encouraged that Adjusted EBITDA growth of 8.7% and Adjusted net income growth of 15.0%, respectively, outpaced top line growth of 4.1%.” Accordino added, “We continue to expand Carrols through both opportunistic acquisitions and organic growth. So far this year, we have purchased 44 BURGER KING® restaurants and opened six new locations. We are now working diligently to instill operational best practices into our newest additions to our portfolio while also continuing to evaluate opportunities for future acquisitions and development.” Third Quarter 2018 Financial Results Restaurant sales increased 4.1% to $296.9 million in the third quarter of 2018 compared to $285.2 million in the third quarter of 2017. Comparable restaurant sales increased 1.6%, including an average check increase of 2.1% that was offset by a customer traffic decrease of 0.5%. The Company estimates that Hurricane Florence resulted in an approximately 0.5% negative impact to comparable restaurant sales. Restaurant-level EBITDA(1) was $41.6 million in the third quarter of 2018 and increased 10.2% from $37.7 million in the prior year period. Restaurant-Level EBITDA margin was 14.0% of restaurant sales and increased 78 basis points from the third quarter of 2017. The Company benefitted from a 10.2% reduction in ground beef costs compared to the prior year quarter which contributed to a 105 basis point decline in cost of sales. This was offset in part by deleveraging of other restaurant operating expenses as a percentage of restaurant sales. General and administrative expenses were $17.6 million in the third quarter of 2018 compared to $14.7 million in the prior year period. As a percentage of restaurant sales, general and administrative expenses increased 71 basis points to 5.9% compared to the prior year period reflecting higher stock compensation and acquisition-related costs. Adjusted EBITDA(1) increased 8.7% to $26.3 million in the third quarter of 2018 compared to $24.2 million in the third quarter of 2017. Adjusted EBITDA margin increased 38 basis points to 8.9% of restaurant sales. Income from operations rose to $9.7 million in the third quarter of 2018 compared to $8.7 million in the prior year period. Interest expense held at $5.9 million in the third quarters of 2018 and 2017. Cash balances totaled $19.6 million at the end of the third quarter of 2018. Net income was $3.6 million for the third quarter of 2018, or $0.08 per diluted share, compared to net income of $2.8 million, or $0.06 per diluted share, in the prior year period. Adjusted net income(1) in the third quarter of 2018 was $4.0 million, or $0.09 per diluted share, compared to adjusted net income of $3.5 million, or $0.08 per diluted share, in the third quarter of 2017. About the Company Carrols is the largest BURGER KING® franchisee in the United States with 848 restaurants as of October 5, 2018 and has operated BURGER KING® restaurants since 1976.

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PGHC Holdings, Inc. Announces Stalking Horse Sale Agreement with Wynnchurch Capital

Sale Would Increase Investment in Papa Gino's and D'Angelo Grilled Sandwiches Restaurants Remodeled, Modernized and Additional Restaurants Planned Transaction to be Pursued Through Court-Supervised Competitive Sale Process 178 Company and Franchise Restaurants Throughout New England Continue to Serve Guests Daily November 5, 2018--(PR Newswire) PGHC Holdings, Inc. ("PGHC"), the parent company of the popular New England restaurant chains Papa Gino's Pizzeria and D'Angelo Grilled Sandwiches, today announced it has reached an agreement in principle to sell the company to a Wynnchurch Capital portfolio company. The proposed transaction would significantly strengthen the chains' financial resources, allowing PGHC to remodel and modernize their 141 company-owned restaurants in Massachusetts, New Hampshire, Rhode Island, and Connecticut; open additional restaurants throughout New England; and enhance its online ordering capabilities at all restaurants. "We are pleased to have reached an agreement that will ensure a long and prosperous future for these iconic New England restaurants," said Corey Wendland, Chief Financial Officer. "For some time, we have been pursuing a plan to strengthen our financial footing and secure capital for investment in our restaurants, while also addressing our significant debt load. We are confident that the agreement with Wynnchurch achieves all of those goals." Wynnchurch is a leading middle-market private equity investment firm with $2.2 billion of committed capital under management. Wynnchurch has a long history of partnering with middle market companies like PGHC in the United States and Canada that possess the potential for substantial growth and profit improvement. In order to effectively and efficiently complete the proposed sale, the company today filed petitions for protection under Chapter 11 of the U.S. Bankruptcy Code. This proceeding will ensure PGHC can maintain normal business operations at all of its restaurants with improved liquidity as it pursues the sale. As part of this process, and as is customary, PGHC will solicit competing offers to maximize the ultimate value of the sale, for both the company and its stakeholders. Under this process, the sale will require court approval. Importantly, PGHC generates positive cash-flow from operations and has requested court approval for debtor-in-possession financing from Wynnchurch to provide additional liquidity during the sale process. PGHC will continue to pay its network of suppliers on normal terms and schedules for goods and services received during the Chapter 11 process and will continue to honor its customer rewards and gift cards programs. "We recognize we have a responsibility to not only provide for the future of these businesses, for our valued team members and guests, but to also ensure our current debt structure is sufficiently addressed," Mr. Wendland said. "We believe this process will allow us to do just that and build an even better company for all of our team members by creating an atmosphere that team members will be proud to serve in. PGHC will continue its long tradition of hosting birthday parties, team celebrations and other neighborhood events as well as serving delicious favorites like Papa Gino's famous 3-Cheese Pizza or a D'Angelo Steak & Cheese." PGHC has already taken important steps to address the debt structure and focus its financial resources. Following a careful review and analysis, on November 4, 2018, PGHC closed approximately 95 under-performing restaurants. The company regrets having to close these restaurants but believes focusing resources on a core of best-performing restaurants is the responsible approach. One hundred Papa Gino's restaurants and 78 D'Angelo Grilled Sandwiches restaurants, including franchise locations, continue to operate and remain open for business. Where possible, PGHC hopes to move certain team members from closed restaurants to restaurants that continue to operate. "These were hard decisions but decisions we believe were absolutely necessary to allow Papa Gino's and D'Angelo Grilled Sandwiches to continue serving New England now and for years to come," Mr. Wendland said. "We look forward to serving our guests the pizza and grilled sandwiches they have come to love over many decades. If your nearest Papa Gino's or D'Angelo has closed, be assured that your favorite pizza or Steak Number 9 sandwich awaits you at a re-energized restaurant not too far away." For more information on the sale process, please visit PGHCsaletransaction.com or call 1.800.390.2649. About Papa Gino's Founded in 1961, Papa Gino's Pizzeria is a 57-year old New England staple, proudly serving handmade artisanal pizzas using recipes the founding family brought over from Italy in the 1930s. From a single restaurant in East Boston, Papa Gino's has expanded over the years and now has 100 restaurants in Massachusetts, Rhode Island, New Hampshire, and Connecticut. It is the official pizza of the New England Patriots of the NFL and the New England Revolution of Major League Soccer. About D'Angelo Grilled Sandwiches With its roots stretching back to 1967, D'Angelo Grilled Sandwiches has been serving generations of hungry New Englanders. Now with 78 restaurants the chain, started in Dedham, Mass., was originally called Ma Riva's Sub Shop. The name was changed in the Seventies and the menu expanded but each restaurant remains proud to serve its guests the same highest-quality meats and breads that first won over fans more than 50 years ago.


Ruth’s Hospitality Group, Inc. Reports Third Quarter 2018 Financial Results

Comparable Sales Up 3.7% – Total Revenues Increased 16.3% November 2, 2018--(Restaurant News Resource) Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) today reported unaudited financial results for its third quarter ended September 30, 2018. Highlights for the third quarter of 2018 were as follows:

  1. Restaurant sales in the third quarter of 2018 increased 17.7% to $93.5 million compared to $79.4 million in the third quarter of 2017.

  2. Net income in the third quarter of 2018 was $3.6 million, or $0.12 per diluted share, compared to net income of $1.7 million, or $0.05 per diluted share, in the third quarter of 2017.

  3. Income from continuing operations in the third quarter of 2018 was $3.6 million, or $0.12 per diluted share, compared to income from continuing operations of $1.8 million, or $0.06 per diluted share, in the third quarter of 2017.

  4. Net income in the third quarter of 2018 included $0.4 million in deal-related expenses associated with the acquisition of the six restaurants of our Hawaiian franchisee, as well as a $0.1 million income tax benefit related to the impact of discrete income tax items.

  5. Excluding these adjustments, as well as the results from discontinued operations, non-GAAP diluted earnings per common share were $0.13 in the third quarter of 2018, compared to $0.06 in the third quarter of 2017. The Company believes that non-GAAP diluted earnings per common share provides a useful alternative measure of financial performance. Investors are advised to see the attached Reconciliation of non-GAAP Financial Measure table for additional information. Cheryl Henry, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., noted, “I am pleased to see our momentum continuing into the third quarter with double digit revenue growth and increased comparable restaurant sales of 3.7%. This growth, combined with our restaurant operating expense leverage, generated increased net income and diluted earnings per share of $0.13. We believe these results demonstrate the strength of our brand and the power of our total return strategy.” Henry continued, “The foundation of our success is our people and I am proud of the results that they delivered in the third quarter. We are all stewards of this iconic and authentic brand. It is our job to protect it, to evolve it, and to grow it. I look forward to working with our team on this for many years to come.” Review of Third Quarter 2018 Operating Results Total revenues in the third quarter of 2018 were $99.0 million, an increase of 16.3% compared to $85.2 million in the third quarter of 2017. Company-owned Sales

  6. Comparable restaurant sales at Company-owned restaurants increased 3.7%, which consisted of a traffic increase of 1.5%, as measured by entrees, and an average check increase of 2.1%.

  7. During the third quarter of 2017, Hurricanes Harvey and Irma directly impacted 15 of our 70 restaurants and resulted in 64 lost operating days. The impact on Company-owned comparable restaurant sales in the third quarter of 2018 was a positive impact of approximately 150-200 basis points.

  8. Fiscal average unit weekly sales were $92.9 thousand in the third quarter of 2018, compared to $87.3 thousand in the third quarter of 2017.

  9. 78 Company-owned Ruth’s Chris Steak House restaurants were open at the end of the third quarter of 2018, compared to 70 Ruth’s Chris Steak House restaurants at the end of the third quarter of 2017. Total operating weeks for the third quarter of 2018 increased to 1,006 from 910 in the third quarter of 2017. Franchise Income

  10. Franchise income in the third quarter of 2018 was $4.0 million, a decrease of 4.5% compared to $4.2 million in the third quarter of 2017. The decrease in franchise income was driven by the acquisition of the Hawaii restaurant locations, partially offset by a 2.0% increase in comparable franchise restaurant sales as well as the impact of the new revenue recognition standard.

  11. 75 franchisee-owned restaurants were open at the end of the third quarter of 2018 compared to 81 at the end of the third quarter of 2017. Operating Expenses

  12. Food and beverage costs, as a percentage of restaurant sales, decreased 360 basis points to 28.3%, primarily driven by a 20.5% decrease in total beef costs, as well as by an increase in average check of 2.1%.

  13. Restaurant operating expenses, as a percentage of restaurant sales, decreased 50 basis points to 53.1%. The decrease in restaurant operating expenses as a percentage of restaurant sales was primarily due to the timing of quarterly health care claims as well as an increase in average check of 2.1%.

  14. General and administrative expenses, as a percentage of total revenues, increased 60 basis points to 8.9%. The increase as a percentage of total revenues was primarily driven by increased performance based compensation and costs related to the integration of the recently acquired Hawaiian restaurants.

  15. Marketing and advertising costs, as a percentage of total revenues, increased 10 basis points. The increase in marketing and advertising costs was primarily attributable to a planned increase in advertising spending.

  16. Pre-opening costs were $0.8 million compared to $0.1 million in the third quarter of 2017, driven by the timing of new restaurant openings.

  17. Income tax expenses declined from $1.0 million in the third quarter of 2017 to $0.7 million largely as a result of the enactment of the Tax Cuts and Jobs Act. Quarterly Cash Dividend Subsequent to the end of the quarter, the Company’s Board of Directors approved the payment of a quarterly cash dividend to shareholders of $0.11 per share. The dividend will be paid on November 29, 2018 to shareholders of record as of the close of business on November 15, 2018, and represents a 22% increase from the quarterly cash dividend paid in November of 2017.

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Shake Shack Announces Third Quarter 2018 Financial Results

Total Revenue Grew 26.5% to $119.6 Million - System-wide Year-Over-Year Unit Growth of 31% November 2, 2018--(Restaurant News Resource) Shake Shack Inc. (NYSE: SHAK) yesterday reported its financial results for the third quarter ended September 26, 2018, a period that included 13 weeks. Financial Highlights for the Third Quarter 2018:

  1. Total revenue increased 26.5% to $119.6 million.

  2. Shack sales increased 27.2% to $115.9 million.

  3. Same-Shack sales decreased 0.7%.

  4. Operating income was $9.3 million, or 7.8% of total revenue, which included the impact of costs associated with Project Concrete and other one-time items totaling $1.5 million, resulting in a decrease of 11.9%.

  5. Shack-level operating profit*, a non-GAAP measure, increased 20.7% to $29.9 million, or 25.8% of Shack sales.

  6. Net income was $6.9 million and net income attributable to Shake Shack Inc. was $5.0 million, or $0.17 per diluted share, which included an after-tax impact of $1.2 million related to Project Concrete and other one-time items and resulted in a $0.04 impact to earnings per diluted share.

  7. Adjusted EBITDA*, a non-GAAP measure, increased 17.5% to $21.3 million.

  8. Adjusted pro forma net income*, a non-GAAP measure, increased 27.0% to $7.9 million, or $0.21 per fully exchanged and diluted share.

  9. Nine system-wide Shack openings, comprising seven domestic company-operated Shacks and two licensed Shacks. * Shack-level operating profit, adjusted EBITDA and adjusted pro forma net income are non-GAAP measures. Reconciliations of Shack-level operating profit to operating income, adjusted EBITDA to net income, and adjusted pro forma net income to net income attributable to Shake Shack Inc., the most directly comparable financial measures presented in accordance with GAAP, are set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures.” Randy Garutti, Chief Executive Officer of Shake Shack, stated, “We’re pleased to report that Shake Shack’s overall growth remains strong as we head into the end of 2018. During the third quarter, we generated $119.6 million in Revenue, and delivered Adjusted EBITDA of $21.3 million with year on year increases of nearly 27% and 18%, respectively. The performance of both our new and existing Shacks and the incredible hard work of all our team members is resulting in a raise to our total revenue guidance for the full year 2018.” Garutti concluded, "We expect to open 33 to 34 new domestic company-operated Shacks in 2018, ending the year with 123 to 124 Shacks, delivering approximately 37% unit growth on the prior year. Looking towards 2019, our preliminary estimate is to open between 36 and 40 new domestic company-operated Shacks. In our international licensed business, we are ramping up our efforts and focusing on our global expansion strategy and are thrilled to have entered into new licensing agreements for the Philippines, Mexico and Singapore with development agreements totaling over 50 Shacks over the next decade in these important regions. We are very pleased with the progress across our key initiatives which we believe will continue to fuel our strong financial performance.” About Shake Shack Shake Shack is a modern day “roadside” burger stand known for its 100% all-natural Angus beef burgers, chicken sandwiches and flat-top Vienna beef dogs (no hormones or antibiotics - ever), spun-fresh frozen custard, crinkle cut fries, craft beer and wine and more. With its fresh, simple, high-quality food at a great value, Shake Shack is a fun and lively community gathering place with widespread appeal. Shake Shack’s mission is to Stand for Something Good®, from its premium ingredients and caring hiring practices to its inspiring designs and deep community investment. Since the original Shack opened in 2004 in NYC’s Madison Square Park, the company has expanded to more than 180 locations in 26 U.S. States and the District of Columbia, including 70 international locations including London, Hong Kong, Istanbul, Dubai, Tokyo, Moscow, Seoul and more.

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CraftWorks Restaurants & Breweries Acquires Logan’s Roadhouse To Form “CraftWorks Holdings”, A Leading Multi-Brand Restaurant Platform With 393 Restaurants Across 40 States

Hazem Ouf, a restaurant industry veteran, is named Chairman and CEO of Craftworks Holdings November 1, 2018--(Globe Newswire) CraftWorks Restaurants & Breweries announced today that it has acquired Logan’s Roadhouse and has created CraftWorks Holdings (CWH), a leading multi-brand restaurant holding company platform to be led by Logan’s current CEO, Hazem Ouf. The combination of Craftworks Restaurants & Breweries and Logan’s Roadhouse creates a leader in full-service dining, with a national footprint of over 390 restaurants and breweries in 40 states and the District of Columbia. CraftWorks Holdings is dedicated to providing affordable and unique takes on American fare, offering its customers a differentiated dining experience and compelling value proposition. The company’s diverse portfolio of restaurant brands includes Logan’s Roadhouse, a leading mid-scale steakhouse serving mesquite wood-fire grilled steaks; Old Chicago Pizza & Taproom, which specializes in hand-crafted signature pizzas and a wide array of craft beer on tap; and the Brewery Division, a collection of restaurant-brewery brands, including Rock Bottom Restaurants & Breweries and Gordon Biersch Brewery Restaurants, featuring high quality, locally brewed craft beer paired with a craveable beer-centric menu. “I am excited to lead the new combined enterprise under the umbrella of Craftworks Holdings, and I look forward to leveraging our combined capabilities to deliver unique and memorable dining experiences," said Hazem Ouf, Chairman and Chief Executive Officer of CraftWorks Holdings. “Our name ‘CraftWorks’ reflects the spirit and high quality of ‘Crafted Signature Food & Beverage’ and our passion for serving our brands, guests, team members and our communities. We believe that our cumulative restaurant industry experience, the company’s extensive infrastructure, and the financial strength of our investors will allow us to drive excellence in service and quality within a scalable full-service dining platform.” “We are delighted to partner with Hazem Ouf as the Chairman and CEO of CraftWorks Holdings and welcome Logan’s Roadhouse and all of their associates to the CraftWorks family,” said Matt Kabaker, Senior Managing Director of Centerbridge Partners, L.P., which, through investment funds affiliated with it, controls CraftWorks Holdings. “Hazem is an accomplished hospitality industry leader with extensive experience spanning multiple concepts and restaurant segments. He has an impressive track record of driving brand revitalization while delivering strong financial performance, including the recent comprehensive turnaround of Logan’s. Hazem’s unique skill set and passion for the business make him an ideal partner for the next stage of growth and development at CraftWorks.” “By creating CraftWorks Holdings, we have laid the foundation for a premiere restaurant & brewery holding company to provide long-term growth opportunities for our brands, team members and franchise partners and established a platform that is well positioned for future growth and acquisitions,” added Ouf. Hazem Ouf has held the position of CEO for Logan’s Roadhouse since January 2017. Previously, he spent eight years leading American Blue Ribbon Holdings (ABRH) as CEO and its multi-casual and upscale causal brands (O’Charley’s, 99 Restaurant and Pub, Village Inn, Bakers Square, Legendary Baking) which he grew to become the eighth largest full-service restaurant group in the country. Prior to ABRH, Hazem served as President and CEO of restaurant companies including Spectrum Foods, Lyons Restaurants, Constellation Concepts and others. He is the recipient of numerous industry awards, including Top Business Leaders and was nominated by his peers to the Nation’s Restaurant News 2015 list of “Most Influential Power Players”. About Centerbridge: Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines—from private equity to credit and related strategies, and real estate—in an effort to find the most attractive opportunities for our investors and business partners. The Firm was founded in 2005 and as of June 2018 has approximately $28 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies to help companies achieve their operating and financial objectives. For more information, please visit www.centerbridge.com About CraftWorks Restaurants & Breweries: Broomfield, CO.-based Craftworks Restaurants and Breweries is the leading U.S. operator of brewery and craft-beer focused casual dining restaurants. The company has 189 corporate and franchise restaurants in 36 states and the District of Columbia, across brands such as Old Chicago Pizza & Taproom, Rock Bottom Restaurants & Breweries, Gordon Biersch Brewery Restaurants, and Big River Grille & Brewing Works among other brands. For more information, visit www.craftworksrestaurants.com. About Logan’s Roadhouse: Logan’s Roadhouse is a leading casual dining steakhouse headquartered in Nashville, TN. Offering mesquite wood-fire grilled steaks, signature yeast rolls and American-inspired signature favorites for over 25 years, Logan’s has 204 corporate and franchise restaurants in 22 states. For more information, visit www.logansroadhouse.com. Contact: Ryan Witherell 615-610-0304


Starbucks Reports Q4 and Full Year Fiscal 2018 Results

Q4 Consolidated Net Revenues Up 11% to Record $6.3 Billion Q4 Comparable Store Sales Up 3% Globally Driven by 4% Growth in the U.S. China Comparable Store Sales Up 1% in Q4, Improved from -2% Reported in Q3 GAAP EPS of $0.56; Non-GAAP EPS of $0.62, Up 13% Year-Over-Year Active Starbucks RewardsTM Membership in the U.S. Increases 15% Year-Over-Year to 15.3 Million Returned $8.9 Billion to Shareholders in Fiscal Year 2018, Consistent with Our 3-Year Target to Return $25 Billion November 1, 2018--(Business Wire) Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal fourth quarter and 52-week year ended September 30, 2018. GAAP results in fiscal 2018 and fiscal 2017 include items which are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information. Q4 Fiscal 2018 Highlights

  1. Global comparable store sales increased 3%, driven by a 4% increase in average ticket

  2. Americas and U.S. comparable store sales increased 4%

  3. CAP and China comparable store sales increased 1%

  4. Consolidated net revenues of $6.3 billion, up 11% over the prior year

  5. Adjusted for an approximately 2% net benefit from streamline-driven activities, and approximately 1% headwind from unfavorable foreign currency translation, consolidated net revenues grew 9% over the prior year

  6. Streamline-driven activities include the consolidation of the acquired East China business, partially offset by licensing our CPG and foodservice businesses to Nestlé following the close of the deal on August 26, 2018, Teavana mall store closures, and the conversion of certain international retail operations from company-owned to licensed models

  7. GAAP operating margin, inclusive of restructuring and impairment charges, declined 270 basis points year-over-year to 15.2%

  8. Non-GAAP operating margin of 18.1% declined 190 basis points compared to the prior year

  9. GAAP Earnings Per Share of $0.56, up 4% over the prior year

  10. Non-GAAP EPS of $0.62, up 13% over the prior year

  11. Starbucks RewardsTM loyalty program grew to 15.3 million active members in the U.S., up 15% year-over-year

  12. Mobile Order and Pay represented 14% of U.S. company-operated transactions

  13. The company opened 604 net new stores in Q4 and now operates 29,324 stores across 78 markets

  14. The company returned $3.6 billion to shareholders through a combination of dividends and share repurchases Fiscal Year 2018 Highlights

  15. Global comparable store sales increased 2%, driven by a 3% increase in average ticket

  16. Americas and U.S. comparable store sales increased 2%

  17. CAP comparable store sales increased 1%

  18. China comparable store sales increased 2%

  19. Consolidated net revenues of $24.7 billion, up 10% over the prior year

  20. Adjusted for an approximately 2% net benefit from streamline-driven activities, and approximately 1% benefit from favorable foreign currency translation, consolidated net revenues grew 8% over the prior year

  21. Streamline-driven activities include the consolidation of the acquired East China business, partially offset by Teavana mall store closures, the conversion of certain international retail operations from company-owned to licensed models, licensing our CPG and foodservice businesses to Nestlé following the close of the deal on August 26, 2018, and the sale of our Tazo brand in Q1 FY18

  22. GAAP operating margin, inclusive of restructuring and impairment charges, declined 280 basis points year-over-year to 15.7%

  23. Non-GAAP operating margin of 18.0% declined 170 basis points compared to the prior year

  24. GAAP Earnings Per Share of $3.24, up 64% over the prior year

  25. Non-GAAP EPS of $2.42, up 17% over the prior year

  26. The company returned $8.9 billion to shareholders through a combination of dividends and share repurchases “Starbucks record Q4 performance reflected meaningful improvement in virtually every critical operating metric compared to Q3,” said Kevin Johnson, ceo. “As we enter fiscal 2019, we are executing against a clear growth agenda, with a focus on our long-term growth markets of the U.S. and China. We are also excited about the long-term growth potential of our new Global Coffee Alliance with Nestlé. I’m incredibly proud of our 350,000 Starbucks partners around the world and pleased with the continued progress in our growth agenda.” “In Q4, Starbucks delivered improved sequential results in both our Americas and China/Asia Pacific segments. We also further set the stage for increased benefits from our ongoing efforts to streamline the company,” said Scott Maw, cfo. “Each of these factors contributed to the record Q4 results we reported today and position us well for fiscal 2019 and beyond. As always, credit for Starbucks performance belongs to our store partners all around the world who proudly wear the green apron and deliver an elevated Starbucks Experience to our customers, every day.” Company Updates

  27. In August, Starbucks began licensing its consumer packaged goods and foodservice businesses to Nestlé. The two companies will work closely together on the existing Starbucks range of roast and ground coffee, whole beans, single-serve, and instant coffee offerings. The Alliance will also capitalize on the experience and capabilities of both companies to bring new product offerings for coffee lovers globally.

  28. In August, the company announced a strategic partnership with Alibaba Group Holding Ltd. that will enable a seamless Starbucks Experience and transform the coffee industry in China. Collaborating across key businesses within the Alibaba ecosystem, including Ele.me, Hema, Tmall, Taobao and Alipay, Starbucks announced plans to pilot delivery services beginning September 2018, establish “Starbucks Delivery Kitchens” for delivery order fulfillment and integrate multiple platforms to co-create an unprecedented virtual Starbucks store – an unparalleled and even more personalized online Starbucks Experience for Chinese customers.

  29. In October, Starbucks announced Patrick Grismer has been appointed executive vice president and chief financial officer (cfo) effective November 30. Reporting to Kevin Johnson, Starbucks president and chief executive officer, Grismer succeeds Scott Maw, who will retire on November 30. Grismer joins Starbucks from his current position as cfo of Hyatt Hotels Corporation, which he has held since joining the company in March 2016. In this role, he was responsible for all facets of the global finance function, as well as corporate strategy, asset management, construction, procurement, and shared services.

  30. In October, the company announced its intention to fully license Starbucks operations in France, the Netherlands, Belgium, and Luxembourg to its longstanding strategic partner Alsea, S.A.B. de C.V., the largest independent chain restaurant operator in Latin America. Under the proposal, which is subject to relevant local laws, Alsea will have the rights to operate and develop Starbucks stores in these markets, building on Starbucks regional growth agenda that drives value through strategic licensed relationships. Starbucks also announced plans to introduce a new support structure in its head office in London to better serve an increasingly licensed strategy.

  31. In response to critically low coffee prices in Central America, Starbucks announced a commitment of up to $20 million to temporarily relieve impacted smallholder farmers with whom Starbucks does business, until the coffee market self-corrects and rises above the cost of production. These funds will go directly to smallholder farmers in Nicaragua, Guatemala, Mexico and El Salvador to subsidize farmer income during the upcoming harvest season in Central America.

  32. In September, Starbucks celebrated its expansion into Italy - the company’s 78th market - by opening the Starbucks Reserve Roastery in Milan. Milan marks the first time Starbucks has established its retail presence in a new market with the Roastery format, of which only two others exist in the world: the Seattle Roastery, which opened in 2014, and the Roastery in Shanghai, which debuted in 2017. Following the opening of the Roastery, Starbucks will bring additional cafés to Milan with licensed partner Percassi beginning in late 2018.

  33. The company’s Board of Directors authorized an additional 120 million shares for repurchase under its ongoing share repurchase program.

  34. As part of the company’s previously announced plan to return $25 billion to shareholders in the form of share buybacks and dividends through fiscal 2020, Starbucks announced that it is currently executing a $5 billion accelerated share repurchase program (ASR) of the Company’s common stock with the assistance of two financial institutions. The Company used proceeds from the recently completed transaction with Nestlé S.A. to execute the ASR, effective October 1, 2018.

  35. The company repurchased 58.5 million shares of common stock in Q4 FY18.

  36. The Board of Directors declared a cash dividend of $0.36 per share, payable on November 30, 2018, to shareholders of record as of November 15, 2018. About Starbucks Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at news.starbucks.com or www.starbucks.com.


Yum! Brands Reports Third-Quarter GAAP Operating Profit Decline of (14)%

Yum! Brands, Inc. (NYSE: YUM) today reported results for the third quarter ended September 30, 2018. Third-quarter GAAP EPS was $1.40, an increase of 18%. Third-quarter EPS excluding Special Items was $1.04, an increase of 52%. October 31, 2018--(Restaurant News Resource) Yum! Brands, Inc. (NYSE: YUM) today reported results for the third quarter ended September 30, 2018. Third-quarter GAAP EPS was $1.40, an increase of 18%. Third-quarter EPS excluding Special Items was $1.04, an increase of 52%. GREG CREED COMMENTS Greg Creed, CEO, said, “We are pleased to deliver third-quarter system sales growth of 5%, consisting of same store sales growth of 2% and net new unit growth of 4%. Core operating profit growth of 2% was consistent with our expectations. We are now two years into our three year transformation and remain firmly on-track to becoming more focused, more franchised and more efficient. The collective power of our three iconic brands, anchored by our four key growth drivers, is helping us deliver long-term sustainable growth and higher returns for our stakeholders." THIRD-QUARTER HIGHLIGHTS

  1. Worldwide system sales excluding foreign currency translation grew 5%, with Taco Bell at 8%, KFC at 7%, and Pizza Hut flat.

  2. We opened 410 net new units for 4% net new unit growth.

  3. We refranchised 134 restaurants, including 57 KFC, 31 Pizza Hut and 46 Taco Bell units, for pre-tax proceeds of $193 million. We recorded net refranchising gains of $100 million in Special Items. As of quarter end, our global franchise ownership mix was 97%.

  4. We repurchased 6.3 million shares totaling $527 million at an average price of $83.

  5. We reflected the change in fair value of our investment in Grubhub by recording $94 million of pre-tax investment income, resulting in $0.22 in EPS.

  6. Foreign currency translation unfavorably impacted divisional operating profit by $9 million. KFC DIVISION

  7. KFC Division opened 345 gross new international restaurants in 48 countries.

  8. Operating margin increased 5.4 percentage points driven by refranchising and same-store sales growth, partially offset by the gross up of advertising fund revenues and franchise service activities.

  9. Foreign currency translation unfavorably impacted operating profit by $8 million. PIZZA HUT DIVISION

  10. Pizza Hut Division opened 184 gross new international restaurants in 43 countries.

  11. Operating margin decreased 1.8 percentage points driven by the gross up of advertising fund revenues and franchise service activities.

  12. Foreign currency translation unfavorably impacted operating profit by $1 million. TACO BELL DIVISION

  13. Taco Bell Division opened 59 gross new restaurants, including 22 gross new international restaurants.

  14. Operating margin decreased 1.8 percentage points driven by the gross up of advertising fund revenues and franchise service activities, partially offset by refranchising, same-store sales growth and the expansion of equity restaurant margins.

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Dine Brands Global, Inc. Reports Third Quarter 2018 Results

Applebee's Same-Restaurant Sales Increase of 7.7% Sets 14-Year Record Domestic Quarterly Reported System-Wide Sales Increase 5.1% IHOP Same-Restaurant Sales Increase 1.2% Quarterly Reported System-Wide Sales Increase 3.9% October 31, 2018--(PR Newswire) Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill & Bar® and IHOP® restaurants, today announced financial results for the third quarter of fiscal 2018. "Dine Brands continues to make strong progress in its transition to a growth company. We are very pleased with our third quarter performance, as we achieved double-digit growth across key metrics and margin expansion. Applebee's and IHOP continued to build on their positive sales momentum, outperforming their respective categories. Both brands made considerable strides in their off-premise platforms with the launch of nationwide delivery programs with DoorDash, which we believe will drive sustainable positive sales and traffic," said Steve Joyce, Chief Executive Officer of Dine Brands Global, Inc. Mr. Joyce continued, "To remain the leaders in our categories, we are executing on a data-driven enhanced guest-centric strategy. We remain focused on investing in our brands, providing our guests with traffic-driving culinary innovation and exploiting new opportunities to increase market share." Third Quarter of Fiscal 2018 Financial Highlights

  1. GAAP net income available to common stockholders was $22.8 million, or earnings per diluted share of $1.29, for the third quarter of 2018. This compares to a net loss available to common stockholders of $441.9 million, or a net loss per diluted share of $24.91, for the third quarter of fiscal 2017. The increase in net income was primarily due to non-cash impairment charges totaling $531.6 million in the third quarter of fiscal 2017 related to the write-downs of Applebee's goodwill and other intangible assets. There was no impairment of goodwill and intangible assets in the third quarter of fiscal 2018.

  2. Adjusted net income available to common stockholders was $27.2 million, or adjusted earnings per diluted share of $1.53, for the third quarter of fiscal 2018. This compares to adjusted net income available to common stockholders of $17.5 million, or adjusted earnings per diluted share of $0.98, for the third quarter of fiscal 2017. The increase in adjusted net income was mainly due to higher segment profit as the result of a 7.7% increase in Applebee's domestic system-wide comparable same-restaurant sales and a decline in income taxes due to a lower corporate tax rate. These items were partially offset by an increase in general and administrative expenses. (See "Non-GAAP Financial Measures" below.)

  3. General and administrative expenses were $40.8 million for the third quarter of fiscal 2018 compared to $38.0 million for the third quarter of fiscal 2017. The increase was primarily due to higher personnel-related costs, partially offset by a decline in relocation and recruiting expenses. Same-Restaurant Sales Performance Third Quarter of Fiscal 2018

  4. Applebee's domestic system-wide comparable same-restaurant sales increased 7.7% for the third quarter of 2018.

  5. IHOP's domestic system-wide comparable same-restaurant sales increased 1.2% for the third quarter of 2018. About Dine Brands Global, Inc. Based in Glendale, California, Dine Brands Global, Inc. (NYSE: DIN), through its subsidiaries, franchises restaurants under both the Applebee's Neighborhood Grill & Bar and IHOP brands. With approximately 3,700 restaurants combined in 18 countries and approximately 380 franchisees, Dine Brands is one of the largest full-service restaurant companies in the world. For more information on Dine Brands, visit the Company's website located at www.dinebrands.com.


Brinker International Reports First Quarter 2018 Results October 30, 2018--(Restaurant News Resource) Brinker International, Inc. (NYSE: EAT) today announced results for the fiscal first quarter ended September 26, 2018. Highlights include the following:

  1. Earnings per diluted share, on a GAAP basis, in the first quarter of fiscal 2019 increased 220.0% to $0.64 compared to $0.20 in the first quarter of fiscal 2018 primarily driven by the net gain recognized on sale leaseback transactions during the first quarter of fiscal 2019

  2. Earnings per diluted share, excluding special items, in the first quarter of fiscal 2019 increased 11.9% to $0.47 compared to $0.42 in the first quarter of fiscal 2018 (see non-GAAP reconciliation below)

  3. Brinker International's Company sales in the first quarter of fiscal 2019 increased 1.6% to $728.3 million compared to the first quarter of fiscal 2018. Total revenues in the first quarter of fiscal 2019 increased 1.9% to $753.8 million compared to the first quarter of fiscal 2018

  4. Chili's company-owned comparable restaurant sales increased 2.0% in the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018. Chili's U.S. franchise comparable restaurant sales increased 1.5% in the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018

  5. Maggiano's comparable restaurant sales were flat in the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018

  6. Chili's international franchise comparable restaurant sales decreased 3.0% in the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018

  7. Operating income, as a percent of Total revenues, was 6.2% in the first quarter of fiscal 2019 compared to 3.9% in the first quarter of fiscal 2018 representing an increase of approximately 230 basis points

  8. Restaurant operating margin, as a percent of Company sales, was 11.1% in the first quarter of fiscal 2019 compared to 12.6% in the first quarter of fiscal 2018 (see non-GAAP reconciliation below)

  9. Cash flows provided by operating activities in the first quarter of fiscal 2019 were $49.6 million and capital expenditures totaled $31.2 million. Free cash flow was $18.4 million (see non-GAAP reconciliation below)

  10. During the first quarter of fiscal 2019, we completed the sale and leaseback of 141 Chili's restaurant properties for aggregate consideration of $455.7 million, resulting in a total gross gain of $289.1 million. Of the total gain, $20.1 million was recognized in first quarter of fiscal 2019, and $269.0 million was deferred at September 26, 2018 to be recognized straight-line over the 15 year initial terms of the new operating leases. The net proceeds from these sale leaseback transactions were used to repay borrowings on our revolving credit facility

  11. The Company's Board of Directors approved a quarterly dividend of $0.38 per share on the common stock of the Company. The dividend will be payable December 27, 2018 to shareholders of record as of December 7, 2018 "Brinker's strong performance this quarter is the result of the continued execution of our strategy to drive traffic and gain market share," said Wyman Roberts, Chief Executive Officer and President. "We are committed to delivering a quality guest experience while offering a compelling value proposition, a combination we believe is key to our long term success." QUARTERLY OPERATING PERFORMANCE Company Sales and Company Restaurant Expenses Chili's Company sales in the first quarter of fiscal 2019 increased 2.0% to $640.3 million from $627.6 million in the first quarter of fiscal 2018 primarily due to an increase in comparable restaurant sales. As compared to the first quarter of fiscal 2018, Chili's restaurant operating margin(1) declined. Chili's Restaurant expenses, as a percent of Company sales, increased compared to the first quarter of fiscal 2018 primarily due to higher rent expense associated with the new operating leases entered into as part of the sale leaseback transactions and the impact of adopting the new revenue accounting standard ("ASC 606"). Cost of sales, as a percent of Company sales, increased compared to the first quarter of fiscal 2018 primarily due to unfavorable menu item mix. Restaurant labor, as a percent of Company sales, increased compared to the first quarter of fiscal 2018 due to higher wage rates and employee health insurance expenses. Maggiano's Company sales in the first quarter of fiscal 2019 decreased 1.5% to $88.0 million from $89.3 million in the first quarter of fiscal 2018 due to a decrease in restaurant capacity. As compared to the first quarter of fiscal 2018, Maggiano's restaurant operating margin(1) improved. This was primarily driven by Cost of sales, as a percent of Company sales, that decreased compared to the first quarter of fiscal 2018 primarily due to favorable menu item mix. (1) Restaurant operating margin is defined as Company sales less Cost of sales, Restaurant labor and Restaurant expenses and excludes Depreciation and amortization expenses (see non-GAAP reconciliation below). Franchise and Other Revenues Franchise and other revenues in the first quarter of fiscal 2019 increased 13.3% to $25.5 million from $22.5 million primarily related to the adoption of ASC 606 during the first quarter of fiscal 2019, please refer to "REVENUE RECOGNITION UPDATE" section below for more details on the new revenue standard. Brinker franchisees generated approximately $320.7 million in sales(2) in the first quarter of fiscal 2019. (2) Royalty revenues are recognized based on the sales generated and reported to the Company by franchisees. ABOUT BRINKER Brinker International, Inc. is one of the world's leading casual dining restaurant companies. Based in Dallas, Texas, as of September 26, 2018, Brinker owned, operated, or franchised 1,686 restaurants under the names Chili's® Grill & Bar (1,634 restaurants) and Maggiano's Little Italy® (52 restaurants).

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BJ’s Restaurants, Inc. Reports Fiscal 2018 Third Quarter Results

Increases Quarterly Cash Dividend by 9.1% to $0.12 Per Share October 30, 2018--(Globe Newswire) BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for its fiscal 2018 third quarter ended Tuesday, October 2, 2018. Third Quarter 2018 Highlights Compared to Third Quarter 2017

  1. Total revenues grew 9.4% to $270.3 million

  2. Total restaurant operating weeks increased approximately 3.1%

  3. Comparable restaurant sales increased 6.9%

  4. Net income increased 256.5% to $8.5 million from $2.4 million. Third quarter 2018 net income includes a $1.7 million excess tax benefit from equity awards. Third quarter 2017 net income includes the net impact of $1.3 million in pre-tax expenses related to hurricanes Harvey and Irma and a reorganization at the Company’s restaurant support center.

  5. Diluted net income per share increased 254.2% to $0.39 from $0.11. Third quarter 2018 diluted net income per share includes a $0.08 excess tax benefit from equity awards. Third quarter 2017 diluted net income per share includes a $0.04 charge related to hurricanes Harvey and Irma and a reorganization at the Company’s restaurant support center. “The continued momentum from our sales building initiatives, coupled with our higher quality, differentiated market positioning, drove another quarter of strong top- and bottom-line growth,” commented Greg Trojan, Chief Executive Officer. “Third quarter comparable restaurant sales growth of 6.9%, including a 2.6% rise in guest traffic, marks the Company’s highest level of comparable restaurant sales growth in 29 quarters. Our strong comparable restaurant sales, success from our new restaurants and our focus on efficiency and productivity enabled us to increase restaurant level margins by 120 basis points and consolidated operating margins by 170 basis points on a year-over-year basis, excluding the impact from the hurricanes and restaurant support center reorganization in the third quarter of 2017. In addition to our strong overall financial results, our operators continued to enhance hospitality and service levels in our restaurants, resulting in significant improvements in our guest satisfaction scores during the quarter. Our strong guest satisfaction scores, combined with our sales building initiatives and marketing effectiveness, continue to drive solid positive comparable restaurant sales in the fourth quarter.” During the third quarter, the Company opened its 201st restaurant in Livonia, Michigan and remains on schedule to open its last 2018 restaurant next month in Cincinnati, Ohio, thereby fulfilling its goal of opening five restaurants this year. “With the broad attraction to our unique concept and just 201 restaurants open, we remain well positioned for near- and long-term growth given our estimated national capacity for at least 425 BJ’s restaurants,” Trojan continued. “As we look toward our 2019 development pipeline, we remain very optimistic about bringing our brand to more new markets. We currently plan to open seven to nine new restaurants next year. While our development pipeline is in excellent shape, and we continue driving solid topline momentum, our mindset has always been and will always be that new restaurant quality takes precedence over new restaurant quantity.” The Company’s Board of Directors increased the Company’s cash dividend by 9.1% to $0.12 per share of common stock, payable November 26, 2018, to shareholders of record at the close of business on November 12, 2018. While the Company intends to pay quarterly cash dividends for the foreseeable future, dividends will be reviewed quarterly and declared by the Board of Directors at its discretion. During the third quarter of 2018, BJ’s repaid $15 million of borrowings under its credit facility. At the end of the fiscal 2018 third quarter, BJ’s had funded debt of $95.0 million compared to $163.5 million at the end of its 2017 fiscal year. Mr. Trojan concluded, “The increase in BJ’s cash dividend highlights the Board’s ongoing commitment to creating value for shareholders and our success over the past year building sales and earnings, enhancing our brand and expanding our operating base. Our return of capital and leverage reduction initiatives through the end of the third fiscal quarter totaled $82.1 million for debt reduction, dividend payments and share repurchases.” About BJ’s Restaurants, Inc. BJ’s Restaurants, Inc. (“BJ’s”) is a national brand with brewhouse roots and a menu with over 120 offerings where craft matters. BJ’s broad menu has something for everyone: slow-roasted entrees, like prime rib, BJ’s EnLIGHTened Entrees® including Cherry Chipotle Glazed Salmon, signature deep dish pizza and the often imitated, but never replicated world-famous Pizookie® dessert. BJ’s has been a pioneer in the craft brewing world since 1996, and takes pride in serving BJ’s award-winning proprietary handcrafted beers, brewed at its brewing operations in five states and by independent third-party craft brewers. The BJ’s experience offers high-quality ingredients, bold flavors, moderate prices, sincere service and a cool, contemporary atmosphere. Founded in 1978, BJ’s owns and operates 201 casual dining restaurants under the BJ’s Restaurant & Brewhouse®, BJ’s Restaurant & Brewery®, BJ’s Pizza & Grill® and BJ’s Grill® brand names. All restaurants offer dine-in, take-out, delivery and large party catering. BJ’s restaurants are located in 27 states: Alabama, Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and Washington. For more BJ’s information, visit http://www.bjsrestaurants.com.


Bloomin’ Brands Announces 2018 Q3 Diluted EPS of $0.04 and Adjusted Diluted EPS of $0.10

Q3 Comparable Restaurant Sales Growth of 4.6% at Outback and 2.9% Combined U.S. - Q3 Traffic Growth at Outback of 0.9%, 5th Consecutive Quarter of Traffic Growth October 29, 2018--(Restaurant News Resource) Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the third quarter 2018 (“Q3 2018”) compared to the third quarter 2017 (“Q3 2017”). Highlights for Q3 2018 include the following:

  1. Comparable restaurant sales were up 4.6% at U.S. Outback Steakhouse with traffic up 0.9%(1)

  2. Combined U.S. comparable restaurant sales were up 2.9%(1)

  3. Comparable restaurant sales were down 3.3% in Brazil but finished with positive comparable restaurant sales in the final month of the quarter

  4. Opened five new restaurants, including four in international markets(1) For Q3 2018, comparable restaurant sales and traffic compare the thirteen weeks from July 2, 2018 through September 30, 2018 to the thirteen weeks from July 3, 2017 through October 1, 2017. CEO Comments “Our momentum continued in the third quarter, and it is clear that our investments in the customer experience are working,” said Liz Smith, CEO. “At Outback, sales and traffic continued to meaningfully out-pace the industry, and we have increased our U.S. sales guidance for the year to reflect this strong performance. We have also increased our adjusted EPS guidance for the year, and now expect adjusted earnings growth of between 18% and 23% in 2018. We are on track for a very good year at Bloomin’ Brands.” Third Quarter Financial Results

  5. The increase in total revenues was primarily due to higher U.S. comparable restaurant sales and the net impact of restaurant openings and closures, partially offset by foreign currency translation.

  6. The increase in GAAP operating income margin was primarily due to lower impairment and restaurant closing expenses, productivity initiatives and increases in average check. This increase was partially offset by commodity inflation, labor inflation, higher incentive compensation expense and lower comparable sales in Brazil. The impairment and restaurant closing expenses are excluded from our adjusted operating income margin.

  7. There is a $7.0 million change in year-over-year incentive compensation expense driving an unfavorable 70 basis point change in Q3 2018 operating income margin. This was primarily driven by a reduction in incentive compensation expense in Q3 2017.

  8. The effective income tax rate in Q3 2018 includes benefits from discrete tax items in the quarter and exercises of certain legacy stock options. These items benefited Q3 2018 diluted earnings per share by approximately $0.02. About Bloomin’ Brands, Inc. Bloomin’ Brands, Inc. is one of the largest casual dining restaurant companies in the world with a portfolio of leading, differentiated restaurant concepts. The Company has four founder-inspired brands: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar. The Company operates approximately 1,500 restaurants in 48 states, Puerto Rico, Guam and 20 countries, some of which are franchise locations.

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Dunkin’ Brands Reports Third Quarter 2018 Results October 26, 2018--(Restaurant News Resource) Third quarter highlights include:

  1. Dunkin' U.S. comparable store sales increase of 1.3%

  2. Baskin-Robbins U.S. comparable store sales increase of 1.8%

  3. Added 77 net new Dunkin' and Baskin-Robbins locations globally including 52 net new Dunkin' locations in the U.S.

  4. Revenues increased 6.0%

  5. Diluted EPS increased by 75.6% to $0.79

  6. Diluted adjusted EPS increased by 69.4% to $0.83 Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' and Baskin-Robbins (BR), yesterday reported results for the third quarter ended September 29, 2018. "For the third quarter 2018, we delivered positive comparable store sales for all four of our business segments. Dunkin' U.S. comparable store sales growth was led by strong beverage sales, coupled with new product innovation, and the Dunkin' Run snacking platform which delivered our highest afternoon comparable store sales growth in more than two years," said David Hoffmann, Dunkin' Brands Chief Executive Officer and President Dunkin' U.S. "Additionally, our new simplified branding for Dunkin' and our recently announced plans to transform the espresso experience at Dunkin' demonstrate our commitment to our beverage-led strategy and, importantly, we have strong alignment with our franchisees around the world, as evidenced by their record attendance at our 2018 Global Convention." "Earlier this year we announced that we would be investing approximately $100 million into Dunkin' U.S., a substantial amount of which will be in equipment to support our multi-year plan to expand our beverage portfolio beyond traditional drip coffee, including new espresso equipment. We, along with our franchisees, who are significantly investing in this new program, are excited to introduce the new Dunkin' espresso to America in the fourth quarter," said Kate Jaspon, Dunkin' Brands Chief Financial Officer. "We are also pleased to have completed our previously announced $650 million accelerated share repurchase program during the third quarter, demonstrating our continued commitment to utilizing our strong balance sheet to return capital to shareholders." Global systemwide sales growth of 5.2% in the third quarter was primarily attributable to global store development, Dunkin' U.S. comparable store sales growth, and Baskin-Robbins International comparable store sales growth. Dunkin' U.S. comparable store sales grew 1.3% in the third quarter as an increase in average ticket was partially offset by a decrease in traffic. Growth was driven primarily by iced coffee, both traditional and cold brew, as well as frozen beverages and breakfast sandwiches. Baskin-Robbins U.S. comparable store sales grew 1.8% during the third quarter as an increase in average ticket was partially offset by a decrease in traffic. Growth was driven by beverages including shakes and smoothies, as well as the take-home category. In the third quarter, Dunkin' Brands franchisees and licensees opened 77 net new restaurants globally. This included 52 net new Dunkin' U.S. locations, 16 net new Baskin-Robbins International locations, and 12 net new Dunkin' International locations, offset by net closures of 3 Baskin-Robbins U.S. locations. Additionally, Dunkin' U.S. franchisees remodeled 31 restaurants and Baskin-Robbins U.S. franchisees remodeled 6 restaurants during the quarter. Revenues for the third quarter increased $19.9 million, or 6.0%, compared to the prior year period due primarily to increased advertising fees and related income, as well as an increase in royalty income as a result of systemwide sales growth. Operating income and adjusted operating income for the third quarter increased $6.3 million, or 6.0%, and $5.7 million, or 5.2%, respectively, from the prior year period primarily as a result of the increase in royalty income, offset by an increase in general and administrative expenses due primarily to expenses incurred in connection with our 2018 Global Convention held in the third quarter of fiscal year 2018. Net income and adjusted net income for the third quarter increased by $24.9 million, or 60.5%, and $25.2 million, or 56.3%, respectively, compared to the prior year period primarily as a result of a decrease in income tax expense and the increases in operating income and adjusted operating income, respectively, offset by an increase in net interest expense. Income tax expense for the third quarter of 2017 was unfavorably impacted by an $8.9 million write-down of foreign tax credit carryforwards, whereas income tax expense for the third quarter of 2018 was favorably impacted by excess tax benefits from share-based compensation of $7.4 million. The decrease in income tax expense was also driven by a lower tax rate due to the enactment of the Tax Cuts and Jobs Act in the fourth quarter of fiscal year 2017. The increase in net interest expense was driven by additional borrowings incurred in conjunction with the refinancing transaction completed during the fourth quarter of fiscal year 2017. Diluted earnings per share and diluted adjusted earnings per share for the third quarter increased by 75.6% to $0.79 and 69.4% to $0.83, respectively, compared to the prior year period as a result of the increases in net income and adjusted net income, respectively, as well as a decrease in shares outstanding. The decrease in shares outstanding from the prior year period was due primarily to the repurchase of shares since the beginning of the third quarter of fiscal year 2017, offset by the exercise of stock options. Excluding the impact of recognized excess tax benefits, both diluted earnings per share and diluted adjusted earnings per share would have been lower by approximately $0.09 and $0.01 for the third quarter of fiscal years 2018 and 2017, respectively. COMPANY UPDATES

  7. The Company today announced that the Board of Directors declared a cash dividend of $0.3475 per share, payable on December 5, 2018, to shareholders of record as of the close of business on November 26, 2018.

  8. During the third quarter, the Company completed its repurchases under the two accelerated share repurchase agreements that it entered into in February 2018 for a total $650 million. At settlement, in August 2018, the Company received an additional 1.7 million shares. Under the agreements, the Company repurchased a total of approximately 10.2 million shares at a weighted average cost per share of $63.91. The Company's shares outstanding as of September 29, 2018 were 82,441,928. About Dunkin' Brands Group, Inc. With more than 20,700 points of distribution in more than 60 countries worldwide, Dunkin' Brands Group, Inc. (Nasdaq: DNKN) is one of the world's leading franchisors of quick service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hard-serve ice cream. At the end of the third quarter 2018, Dunkin' Brands' 100 percent franchised business model included more than 12,700 Dunkin' restaurants and more than 8,000 Baskin-Robbins restaurants. Dunkin' Brands Group, Inc. is headquartered in Canton, Mass.

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Chipotle Announces Third Quarter 2018 Results

EPS Nearly Doubles, As Sales Comp Accelerates, And Restaurant Margins Expand To 18.7% Versus Q3-2017 October 26, 2018--(Restaurant News Resource) Chipotle Mexican Grill, Inc. (NYSE: CMG) yesterday reported financial results for its third quarter ended September 30, 2018. Overview for the three months ended September 30, 2018 as compared to the three months ended September 30, 2017:

  1. Revenue increased 8.6% to $1.2 billion

  2. Comparable restaurant sales increased 4.4%

  3. Digital sales grew 48.3% in the quarter and accounted for 11.2% of sales

  4. Restaurant level operating margin was 18.7%, an increase from 16.1%

  5. Net income was $38.2 million, including the after-tax impact of $22.4 million in expenses related to restaurant asset impairment, corporate restructuring, and certain other costs, a 94.8% increase from $19.6 million; excluding those items, adjusted net income was $60.7 million, a 60.3% increase from $37.8 million.1

  6. Diluted earnings per share was $1.36, net of a $0.80 after-tax impact from expenses related to restaurant asset impairment, corporate restructuring, and certain other costs, a 97.1% increase from $0.69. Adjusted diluted earnings per share excluding these charges was $2.16, a 62.4% increase from $1.33.1

  7. Opened 28 new restaurants and closed or relocated 32 Overview for the nine months ended September 30, 2018 as compared to the nine months ended September 30, 2017:

  8. Revenue increased 8.1% to $3.6 billion

  9. Comparable restaurant sales increased 3.3%, which includes 20 basis points of deferred revenue.

  10. Digital sales grew 34.4% and accounted for 10.2% of sales

  11. Restaurant level operating margin was 19.3%, an increase from 17.6%

  12. Net income was $144.5 million, including the after-tax impact of $60.8 million in expenses related to restaurant asset impairment, corporate restructuring, and certain other costs, a 9.1% increase from net income of $132.5 million; excluding those items, adjusted net income was $205.4 million, a 36.3% increase from $150.7 million.1

  13. Diluted earnings per share was $5.17, net of a $2.17 after-tax impact from expenses related to restaurant asset impairment, corporate restructuring, and certain other costs, a 11.9% increase from $4.62. Adjusted diluted earnings per share excluding these charges was $7.34, a 39.8% increase from $5.25. 1

  14. Opened 97 new restaurants and closed or relocated 42 "Chipotle's strategy to win today and cultivate a better future is taking hold and I'm pleased to report our third quarter results with strong sales growth and restaurant margin expansion over last year," said Brian Niccol, chief executive officer. "We made important progress during the quarter with the introduction of our 'For Real' marketing strategy and I'm encouraged by the progress we are making in building a pipeline of customer focused innovation, driving digital sales, elevating our restaurant operations and effectively executing our reorganization." Results for the three months ended September 30, 2018 Revenue for the quarter was $1.2 billion, an increase of 8.6% from the third quarter of 2017. The increase in revenue was driven by new restaurant openings and a 4.4% increase in comparable restaurant sales. Comparable restaurant sales improved primarily as a result of an increase in average check, including a 3.8% effective menu price increase, partially offset by 1.1% fewer comparable restaurant transactions. We opened 28 new restaurants during the quarter and closed or relocated 32, bringing the total restaurant count to 2,463. Food, beverage and packaging costs were 33.4% of revenue, a decrease of 160 basis points compared to the third quarter of 2017. The decrease was primarily due to the benefit of menu price increases taken in almost all restaurants within the last 12 months and relief in avocado prices, partially offset by elevated prices of beef, paper and packaging items. Restaurant level operating margin was 18.7% in the quarter, an improvement from 16.1% in the third quarter of 2017. The improvement was driven primarily by comparable restaurant sales increases and lower marketing and promotional cost, partially offset by increased repairs and maintenance. General and administrative expenses were 8.9% of revenue for the third quarter of 2018, an increase of 10 basis points over the third quarter of 2017. In dollar terms, general and administrative expenses increased compared to the third quarter of 2017 due to $15.8 million in expense related to corporate restructuring, including stock compensation modification expense, severance, relocation, and outside services helping us through the transition, $10.6 million in expense associated with the biennial All Managers' Conference that was held in September 2018, $7.2 million related to increased headcount and higher bonus expense, and $4.4 million in outside service expense related to company initiatives to support restaurant growth, including digitizing our restaurant experience and operational leadership changes. These increases were partially offset by the benefit of comparing against a nonrecurring charge of $30.0 million recorded in the third quarter of 2017 related to the data security incident that occurred in the first six months of 2017. The effective tax rate was 36.8% in the third quarter of 2018, compared to 39% in the third quarter of 2017. The decrease was primarily due to the impact of the 2017 Tax Cuts and Jobs Act (the "TCJA"), which lowered the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017. This was partially offset by an increase in the effective state tax rate resulting from state tax deductions at the lower federal tax rate and certain non-deductible items that were added or expanded by the TCJA, including impacts of executive stock-based compensation and non-deductible meals. The tax rate was further impacted during the three months ended September 30, 2018 due to a one-time tax expense on expired vested options, offset by favorable federal tax credits. Net income for the third quarter of 2018 was $38.2 million, or $1.36 per diluted share, compared to net income of $19.6 million, or $0.69 per diluted share, in the third quarter of 2017. Excluding the impact of restaurant asset impairment, corporate restructuring, and certain other costs, adjusted net income was $60.7 million and adjusted diluted earnings per share was $2.16. About Chipotle Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without added colors, flavors or other additives. Chipotle had more than 2,450 restaurants as of September 30, 2018 in the United States, Canada, the United Kingdom, France and Germany and is the only restaurant company of its size that owns and operates all its restaurants. With more than 70,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. Steve Ells, founder and executive chairman, first opened Chipotle starting with a single restaurant in Denver, Colorado in 1993.

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Noodles & Company Announces Third Quarter 2018 Financial Results October 23, 2018--(Globe Newswire) Noodles & Company (Nasdaq: NDLS) today announced financial results for its third quarter ended October 2, 2018. Key highlights for the third quarter of 2018 versus the third quarter of 2017 include:

  1. Total revenue increased 2.2% to $116.7 million from $114.2 million.

  2. Comparable restaurant sales increased 5.5% system-wide, including a 5.2% increase for company-owned restaurants and a 7.6% increase for franchise restaurants.

  3. Net income(1) was $1.1 million, or $0.02 income per diluted share, compared to a net loss of $8.3 million, or $0.20 loss per diluted share.

  4. Adjusted net income(2) was $1.9 million, or $0.04 per diluted share, compared to adjusted net income of $0.9 million, or $0.02 per diluted share.

  5. Restaurant contribution margin(2) increased 80 basis points to 16.4%.

  6. Adjusted EBITDA(2) increased 9.5% to $10.4 million from $9.5 million. ______________________ (1) In the third quarter of 2018, the Company incurred $1.5 million of closure costs related to the three restaurants closed in the third quarter of 2018, most of which were approaching the expiration of their leases, as well as ongoing costs from restaurants closed in previous periods. The Company did not identify any restaurants as impaired in the third quarter of 2018. In the third quarter of 2017, the Company recorded an $8.9 million impairment charge related to 18 restaurants and incurred $0.8 million related to closure costs of the 55 restaurants closed during the first quarter of 2017 and restaurants closed in the fourth quarter of 2015. (2) Adjusted EBITDA, restaurant contribution margin, and adjusted net income (loss) are non-GAAP measures. Reconciliations of net income (loss) to adjusted EBITDA and adjusted net income (loss) and of 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, remarked, “We are extremely pleased with our third quarter results as we continued to gain momentum with our second consecutive quarter of over 5% comparable sales growth. This momentum was evidenced by system-wide comparable sales growth of 5.5% as well as a meaningful improvement in our restaurant contribution margin. Our results continued to benefit from the successful launch of our zucchini noodle offering in May, as well as from investments in our off-premise business and in the continued improvement in operational execution by our talented team members.” Paul Murphy, Executive Chairman of Noodles & Company, commented, “We are thrilled with the current trajectory of the Company as we continue to make significant progress. Our positive momentum in traffic growth indicates our initiatives are resonating, increasing frequency from existing guests, returning lapsed users to the brand, and driving trial from those new to the brand. We are confident that there remains tremendous opportunity to build off our recent success, and I look forward to working with our passionate and engaged team members to deliver strong and reliable growth for years to come.” Third Quarter 2018 Financial Results Total revenue increased $2.5 million in the third quarter of 2018, or 2.2%, to $116.7 million, compared to $114.2 million in the third quarter of 2017. This increase was primarily due to an increase in comparable restaurant sales, partially offset by the impact of restaurants closed since the third quarter of 2017, most of which were approaching the expiration of their leases. Average unit volumes (“AUVs”) for the quarter increased $41,000 to $1,107,000 compared to $1,066,000 in the third quarter of 2017. In the third quarter of 2018, comparable restaurant sales increased 5.5% system-wide, including a 5.2% increase for company-owned restaurants and a 7.6% increase for franchise restaurants. Comparable sales growth was driven primarily by an increase in traffic related to successful implementation of recent operational and brand initiatives, as well as a modest price increase, partially offset by an impact of approximately 50 basis points (“bps”) incurred as a result of the shift in the timing of the 4th of July holiday based on our fiscal quarter. No new company-owned restaurants opened and three company-owned restaurants closed in the third quarter of 2018. The Company had 466 restaurants at the end of the third quarter 2018, comprised of 401 company-owned and 65 franchise restaurants. For the third quarter of 2018, the Company reported net income of $1.1 million, or $0.02 income per diluted share, compared with a net loss of $8.3 million in the third quarter of 2017, or $0.20 loss per diluted share. Income from operations for the third quarter of 2018 was $2.1 million, compared to a loss of $7.5 million in the third quarter of 2017. In the third quarter of 2018, the Company incurred $1.5 million of closure costs related to the three restaurants closed in the third quarter of 2018 and ongoing costs from restaurants closed in previous periods. The Company did not impair any restaurants in the third quarter of 2018. In the third quarter of 2017, the Company recorded an $8.9 million impairment charge related to 18 restaurants and incurred $0.8 million related to ongoing closure costs of the 55 restaurants closed during the first quarter of 2017 and restaurants closed in the fourth quarter of 2015. Restaurant contribution margin increased 80 bps to 16.4% in the third quarter of 2018, compared to 15.6% in the third quarter of 2017. This increase was primarily due to leverage on higher AUVs during the third quarter of 2018. Adjusted net income was $1.9 million, or $0.04 per diluted share, in the third quarter of 2018, compared to adjusted net income of $0.9 million, or $0.02 per diluted share in the third quarter of 2017. Adjusted EBITDA increased to $10.4 million in the third quarter of 2018 from $9.5 million in the third quarter of 2017. About Noodles & Company Since 1995, Noodles & Company has been serving noodles your way, from noodles and flavors that you know and love, to new ones you’re about to discover for the first time. From indulgent Wisconsin Mac & Cheese to good-for-you Zoodles, Noodles serves a world of flavor in every bowl. Made up of more than 450 restaurants and 10,000 passionate team members, Noodles is dedicated to nourishing and inspiring every guest who walks through the door. To learn more or find the location nearest you, visit www.noodles.com.


FCPT Announces Acquisition of a Chili’s Restaurant Property for $2.15 Million October 23, 2018--(Business Wire) Four Corners Property Trust (NYSE:FCPT), a real estate investment trust engaged in the ownership of high-quality, net-leased restaurant properties (“FCPT” or the “Company”) is pleased to announce the acquisition of a corporate-operated Chili’s restaurant through a sale-leaseback transaction with certain subsidiaries of Brinker International, Inc. (NYSE: EAT) for a purchase price of $2.15 million on initial annual cash rent of approximately $137,000. The lease has 15 years of initial term, rent increases of 10% every five years during the initial term and a corporate guarantee from Brinker International, Inc. FCPT believes that rent is well-supported with conservative EBITDAR coverage of 3.9x. The property is in a well-located retail corridor in Colorado with high traffic and attractive demographics. This transaction is a follow on to the three property transaction that closed on September 14, 2018. About FCPT FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and related food services industry. Additional information about FCPT can be found on the website at http://www.fcpt.com/. Contacts Four Corners Property Trust: Bill Lenehan, CEO 415-965-8031 Gerry Morgan, CFO 415-965-8032


Daphne’s Buys Noon Mediterranean Out of Bankruptcy October 18, 2018--(Franchising.com) Today, Daphne’s Inc. announced that it has acquired Noon Mediterranean out of bankruptcy. Under the agreement, Daphne’s parent, Elite Restaurant Group (based in Los Angeles) will rebrand Noon Mediterranean’s 12 units under the Daphne’s Banner. “We are looking to turn these units into hybrid stores, where we will keep Noon’s build-you-own bowls,” says Elite Restaurant Group’s President, Michael Nakhleh. “However, we will enhance the customer’s experience by including Daphne’s signature bowls.” The 12 units are throughout the states of Texas, Pennsylvania and Massachusetts. The deal is expected to go through within 60 to 90 days. The deal included more than $731,000 in cash and up to $100,000 in post-bankruptcy costs, in addition to 2-percent equity in Daphne's Inc. going to creditors, along with rent for assumed locations. The deal will grow Daphne’s to 36 units - 22 existing Daphne’s, 12 converted locations, plus two new units scheduled to open in the next 60 days. According to the bankruptcy filing: After the close of the deal, Daphne’s will have no debt, and will generate annual revenue of $27 million, according to Noon's bankruptcy filing. ERG (Elite Restaurant Group) will maintain their assembly-line format, as opposed to Daphne’s traditional counter service. Around 150 employees in stores and at Noon’s headquarters will remain on the payroll. The purchase comes two months after Noon Mediterranean filed for Chapter 11 bankruptcy protection. With the purchase of Daphne’s this year, “California Greek” has been stripped from its name, the look and menu have been revamped and Elite Restaurant Group has introduced Daphne’s-branded gyro kits at 90 Costco locations on the West Coast. Since acquiring Slater’s 50/50, Elite Restaurant Group has helped the restaurant chain expanded to four additional states outside of its California base. Last month, the company entered into a deal to purchase the 17-unit Patxi’s Pizza from private-equity firm KarpReilly LLC. Media Contact: Lamont Johnson 305-219-2242


Del Taco Restaurants, Inc. Reports Third Quarter 2018 Financial Results

System-wide comparable restaurant sales grew 1.4%, marking the 20th consecutive quarter of gains October 16, 2018--(Restaurant News Resource) Del Taco Restaurants, Inc., (NASDAQ: TACO), the second largest Mexican-American quick service restaurant chain by units in the United States, today reported fiscal third quarter 2018 financial results. The Company also updated its guidance for fiscal year 2018. Fiscal Third Quarter 2018 Highlights

  1. System-wide comparable restaurant sales grew 1.4%, marking the 20th consecutive quarter of gains;

  2. Company-operated comparable restaurant sales grew 0.3%, marking the 25th consecutive quarter of gains. Company-operated comparable restaurant sales growth was comprised of average check growth of 2.9%, partially offset by a transaction decrease of 2.6%;

  3. Franchised comparable restaurant sales grew 3.0%;

  4. Total revenue increased 6.2% to $117.8 million (including $3.2 million of franchise advertising contributions and $0.2 million of other franchise revenue required as part of the new revenue recognition rules adopted in the fiscal first quarter whereby the offsetting impact is an increase to expenses such that there is no impact on operating income and net income) compared to $111.0 million in the fiscal third quarter 2017;

  5. Company restaurant sales increased 3.1% to $109.6 million compared to $106.3 million in the fiscal third quarter 2017;

  6. Net income was $5.9 million, or $0.15 per diluted share, compared to $5.1 million in the fiscal third quarter 2017, or $0.13 per diluted share;

  7. Adjusted net income was $6.0 million, or $0.15 per diluted share, compared to $5.1 million in the fiscal third quarter 2017, or $0.13 per diluted share;

  8. Restaurant contribution margin increased 70 basis points to 19.9% compared to 19.2% in the fiscal third quarter 2017; and

  9. Adjusted EBITDA increased 6.4% to $17.7 million compared to $16.6 million in the fiscal third quarter 2017. John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “During the quarter we made strategic progress led by the launch of Elevated Combined Solutions which furthers our mission to be the leader in the value oriented QSR+ segment. We again experienced strong franchise comparable restaurant sales trends demonstrating our strengthening franchise system which supports brand portability. We remained focused on strengthening our great culture with the launch of our company values and our new advertising campaign centered on real employees. And, despite soft company-operated comparable restaurant sales, our effective margin management strategy helped us deliver an improved restaurant contribution margin after adjusting for the favorable timing of advertising expenses.” Cappasola continued, “Although the new $1 Chicken Quesadilla Snacker did not support check or transaction trends during the third quarter, our flexible barbell menu strategy allowed us to quickly pivot to mid-tier and premium products which achieved an immediate improvement in menu mix. As we enter the fourth quarter our plan to generate transaction momentum includes the launch of Shredded Beef as a limited time offer, which has already sequentially improved our trends, and premium innovation with a new Triple Meat Epic Burrito. Still, we have opted to take a more cautious approach to our fiscal year outlook and have therefore updated our annual guidance.” Cappasola concluded, “Next month, we will launch our Del Taco mobile app and begin offering delivery in the Los Angeles market through GrubHub, followed by a system-wide launch in 2019 that will include partnerships with Postmates and DoorDash. We believe delivery will provide another convenient channel to enjoy our fresh, high quality food and that moving toward a multiple delivery service provider approach will position us to maximize consumer demand.” Review of Fiscal Third Quarter 2018 Financial Results Total revenue increased 6.2% to $117.8 million (including $3.2 million of franchise advertising contributions and $0.2 million of other franchise revenue required as part of the new revenue recognition rules adopted in the fiscal first quarter whereby the offsetting impact is an increase to expenses such that there is no impact on operating income and net income) compared to $111.0 million in the fiscal third quarter 2017. Excluding these revenue recognition impacts, total revenue increased 3.1%. Comparable restaurant sales increased 1.4% system-wide, resulting in a 5.5% increase on a two-year basis. The Del Taco system has now generated comparable restaurant sales growth for 20 consecutive quarters. Company-operated comparable restaurant sales increased 0.3%, marking 25 consecutive quarters of comparable restaurant sales growth. Franchise comparable restaurant sales increased 3.0%, reflecting the strength of our system across a diverse geographic footprint. Net income was $5.9 million, representing $0.15 per diluted share, compared to $5.1 million in the fiscal third quarter 2017, representing $0.13 per diluted share. Adjusted net income was $6.0 million, or $0.15 per diluted share, compared to $5.1 million in the fiscal third quarter 2017, or $0.13 per diluted share. Restaurant contribution was $21.8 million compared to $20.4 million in the fiscal third quarter 2017. As a percentage of Company restaurant sales, restaurant contribution margin increased approximately 70 basis points year-over-year to 19.9%. The increase was the result of an approximate 90 basis point decrease in food and paper costs and a 40 basis point decrease in occupancy and other operating expenses, which was due to the timing of advertising expenses, offset by an approximate 60 basis point increase in labor and related expenses.

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Sonic Reports Improved Sales Performance for the Fourth Fiscal Quarter of 2018

System same-store sales rose 2.6%, consisting of a 2.6% same-store sales increase at franchise drive-ins and a 2.5% increase at company drive-ins October 17, 2018--(Restaurant News Resource) Sonic Corp. (NASDAQ: SONC) yesterday announced results for its fourth fiscal quarter ended August 31, 2018. Key highlights of the company’s fourth quarter of fiscal year 2018 included:

  1. Net income per diluted share increased 2% to $0.51 versus $0.50 in the prior-year period; adjusted net income per diluted share increased 16% to $0.52 versus $0.45 in the prior-year period;

  2. System same-store sales rose 2.6%, consisting of a 2.6% same-store sales increase at franchise drive-ins and a 2.5% increase at company drive-ins;

  3. Company drive-in margins declined by 80 basis points as compared to the year-ago period;

  4. 23 system drive-ins opened; and

  5. The company repurchased approximately 890,000 outstanding shares. Key highlights of the company’s fiscal year 2018 included:

  6. Net income per diluted share increased 29% to $1.87 versus $1.45 in the prior-year; adjusted net income per diluted share increased 19% to $1.49 versus $1.25 in the prior-year;

  7. System same-store sales declined 0.3%, consisting of a 0.3% same-store sales decrease at franchise drive-ins and a 0.8% decrease at company drive-ins;

  8. Company drive-in margins were flat compared to the prior year;

  9. 41 system drive-ins opened; and

  10. The company repurchased 5.2 million outstanding shares. “I am proud of the progress we made over the course of fiscal 2018, culminating in solid same-store sales performance in the fiscal fourth quarter. I thank our operators for their sustained efforts to offer the most personalized experience in the quick service restaurant industry and their confidence in underwriting a strong future for the brand through investments in drive-ins, people and technology, as well as their dedication to their employees and communities,” said Cliff Hudson, Sonic Corp. CEO. “Over the past year, our team implemented initiatives to enhance our marketing reach, refresh our advertising, introduce exciting new product news and complete the rollout of mobile Order Ahead to the entire system. The future is bright for the Sonic brand.” During fiscal year 2018, the company repurchased 5.2 million shares of its common stock for $139.2 million, representing 12% of shares outstanding, and made aggregate dividend payments of $24 million. The company ended the fiscal year with a 4.7x net-debt-to-EBITDA leverage ratio based on $144.8 million of EBITDA for the fiscal year. Financial Overview For the fourth fiscal quarter of 2018, the company’s net income totaled $18.6 million or $0.51 per diluted share compared to net income of $20.8 million or $0.50 per diluted share in the same period of the prior year. Excluding the items outlined below, net income was flat and net income per diluted share increased 16% to $0.52. The lower tax rate resulting from federal tax reform benefitted adjusted earnings per share by approximately $0.05. Excluding the total impact of federal tax reform, adjusted net income per diluted share improved 4% to $0.47 in the fourth quarter of fiscal year 2018. Agreement to be Acquired by Inspire Brands On September 25, 2018, Sonic and Inspire Brands, Inc. (“Inspire”) announced that they have entered into a definitive merger agreement under which Inspire will acquire Sonic for $43.50 per share in cash in a transaction valued at approximately $2.3 billion including the assumption of Sonic’s debt. Inspire is a multi-brand restaurant company whose portfolio includes more than 4,700 Arby’s, Buffalo Wild Wings, and Rusty Taco locations worldwide. Following the completion of the transaction, Sonic will be a privately held subsidiary of Inspire and will continue to be operated as an independent brand. In light of the pending transaction with Inspire, Sonic will not host a conference call to discuss its fourth fiscal quarter earnings results. 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 approximately 3,600 drive-in locations are owned and operated by local business men and women.

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Domino’s Pizza Reports Global Retail Sales Growth of 8.3% for Q3 2018 October 16, 2018--(Restaurant News Resource) Domino's Pizza, Inc. (NYSE: DPZ) announced results for the third quarter of fiscal 2018, comprised of strong growth in same store sales, global store counts and earnings per share. Domestic same store sales grew 6.3% during the quarter versus the year-ago period, continuing the positive sales momentum in the Company's domestic business. The international division also posted positive results, with same store sales growth of 3.3% during the quarter. The third quarter marked the 99th consecutive quarter of positive international same store sales growth and the 30th consecutive quarter of positive domestic same store sales growth. The Company also had third quarter global net store growth of 232 stores, comprised of 173 net new international stores and 59 net new domestic stores. Global retail sales increased 8.3%, or 10.4% without the negative impact of changes in foreign currency exchange rates. Diluted EPS was $1.95 for the third quarter, which was up 65.3% over the Company's diluted EPS in the prior year quarter. During the third quarter of 2018, the Company repurchased 397,490 shares of its common stock pursuant to its Board of Directors approved open market share repurchase program for approximately $109.1 million. In addition to the $0.55 quarterly dividend paid on June 29, 2018, the Company's Board of Directors also declared a $0.55 per share quarterly dividend for shareholders of record as of September 14, 2018, which was paid on September 28, 2018. Additionally, on October 11, 2018, the Board of Directors declared a $0.55 per share quarterly dividend for shareholders of record as of December 14, 2018, to be paid on December 28, 2018. "I continue to be proud of our great franchisees and operators around the world. In particular, our U.S. business once again executed at extremely high levels in the third quarter. Our global business, driven by strong retail sales growth and franchisee economics that outperformed the industry, continued its strong momentum," said Ritch Allison, Domino's Chief Executive Officer. About Domino's Pizza® Founded in 1960, Domino's Pizza is the largest pizza company in the world based on global retail sales, with a significant business in both delivery and carryout pizza. It ranks among the world's top public restaurant brands with a global enterprise of over 15,300 stores in over 85 markets. Domino's had global retail sales of over $12.2 billion in 2017, with more than $5.9 billion in the U.S. and more than $6.3 billion internationally. In the third quarter of 2018, Domino's had global retail sales of nearly $3.1 billion, with over $1.5 billion in the U.S. and nearly $1.6 billion internationally. Its system is comprised of independent franchise owners who accounted for over 97% of Domino's stores as of the third quarter of 2018. Emphasis on technology innovation helped Domino's achieve more than half of all global retail sales in 2017 from digital channels, primarily online ordering and mobile applications. In the U.S., Domino's generates over 60% of sales via digital channels and has produced several innovative ordering platforms, including Google Home, Facebook Messenger, Apple Watch, Amazon Echo, Twitter and text message using a pizza emoji. In late 2017, Domino's began an industry-first test of self-driving vehicle delivery with Ford Motor Company – and in April 2018, launched Domino's HotSpots™, featuring over 200,000 non-traditional delivery locations including parks, beaches, local landmarks and other unique gathering spots.

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