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Financials - April 2019









MTY Food Group Inc. and Papa Murphy’s Holdings, Inc. Announce Definitive Merger Agreement


April 11, 2019 07:00 ET Source: Papa Murphy's Holdings, Inc.

MONTREAL, April 11, 2019 (GLOBE NEWSWIRE) -- MTY Food Group Inc. (“MTY”) (TSX:MTY) and Papa Murphy’s Holdings, Inc. (“Papa Murphy’s”) (NASDAQ:FRSH) today announced they have entered into a definitive merger agreement (the “Merger Agreement”) under which MTY would acquire all of the issued and outstanding shares of common stock of Papa Murphy’s for cash consideration of US$6.45 per share, representing total transaction value of approximately US$190.0 million (C$253.2 million) (the “Transaction”), including Papa Murphy’s net debt outstanding. The purchase price per share of Papa Murphy’s common stock implies a premium of 31.9% to the Papa Murphy’s closing price on April 10, 2019 and 46.3% to the unaffected Papa Murphy’s closing price on November 7, 2018 prior to the announcement by Papa Murphy’s that it was conducting a process to explore and evaluate strategic alternatives to maximize shareholder value and had engaged a financial advisor to assist with the review. The terms and conditions of the Merger Agreement were unanimously approved by the boards of directors of both companies. The Transaction is subject to customary closing conditions including receipt of applicable regulatory approvals.

MTY is a leading franchisor in the North American restaurant industry. MTY’s multi-concept model allows MTY to position itself across a broad range of demographic, economic and geographic sectors. As at February 28, 2019, its network had 5,941 locations in operation, mostly all franchised, including over 500 locations operating in 39 countries outside North America.

Papa Murphy's is a franchisor and operator of the largest Take ‘n’ Bake pizza brand and the 5th largest pizza chain in the United States, selling fresh, hand-crafted pizzas ready for customers to bake at home. In addition to scratch-made pizzas, Papa Murphy’s offers a growing menu of grab 'n' go items, including salads, sides and desserts. Papa Murphy’s was founded in 1981 and operated 1,331 franchised and 106 corporate-owned stores in 37 U.S. states, Canada and the United Arab Emirates as of December 31, 2018.

Eric Lefebvre, Chief Executive Officer of MTY said, “This is an important transaction for MTY as we add a brand with a differentiated position in pizza to our existing U.S. portfolio. We are thrilled about the prospect of welcoming the Papa Murphy’s brand, its franchise partners and employees, to the MTY family. Papa Murphy’s is a unique concept with over a 35 year history of providing a superior quality product made with fresh ingredients. We believe the pizza segment is highly attractive due to its size, fragmented nature and growth potential. The Papa Murphy’s brand is well loved by its loyal customers and is supported by a strong network of franchise partners. We expect the combination of these two companies and the expertise it brings to produce tremendous opportunities for MTY’s U.S. expansion objectives.”

“The board of directors and our advisors have thoroughly evaluated all options available to us and are confident that this agreement provides immediate value to our stockholders at a premium over our current share price. Merging our unique, differentiated brand with a global leader in franchised restaurant concepts will accelerate on-going efforts to enhance our convenience and relevance and maintain our position as the number one Take ‘n’ Bake pizza chain in the United States,” said Jean Birch, Chairperson of the board of directors of Papa Murphy’s.

View full version at Papa Murphy's


Good Times Restaurants Reports Fiscal 2019 Q2 Same Store Sales


Bad Daddy’s Same Store Sales Increase 1.3%


April 10, 2019 08:00 AM Eastern Daylight Time

DENVER--(BUSINESS WIRE)--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, today announced that same store sales at its Bad Daddy’s concept increased 1.3% during the quarter over the prior year’s increase of 0.2%, which includes the loss of the equivalent of twelve restaurant operating days caused by restaurant closures in Colorado due to the “Bomb Cyclone” weather event on March 13th. Adjusted for those lost restaurant operating days, same store sales would have increased 1.8% during the quarter. Same store sales for its Good Times’ brand decreased 7.5% during the quarter over the prior year’s increase of 7.1% in the same quarter. Adjusted for the thirty lost restaurant operating days due to closures associated with the March 13th weather event and extended power outages at two restaurants, Good Times same store sales would have declined 5.9%. Boyd Hoback, President & CEO, said, “We continue to see healthy same store sales growth in our Bad Daddy’s brand, even with the loss of sales due to harsher weather that has caused store closures in both our first and second quarters. Good Times continued to be significantly impacted by the much more inclement weather in Colorado (both in temperature and precipitation) versus last year and we attribute most, if not all, of the same store sales decline this year to the unfavorable weather. Importantly, when we compare favorably on weather our same store sales bounce back, as they have subsequent to the end of the quarter with our first stretch of warmer weather. At the beginning of the quarter we opened our thirty-fifth Bad Daddy’s restaurant, our fourth in the Raleigh, North Carolina market, which is performing well above our system average unit volume.” About Good Times Restaurants Inc.: Good Times Restaurants Inc. (GTIM) owns, operates, franchises and licenses 35 Bad Daddy’s Burger Bar restaurants through its wholly-owned subsidiaries. Bad Daddy’s Burger Bar is a full service, upscale, “small box” restaurant concept featuring a chef driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft microbrew beers in a high energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly-owned subsidiaries, Good Times Restaurants Inc. operates and franchises a regional quick service restaurant chain consisting of 35 Good Times Burgers & Frozen Custard restaurants, located primarily in Colorado.

View source version at Good Times Restaurants



Wellspring Capital Acquires Lucky Strike Entertainment


April 04, 2019 12:42 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Wellspring Capital Management LLC (“Wellspring”), a New York-based private equity firm, announced that it has closed the acquisition of Lucky Strike Entertainment, LLC, an operator of upscale entertainment venues with 21 locations in the United States. Financial terms of the transaction were not disclosed. Lucky Strike is a leading creator and operator of entertainment venues featuring premium bowling lanes, handcrafted food and spirits, occasional live music performances, a broad assortment of engaging, high-tech games and a one-of-a-kind atmosphere. Lucky Strike venues seek to combine the best attributes of dining, nightlife and interactive entertainment. Founded in 2003 by Steven Foster and Kevin Troy, the Company has 21 venues located across 12 states and Washington, D.C. The Company is headquartered in Sherman Oaks, California. Alex Carles, a Managing Partner at Wellspring, said, “We are thrilled to be supporting Lucky Strike though its next phase of growth. Wellspring has a long history of partnering with founders like Steven Foster and Kevin Troy who have redefined their industries and are poised for incredible growth. Although a nationally known player today, Lucky Strike still has a large whitespace opportunity.” Matthew Harrison, a Partner at Wellspring, commented, “Lucky Strike represents an exciting opportunity to build on Wellspring’s successful track record in the restaurant and entertainment sectors. The company has built an impressive brand in experiential retail, a standout area of growth within a dramatically shifting retail landscape. Wellspring’s experience in this space through investments such as Dave & Buster’s position us to be value-add partners to Steven, Kevin, and the rest of the Lucky Strike team.” Steven Foster, Founder and CEO of Lucky Strike, added, “We are very pleased that Wellspring has invested in Lucky Strike given the firm’s prior successes supporting businesses in our space and many others. We are extremely proud of what the brand has accomplished since our founding and look forward to accelerating our growth trajectory alongside Wellspring.” McDermott Will & Emery served as legal counsel to Wellspring in the transaction. About Wellspring Capital Management Wellspring Capital Management is a leading private equity firm headquartered in New York. Since its founding in 1995, Wellspring has raised over $4 billion of initial capital commitments through six private equity funds. Over the past 20 years, Wellspring has invested in over 35 platform investments across various segments of the U.S. and global economies. Wellspring’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic partner, providing management teams with top-line support, M&A experience, financial expertise and access to resources. For additional information, please visit www.wellspringcapital.com.

View source version at Wellspring Capital-Lucky Strike


The ONE Group Reports Q4 and Full Year 2018 Results


Domestic Same Store Sales for Fourth Quarter Increase 15% GAAP Income from Operations of $4.2 million / Adjusted EBITDA Increases 68% Expands and Updates 2019 Financial Targets


March 28, 2019 04:05 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq:STKS) today reported its financial results for the fourth quarter and full year ended December 31, 2018. Highlights for the fourth quarter ended December 31, 2018 compared to the same period last year were as follows:

  1. Total GAAP revenues increased 20% to $25.8 million compared to $21.5 million;

  2. Domestic comparable sales* at owned and managed STK restaurants rose 15%;

  3. GAAP income from operations was $4.2 million compared to a loss from operations of $136,000;

  4. GAAP net income attributable to The ONE Group Hospitality, Inc. was $3.2 million or $0.11 net income per share compared to GAAP net loss of $348,000 or $0.01 loss per share;

  5. Adjusted EBITDA** increased 68% to $4.2 million compared to $2.5 million; and,

  6. Total restaurant expenses decreased 250 basis points to 80.8% from 83.3% as a percentage of revenues.Highlights for the full year ended December 31, 2018 compared to the same period last year were as follows:

  7. Total GAAP revenues increased 7.5% $85.6 million compared to $79.7;

  8. US STK brand restaurant sales rose to a record $101 million;

  9. Domestic comparable sales* at owned and managed STK restaurants rose 9.4%.

  10. GAAP income from operations was $5.8 million compared to a loss from operations of $2.7;

  11. GAAP net income attributable to The ONE Group Hospitality, Inc. was $3.3 million or $0.12 net income per share compared to GAAP net loss of $4.2 million or $0.17 loss per share;

  12. Adjusted EBITDA** increased 50% to $10.5 million compared to $7.0 million; and,

  13. Total restaurant expenses decreased 350 basis points to 86.2% from 89.7% as a percentage of revenues.*Comparable sales or same store sales (“SSS”) represents total US food and beverage sales at owned and managed units opened for at least a full 18-month period. This metric includes total revenues from our owned and managed STK locations. Revenues from locations where we do not directly control the event sales force (The W Hotel, Westwood, CA and our locations in Europe) are excluded from this metric. ** Adjusted EBITDA. We define adjusted EBITDA as net loss before interest expense, provision for income taxes, depreciation and amortization, non-cash impairment loss, deferred rent, pre-opening expenses, non-recurring gains and losses, stock based compensation, losses from discontinued operations and certain transactional costs. Adjusted EBITDA has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of Adjusted EBITDA to Net Income (loss) in this release. Emanuel “Manny” Hilario, President and CEO of The ONE Group stated, "We capped off a strong year with an incredibly robust fourth quarter as we made meaningful progress across all components of our four-point strategy. Top-line growth performance reflects our high level of execution and ability to incorporate VIBE dining into every aspect of the STK restaurant experience, supported by our national happy hour program, our event business, and social-media driven marketing. We also made progress improving our restaurant profitability through lower cost of sales and operating expenses as a percentage of owned restaurant sales while reducing G&A expenditures both in dollars and as a percentage of revenues. Finally, our focus on capital-light development resulted in two international licensed STK openings in Dubai and Mexico City along with one company-owned STK in San Diego during the second half of last year. We thank our team across the globe for making the STK brand so highly differentiated and for contributing to a truly banner 2018.” Mr. Hilario concluded, “2019 is off to a robust start with the opening of an international-licensed STK in Doha and a company-owned STK in Nashville. We currently expect low-to-mid single digit comparable-store sales growth and approximately 25% growth in Adjusted EBITDA. We will continue to execute on our sales initiatives, control restaurant level operating expenses and corporate G&A expenses. Importantly, we only plan for approximately $3.5 million in capital expenditures, reflecting our pipeline of growth opportunities and prioritization of capital-light development, which will enable us to generate strong free cash flow.”

View full version at The ONE Group


Arcos Dorados Reports Q4 & Full Year 2018 Financial Results

  1. Highest full year consolidated Adjusted EBITDA margin since 2011 of 9.7%1

  2. Consolidated 2018 revenue growth of 8.8% on a constant currency basis, with strong single-digit comparable sales growth1

  3. Opened 70 restaurants, at the top end of the guidance range in 2018


March 27, 2019 08:00 AM Eastern Daylight Time

MONTEVIDEO, Uruguay--(BUSINESS WIRE)--Arcos Dorados Holdings, Inc. (NYSE:ARCO) (“Arcos Dorados” or the “Company”), Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, today reported unaudited results for the fourth quarter and audited results for the full year ended December 31, 2018. Fourth Quarter 2018 Highlights – Excluding Venezuela

  1. As reported, consolidated revenues decreased 12.4% to $745.1 million versus the fourth quarter of 2017, primarily on depreciations of the Argentine and Brazilian currencies. On a constant currency basis2 consolidated revenues grew 9.1% to $928.2 million

  2. Systemwide comparable sales2 rose 7.5% year-over-year

  3. As reported, Adjusted EBITDA2 decreased 2.2% to $87.1 million compared with the prior-year quarter

  4. Consolidated Adjusted EBITDA margin expanded 120 basis points year-over-year to 11.7%

  5. As reported, General and Administrative (G&A) expenses decreased 9.4% versus the prior-year quarter

  6. As reported, net income decreased 70.4% to $18.9 million, from $63.9 million in the fourth quarter of 2017, which included $35.6 million from the Company’s re-development initiativesFull Year 2018 Highlights – Excluding Venezuela

  7. As reported, consolidated revenues decreased 6.7% to $3.0 billion. On a constant currency basis, consolidated revenues grew 8.8% to $3.5 billion

  8. Systemwide comparable sales rose 7.6%

  9. As reported, Adjusted EBITDA increased 3.5% to $292.2 million

  10. Consolidated Adjusted EBITDA margin expanded 90 basis points to 9.7%, its highest level since 2011

  11. As reported, G&A expenses decreased 5.9%

  12. As reported, net income decreased 34.6% to $85.9 million, from $131.3 million last year, which included $91.7 million from the Company’s re-development initiatives “Our strategy is focused on delivering the best restaurant, food and service experience. This drove sales higher throughout 2018. Combined with significantly improved operating efficiencies, we expanded adjusted EBITDA margin at a faster pace. This demonstrates the scale opportunity of our business model. At 9.7%, full-year Adjusted EBITDA was at its highest level in seven years, while sales grew nearly 9% during the year. The revenue and margin momentum generated by our strategy continues in 2019. As we roll out Experience of the Future (EOTF) restaurants across markets, continually refresh our menus in innovative ways, and further enhance customer service through the Cooltura de Servicio program, loyalty to the McDonald’s brand is growing and our customer satisfaction scores are increasing. At the end of the year, we had 329 EOTF restaurants and are on track to deliver approximately 650 by the end of 2019. Not only did we accelerate our capex program to support faster EOTF deployment, we also returned $67 million to our shareholders through a combination of dividend payments and share repurchases. With a net debt to Adjusted EBITDA ratio of 1.5x, going into 2019, we have a very healthy balance sheet to support our growth plans. Among other significant accomplishments in 2018, we substantially improved employee satisfaction, extended McDelivery service to a total of ten countries, and we were recognized as Latin America’s Mobile Marketer of the Year. The progress on these fronts is also strengthening our market leadership and competitive advantages in Latin America and the Caribbean, while effectively positioning us to capture all the opportunities we see in the region,” said Sergio Alonso, Chief Executive Officer of Arcos Dorados.

View full version at Arcos Dorados


FAT Brands Inc. Reports Fiscal Q4 and Fiscal Year 2018 Financial Results


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


March 26, 2019 04:05 PM Eastern Daylight Time

LOS ANGELES--(BUSINESS WIRE)--FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) today reported fiscal fourth quarter and fiscal year 2018 financial results for the 13-week and 52-week periods ending December 30, 2018. Andy Wiederhorn, President and CEO of FAT Brands, commented, “2018 was our first full year operating with our management platform, which was designed to seamlessly scale with new brand acquisitions. We demonstrated its capability through the smooth integration of both Hurricane Grill & Wings and Yalla Mediterranean into our system. We continue to seek synergistic acquisition opportunities that meet our criteria, where we can leverage our platform to drive efficiencies and growth.” Because 2018 was our initial full year of operation, comparative information is not available for the fourth quarter of, or the entirety of, fiscal 2017. Fiscal Fourth Quarter 2018 Highlights

  1. Total revenues of $5.0 million(1)

  2. System-wide sales growth of 51.1% y/y

  3. United States sales growth of 65.1%

  4. Canada sales growth of 8.0%

  5. Other International(2) sales growth of 33.6%

  6. System-wide same store sales growth of (2.0)% y/y

  7. United States same-store sales growth of 0.1%

  8. Canada same-store sales growth of 3.5%

  9. Other International(2) same-store sales growth of (16.0)%

  10. 4 new franchised store openings

  11. Ending store count: 334 franchised stores, 7 company owned stores

  12. Net loss of $2.7 million, or ($0.23) per share on a fully diluted basis

  13. EBITDA(3) of ($467,000)

  14. Adjusted EBITDA(3) of $596,000, excluding legal and accounting fees related to acquisitions and other non-recurring legal feesFiscal Year 2018 Highlights

  15. Total revenues of $18.4 million(1)

  16. System-wide sales growth of 111.6% y/y

  17. United States sales growth of 127.9%

  18. Canada sales growth of 16.1%

  19. Other International(2) sales growth of 182.0%

  20. System-wide same store sales growth of 2.2% y/y

  21. United States same-store sales growth of 1.8%

  22. Canada same-store sales growth of 7.8%

  23. Other International(2) same-store sales growth of 0.8%

  24. 13 new franchised store openings

  25. Ending store count: 334 franchised stores, 7 company owned stores

  26. Net loss of $1.8 million, or ($0.17) per share on a fully diluted basis

  27. EBITDA(3) of $3.1 million

  28. Adjusted EBITDA(3) of $4.5 million, excluding legal and accounting fees related to acquisitions and non-recurring legal feesEvents in the Quarter On December 4, 2018, FAT Brands announced the acquisition of Yalla Mediterranean, a Los Angeles-based chain of seven restaurants located in California that specializes in authentic, healthful Mediterranean cuisine and environmentally-friendly operations. The Company intends to sell the seven restaurants to franchisees and grow the brand as a franchised concept within its expanding portfolio of brands. The purchase price at the time of the acquisition was valued at $3.5 million, representing the fair market value of the future consideration, payable to the seller through a combination of a portion of future royalty revenue generated from the future franchises and a portion of the proceeds from the sale of the original seven restaurants to franchisees.

View full version at FAT Brands


McDonald's to Acquire Dynamic Yield



Mar 25, 2019, 18:20 ET


Acquisition fast-tracks McDonald's digital transformation  CHICAGO and NEW YORK and TEL AVIV, Israel, March 25, 2019 /PRNewswire/ -- McDonald's Corporation (MCD) and Dynamic Yield Ltd. today announced an agreement by which McDonald's will acquire Dynamic Yield, a leader in personalization and decision logic technology. With this acquisition of Dynamic Yield, based in New York and Tel Aviv, McDonald's builds on its significant technology investments for growth.


McDonald's will utilize this decision technology to provide an even more personalized customer experience by varying outdoor digital Drive Thru menu displays to show food based on time of day, weather, current restaurant traffic and trending menu items. The decision technology can also instantly suggest and display additional items to a customer's order based on their current selections.

This will enable McDonald's to be one of the first companies to integrate decision technology into the customer point of sale at a brick and mortar location. McDonald's tested this technology in several U.S. restaurants in 2018. Upon closing of the acquisition, McDonald's will begin to roll this technology out in the Drive Thru at restaurants in the United States in 2019 and then expand the use to other top international markets. McDonald's will also begin work to integrate the technology into all of its digital customer experience touchpoints, such as self-order kiosks and McDonald's Global Mobile App. Dynamic Yield's ability to meet McDonald's customer needs, coupled with their commitment to grow capabilities around ever-changing consumer trends and evolving marketing technologies, allows for the continued advancement and elevation of the McDonald's customer experience with technology and innovation. "Technology is a critical element of our Velocity Growth Plan, enhancing the experience for our customers by providing greater convenience on their terms," said Steve Easterbrook, President and Chief Executive Officer, McDonald's Corporation. "With this acquisition, we're expanding both our ability to increase the role technology and data will play in our future and the speed with which we'll be able to implement our vision of creating more personalised experiences for our customers." Liad Agmon, co-founder and CEO of Dynamic Yield, added: "We started Dynamic Yield seven years ago with the premise that customer-centric brands must make personalization a core activity.  We're thrilled to be joining an iconic global brand such as McDonald's and are excited to innovate in ways that have a real impact on people's daily lives." McDonald's recent advancements in the tech space – including the development of McDonald's Global Mobile App, Mobile Order and Pay, indoor and outdoor digital menu boards and self-order kiosks – have transformed customer experiences in and around its restaurants, by giving customers more ways to pay and personalize their orders to meet their needs. Upon closing, McDonald's will become sole owner and will continue to invest in Dynamic Yield's core personalization product and world-class teams. Dynamic Yield will remain a stand-alone company and employees will continue to operate out of offices around the world. Dynamic Yield will also continue to serve their current, and attract future, clients. About McDonald's McDonald's is the world's leading global foodservice retailer with nearly 38,000 locations in over 100 countries around the world. Over 92 percent of McDonald's restaurants worldwide are owned and operated by independent local business men and women. About Dynamic Yield Dynamic Yield is an AI-powered Personalization Anywhere™ platform that delivers individualized experiences at every customer touchpoint: web, apps, email, kiosks, IoT, and call centers. The platform's data management capabilities provide for a unified view of the customer, allowing the rapid and scalable creation of highly targeted digital interactions. Marketers, product managers, and engineers use Dynamic Yield daily for launching new personalization campaigns, running server-side and client-side A/B tests, leveraging machine-learning for product and content recommendations, and employing algorithms for smartly triggered email and push notifications. Headquartered in New York, the company serves more than 300 brands across the world.

View source version at McDonald's


Darden Restaurants Reports Fiscal 2019 Q3 Results



Mar 21, 2019, 07:00 ET


ORLANDO, Fla., March 21, 2019 /PRNewswire/ -- Darden Restaurants, Inc., (NYSE: DRI) today reported its financial results for the third quarter ended February 24, 2019. Third Quarter 2019 Financial Highlights, Comparisons Versus Same Fiscal Quarter Last Year

  1. Total sales increased 5.5% to $2.25 billion driven by the addition of 39 net new restaurants and a blended same-restaurant sales increase of 2.8%

  2. Same-restaurant sales by brand:




+4.3% for Olive Garden

-2.7% for Cheddar's Scratch Kitchen

+3.8% for LongHorn Steakhouse

-2.1% for Yard House

+4.3% for The Capital Grille

-1.3% for Seasons 52

+3.7% for Eddie V's

-3.7% for Bahama Breeze

  1. Reported diluted net earnings per share from continuing operations increased 3.4% to $1.80 and increased 5.3% from last year's adjusted diluted net earnings per share*

  2. The Company repurchased approximately $74 million of its outstanding common stock* See "Non-GAAP Information" below for more details "Our strong top-line results exceeded the industry this quarter resulting in significant market share gains," said CEO Gene Lee. "This sales performance, coupled with strong operating profit growth, is a testament to our strategy and the outstanding focus and execution by our restaurant teams who create exceptional dining experiences for our guests every day." Segment Performance Segment profit represents sales, less costs for food and beverage, restaurant labor, restaurant expenses and marketing expenses.




Q3 Sales

Q3 Segment Profit

($ in millions)

2019

2018

% Change

2019

2018

% Change

Consolidated Darden

$2,246.5

$2,128.4

5.5

%

Olive Garden

$1,130.2

$1,073.2

5.3

%

$247.0

$226.7

9.0

%

LongHorn Steakhouse

$483.2

$452.8

6.7

%

$96.4

$89.9

7.2

%

Fine Dining

$174.5

$164.4

6.1

%

$44.3

$40.3

9.9

%

Other Business

$458.6

$438.0

4.7

%

$67.5

$65.5

3.1

%

YTD Sales

YTD Segment Profit

($ in millions)

2019

2018

% Change

2019

2018

% Change

Consolidated Darden

$6,281.3

$5,946.0

5.6

%

Olive Garden

$3,180.3

$3,014.6

5.5

%

$649.7

$593.4

9.5

%

LongHorn Steakhouse

$1,326.2

$1,245.0

6.5

%

$232.5

$214.0

8.6

%

Fine Dining

$451.2

$427.1

5.6

%

$94.5

$86.6

9.1

%

Other Business

$1,323.6

$1,259.3

5.1

%

$181.6

$182.8

(0.7)

%U.S. Same-Restaurant Sales Results




Q3

YTD

Olive Garden

LongHorn  Steakhouse

Olive Garden

LongHorn  Steakhouse

Same-Restaurant Sales

4.3%

3.8%

4.4%

3.3%

Same-Restaurant Traffic

0.1%

0.5%

0.3%

0.0%

Pricing

1.8%

1.8%

1.9%

1.7%

Menu-mix

2.4%

1.5%

2.2%

1.6%Dividend Declared Darden's Board of Directors declared a regular quarterly cash dividend of $0.75 per share on the Company's outstanding common stock. The dividend is payable on May 1, 2019 to shareholders of record at the close of business on April 10, 2019. Share Repurchase Program During the quarter, the Company repurchased approximately 0.7 million shares of its common stock for a total cost of approximately $74 million. Fiscal year-to-date, the Company repurchased approximately 1.6 million shares of its common stock for a total cost of approximately $166 million. As of the end of the fiscal third quarter, the Company had approximately $346 million remaining under the current $500 million repurchase authorization. Updated Fiscal 2019 Financial Outlook The Company increased its financial outlook for fiscal 2019 based on year-to-date results and its expected performance for the fourth quarter. Investor Conference Call The Company will host a conference call and slide presentation on Thursday, March 21 at 8:30 am ET to review its recent financial performance. To listen to the call live, please go to https://www.webcaster4.com/Webcast/Page/1007/29533 at least fifteen minutes early to register, download, and install any necessary audio software. Prior to the call, a slide presentation will be posted on the Investor Relations section of our website at: www.darden.com. For those who cannot access the Internet, please dial 1-888-396-9924 and enter passcode 3047110. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. About Darden Darden is a restaurant company featuring a portfolio of differentiated brands that include Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V's.  Our people equal our success, and we are proud to employ 180,000 team members in more than 1,700 restaurants.  Together, we create memorable experiences for nearly 390 million guests each year in communities across North America.  For more information, please visit www.darden.com.

View full version at Darden


Del Taco Reports Fiscal Q4 and Fiscal Year 2018 Financials


Expands Fiscal Year 2019 Guidance

Company Begins Optimizing Restaurant Portfolio through Refranchising


March 18, 2019 04:05 PM Eastern Daylight Time

LAKE FOREST, Calif.--(BUSINESS WIRE)--Del Taco Restaurants, Inc. (“Del Taco” or the “Company”), (NASDAQ:TACO), the second largest Mexican-American quick service restaurant chain by units in the United States, today reported fiscal fourth quarter and fiscal year 2018 financial results for the 16-week and 52-week periods ending January 1, 2019. Del Taco also expanded its previously announced guidance for fiscal year 2019 and announced that is has already begun optimizing its restaurant portfolio through refranchising. Fiscal Fourth Quarter 2018 Highlights

  1. System-wide comparable restaurant sales grew 1.9%, marking the 21stconsecutive quarter of gains;

  2. Company-operated comparable restaurant sales grew 1.0%, marking the 26th consecutive quarter of gains. Company-operated comparable restaurant sales growth was comprised of average check growth of 4.9%, including over 1% of menu mix growth, partially offset by a transaction decrease of 3.9%;

  3. Franchised comparable restaurant sales grew 3.2%;

  4. Total revenue of $157.3 million (including $4.1 million of franchise advertising contributions and $0.2 million of other franchise revenue required as part of the revenue recognition rules adopted in the fiscal first quarter 2018 whereby the offsetting impact is an increase to expenses such that there is no impact on operating income and net income), representing 7.3% growth from the fiscal fourth quarter 2017;

  5. Company-operated restaurant sales of approximately $146.7 million, representing 4.4% growth from the fiscal fourth quarter 2017;

  6. Net income was $5.6 million, or $0.15 per diluted share, compared to $35.2 million, or $0.89 per diluted share, in the fiscal fourth quarter 2017;

  7. Adjusted net income* was $7.0 million, or $0.18 per diluted share, compared to $6.2 million, or $0.16 per diluted share, in the fiscal fourth quarter 2017;

  8. Restaurant contribution* margin increased 40 basis points to 20.3% compared to 19.9% in the fiscal fourth quarter 2017;

  9. Adjusted EBITDA* increased to $23.6 million from $23.3 million in the fiscal fourth quarter 2017; and

  10. 15 system wide openings, including seven company-operated and eight franchised restaurants.Fiscal Year 2018 Highlights

  11. System-wide comparable restaurant sales growth of 2.5% and company-operated comparable restaurant sales growth of 1.5%, marking the 6th consecutive year of gains;

  12. Company-operated comparable restaurant sales growth comprised average check growth of 3.6%, including slightly positive menu mix growth, partially offset by a transaction decrease of 2.1%;

  13. Franchised comparable restaurant sales grew 3.8%;

  14. Total revenue of $505.5 million (including $13.3 million of franchise advertising contributions and $0.7 million of other franchise revenue required as part of the revenue recognition rules adopted in the fiscal first quarter 2018 whereby the offsetting impact is an increase to expenses such that there is no impact on operating income and net income), representing 7.2% growth from the fiscal year 2017;

  15. Company-operated restaurant sales of approximately $471.2 million, representing 4.2% growth from the fiscal year 2017;

  16. Net income was $19.0 million, or $0.49 per diluted share, compared to $49.9 million, or $1.25 per diluted share, in the fiscal year 2017;

  17. Adjusted net income* was $21.6 million, or $0.56 per diluted share, compared to $20.9 million, or $0.52 per diluted share, in the fiscal year 2017;

  18. Restaurant contribution* margin of 19.7% in both fiscal years;

  19. Adjusted EBITDA* increased to $72.0 million from $71.5 million in the fiscal year 2017; and

  20. 25 system wide openings, including 13 company-operated and 12 franchised restaurants.

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