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    • Apr 11, 2023
    • 14 min read

Financials - April 2023




Good Times Restaurants Reports Second Fiscal Quarter Same Store Sales


April 06, 2023 04:06 PM Eastern Daylight Time

GOLDEN, Colo.--(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 sales1 increased 7.6% for its Good Times brand and increased 4.6% for its Bad Daddy’s brand, and that average weekly sales2 were $27,510 and $52,432 for its Good Times and Bad Daddy’s brands, respectively for its second fiscal quarter ended March 28, 2023. Ryan Zink, President and CEO, said: “During the second quarter, we purchased the membership interests in five previously joint-venture Bad Daddy’s restaurants, four in North Carolina and one in South Carolina, and began the remodel of our previously franchised Bad Daddy’s restaurant in Greenville, South Carolina, which is expected to re-open April 10, 2023. At Good Times, four of our six Denver-area franchisee-owned restaurants installed digital drive-thru menu boards, leaving only two Denver-area restaurants with legacy menu boards. We also completed the installation of our new sign package at four additional company-owned restaurants. “We continue to focus on driving sales and guest counts through segment-leading differentiation at both brands. We have continued the modernization of our Good Times concept through incremental technology and investments to improve the visual appeal of our drive-thru restaurants. During the quarter, we closed our Bad Daddy’s at Cherry Creek as the lease term ended and the landlord is redeveloping the area. We are excited to continue the expansion of the Bad Daddy’s brand with our newest Bad Daddy’s in Madison, Alabama opening near the end of fiscal 2023. Madison will be our second restaurant in the greater-Huntsville market,” Zink continued. Mr. Zink concluded, “Our strong sales results were benefitted by menu pricing at both brands, and at Bad Daddy’s we are thrilled about the year-over-year traffic growth in addition to our sales growth. During the quarter, average menu prices increased from the same prior-year quarter by 10.5% at Good Times and 3.4% at Bad Daddy’s. We increased price at a greater rate at our restaurants in Colorado in an effort to offset the fierce state-specific wage pressures we are experiencing resulting from both statutory wage rate increases and general labor market dynamics. I continue to admire the passion for our brands and the focused attention to our guests that our operations teams continue to deliver.” About Good Times Restaurants Inc.: Good Times Restaurants Inc. owns, operates, and licenses 40 Bad Daddy’s Burger Bar restaurants through its wholly owned subsidiaries. Bad Daddy’s Burger Bar is a full-service “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 local and craft beers in a high-energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly owned subsidiaries, Good Times Restaurants Inc. owns, operates and franchises 31 Good Times Burgers & Frozen Custard restaurants primarily in Colorado. Good Times is a regional quick-service concept featuring 100% all-natural burgers and chicken sandwiches, signature wild fries, green chili breakfast burritos and fresh frozen custard desserts.

View source version at Good Times Restaurants


Burger King franchisee Toms King is being sold for $33M out of bankruptcy The big operator, which sought Chapter 11 bankruptcy protection in January and was put up for sale, is being sold to four different companies, including Burger King's former U.K. operator and a big Round Table Pizza franchisee. By Jonathan Maze on Apr. 04, 2023 Burger King franchisee saleA Burger King franchisee is being sold for $33 million to four different buyers. Four buyers, including Burger King itself, will pay $33 million to acquire 82 of the 90 restaurants owned by Toms King Holdings, according to court documents filed this week in the franchisee’s Chapter 11 bankruptcy filing. The largest number of restaurants are slated to go to a company called DC Burger, which is buying 37 of the Burger King locations in Virginia for $22 million, according to court documents. DC Burger is owned by Dough Capital, which in turn is owned by Kuljeet and Jessica Singh, who are slated to be first-time Burger King franchisees. The Singhs are not strangers to the restaurant business. They own 80 of Round Table Pizza’s locations in Northern California, Oregon and Washington, according to court filings. Another buyer is Karali Group, which has agreed to pay $7.6 million for 27 restaurants, most of which are in Cleveland, Youngstown and Dayton, Ohio, along with two in Pittsburgh. Karali Group is not an unfamiliar name in the Burger King world, having operated the chain’s restaurants in the U.K. Burger King U.K. bought out those restaurants last year. The franchisor, meanwhile, agreed to pay $3.2 million to acquire 17 restaurants, most of which are in Illinois and Dayton, along with one each in Cleveland and Pittsburgh. Another restaurant in Pittsburgh is being sold to Restaurant Concepts for $120,000, according to court documents. The bankruptcy court has yet to approve the sale. The $33 million price tag is less than the $35.5 million in secured debt Toms King had when it declared bankruptcy in January. It represents an average of $400,000 per sold restaurant, not including eight locations that were either not sold or were closed since the filing. Based on last year’s Burger King average store-level EBITDA, or earnings before interest, taxes, depreciation and amortization, of $140,000, the valuation multiple would be just under 3x. The actual multiple is likely much higher, based on the company’s financial challenges. The bankruptcy filing is one of two in the Burger King system, including a more recent filing by the Utah-based Meridian Restaurants Unlimited. In addition, the Texas-based EYM King closed 26 locations in Michigan after Burger King sued the franchisee over unpaid royalties. Burger King has struggled for years with weak sales and weak operator profits. Profitability worsened last year as inflation hit many restaurants. The company is working to improve sales and profitability, but many operators continue to struggle, prompting bankruptcy filings.

View source version at Toms King



Kura Sushi USA Announces Fiscal Second Quarter 2023 Financial Results

April 04, 2023 16:05 ET



IRVINE, Calif., April 04, 2023 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today announced financial results for the fiscal second quarter ended February 28, 2023.

Fiscal Second Quarter 2023 Highlights

  1. Total sales were $43.9 million, compared to $31.3 million in the second quarter of 2022;

  2. Comparable restaurant sales increased 17.4% for the second quarter of 2023 as compared to the second quarter of 2022;

  3. Operating loss was $1.0 million, compared to operating loss of $1.9 million in the second quarter of 2022;

  4. Net loss was $1.0 million, or $(0.10) per diluted share, compared to net loss of $1.9 million, or $(0.19) per diluted share, in the second quarter of 2022;

  5. Restaurant-level operating profit* was $8.9 million, or 20.3% of sales;

  6. Adjusted EBITDA* was $2.3 million; and

  7. Three new restaurants opened during the fiscal second quarter of 2023.

* Restaurant-level operating profit and Adjusted EBITDA are non-GAAP measures and are defined below under “Key Financial Definitions.” Please see the reconciliation of non-GAAP measures accompanying this release. See also “Non-GAAP Financial Measures” below. Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, “It’s been an exceptional quarter for Kura Sushi. Last quarter, I had mentioned our three goals for this fiscal year; maintaining great operations and delivering unbeatable value to our guests, continuing our rapid unit expansion, and leveraging our G&A investment. It’s my pleasure to be able to say that we are seeing excellent results on each of these goals.” Uba added, “We continue to deliver industry-leading traffic growth as consumer sentiment remains extremely strong. Our unit pipeline is the strongest it has ever been, with nine units under construction and another nine executed leases across existing and new markets. Our success in leveraging G&A, combined with improvements in restaurant-level costs, has resulted in a 400-basis point Adjusted EBITDA margin expansion over the previous year.”

View full version at Kura Sushi



Dave & Buster’s Reports Record Fourth Quarter and Fiscal Year End 2022 Financial Results

Company Announces $100 Million Share Repurchase Program and Achievement of its Synergy TargetDALLAS, March 28, 2023 (GLOBE NEWSWIRE) -- Dave & Buster’s Entertainment, Inc., (NASDAQ: PLAY), (“Dave & Buster’s” or “the Company”), an owner and operator of entertainment and dining venues, today announced financial results for its fourth quarter and fiscal year ended January 29, 2023.

Key Fourth Quarter 2022 Highlights

  1. Revenue of $563.8 million in the quarter increased 64.3% from the fourth quarter of 2021 and increased 62.4% from the fourth quarter of 2019. Including the pro forma contribution of Main Event in the fourth quarter of 2021 and 2019, this quarter’s revenue grew 27.7% and 30.1%, respectively.

  2. Pro forma combined comparable store sales (including Main Event branded stores) increased 19.0% compared with the same period in 2021 and 14.1% compared with the same period in 2019.

  3. Net income totaled $39.1 million, or 80 cents per diluted share, compared with net income of $25.7 million, or 52 cents per diluted share in the fourth quarter of 2021 and net income of $25.0 million, or 80 cents per diluted share in the fourth quarter of 2019.

  4. Adjusted EBITDA (as newly defined to not add back pre-opening expense) of $138.4 million in the quarter increased 62.9% from the fourth quarter of 2021 and increased 85.1% from the fourth quarter of 2019. Including the pro forma contribution of Main Event in the fourth quarter of 2021 and 2019, this quarter’s Adjusted EBITDA grew 30.7% and 48.4%, respectively.

  5. The Company opened a new Main Event store in Beaumont, TX.

  6. The Company ended the quarter with $672.7 million of liquidity, which included $181.6 million in cash and $491.1 million available under its $500 million revolving credit facility.

Key Fiscal Year 2022 Highlights

  1. Revenue of $2.0 billion in fiscal year 2022 increased 50.6% from fiscal year 2021 and increased 45.0% from fiscal year 2019.

  2. Net income totaled $137.1 million, or $2.79 per diluted share, in fiscal year 2022 compared with net income of $108.6 million, or $2.21 per diluted share, in fiscal year 2021 and net income of $100.3 million, or $2.94 per diluted share in fiscal 2019.

  3. The Company completed its acquisition of Main Event on June 29, 2022. The Company successfully achieved implementation of the activities for its forecasted $25 million annual synergy target previously disclosed and continues to identify opportunities in excess of that target.

  4. The Company opened seven new Dave & Buster’s locations and one new Main Event location in fiscal year 2022. Subsequent to the end of the year, the Company has opened an additional Dave & Buster’s location in Puerto Rico and two additional Main Event locations in Little Rock, AR and Tucson, AZ taking the total combined store count to 207.

  5. Adjusted EBITDA of $480.4 million in fiscal year 2022 increased 42.8% from fiscal year 2021 and increased 58.3% from fiscal year 2019.

“Driven by robust comparable walk-in sales growth and the tailwind of our special events business continuing its recovery toward pre-pandemic norms, we are pleased to report another strong quarter of financial results to mark our first fiscal year-end as a combined company. As a testament to this strength as well as the confidence we have in our future growth initiatives, our Board authorized a share repurchase program up to $100 million,” said Chris Morris, Dave & Buster’s Chief Executive Officer. “Fresh off the heels of our annual general manager’s conference, our exceptional team of operators and shared service center employees is motivated and energized to deliver on our goals we’ve set for the business in 2023 and beyond to realize our full potential. We look forward to sharing our progress with you throughout the course of the year as we continue to drive value creation for our stakeholders.”

View full version at Dave & Buster's



Garnett Station Partners Acquires and Recapitalizes Firebirds Wood Fired Grill


March 27, 2023 07:00 AM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Garnett Station Partners, LLC (“Garnett Station”), a New York-based principal investment firm that manages ~$2 billion of assets, today announced that it has acquired and recapitalized Firebirds Wood Fired Grill (“Firebirds” or the “Company”), a leading polished-casual dining chain. Financial terms were not disclosed. Founded in 2000 in Charlotte, North Carolina, Firebirds has grown to 56 locations across 20 states, offering guests a unique dining experience and bold menu offerings featuring its signature wood-burning grill and award-winning FIREBAR®. Firebirds has a long history of outperformance with both industry leading same store sales and average unit volumes. Supported by Garnett Station’s strategic capital, Firebirds will continue to accelerate growth and development. "Firebirds has found tremendous success over the past 20 years through the power of its concept, the passion of its team and the loyalty of its guests, contributing to its consistent industry outperformance from both an average unit volume and same store traffic perspective,” said Matt Perelman, Co-Founder and Managing Partner at Garnett Station. “We look forward to working closely with Steve and the entire management team to support and accelerate the brand’s long-term growth.” “We are incredibly proud of the brand that Firebirds is today and are thrilled to work in partnership with Garnett Station as we enter this next chapter,” said Steve Kislow, Chief Executive Officer of Firebirds. “Through our bold menu offerings and customer-oriented approach, Firebirds has become a neighborhood staple in each of the local communities we operate in. We are confident that Firebirds will continue its impressive trajectory of growth while delivering the best possible dining experience for our guests.” TD Cowen and Netrex Capital Markets, LLC served as financial advisors to Garnett Station Partners. Kirkland & Ellis LLP served as legal advisor to Garnett Station Partners. NorthPoint Advisors served as financial advisor to Firebirds. About Garnett Station Partners Garnett Station Partners is a principal investment firm founded in 2013 by Matt Perelman and Alex Sloane that manages ~$2 billion of assets. Garnett Station partners with experienced and entrepreneurial management teams and strategic investors to build value for its portfolio of growth platforms. The firm draws on its global relationships, operational experience and rigorous diligence process to source, underwrite and manage investments. Core sectors include consumer and business services, health & wellness, automotive, and food & beverage. Garnett Station's culture is based on the principles of entrepreneurship, collaboration, analytical rigor and accountability. For more information, please visit www.garnettstation.com. About Firebirds Wood Fired Grill Firebirds Wood Fired Grill, a polished casual American restaurant, is an energetic twist on the traditional grill featuring a boldly flavored menu in a stylish, fire-centric atmosphere. Signature menu items include hand-cut steaks and fresh seafood seared over locally sourced hickory, oak, or pecan wood on Firebirds’ exposed wood-fired grill. Complementing its inviting dining room, a patio with seasonal comforts and the award-winning FIREBAR® are additional gathering spaces inside the restaurant. Firebirds has been named one of ten ‘Breakout Brands’ by Nation’s Restaurant News, and the 2022 Diners’ Choice Winner awarded by OpenTable. Firebirds partners with Alex’s Lemonade Stand Foundation, having surpassed $3 million raised for childhood cancer research through the sale of fresh-squeezed lemonade. Visit firebirdsrestaurants.com to become a member of Firebirds’ Inner Circle, make an OpenTable reservation, or order ToGo online.

View source version at Firebirds Wood Fired Grill







Darden Restaurants Reports Fiscal 2023 Third Quarter Results; Declares Quarterly Dividend; And Updates Fiscal 2023 Financial Outlook



Mar 23, 2023, 07:00 ET




ORLANDO, Fla., March 23, 2023 /PRNewswire/ -- Darden Restaurants, Inc. (NYSE:DRI) today reported its financial results for the third quarter ended February 26, 2023. Third Quarter 2023 Financial Highlights

  1. Total sales increased 13.8% to $2.8 billion driven by a blended same-restaurant sales increase of 11.7% and sales from 35 net new restaurants

  2. Same-restaurant sales:




Consolidated Darden

11.7 %

Olive Garden

12.3 %

LongHorn Steakhouse

10.8 %

Fine Dining

11.7 %

Other Business

11.7 %

  1. Reported diluted net earnings per share increased 21.2% to $2.34 as compared to last year's reported diluted net earnings per share

  2. The Company repurchased $124 million of its outstanding common stock "I'm proud that we significantly exceeded the industry for both same-restaurant sales and traffic this quarter, outperforming even more on traffic than on sales," said Darden President & CEO Rick Cardenas. "Our ability to invest in pricing below inflation over time provides strong value to our guests and reinforces the power of our strategy and our restaurant teams' commitment to being brilliant with the basics."

View full version at Darden Restaurants



BurgerFi Reports Fourth Quarter and Fiscal Year 2022 Results

March 22, 2023 07:00 ET



Revenue Grows 160% to $178.7 Million in Fiscal Year 2022

Reiterates 2023 Guidance

Conference Call today, March 22, at 8:30 a.m. ET

FORT LAUDERDALE, Fla., March 22, 2023 (GLOBE NEWSWIRE) -- BurgerFi International, Inc. (Nasdaq: BFI, BFIIW) (“BurgerFi” or the “Company”), owner of one of the nation’s leading fast-casual “better burger” dining concepts through the BurgerFi brand, and the high-quality, casual dining pizza brand under the name Anthony’s Coal Fired Pizza & Wings (“Anthony’s”), today reported financial results for the fourth quarter and fiscal year ended January 2, 2023.

Highlights for the Fourth Quarter 20221

  1. Total revenue increased 29% to $45.2 million in the fourth quarter 2022 compared to $35.1 million in the fourth quarter 2021

  2. Consolidated systemwide sales decreased by 2% to $71.6 million.

  3. Corporate restaurant same-store sales for Anthony’s increased 1%

  4. Systemwide sales for BurgerFi decreased 5% to $38.7 million

  5. Systemwide same-store sales decreased 9% at BurgerFi

  6. Opened two new franchised BurgerFi restaurants in the fourth quarter

  7. Restaurant-level operating expenses as a percentage of sales increased by 1.5%

  8. Net loss improved to $26.2 million or $(1.18) per diluted share compared to prior fourth quarter net loss of $117.3 million or $(5.84) per diluted share

  9. Adjusted EBITDA1 of $2.6 million for both the fourth quarters of 2022 and 2021, respectively

Highlights for the Fiscal Year 20221

  1. Total revenue increased 160% to $178.7 million in the fiscal year 2022 driven by the Anthony's acquisition compared to fiscal year 2021

  2. Consolidated systemwide sales of $289.6 million for both fiscal years 2022 and 2021, respectively.

  3. Corporate restaurant same-store sales for Anthony’s increased 5%

  4. Systemwide sales for BurgerFi decreased 3% to $160.8 million

  5. Systemwide same-store sales for BurgerFi decreased by 7%

  6. Opened 11 new BurgerFi restaurants (three corporate-owned and eight franchises)

  7. Restaurant-level operating expenses as a percentage of sales of 86.2% for both fiscal years 2022 and 2021

  8. Net loss improved to $103.4 million, or $(4.66) per diluted share, compared to prior fiscal year net loss of $121.5 million, or $(7.20) per diluted share

  9. Adjusted EBITDA1 of $9.2 million compared to $3.8 million in the prior fiscal year

Management Commentary

Ophir Sternberg, Executive Chairman of BurgerFi, stated, “2022 was a pivotal year for BurgerFi as we integrated the Anthony’s acquisition into our system. We now have two high-quality brands that are on trend with the consumer, and we believe that we are in the early innings of growth across both brands. Early this year, we opened a franchised BurgerFi in Newark Liberty Airport, followed by a franchised BurgerFi in Orlando’s O-Town West. Airports continue to deliver high volumes and we expect airports to continue to be a growing part of our development strategy. We are also very excited for this year’s planned launch of our first Anthony's franchise as part of our growth strategy in expanding the brand. I'm enthusiastic about the opportunities that lie ahead for both brands for 2023 and beyond.”

Ian Baines, Chief Executive Officer of BurgerFi, added, “Throughout 2022, we made progress executing on several strategic initiatives at BurgerFi and Anthony’s. We completed our back-office integration of the two companies and delivered on our goal of achieving over $2.5 million in annualized synergies. In the fourth quarter, we began to see margins stabilize with sequential improvement as a result of our procurement initiatives. I am optimistic that we can continue driving improvement in profitability and operating margins in 2023 in both brands.”

Baines continued, “I remain enthusiastic about the development pipeline in place as well as the long runway of whitespace opportunities ahead for both brands. In total, we plan to open 15-20 new franchised restaurants, including 2-3 Anthony’s in 2023.”

View full version at BurgerFi



The ONE Group Reports Fourth Quarter and Full Year 2022 Financial Results


Achieved a 14.2% Increase in Annual Revenues to a Record $316.6 Million

Introduces 2023 Targets; Eight to Twelve New Venues Planned


March 09, 2023 04:05 PM Eastern Standard Time

DENVER--(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, 2022. Highlights for the fourth quarter compared to the same period in 2021 are as follows:

  1. Total GAAP revenues increased 5.0% to $88.3 million from $84.1 million;

  2. Comparable sales* decreased 3.1% compared to 2021 and increased 46.2% compared to 2019;

  3. GAAP net income attributable to The ONE Group was $5.1 million, or $0.15 per share ($0.19 adjusted net income per share) ****, compared to GAAP net income of $5.8 million, or $0.17 per share ($0.24 adjusted net income per share)****

  4. Restaurant Operating Profit*** decreased 2.2% to $15.9 million from $16.2 million; and

  5. Adjusted EBITDA** decreased 2.0% to $13.0 million from $13.3 million.Highlights for the full year 2022 compared to 2021 are as follows:

  6. Total GAAP revenues increased 14.2% to $316.6 million from $277.2 million;

  7. Comparable sales* increased 10.8% compared to 2021 and increased 47.7% compared to 2019;

  8. GAAP net income attributable to The ONE Group was $13.5 million, or $0.40 per share ($0.55 adjusted net income per share) ****, compared to GAAP net income of $31.3 million, or $0.93 per share ($0.59 adjusted net income per share)****

  9. Restaurant Operating Profit*** decreased 3.1% to $50.8 million from $52.4 million; and

  10. Adjusted EBITDA** decreased 3.4% to $41.3 million from $42.7 million. “2022 marked a year of robust top-line growth for The ONE Group. We delivered a 14.2% increase in total revenue, which included a 10.8% increase in comparable sales compared to 2021 and a 47.7% increase compared to 2019. In addition to strong comparable sales growth, we established an incredible pipeline of new STK and Kona Grill locations, including company-owned and asset light development. In 2022, we opened two company-owned locations, STK San Francisco and STK Dallas which are averaging approximately $350,000 in sales per week since opening, considerably higher than our investment model. On the asset light side of the business, we opened one managed STK, our third in London England, and a virtual REEF Kitchen location. These successes are a testament to the efforts of our team members who deliver exceptional and unforgettable experiences to every guest, every time,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group. Hilario continued, “Our 2023 pipeline is the strongest in the Company’s history as we plan to open eight to twelve new venues. We kicked off the year by opening a new redesigned Kona Grill in Columbus, OH in January which has been averaging $115,000 in sales per week since opening, above our system average during this time. This was the first Kona Grill opening since we acquired the concept in 2019, and it is a big step in what we believe will be a larger expansion of the concept moving forward. In addition, we have recently opened two more REEF Kitchen locations in Austin, Texas. Importantly, we believe we have a long runway of white space opportunities ahead as we see a total addressable market of 400 total venues including 200 STKs globally and 200 Kona Grills domestically.”

View full version at The ONE Group

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