top of page

Financials - August 2019
















IPic Sinks After Filing for Chapter 11 Bankruptcy

The luxury theater chain says delays in development and high cost of capital prevented it from expanding.






Updated Aug 5, 2019 9:40 AM EDT






IPic (IPIC) shares were down nearly 60% in trading Monday after the luxury theater chain said it was filing for protection under Chapter 11 of the bankruptcy laws and will seek a sale or reorganization.

The Boca Raton, Fla., company cited multiple issues, including the failure of a plan to build 25 locations in four to five years.

"Delays in development cycle combined with the high cost of capital depleted IPIC's available resources before the company was able to reach critical mass and become self-funded," Chief Executive Hamid Hashemi said in a statement.

The brand is "thriving" but the "balance sheet needs to course-correct," he said. "Our theaters will remain open during this transition" and "our employees are being paid, as are our vendors and suppliers," said Hashemi.

Ipic theaters combine restaurants and bars with movies. The company was founded in 2010 and went public in February 2018.

The website says the company currently has 16 locations with 123 screens in Arizona, California, Florida, Illinois, Maryland, New Jersey, New York, Texas and Washington, and plans to open in California, Connecticut, Georgia and Texas.

View source version at iPic




Perkins & Marie Callender's, LLC To Sell Its Company

Chapter 11 Restructuring Filed To Facilitate Sale



Aug 05, 2019, 09:30 ET



MEMPHIS, Tenn., Aug. 5, 2019 /PRNewswire/ -- Perkins & Marie Callender's (together with certain affiliates and subsidiaries, collectively, the "Company"), today announced that it has executed an Asset Purchase Agreement with Perkins Group, LLC, for the sale of its Perkins' business and a segment of its Foxtail bakery business. In order to facilitate the sale, the Company has voluntarily commenced Chapter 11 proceedings under the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

The Company has filed a series of motions that, subject to Court approval, will allow it to maintain its usual employee compensation and benefit programs, make payments for goods and services in the normal course, and otherwise operate its business as usual. These motions are typical in a Chapter 11 process and are generally granted in the first days of the case. The Company has an agreement with its existing lenders to provide debtor-in-possession ("DIP") financing to ensure an efficient bankruptcy process. The Company expects to have enough liquidity to continue to operate in the normal course while completing the sale process.

The Company is continuing discussions with investors and potential buyers regarding the Marie Callender's restaurants. Once an agreement is finalized an additional announcement will be made.

As part of the restructuring process, on August 4, 2019, the Company closed 10 Perkins and 19 Marie Callender's underperforming locations. All remaining restaurants will be open and operating as usual and guests can expect to continue to enjoy the great food and hospitality for which Perkins and Marie Callender's are known.

Jeff Warne, President & CEO of Perkins & Marie Callender's, LLC stated, "Our intention moving forward is to minimize disruptions and ensure that the sale process is as seamless to our guests, employees, and vendors as possible."

Additional information including court filings and information about the claims process can be found at a separate website maintained by the Company's claims agent, KCC LLC, at http://www.kccllc.net/PMC.

Perkins & Marie Callender's, LLC has also established a Restructuring Information line for interested parties at 888-251-3076.

About Perkins & Marie Callender's, LLC

Founded in 1958, the Perkins system consists of 342 Perkins Restaurants in 32 states and Canada which includes 101 company owned and operated locations and 241 franchised units. The Company also has a baked goods manufacturing division operating under the name of Foxtail Foods which manufactures pies, pancake mixes, cookie dough, and muffin batter for in-store bakeries and third-party customers. The combination of the Perkins Restaurant & Bakery chain with Marie Callender's occurred in 2006. Marie Callender's consists of 7 company and 21 franchised restaurants; it is famous for its fresh-baked pies and has a national presence through supermarket frozen entrée lines offered by ConAgra. More information can be found at www.perkinsrestaurants.com and www.mariecallenders.com.

View source version at Perkins & Marie Callender's



Ruth’s Hospitality Group, Inc. Reports Second Quarter 2019 Financial Results


– Second Quarter GAAP EPS of $0.31 –

– Declares $0.13 Per Share Quarterly Dividend –


August 02, 2019 07:00 AM Eastern Daylight Time


WINTER PARK, Fla.--(BUSINESS WIRE)--Ruth’s Hospitality Group, Inc. (the “Company”) (NASDAQ: RUTH) today reported unaudited financial results for its second quarter ended June 30, 2019.

Highlights for the second quarter of 2019 were as follows:

  1. Restaurant sales in the second quarter of 2019 increased 0.5% to $104.0 million compared to $103.5 million in the second quarter of 2018. Average unit weekly sales were $102.6 thousand in the second quarter of 2019, a decrease of 0.8% compared to $103.4 thousand in the second quarter of 2018.

  2. Net income in the second quarter of 2019 was $9.3 million, or $0.31 per diluted share, compared to net income of $9.6 million, or $0.32 per diluted share, in the second quarter of 2018.

- Net income in the second quarter of 2019 included $71 thousand in acquisition-related expenses associated with the acquisition of the three restaurants from our Philadelphia and Long Island franchisee, and a $122 thousand income tax benefit related to the impact of discrete income tax items. Net income in the second quarter of 2018 included $409 thousand in acquisition-related expenses associated with the acquisition of our Hawaiian franchisee, and a $273 thousand income tax benefit related to the impact of discrete income tax items.

- Excluding these adjustments, as well as the results from discontinued operations, non-GAAP diluted earnings per common share were $0.31 in the second quarter of 2019, compared to $0.32 in the second quarter of 2018. The Company believes that non-GAAP diluted earnings per common share provides a useful alternative measure of financial performance to improve comparability of diluted earnings per common share between periods. Investors are advised to see the attached Reconciliation of non-GAAP Financial Measure table for additional information.During the second quarter of 2019, the Company announced the acquisition of three franchised restaurants with two in the Philadelphia, PA area and one on Long Island, NY as well as development rights for this territory.

  1. On July 29th, subsequent to the end of the quarter, the Company closed on this acquisition.

  2. The Company returned $10.5 million through dividends and share repurchases during the second quarter of 2019.

Cheryl Henry, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “I’m pleased with the work of our team. After seeing slower sales in April, our comparable restaurant sales saw sequential improvement throughout the quarter including positive comparable sales during our June period.”

Henry added, “We continue to lay the foundation for long-term growth within the framework of our total return strategy. Earlier this week, we closed on the previously announced acquisition of development territory and three restaurants in Philadelphia, PA and Long Island, NY from a long-time franchise partner. Additionally, we have recently signed two new leases for Company-owned restaurants in Short Hills, NJ and Worcester, MA. We remain excited about our opportunities to grow and evolve the iconic Ruth’s Chris Steak House brand.”

View full version at Ruth's Hospitality Group




Restaurant Brands International Inc. Reports Second Quarter 2019 Results


Aug 02, 2019, 06:30 ET



RBI announces system-wide sales growth of nearly 8% and surpasses 26,000 restaurants globally BURGER KING® and POPEYES® deliver strong growth in global comparable sales and restaurant expansion New partnerships announced to launch POPEYES® in China and Spain and TIM HORTONS® in Thailand

TORONTO, Aug. 2, 2019 /PRNewswire/ - Restaurant Brands International Inc. (TSX/NYSE: QSR, TSX: QSP) today reported financial results for the second quarter ended June 30, 2019.

Jose Cil, Chief Executive Officer of Restaurant Brands International Inc. ("RBI") commented, "During the second quarter, we grew global system-wide sales nearly 8% and crossed two restaurant milestones with more than 26,000 restaurants globally, including more than 18,000 Burger King restaurants."

"We are excited by the tremendous opportunity for restaurant growth in front of us, most recently highlighted by new partnerships we announced for Popeyes in China and Spain, and Tim Hortons in Thailand," continued Cil.  "We are working closely with our restaurant owners to deliver an enhanced guest experience including technology like delivery, kiosks and outdoor digital menu boards.  We also continue to attract leading talent in the industry to join our company and to contribute to our aspiration to build the most loved restaurant brands in the world."




Consolidated Operational Highlights

Three Months Ended June 30,

2019

2018

System-wide Sales Growth

(Unaudited)

TH

1.6 %

2.2 %

BK

9.8 %

8.4 %

PLK

8.8 %

10.7 %

Consolidated

7.9%

7.3 %

System-wide Sales (in US$ millions)

TH

$

1,716

$

1,742

BK

$

5,717

$

5,403

PLK

$

1,012

$

938

Consolidated

$

8,445

$

8,083

Net Restaurant Growth

TH

1.6 %

3.0 %

BK

5.8 %

6.4 %

PLK

6.1 %

7.5 %

Consolidated

5.0 %

5.8 %

System Restaurant Count at Period End

TH

4,872

4,794

BK

18,008

17,022

PLK

3,156

2,975

Consolidated

26,036

24,791

Comparable Sales

TH

0.5 %

— %

BK

3.6 %

1.8 %

PLK

3.0 %

2.9 %




Note: System-wide sales growth and comparable sales are calculated on a constant currency basis and include sales at franchise restaurants and company-owned restaurants. System-wide sales are driven by sales at franchise restaurants, as approximately 100% of current restaurants are franchised. We do not record franchise sales as revenues; however, our franchise revenues include royalties based on a percentage of franchise sales.

Consolidated Financial Highlights




Three Months Ended June 30,

(in US$ millions, except per share data)

2019

2018

(Unaudited)

Total Revenues

$

1,400

$

1,343

Net Income Attributable to Common Shareholders and Noncontrolling Interests

$

257

$

313

Diluted Earnings per Share

$

0.55

$

0.66

TH Adjusted EBITDA(1)

$

287

$

286

BK Adjusted EBITDA(1)

$

252

$

236

PLK Adjusted EBITDA(1)

$

41

$

40

Adjusted EBITDA(2)

$

580

$

562

Adjusted Net Income(2)

$

331

$

313

Adjusted Diluted Earnings per Share(2)

$

0.71

$

0.66

As of June 30,

2019

2018

(Unaudited)

LTM Free Cash Flow(2)

$

1,275

$

1,141

Net Debt

$

11,218

$

11,254

Net Leverage(2)

5.0x

5.0x




(1)

TH Adjusted EBITDA, BK Adjusted EBITDA and PLK Adjusted EBITDA are our measures of segment profitability.

(2)

Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings per Share, LTM Free Cash Flow, and Net Leverage are non-GAAP financial measures. Please refer to "Non-GAAP Financial Measures" for further detail.

Effective January 1, 2019, we adopted the new lease accounting standard ("New Standard"). Our consolidated financial statements for 2019 reflect the application of the New Standard, while our consolidated financial statements for 2018 were prepared under the guidance of the previously applicable lease accounting standard ("Previous Standard").

The year-over-year change in Total Revenues on a GAAP basis was primarily driven by system-wide sales growth,  the impact of the New Standard on franchise and property revenues and an increase in supply chain sales, partially offset by FX movements.

The decrease in Net Income Attributable to Common Shareholders and Noncontrolling Interests for the second quarter was primarily driven by an increase in income tax expense provision resulting from an adjustment related to a prior restructuring transaction that is not applicable to ongoing operations and unfavorable results from other operating expenses (income), net driven by FX movements.

The year-over year change in Adjusted EBITDA on an organic basis was primarily driven by system-wide sales growth.

View full version at Restaurant Brands International


Wingstop Inc. Reports Fiscal Second Quarter 2019 Financial Results


August 01, 2019 07:30 ET

Increases regular quarterly dividend by 22%

Domestic same store sales growth of 12.8%

Digital sales increased to 33% of domestic system-wide sales

DALLAS, Aug. 01, 2019 (GLOBE NEWSWIRE) -- Wingstop Inc. (NASDAQ: WING) today announced financial results for the fiscal second quarter ended June 29, 2019.

Highlights for the fiscal second quarter 2019 compared to the fiscal second quarter 2018:

  1. System-wide sales increased 21.9% to $372 million

  2. System-wide restaurant count increased 9.7% to 1,303 global locations

  3. System-wide domestic same store sales increased 12.8%

  4. Total revenue increased to $48.6 million

  5. Net income was $4.9 million for the thirteen weeks ended June 29, 2019, compared to $6.8 million in the prior fiscal second quarter

  6. Adjusted EBITDA*, a non-GAAP measure, increased 15.3% to $13.5 million for the thirteen weeks ended June 29, 2019, compared to $11.7 million in the prior fiscal second quarter

* Adjusted EBITDA is a non-GAAP measure. A reconciliation of Adjusted EBITDA to the most directly comparable financial measure presented in accordance with GAAP is set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures.”

“Our second quarter results showcase the potential for our business as we execute on the strategies that support our vision to become a top 10 global restaurant brand,” commented Charlie Morrison, Chairman and Chief Executive Officer of Wingstop. “We generated strong quarterly same store sales growth of 12.8%, as we continued to focus on strategic initiatives including the phased rollout of delivery, enhanced digital ordering capabilities, and driving brand awareness through our national advertising campaign. Further, our asset light business model continues to deliver strong free cash flow conversion, positioning us to provide a 22% increase in our quarterly dividend.  Looking ahead to the second half of 2019 and beyond, we are encouraged by the trajectory of our business and will continue to execute against these strategies.”

Key operating metrics for the fiscal second quarter 2019 compared to the fiscal second quarter 2018Thirteen Weeks EndedJune 29, 2019June 30, 2018Number of system-wide restaurants open at end of period1,3031,188Number of domestic franchise restaurants open at end of period1,1391,040Number of international franchise restaurants open at end of period135122System-wide sales (in thousands)$371,505$304,858System-wide domestic same store sales growth12.8%4.3%Net income (in thousands)$4,918$6,839Adjusted EBITDA (in thousands)$13,549$11,747

Fiscal second quarter 2019 financial results

Total revenue for the fiscal second quarter 2019 increased to $48.6 million from $37.0 million in the fiscal second quarter last year.

  1. Royalty revenue, franchise fees and other increased $4.0 million to $21.2 million from $17.2 million in the fiscal second quarter of the prior year. The increase is due to 112 net franchise restaurant openings since June 30, 2018 and domestic same store sales growth of 12.8%.

  2. Advertising fees and related income increased $5.1 million to $13.5 million from $8.4 million in the fiscal second quarter of the prior year. Advertising fees increased primarily due to the increase in the contribution rate to our national advertising fund (the “Ad Fund”) from 3% to 4% of gross sales beginning in fiscal year 2019, as well as the 21.9% increase in system-wide sales in the fiscal quarter ended June 29, 2019 compared to the fiscal quarter ended June 30, 2018.

  3. Company-owned restaurant sales increased $2.4 million to $13.9 million from $11.5 million in the fiscal second quarter of the prior year. The increase was primarily due to company-owned same store sales growth of 13.8%, which was primarily driven by an increase in transactions and the acquisition of five franchised restaurants since the prior year comparable period resulting in additional sales of $0.7 million.

Cost of sales increased to $10.6 million from $7.7 million in the fiscal second quarter of the prior year. As a percentage of company-owned restaurant sales, cost of sales increased to 76.1% from 67.5%. The increase was driven primarily by a 32.1% increase in the cost of bone-in chicken wings, as well as an increase in the Ad Fund contribution rate from 3% to 4% of gross sales beginning in fiscal year 2019. Additionally, labor and other restaurant operating expenses increased as a result of additional labor, training and other operating expenses associated with the three franchised restaurants that we acquired in the fiscal fourth quarter of 2018 as we make investments to prepare these restaurants to be refranchised in a future period, as well as an increase in the amount of third-party delivery fees as we completed the launch of delivery at all company-owned restaurants in April of 2019. These increases were offset slightly by company-owned same store sales of 13.8%, which was primarily driven by an increase in transactions.

Advertising expenses increased $4.8 million to $13.0 million from $8.2 million in the fiscal second quarter of the prior year due to an increase in advertising fees and as a result of an increase in the Ad Fund contribution rate from 3% to 4% of gross sales beginning in fiscal year 2019. Advertising expenses are recognized at the same time the related revenue is recognized, which does not necessarily correlate to the actual timing of the related advertising spend.

Selling, general & administrative expense (“SG&A”) increased to $13.4 million compared to $10.1 million in the fiscal second quarter of the prior year. The increase in SG&A expense was primarily due to an increase of $0.9 million in headcount related expenses as we make investments to support our strategic initiatives. Also contributing to the increase is $0.5 million associated with additional expenses to support our continued investment in our national advertising campaign. Stock-based compensation increased $0.9 million related to the modification of certain stock awards. The remaining increases in SG&A were to support investments in technology and other initiatives.

Interest expense increased $2.0 million to $4.3 million from $2.3 million in the fiscal second quarter of the prior year. The increase was primarily due to a higher average outstanding debt balance and the applicable interest rate related to our securitized debt facility.

Income tax expense increased $0.3 million to $1.1 million, yielding an effective tax rate of 17.9%, compared to $0.7 million and an effective tax rate of 9.8% in the fiscal second quarter of the prior year. The increase was primarily due to $0.6 million in tax benefits resulting from the recognition of excess tax benefits from stock-based compensation in income tax expense in the current fiscal quarter compared to $1.2 million of excess tax benefits in the prior year period.

Net income was $4.9 million, or $0.17 per diluted share, compared to net income of $6.8 million, or $0.23 per diluted share, in the fiscal second quarter of the prior year.

See full version at Wingstop

</>



Elite Restaurant Group adds cupcakes to its growing portfolio





AUTHOR


Aug. 1, 2019




Dive Brief:

  1. Elite Restaurant Group has acquired 68-unit Gigi's Cupcake chain, about seven months after Gigi's filed for bankruptcy protection, Nation's Restaurant News reports.

  2. Elite's restaurant portfolio will now include nearly 120 units and gross sales of nearly $150 million, according to David Eldredge, head of marketing for Elite.

  3. Elite Restaurant Group also owns Slater's 50/50 chain, Patxi's Pizza and Daphne's Mediterranean. The latter, a Middle Eastern fast casual chain, is also facing acute financial difficulty, having recently closed almost a dozen locations.


Dive Insight:

Elite's acquisition of Gigi's aligns with its overall strategy of taking on distressed brands with an objective of turning them around. In January, the cupcake chain filed for bankruptcy, listing liabilities between $1 million to $10 million in Texas Northern Bankruptcy Court. It also had to navigate a contentious franchisor/franchisee fight in the process. According to the Dallas News, Gigi's was entangled in a number of lawsuits from 18 franchisees claiming they were misled about the company's finances.

These are undoubtedly significant hurdles to overcome. A reported decline in the popularity of gourmet cupcakes could be a challenge for Elite with its Gigi's acquisition. The Wall Street Journal reported the cupcake concept waning in 2014 with the closure of then-public Crumbs Bake Shop, and plenty of articles have been written about the rise and fall of the cupcake market. However, Food & Wine revisited the trend last year positing that the "fall" may have been widely overblown, as evidenced by Magnolia Bakery's announcement of a national expansion in 2018, which offers a glimmer of optimism behind the acquisition.

Elite's move is part of an active M&A environment and joins a number of companies growing their portfolio in the restaurant space in an attempt to pool resources and diversify offerings to compete in a saturated market. However, while it's known as a turnaround specialist, that result has yet to come to fruition for Daphne's (formerly Noon), which Elite acquired out of bankruptcy in April 2018. Earlier this week, Daphne's Mediterranean closed all 11 of its Texas locations, some of which were open for mere months.

In a statement to Restaurant Business, Eldredge said the restaurants' performance was not up to expectations. The company plans to pursue other options to grow the business, however, which makes sense considering the emergence of Middle Eastern cuisine into the American mainstream. According to Mintel's 2019 U.S. Flavor Trends report, Middle Eastern cuisine on U.S. menus increased 45% from Q4 of 2015 to Q4 of 2018.

Elite also continues to pursue its aggressive plan for growing both Patxi's and what it is calling "Daphne's 2.0" into national brands.

As it continues to build its portfolio, Elite Restaurant Group is also considering going public, NRN reports, which would add some more capital behind these plans. Of course, Elite would have to find investors equally as optimistic about these brands' turnaround potential.



Yum! Brands Reports Strong Second-Quarter; System Sales Growth of 10%; Same-Store Sales Growth of 5%; GAAP Operating Profit Growth of 5%; Core Operating Profit Growth of 18%







Yum! Brands Reports Strong Second-Quarter; System Sales Growth of 10%; Same-Store Sales Growth of 5%; GAAP Operating Profit Growth of 5%; Core Operating Profit Growth of 18

August 01, 2019 07:00 AM Eastern Daylight Time


LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today reported results for the second-quarter ended June 30, 2019. Worldwide system sales excluding foreign currency translation grew 10%, with 7% net-new units and 5% same-store sales growth. Second-quarter GAAP EPS was $0.92, a decrease of (5)%. Second-quarter EPS excluding Special Items was $0.93, an increase of 15%.

GREG CREED COMMENTS

Greg Creed, CEO, said “Second-quarter results maintained early year momentum and helped us to exceed our already high expectations for a strong first half of 2019. I’m especially pleased to report that we delivered 10% system sales growth in the quarter, supported by broad based strength at KFC International and Taco Bell. Our commitment to being a more focused, more franchised, and more efficient growth company positions us well for long-term success. Through the lens of our four growth drivers, we continue to leverage our unprecedented scale and expand our capabilities with the goal of enhancing franchise economics, accelerating growth and maximizing shareholder value.”

SECOND-QUARTER HIGHLIGHTS

  1. Worldwide system sales excluding foreign currency translation grew 10%, with KFC, Pizza Hut and Taco Bell each at 10%. Adjusting the prior year base to include Telepizza, system sales growth excluding foreign currency translation would have been 9% worldwide and 4% for the Pizza Hut Division.

  2. We opened 312 net units in the quarter. On a year-over-year basis, which takes into account the strategic alliance with Telepizza in the fourth-quarter 2018, net new unit growth was 7%.

  3. We repurchased 1.9 million shares totaling $196 million at an average price per share of $104.

  4. We reflected the change in fair value of our investment in Grubhub by recording pre-tax investment income of $24 million in the second quarter of 2019 and $25 million in the second quarter of 2018, which resulted in $0.06 in EPS during each respective quarter.

  5. Foreign currency translation unfavorably impacted divisional operating profit by $17 million.



% Change


System Sales Ex F/X

Same-Store Sales

Net New Units

GAAP Operating Profit

Core Operating Profit2

KFC Division

+10

+6

+6

+11

+17

Pizza Hut Division1

+10

+2

+10

+18

+21

Taco Bell Division

+10

+7

+3

+7

+7

Worldwide1

+10

+5

+7

+5

+18



Second-Quarter



Year-to-Date


2019



2018



% Change



2019



2018



% Change

GAAP EPS

$0.92



$0.97



(5)



$1.75



$2.25



(22)

Special Items EPS2

$(0.01)



$0.15



NM



$(0.01)



$0.54



NM

EPS Excluding Special Items

$0.93



$0.82



+15



$1.76



$1.71



+2

1 Pizza Hut Division and Worldwide system sales ex F/X and net new units include the benefit of our strategic alliance with Telepizza in the fourth-quarter 2018. Same-store sales reflects the inclusion of Telepizza in the prior year base.

2 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit and Special Items.

All comparisons are versus the same period a year ago.

System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details.

KFC DIVISION



Second-Quarter

Year-to-Date




%/ppts Change



%/ppts Change


2019

2018

Reported

Ex F/X

2019

2018

Reported

Ex F/X

Restaurants

23,118

21,838

+6

N/A

23,118

21,838

+6

N/A

System Sales ($MM)

6,648

6,306

+5

+10

13,195

12,635

+4

+10

Same-Store Sales Growth (%)

+6

+2

NM

NM

+5

+2

NM

NM

Franchise and Property Revenues ($MM)

332

310

+7

+12

655

617

+6

+12

Operating Profit ($MM)

261

235

+11

+17

497

456

+9

+16

Operating Margin (%)

44.7

36.1

8.6

8.5

43.2

34.8

8.4

8.2



Second-Quarter (% Change)

Year-to-Date (% Change)


International

U.S.

International

U.S.

System Sales Growth Ex F/X

+12

+2

+12

+2

Same-Store Sales Growth

+6

+2

+6

+2

Second-Quarter Highlights

  1. KFC Division opened 331 gross new restaurants in 54 countries.

  2. Operating margin increased 8.6 percentage points driven by refranchising, same-store sales growth and net new unit growth.

  3. Foreign currency translation unfavorably impacted operating profit by $14 million.


KFC Markets1

Percent of KFC System Sales2

System Sales Growth Ex F/X

Second-Quarter

(% Change)

Year-to-Date

(% Change)

China

27%

+12

+12

United States

17%

+2

+2

Asia

12%

+10

+9

Russia & Eastern Europe

8%

+19

+19

Australia

7%

+8

+7

United Kingdom

6%

+17

+18

Latin America

5%

+13

+12

Western Europe

5%

+15

+12

Africa

4%

+14

+13

Middle East / Turkey / North Africa

4%

+8

+7

Canada

2%

+1

(1)

Thailand

2%

+10

+9

India

1%

+22

+24

1 Refer to investors.yum.com under Financial Reports for a list of the countries within each of the markets.

2 Reflects Full Year 2018.

View full version at Yum! Brands


Dunkin' Brands Reports Second Quarter 2019 Results

August, 1 2019


Second quarter highlights include:

  1. Dunkin' U.S. comparable store sales growth of 1.7%

  2. Baskin-Robbins U.S. comparable store sales decline of 1.4%

  3. Added 46 net new Dunkin' locations in the U.S.; total of 109 net new Dunkin' and Baskin-Robbins locations globally

  4. Revenues increased 2.5%

  5. Diluted EPS decreased by 1.4% to $0.71

  6. Diluted adjusted EPS increased by 11.7% to $0.86

Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' and Baskin-Robbins (BR), today reported results for the second quarter ended June 29, 2019.

"Continuing the momentum established earlier in the year, our second quarter performance was highlighted by double-digit sales growth of espresso, our national value platforms, and terrific consumer reception to our latest menu innovation, our better-for-you Power Platform. We're attracting a new consumer with both espresso and our Power Platform and will continue to bring more on-trend innovation to fuel guests throughout the day," said David Hoffmann, Dunkin' Brands Chief Executive Officer and President of Dunkin' U.S. "Additionally, as a result of a highly-collaborative process with our franchisees, the Next Generation restaurant design, with nearly 300 already in the marketplace, is now the standard image for all new builds and remodels. This new store design takes our commitment to serving "great coffee, fast" to the next level through an optimized mobile order pick-up experience, iced beverage tap system, and drive-thru enhancements that make it even easier to use Dunkin' on-the-go. We are pleased with the progress we are making against our Dunkin' U.S. Blueprint for Growth, largely driven by our strong franchisee/franchisor relationship, which continues to be our number one asset."

"The investment our system made in espresso equipment and training in 2018 continued to deliver strong returns. Espresso, a critical component of our beverage-led strategy, is now our fastest growing category with sales for the second quarter up more than 40 percent versus the prior year period," said Kate Jaspon, Chief Financial Officer, Dunkin' Brands Group, Inc. "The introduction of Dunkin' Handcrafted Signature Lattes was a key contributor to total espresso growth and helped drive our second quarter performance, including 1.7 percent growth in Dunkin' U.S. comparable store sales, and nearly 8 percent operating income growth for Dunkin' Brands."

SECOND QUARTER 2019 KEY FINANCIAL HIGHLIGHTS(Unaudited, $ in millions, except per share data)Three months endedIncrease (Decrease)Amounts and percentages may not recalculate due to rounding

June 29,

 2019

June 30,

 2018$ / #%Financial data:Revenues$359.3350.68.72.5%Operating income122.7113.98.87.7%Operating income margin34.1%32.5%Adjusted operating income(1)$127.3119.87.56.2%Adjusted operating income margin(1)35.4%34.2%Net income$59.660.5(0.9)(1.4)%Adjusted net income(1)72.464.87.611.7%Earnings per share:Common–basic0.720.73(0.01)(1.4)%Common–diluted0.710.72(0.01)(1.4)%Diluted adjusted earnings per share(1)0.860.770.0911.7%Weighted-average number of common shares – diluted (in millions)83.784.1(0.4)(0.5)%Systemwide sales(2)$3,144.63,030.0114.63.8%Comparable store sales growth (decline):Dunkin' U.S.1.7%1.4%BR U.S.(1.4)%(0.4)%Dunkin' International5.6%4.0%BR International3.2%(2.5)%Development data:Consolidated global net POD development109961313.5%Dunkin' global PODs at period end12,95712,6762812.2%BR global PODs at period end8,0728,011610.8%Consolidated global PODs at period end21,02920,6873421.7%(1) Adjusted operating income, adjusted operating income margin, and adjusted net income are non-GAAP measures reflecting operating income and net income adjusted for amortization of intangible assets, long-lived asset impairments, and certain other items, net of the tax impact of such adjustments in the case of adjusted net income. Diluted adjusted earnings per share is a non-GAAP measure calculated using adjusted net income. See "Non-GAAP Measures and Statistical Data" and "Dunkin' Brands Group, Inc. Non-GAAP Reconciliations" for further detail.(2) Systemwide sales include sales at franchisee-operated restaurants, including joint ventures. While we do not record sales by franchisees, licensees, or joint ventures as revenue, and such sales are not included in our consolidated financial statements, we believe that this operating measure is important in obtaining an understanding of our financial performance. We believe systemwide sales information aids in understanding how we derive royalty revenue and in evaluating our performance relative to competitors.

Global systemwide sales growth of 3.8% in the second quarter was primarily attributable to global store development, Dunkin' U.S. comparable store sales growth, and Dunkin' International comparable store sales growth.

Dunkin' U.S. comparable store sales grew 1.7% in the second quarter as an increase in average ticket was partially offset by a decrease in traffic. The increase in average ticket was driven by strategic pricing increases coupled with favorable mix shift to premium priced espresso and cold brew beverages, as well as continued adoption of our Go2s value platform, which had an average ticket of nearly $9.

Baskin-Robbins U.S. comparable store sales declined 1.4% in the second quarter as a decrease in traffic was partially offset by an increase in average ticket. The increase in average ticket was driven by strategic pricing increases.

In the second quarter, Dunkin' Brands franchisees and licensees opened 109 net new restaurants globally. This included 46 net new Dunkin' U.S. locations, 43 Baskin-Robbins International locations, 11 Dunkin' International locations, and 9 Baskin-Robbins U.S. locations. Additionally, Dunkin' U.S. franchisees remodeled 30 restaurants and Baskin-Robbins U.S. franchisees remodeled 12 restaurants during the quarter.

Revenues for the second quarter increased $8.7 million, or 2.5%, compared to the prior year period due primarily to an increase in royalty income as a result of Dunkin' U.S. systemwide sales growth, as well as an increase in rental income, offset by a decrease in advertising fees and related income. The increase in rental income resulted from the adoption of the new lease accounting standard in the first quarter of fiscal year 2019, which requires gross presentation of certain lease costs that the Company passes through to franchisees. See "Adoption of New Accounting Standard" for further detail. The decrease in advertising fees and related income was due primarily to a decrease in gift card program service fees, offset by an increase in advertising fees as a result of systemwide sales growth.

Operating income and adjusted operating income for the second quarter increased $8.8 million, or 7.7%, and $7.5 million, or 6.2%, respectively, from the prior year period primarily as a result of the increase in royalty income, as well as other operating income in the current quarter compared to other operating loss in the prior year period.

Net income for the second quarter decreased by $0.9 million, or 1.4%, compared to the prior year period primarily as a result of a $13.1 million loss on debt extinguishment recorded in the current period, offset by the increase in operating income, an increase in interest income earned on our cash balances, and a decrease in income tax expense as a result of the decrease in income in the current period. The loss on debt extinguishment was due to the write-off of debt issuance costs in conjunction with a refinancing transaction completed during the second quarter.

Adjusted net income for the second quarter increased by $7.6 million, or 11.7%, compared to the prior year period primarily as a result of the increases in adjusted operating income and interest income, offset by an increase in income tax expense.

Diluted earnings per share for the second quarter decreased by 1.4% to $0.71 compared to the prior year period as a result of the decrease in net income. Diluted adjusted earnings per share increased by 11.7% to $0.86 compared to the prior year period as a result of the increase in adjusted net income. 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 $0.02 for each of the second quarters of fiscal years 2019 and 2018.

View source version at Dunkin Brands



The Cheesecake Factory to Acquire Fox Restaurant Concepts and Remaining Interest in North Italia


Reinforces leadership position in experiential dining


July 31, 2019 04:16 PM Eastern Daylight Time


CALABASAS HILLS, Calif.--(BUSINESS WIRE)--The Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced that it has entered into definitive agreements to acquire Fox Restaurant Concepts (“FRC”) and the remaining interest in North Italia, reinforcing its leadership position in experiential dining.

“Since making our initial minority investments in North Italia and Flower Child in 2016, we have not only helped fuel the growth of both brands, but also developed a deep relationship with Sam Fox at Fox Restaurant Concepts,” said David Overton, Chairman and Chief Executive Officer of The Cheesecake Factory Incorporated. “We realized the true potential of this relationship as we worked through the integration process for our planned acquisition of North Italia. It became evident that the combination of two of the most experiential and entrepreneurial restaurant companies could drive greater value as one organization.”

Overton continued, “In turn, we have decided to bring together North Italia and Fox Restaurant Concepts, including Flower Child, with The Cheesecake Factory to reinforce our leadership position in experiential dining. With the power of The Cheesecake Factory brand, infrastructure and growth potential, complemented by an additional growth vehicle in the North Italia concept and an incubation engine to develop concepts of the future, we believe we will be even better positioned to provide our guests with exceptional dining experiences, offer growth opportunities for our respective teams and maximize long-term value for our shareholders. We look forward to continuing to work with Sam to expand the businesses.”

Sam Fox, Founder and Chief Executive Officer of Fox Restaurant Concepts, said, “This partnership will be the first of its kind for the restaurant industry. David Overton and I quickly realized the magic occurring between our organizations while we worked through North Italia’s integration. With our aligned cultures and philosophies, The Cheesecake Factory is the right partner to embrace our creative spirit, enabling us to, innovate concepts, while providing the infrastructure and capital to scale.”

The transactions will be completed for $308 million in cash at closing. An additional $45 million will be due ratably over the next four years. The Company previously invested $88 million in the North Italia and Flower Child concepts over the last three years in anticipation of their purchase. The cash due at closing will be funded by drawing on the Company’s upsized revolving credit facility and cash on hand. The FRC transaction also includes an earn-out provision based on the financial performance of the FRC brands outside of North Italia and Flower Child. The Cheesecake Factory Incorporated’s Board of Directors has unanimously approved the transactions, which are expected to close around the end of the third quarter of fiscal 2019, subject to the expiration of the applicable Hart-Scott-Rodino Act waiting period and other customary closing conditions. The transactions do not require approval by the Company’s shareholders.

Following the completion of the transactions, North Italia’s operations will be located at The Cheesecake Factory Incorporated’s corporate headquarters in Calabasas Hills, California to help scale the concept nationally. Since the initial investment in 2016, the Company has been working closely with North Italia’s operations and leadership team to construct a comprehensive integration plan. In turn, the Company anticipates a smooth integration process. FRC will operate as a wholly-owned subsidiary, and continue to be led by Sam Fox, Founder and Chief Executive Officer of FRC, from FRC’s headquarters in Phoenix, Arizona.



The Cheesecake Factory Reports Results for Second Quarter of Fiscal 2019


Announces definitive agreements to acquire Fox Restaurant Concepts and remaining interest in North Italia; Reinforces leadership position in experiential dining


July 31, 2019 04:15 PM Eastern Daylight Time


CALABASAS HILLS, Calif.--(BUSINESS WIRE)--The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the second quarter of fiscal 2019, which ended on July 2, 2019.

Total revenues were $602.6 million in the second quarter of fiscal 2019 compared to $587.3 million in the second quarter of fiscal 2018. Net income and diluted net income per share were $35.5 million and $0.79, respectively, in the second quarter of fiscal 2019.

Excluding the after-tax impact of the $1.2 million loss on the Company’s minority investments, net income and diluted net income per share for the second quarter of fiscal 2019 would have been $36.7 million and $0.82, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this release.

Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.0% in the second quarter of fiscal 2019.

In a separate press release issued this afternoon, the Company also announced that it has entered into definitive agreements to acquire Fox Restaurant Concepts (“FRC”) and the remaining interest in North Italia, reinforcing its leadership position in experiential dining. Each of the North Italia and FRC transactions is subject to the expiration of the applicable Hart-Scott-Rodino Act waiting period and other customary closing conditions, and is expected to close around the end of the third quarter of fiscal 2019.

“Adjusted earnings per share was within our expectations, supported by solid operational execution during the quarter,” said David Overton, Chairman and Chief Executive Officer. “This performance was in spite of a soft restaurant industry sales environment in which we continued to outperform.”

Overton continued, “Our strong cash flow profile enables us to continue to execute a balanced capital allocation strategy that we believe will generate the best returns for our shareholders. We increased our dividend for the seventh consecutive year, continued to execute on our share repurchase program and are positioned to drive long-term profitable growth with today’s announcement of our plans to bring together North Italia and Fox Restaurant Concepts with The Cheesecake Factory, to reinforce our leadership position in experiential dining. We believe we will be even better positioned to provide our guests with exceptional dining experiences, offer growth opportunities for our respective teams and maximize long-term value for our shareholders.”

View full version at The Cheesecake Factory



Dine Brands Global, Inc. Reports Strong Second Quarter 2019 Results


Earnings Per Diluted Share (GAAP) Increased 71% Adjusted Earnings Per Diluted Share (Non-GAAP) Increased 66% Net Income Increased 68%


July 31, 2019 08:00 AM Eastern Daylight Time


GLENDALE, Calif.--(BUSINESS WIRE)--Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill + Bar® and IHOP® restaurants, today announced financial results for the second quarter of 2019.

“Our strategy continues to drive significant improvements across key metrics. We have made important decisions over the last two years that have improved our fundamentals and enhanced our ability to deliver sustainable growth. We successfully completed a $1.3 billion refinancing of our securitized debt, replacing our 2014 fixed rate senior secured notes. We are also pleased to announce that Applebee’s franchisees agreed to extend the increase in the advertising contribution rate to 4.25% through the end of next year,” said Steve Joyce, Chief Executive Officer of Dine Brands Global, Inc.

Mr. Joyce continued, “Our performance reflects the strength and stability of our highly franchised business model. While comparable same-restaurant sales at Applebee’s were lower than expected, these results are not indicative of a shift in Applebee’s fundamentals or brand relevance, both of which remain intact. As we enter the back half of the year, we are executing against our plan with a sharpened focus on operating fundamentals, which will help us continue to grow and create shareholder value.”

Key Highlights

  1. IHOP’s reported system-wide sales for the second quarter of 2019 increased 3.2% year-over-year to $863.4 million.

  2. The refinancing of fixed rate senior secured notes and variable funding senior notes was completed on June 5th.

  3. Series 2019-1 Class A-2-I, Fixed Rate Senior Secured Notes in an initial principal amount of $700 million; bear interest at a fixed coupon rate of 4.194% per annum and have an expected term of five years.

  4. Series 2019-1 Class A-2-II, Fixed Rate Senior Secured Notes in an initial principal amount of $600 million; bear interest at a fixed coupon rate of 4.723% per annum and have an expected term of seven years.

  5. $225 million of Class A-1 Variable Funding Senior Notes.

  6. In July, Applebee’s franchisees agreed to extend the increase in the advertising contribution rate to 4.25% through December 31, 2020.

  7. Total revenues for the second quarter of 2019, excluding advertising revenues, increased 24.3% year-over-year to $156.3 million.

  8. Gross profit for the second quarter of 2019 increased 20.7% year-over-year to $94.9 million.

  9. The Company restaurants segment contributed approximately $2.5 million of gross profit in the second quarter of 2019.

  10. GAAP earnings per diluted share for the second quarter of 2019 increased 71.0% year-over-year to $1.18.

  11. Adjusted earnings per diluted share for the second quarter of 2019 increased 66.0% year-over-year to $1.71. (See “Non-GAAP Financial Measures” below.)

  12. Net income for the second quarter of 2019 increased 68.3% year-over-year to $21.4 million.

  13. Consolidated adjusted EBITDA for the second quarter increased 35.3% to $68.0 million compared to $50.2 million for the second quarter of 2018. (See “Non-GAAP Financial Measures” and reconciliation of GAAP net income to consolidated adjusted EBITDA.)

  14. During the second quarter of 2019, the Company repurchased 392,132 shares of its common stock for a total cost of approximately $35.3 million and paid quarterly cash dividends totaling approximately $12.2 million.

  15. Cash flows from operating activities for the first six months of 2019 increased 168.8% to ­$69.3 million compared to $25.8 million for the same period of 2018.

  16. Adjusted free cash flow for the first six months of 2019 increased 134.9% to approximately $66.0 million compared to approximately $28.1 million for the same period of 2018. (See “Non-GAAP Financial Measures” and reconciliation of the Company’s cash provided by operating activities to adjusted free cash flow.)

Financial Summary


Second Quarter

First Six Months($ in 000's, except per share amounts)

2019

2018

% Change

2019

2018

% ChangeTotal revenues, excluding Company restaurant sales

$

194,329

$

184,471

5

%

$

395,776

$

372,634

6

%Net income available to common stockholders per share

$

1.18

$

0.69

71

%

$

2.91

$

1.61

81

%Diluted net income available to common stockholders per share, as adjusted(1)

$

1.71

$

1.03

66

%

$

3.61

$

2.13

69

%Net income

$

21,390

$

12,713

68

%

$

53,033

$

29,786

78

%Consolidated adjusted EBITDA(1)(2)

$

67,968

$

50,249

35

%

$

142,671

$

103,427

38

%

(1) See “Non-GAAP Financial Measures” and reconciliation of the Non-GAAP financial measure to the respective GAAP financial measure.

(2) Does not conform to the definition of Covenant Adjusted EBITDA as found in the Base Indenture.

View full version at Dine Brands



Bloomin’ Brands Announces 2019 Q2 Diluted EPS of $0.32 and Adjusted Diluted EPS of $0.36


Q2 Comparable Restaurant Sales Growth of 1.3% at Outback Steakhouse

Q2 GAAP Operating Margin Expansion of 110 bps and 80 bps on a Comparable Adjusted Basis

Reaffirms Full-Year 2019 Guidance, Including Adjusted Diluted EPS, U.S. Comparable Sales, and Margins


July 31, 2019 07:00 AM Eastern Daylight Time


TAMPA, Fla.--(BUSINESS WIRE)--Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the second quarter 2019 (“Q2 2019”) compared to the second quarter 2018 (“Q2 2018”).

Highlights for Q2 2019 include the following:

  1. Comparable restaurant sales increased 1.3% at U.S. Outback Steakhouse

  2. Combined U.S. comparable restaurant sales increased 0.6%

  3. Comparable restaurant sales increased 3.5% for Outback Steakhouse in Brazil

Diluted EPS and Adjusted Diluted EPS

Our Q2 2019 results include the impact of the new lease accounting standard adopted in Q1 2019. Among its impacts, we no longer recognize the benefit of deferred gains on sale-leaseback transactions, resulting in an increase to Other restaurant operating expense which represents a two cent reduction in earnings per share. The following table includes both a reported and a comparable basis that adjusts for this lease accounting change.

The following table reconciles Diluted earnings per share to Adjusted diluted earnings per share for the periods as indicated below.



Q2




2019


2018


CHANGE

Diluted earnings per share

$


0.32



$


0.28



$


0.04


Adjustments


0.04




0.10




(0.06

)

Adjusted diluted earnings per share

$


0.36



$


0.38



$


(0.02

)

Remove new lease accounting standard impact (1)




(0.02

)



0.02


Adjusted diluted earnings per share on a comparable basis (1)(2)

$


0.36



$


0.36



$









______________See Non-GAAP Measures later in this release.

(1)

In Q2 2018 both GAAP and adjusted diluted earnings per share include the benefit of deferred gains on sale-leaseback transactions of approximately $0.02. For comparability, we have presented adjusted diluted earnings per share excluding this benefit that we no longer recognize in 2019 as a result of the adoption of the new lease accounting standard.

(2)

The effective income tax rate in Q2 2019 and Q2 2018 includes $1.0 million and $6.2 million, respectively, of tax benefit driven primarily by exercises of certain legacy stock options. These exercises benefited Q2 2019 and Q2 2018 diluted earnings per share by approximately $0.01 and $0.07, respectively.

CEO Comments

“Q2 was a good quarter for Bloomin’ Brands,” said David Deno, CEO. “We were particularly pleased with the healthy sales growth, reduction in discounting, and corresponding strong operating profit and margin expansion. Our positive momentum continued as we took additional market share and at Outback, sales exceeded the industry for the 10th consecutive quarter. In addition, we continue to capitalize on our growth opportunities and expect to achieve our comparable adjusted EPS growth range of 10% to 15% for the year.”

View full version at Bloomin' Brands



Del Taco Restaurants, Inc. Reports Fiscal Second Quarter 2019 Financial Results

July, 30 2019

System-wide comparable restaurant sales increased 2.2%


Del Taco Restaurants, Inc., (NASDAQ: TACO), the second largest Mexican-American quick service restaurant chain by units in the United States, today reported fiscal second quarter 2019 financial results for the 12-week period ending June 18, 2019. Del Taco also reaffirmed its previously announced guidance for fiscal year 2019.

Fiscal Second Quarter 2019 Highlights

  1. System-wide comparable restaurant sales increased 2.2%;

  2. Company-operated comparable restaurant sales increased 1.7%. Company-operated comparable restaurant sales were comprised of average check growth of 4.2%, including slight menu mix growth, partially offset by a transaction decline of 2.5%;

  3. Franchised comparable restaurant sales increased 2.8%;

  4. Total revenue of $121.5 million representing 3.1% growth from the fiscal second quarter 2018;

  5. Company-operated restaurant sales of $112.2 million representing 2.2% growth from the fiscal second quarter 2018;

  6. Net income was $2.1 million, or $0.06 per diluted share, compared to $4.2 million, or $0.11 per diluted share, in the fiscal second quarter 2018;

  7. Adjusted net income* was $4.9 million, or $0.13 per diluted share, compared to $5.4 million, or $0.14 per diluted share, in the fiscal second quarter 2018;

  8. Restaurant contribution* margin of 19.0%, which includes an approximate 70 basis points unfavorable impact from the adoption of the new lease accounting standard, compared to 19.7% in the fiscal second quarter 2018;

  9. Adjusted EBITDA* of $16.7 million, which includes approximately $0.7 million of unfavorable impact from the adoption of the new lease accounting standard, compared to $16.8 million in the fiscal second quarter 2018; and

  10. One company-operated restaurant and two franchised restaurant openings and three company-operated restaurant closures.

John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “Del Taco’s digital transformation, value evolution, and menu innovation strategies drove sequential system-wide comparable restaurant sales improvement during the second quarter. Company-operated restaurants experienced a 230 basis point and 300 basis point improvement, respectively, in comparable restaurant sales and transactions relative to the first quarter, while franchised restaurants similarly generated stronger sequential trends. We also improved our restaurant contribution margin performance compared to the first quarter due to these stronger top-line results coupled with effective cost management. Based upon our second quarter performance and outlook for the remainder of 2019, we are reaffirming our annual guidance.”

Cappasola continued, “The Del App now exceeds 675,000 registered users and we have expanded its functionality in company-operated restaurants to include online ordering through the App for pickup or delivery. Delivery is already available through Grubhub in substantially all company-operated restaurants, and we are particularly excited about our plans to add Postmates and DoorDash later this year.”

Cappasola concluded, “Del Taco’s second quarter product and promotion strategy centered on the $4, $5 and $6 ‘Fresh Faves’ box meals to enhance our value platform, and the Beyond Taco and Beyond Avocado Taco platform to leverage our menu innovation. These products accentuate our QSR plus brand positioning and have been very well received by our guests as ‘Fresh Faves’ mixed at nearly 5% throughout the quarter while the Beyond Tacos mixed at over 6% since their system-wide launch on April 25th. During the third quarter we expanded our Beyond product line to include the Beyond 8 Layer Burrito and the Epic Beyond Cali Burrito as we seek to capitalize on the popularity and versatility of this 100% plant-based protein.”

Review of Fiscal Second Quarter 2019 Financial Results

Total revenue increased 3.1% to $121.5 million compared to $117.8 million in the fiscal second quarter 2018. Comparable restaurant sales increased 2.2% system-wide, resulting in a 5.5% increase on a two-year basis. Company-operated comparable restaurant sales increased 1.7% while franchise comparable restaurant sales increased 2.8%.

Net income was $2.1 million, representing $0.06 per diluted share, compared to $4.2 million in the fiscal second quarter 2018, representing $0.11 per diluted share.

Adjusted net income* was $4.9 million, or $0.13 per diluted share, compared to $5.4 million in the fiscal second quarter 2018, or $0.14 per diluted share.

Restaurant contribution* was $21.3 million compared to $21.7 million in the fiscal second quarter 2018. As a percentage of Company-operated restaurant sales, restaurant contribution margin decreased 70 basis points year-over-year to 19.0%. The decrease was the result of an approximately 50 basis point increase in occupancy and other operating expenses, an approximately 10 basis point increase in food and paper costs and an approximately 10 basis point increase in labor and related expenses. Restaurant contribution margin included a negative impact of approximately 70 basis points due to the adoption of the new lease accounting standard.

Adjusted EBITDA* was $16.7 million compared to $16.8 million in the fiscal second quarter 2019 and in fiscal 2019 includes approximately $0.7 million of unfavorable impact from the adoption of the new lease accounting standard.

View source version at Del Taco



Philippines-Based Jollibee To Acquire Coffee Bean & Tea Leaf For $350 Million

July 26, 2019 at 5:19 am



(CNN/CBSLA) — Jollibee, the Philippines’ largest fast food chain, is taking a big step to expand its business internationally.

The company said it plans to acquire Los Angeles-based Coffee Bean & Tea Leaf, which has nearly 1,200 stores across more than 25 countries. The brand’s cafes serve brewed coffee and sweet blended drinks like chocolate cookie lattes and frozen mango sunrise ice blended tea.

This is not Jollibee’s first foray into American brands. Last year, it acquired the majority stake in fast-casual burger chain Smashburger.Jollibee wants to focus on growing the Coffee Bean & Tea Leaf brand in Asia. In a press release, Jollibee’s Chairman Tony Tan Caktiong said the deal will enable the company to “become an important player in the large, fast growing and profitable coffee business.”

Jollibee has a dedicated fanbase for its signature brand’s fried chicken and sweet spaghetti. The company currently operates 3,195 stores in the Philippines and 1,418 in countries ranging from the United States to Saudi Arabia. The company says the new deal would grow the international business to 36% of all sales.

Starbucks and Luckin Coffee have also been expanding their Asian businesses. Luckin announced this week it will partner with Kuwait-based company The Americana Group to set up a coffee retail business in the Middle East and India. And Coca-Cola bought Costa Coffee for $5 billion last year to catch onto the growing international coffee scene.

Jollibee said the total value of the Coffee Bean & Tea Leaf deal will be $350 million, with $100 million invested into a new Singapore-based holding company.



MOST OF KONA GRILL SOLD TO FORMER CEO’S COMPANY FOR $20.3M

A bankruptcy court has OK'd the sale of 24 restaurants to Williston Holding, the company headed by Marcus Jundt. By Peter Romeo on Jul. 26, 2019

A federal bankruptcy court has approved the sale of 24 Kona Grill polished-casual restaurants for $20.3 million to Williston Holding, the company headed by former Kona CEO and co-founder Marcus Jundt.The sale would pare the holdings of Kona Grill’s bankrupt parent to three restaurants, according to bankruptcy court documents. But local news reports indicate that at least one of those three, a store in Columbus, Ohio, has been closed.Kona filed for Chapter 11 bankruptcy protection at the end of April. The chain had closed 19 stores over the prior year. Overexpansion was cited as one of the brand’s problems, along with a high turnover of CEOs and heavy-handed cost cuts. Kona cycled through four leaders in the year preceding the bankruptcy filing.Williston’s intentions for the acquired restaurants were not revealed in the filing. The deal included right to the Kona Grill name, which would allow Williston to operate the stores under that identity and open new ones.Kona Grills are typically large units, measuring between 5,900 and 7,400 square feet, according to Technomic data. The researcher pegged the brand’s average sales per unit at $3.7 million in 2018, down from $4.1 million the prior year.Jundt resigned as CEO of Kona in March after serving in the role for just a few months.Williston currently operates about 50 restaurants under 10 brands, including Casa Ole, Monterey’s Little Mexico and Uberrito Fresh Mex.

View full version at Kona Grill




McDonald's Reports Second Quarter 2019 Results



Jul 26, 2019, 07:58 ET



CHICAGO, July 26, 2019 /PRNewswire/ -- McDonald's Corporation today announced results for the second quarter ended June 30, 2019.

"With the strong results we achieved in the second quarter, we have now experienced 16 consecutive quarters of positive global comparable sales," said McDonald's President and Chief Executive Officer Steve Easterbrook. "By putting our customers at the centre of all our efforts to run great restaurants, enhance the customer experience and provide delicious menu offerings, we will continue to successfully execute our Velocity Growth Plan."

Second quarter highlights:

  1. Global comparable sales increased 6.5%, reflecting strong comparable sales across all segments.

  2. Consolidated revenues were flat with the prior year (increased 3% in constant currencies), reflecting strong comparable sales, partly offset by the impact of refranchising.

  3. Systemwide sales increased 8% in constant currencies.

  4. Consolidated operating income increased 1% (4% in constant currencies).

  5. Diluted earnings per share of $1.97 increased 4% (7% in constant currencies), including $0.08 per share of strategic charges. Excluding these current year charges as well as the prior year strategic restructuring charges of $0.09 per share, diluted earnings per share was $2.05 for the quarter, an increase of 3% (7% in constant currencies).

  6. The Company returned $2.0 billion to shareholders through share repurchases and dividends.

In the U.S., second quarter comparable sales increased 5.7%, reflecting successful national and local deal offerings, including the 2 for $5 Mix and Match deal, the continued positive impact from our Experience of the Future deployment, and strength in our core menu items. Operating income for the quarter increased 5% as a result of the comparison to the strategic restructuring charge in the prior year. Excluding this charge, operating income decreased 3%, reflecting lower gains on sales of restaurant businesses, partly offset by higher franchised margin dollars.

In the International Operated segment, second quarter comparable sales increased 6.6%, reflecting positive results across all markets, primarily driven by the U.K., France and Germany. The segment's operating income increased 3% (8% in constant currencies), primarily due to sales-driven improvements in franchised margin dollars.

In the International Developmental Licensed segment, second quarter comparable sales increased 7.9%, reflecting strong sales performance across all geographic regions.

Steve Easterbrook concluded, "By engaging our guests on their terms, whether it's through delivery, an enhanced dining experience at one of our Experience of the Future restaurants, or through our evolving digital offerings, we're becoming a better McDonald's. We will continue to focus on our customers with innovative solutions to further elevate the guest experience and drive growth."




KEY HIGHLIGHTS - CONSOLIDATED

Dollars in millions, except per share data

Quarters Ended June 30,

Six Months Ended June 30,

2019

2018

Inc/ (Dec)

Inc/ (Dec)

Excluding

Currency

Translation

2019

2018

Inc/ (Dec)

Inc/ (Dec)

Excluding

Currency

Translation

Revenues

$

5,341.3

$

5,353.9

0%

3%

$

10,296.9

$

10,492.8

(2)%

2%

Operating income

2,273.9

2,262.3

1

4

4,367.9

4,405.4

(1)

4

Net income

1,516.9

1,496.3

1

5

2,845.3

2,871.7

(1)

3

Earnings per share-diluted

$

1.97

$

1.90

4%

7%

$

3.69

$

3.62

2%

6%

Results for the quarter and six months in constant currencies reflected stronger operating performance primarily due to an increase in sales-driven franchised margin dollars, partly offset by lower gains on sales of restaurant businesses, mostly in the U.S.

Results for the quarter 2019 included $78 million of pre-tax strategic charges, or $0.08 per share, primarily related to impairment associated with the purchase of our joint venture partner's interest in the India Delhi market, partly offset by gains on the sales of property at the former Corporate headquarters. Results for the second quarter 2018 reflected $92 million of pre-tax strategic restructuring charges, or $0.09 per share. The six months 2018 also included $52 million, or $0.07 per share, of additional income tax costs associated with adjustments to the provisional amounts recorded in December 2017 under the Tax Cuts and Jobs Act of 2017 ("Tax Act").

Excluding the above items, net income for the quarter increased 1% (4% in constant currencies) and diluted earnings per share was $2.05, an increase of 3% (7% in constant currencies), and for the six months net income decreased 3% (increased 1% in constant currencies) and diluted earnings per share was $3.77, relatively flat with the prior year (increased 4% in constant currencies).

The six months 2019 also included $47 million of additional income tax costs due to regulations issued in January 2019related to the Tax Act.

Foreign currency translation had a negative impact of $0.07 and $0.16 on diluted earnings per share for the quarter and six months, respectively.

View full version at McDonald's




Chipotle Announces Second Quarter 2019 Results

COMP SALES ACCELERATE TO 10%, DIGITAL SALES INCREASE 99%


Jul 23, 2019, 16:10 ET



NEWPORT BEACH, Calf., July 23, 2019 /PRNewswire/ -- Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its second quarter ended June 30, 2019.

Second quarter highlights, year over year:

  1. Revenue increased 13.2% to $1.4 billion

  2. Comparable restaurant sales increased 10.0%, net of 40 bps from loyalty deferral, and included nearly 7% of comparable restaurant transaction growth

  3. Digital sales grew 99.1% and accounted for 18.2% of sales for the quarter

  4. Restaurant level operating margin was 20.9%, an increase from 19.7%

  5. Diluted earnings per share was $3.22, net of a $0.77 after-tax impact from expenses related to restaurant asset impairment, corporate restructuring, and certain other costs, a 91.7% increase from $1.68. Adjusted diluted earnings per share excluding these charges was $3.99, a 39.0% increase from $2.87.1

  6. Opened 20 new restaurants and closed 1

1 Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.

"We're pleased with our financial performance, which marks the sixth consecutive quarter of accelerating comps and reflects continued progress on our key strategic initiatives," said Brian Niccol, Chief Executive Officer. "These strong results were delivered despite a tougher year over year comparison and benefited from better restaurant operations, more effective marketing, and leveraging our digital make line to grow sales and expand access."

Results for the three months ended June 30, 2019:

Revenue in the second quarter increased to $1.4 billion, an increase of 13.2% compared with the same quarter a year ago. The increase in revenue was driven by a 10.0% increase in comparable restaurant sales.  Comparable restaurant sales improved primarily due to a nearly 7% increase in comparable restaurant transactions and an approximate 3.5% increase in the average check, which includes a benefit from menu price increases that were implemented during 2018, partially offset by approximately 40 basis points as a result of deferred revenue from our Chipotle Rewards loyalty program.

We opened 20 new restaurants during the quarter and closed 1, bringing the total restaurant count to 2,523.

Food, beverage and packaging costs were 33.7% of revenue, an increase of 110 basis points compared to the second quarter of 2018. The increase was primarily due to the increased cost of avocados and, to a lesser extent, increased dairy costs, partially offset by the benefit of menu price increases nationwide at the end of 2018.

Restaurant level operating margin was 20.9%, an increase from 19.7% in the second quarter of 2018.  The improvement was driven primarily by leverage from the comparable restaurant sales increase, partially offset by wage inflation at the crew level, higher food costs, and increased delivery, marketing and promotional expenses.

General and administrative expenses for the quarter was $121 million on a GAAP basis, or $97 million on a non-GAAP basis, excluding $4 million related to transformation expenses, and $20 million for legal reserves. GAAP and non-GAAP general and administrative expenses includes $21 million related to non-cash stock compensation, and $4 millionrelated to higher bonus accruals from our strong operating performance and payroll taxes on stock option exercises. Without these items, underlying general and administrative expenses totaled $72 million for the second quarter of 2019, similar to the first quarter of 2019 and in-line with expectations. The $20 million for legal reserves related to legal proceedings, much of which relate to older cases, includes an estimate for the previously disclosed government investigation that has been on-going for nearly four years.

Impairment, closure costs, and asset disposals decreased $40.8 million for the three months ended June 30, 2019, compared to the second quarter 2018, primarily due to elevated impairment in the comparable period 2018.

The effective tax rate decreased to 26.6% for the three months ended June 30, 2019, from 33.3% in the second quarter of 2018.  The decrease was primarily due to current quarter excess tax benefits from stock compensation, and a favorable reduction in non-deductible employee meals, partially offset by a portion of the loss contingencies related to legal proceedings recorded this quarter that are non-deductible.

Net income was $91.0 million, or $3.22 per diluted share, an increase from $46.9 million, or $1.68 per diluted share, in the second quarter of 2018. Excluding the impact of restaurant closure costs, corporate restructuring, legal reserves, and certain other costs, adjusted net income was $112.9 million and adjusted diluted earnings per share was $3.99.

During the quarter, our Board of Directors approved the investment of up to an additional $100 million, exclusive of commissions, to repurchase shares of our common stock. This repurchase authorization, in addition to approximately $46.6 million available as of June 30, 2019, for repurchases under previously announced repurchase authorizations, may be modified, suspended, or discontinued at any time.

View full version at Chipotle



Cooper’s Hawk Receives Investment by Ares Private Equity Group


July 23, 2019 04:35 PM Eastern Daylight Time


CHICAGO--(BUSINESS WIRE)--Cooper’s Hawk Winery & Restaurants, an innovative lifestyle brand centered around food and wine, announced today an investment by a fund managed by the Private Equity Group of Ares Management Corporation (NYSE: ARES). Terms of the investment were not disclosed.

Since its founding in 2005, Cooper’s Hawk has built the world’s largest wine club and a highly differentiated and experiential restaurant concept. Today, the company has nearly 400,000 wine club members across its 36 restaurants and tasting rooms. The concept was created with a vision to create memorable moments that enrich lives by bringing a wine country experience to local communities, serving chef-inspired modern casual dining paired with a proprietary portfolio of award-winning Cooper’s Hawk wine.

“Tim McEnery conceived of a disruptive restaurant concept and lifestyle brand. Tim’s vision has resulted in an incredibly passionate consumer following, driving industry-leading growth and unit economics,” said David Kaplan, Co-Founder of Ares Management and Global Co-Head of the Private Equity Group.  “Our investment in Cooper’s Hawk follows Ares’ strategy of supporting best-in-class growth businesses. We are thrilled to partner with Tim and the rest of the management team as they continue to lead Cooper’s Hawk through its next phase of growth.”

“We are excited to find in Ares a partner that appreciates the uniqueness of Cooper’s Hawk, and its community of employees and wine club members,” said Tim McEnery, Founder and CEO of Cooper’s Hawk. “With the significant resources across the Ares platform, we believe together we can accelerate our growth trajectory, while maintaining our relentless focus on delivering a tremendous experience and value proposition to our wine club members and guests. I continue to own a meaningful portion of Cooper’s Hawk and will lead in our unwavering commitment to provide the very best food, wine, and innovative experiences.”

“We thoroughly enjoyed our nine-year partnership with Tim McEnery and the Cooper’s Hawk management team and are delighted that they found the right partner in Ares to support the company in the years ahead,” added Allan Karp, Co-Founder of KarpReilly, which sold its minority position in Cooper’s Hawk as part of the transaction.

View full version at Cooper's Hawk


L Catterton Sells Stake in Punch Bowl Social to Cracker Barrel



Jul 23, 2019, 10:14 ET



DENVER and GREENWICH, Conn., July 23, 2019 /PRNewswire/ -- L Catterton, the largest and most global consumer-focused private equity firm, today announced that it has sold its stake in Punch Bowl Social, the leader in the "eatertainment" restaurant category, to Cracker Barrel Old Country Store (Nasdaq: CBRL). Terms of the transaction were not disclosed.

Since partnering with Punch Bowl Social, L Catterton has worked closely with Robert Thompson, Punch Bowl Social's Founder and CEO, to recruit an experienced restaurant management team and execute a plan to drive unit expansion and customer loyalty, as well as build a deep real estate pipeline. With L Catterton's support, Punch Bowl Social has expanded its national footprint, more than doubling the number of units to 17 over the past two years. L Catterton also worked with Punch Bowl Social to increase its marketing initiatives, introduce an improved service model, and evolve its menu and entertainment offerings, further enhancing its culinary and social experience.

"With its differentiated menu and accessible, entertaining, and engaging environment, Punch Bowl Social has established a loyal following among its core millennial and Gen Z customer base," said Jon Owsley, Co-Managing Partner of L Catterton's Growth Fund. "We are proud of the significant growth the Company has achieved, and we believe this transaction represents a terrific outcome for Punch Bowl Social, L Catterton, and Cracker Barrel as the Company enters this exciting next phase."

"With extensive strategic, operational, and industry expertise, L Catterton has been an outstanding partner for Punch Bowl Social as we grew our brand and expanded to new markets," said Mr. Thompson. "L Catterton has a remarkable track record of supporting and growing great restaurant concepts and has been instrumental as we refined our concept, deepened our real estate pipeline, and recruited key talent to the team. Along the way, we have stayed focused on our mission of offering a unique dining, bar, and social gaming experience, unmatched by other traditional eatertainment concepts. We look forward to building on this momentum."

L Catterton has significant experience investing globally in restaurant concepts. Current and past investments include Chopt Creative Salad Company, Uncle Julio's, Velvet Taco, Anthony's Coal Fired Pizza, Hopdoddy, Crystal Jade, Mendocino Farms, Cheddar's Scratch Kitchen, Culinary Concepts by Jean-Georges, P.F. Chang's, and many more.

About Punch Bowl

Punch Bowl Social is the first experiential food and beverage brand to bring a made-from-scratch menu and craft beverages together with social gaming in one design-forward environment. Punch Bowl Social was named as one of Fast Company's 2019 Top 50 Most Innovative Companies in the World, a Nation's Restaurant News Hot Concept  in 2018, among more than a dozen other national and regional awards. Punch Bowl Social serves weekend brunch, lunch, dinner, and late-night snacks alongside a variety of creative punches, local microbrews, and craft non-alcoholic beverage. For more information, please visit www.punchbowlsocial.com.

About L Catterton

With over $15 billion of equity capital across six fund strategies in 17 offices globally, L Catterton is the largest consumer-focused private equity firm in the world. L Catterton's team of more than 180 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad thought partnership network. Since 1989, the firm has made over 250 investments in leading consumer brands. L Catterton was formed through the partnership of Catterton, LVMH and Groupe Arnault. For more information about L Catterton, please visit lcatterton.com.

View source version at Punch Bowl Social


Onex to Sell Jack’s Family Restaurants


July 18, 2019 08:30 ET

All amounts in U.S. dollars unless otherwise stated

TORONTO, July 18, 2019 (GLOBE NEWSWIRE) -- Onex Corporation (“Onex”) (TSX: ONEX) and its affiliated funds (the “Onex Group”) today announced they have agreed to sell Jack’s Family Restaurants (“Jack’s”).  The transaction is expected to close in the third quarter of 2019 subject to customary closing conditions and regulatory approvals.  The terms of the transaction were not disclosed.

“Over the course of our investment, Jack’s significantly accelerated its growth and brought its differentiated concept, high-quality food and exceptional customer service to new communities across the southern U.S.,” said Matt Ross, a Managing Director of Onex.  “We’d like to thank Todd Bartmess, Jack’s management team and all of the company’s dedicated employees for being great partners to Onex.  We wish them continued growth and success in the future.”

“Matt and the entire Onex team have been wonderful to work with.  Their support has allowed us to continue to invest in our people, technology and the growth of our brand,” said Todd Bartmess, Chief Executive Officer of Jack’s.  “They were steadfast in their commitment to the Jack’s family and the high standards we set.  We’re grateful for Onex’ partnership over the years.”

In July 2015, the Onex Group acquired Jack’s for a total equity investment of $234 million.  Upon completion of the transaction, the Onex Group will have received proceeds of approximately $835 million, including prior distributions of $106 million.  This results in a gross multiple of invested capital of 3.6 times and a 38% gross rate of return.  Onex invested $79 million in Jack’s as a Limited Partner in Onex Partners IV and will have realized $255 million upon completion of the transaction, including prior distributions of $31 million.

About Onex Founded in 1984, Onex invests and manages capital on behalf of its shareholders, institutional investors and high-net worth clients from around the world.  Onex’ platforms include: Onex Partners, private equity funds focused on larger opportunities in North America and Europe ONCAP, private equity funds focused on middle market and smaller opportunities in North America; Onex Credit, which manages primarily non-investment grade debt through collateralized loan obligations, private debt and other credit strategies; and Gluskin Sheff’s actively managed public equity and public credit funds.  In total, Onex’ assets under management are approximately $37 billion, of which approximately $6.6 billion is shareholder capital.  With offices in Toronto, New York, New Jersey and London, Onex and its experienced management teams are collectively the largest investors across Onex’ platforms.

The Onex Partners and ONCAP operating companies have assets of $51 billion, generate annual revenues of $31 billion and employ approximately 172,000 people worldwide.  Onex shares trade on the Toronto Stock Exchange under the stock symbol ONEX.  For more information on Onex, visit its website at www.onex.com.  Onex’ security filings can also be accessed at www.sedar.com.

Forward-Looking Statements This press release may contain, without limitation, statements concerning possible or assumed future operations, performance or results preceded by, followed by or that include words such as “believes”, “expects”, “potential”, “anticipates”, “estimates”, “intends”, “plans” and words of similar connotation, which would constitute forward-looking statements.  Forward-looking statements are not guarantees.  The reader should not place undue reliance on forward-looking statements and information because they involve significant and diverse risks and uncertainties that may cause actual operations, performance or results to be materially different from those indicated in these forward-looking statements.  Except as may be required by Canadian securities law, Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or other factors.  These cautionary statements expressly qualify all forward-looking statements in this press release.

View source version at Jack's Family Restaurants


Slim Chickens Announces Equity Investment from 10 Point Capital

Fast Casual Chicken Brand Forecasts 600 New Openings Over Next 10 Years



Jul 17, 2019, 09:00 ET



FAYETTEVILLE, Ark., July 17, 2019 /PRNewswire/ -- Slim Chickens, the fast casual franchise in the "better chicken" restaurant segment, announced today an equity investment from 10 Point Capital, an Atlanta-based private equity firm. The investment will continue to fuel Slim Chickens expansion with a goal of opening 600 new locations over the next 10 years. Slim Chickens currently has over 80 locations across 14 states, the United Kingdom and Kuwait with more than 350 locations under development agreements to date. Terms of the deal were not disclosed.

"Greg Smart and I started Slim Chickens over 16 years ago with a mission to bring Southern hospitality and fresh, high-quality chicken to a fast-casual setting," said Tom Gordon, Co-Founder and CEO of Slim Chickens. "Our growth with new franchise agreements has been exceptional in the first half of 2019. In the past quarter alone, Slim Chickens has signed 60 new restaurant agreements with impressive, experienced multi-unit franchisees. With 10 Point Capital's unique support and expertise, we believe we have the resources necessary to achieve our goal of 600 stores in the next 10 years."

Slim Chickens opened its fourth UK location in Birmingham, England earlier this month and will open new restaurants in Southaven, MS and Owasso, OK in the next several weeks followed by a series of new openings across the Southeast and Midwest U.S. in the fall. "Our growth is really starting to reach the velocity we've been working towards," said Sam Rothschild, COO.

"At 10 Point Capital, we help founders create dominant franchise brands, and Slim Chickens is certainly a vibrant, distinctive brand," said Tom Wells, Managing Partner at 10 Point Capital. "Whether in Little Rock, Arkansas or Central London, we found in our diligence that Slim Chickens has quickly established a loyal following in whatever market it enters. With a strong foothold in the U.S., United Kingdom and Kuwait, Slim Chickens is poised for significant growth."

"We had a number of potential private equity suitors over the past few years, but we were committed to aligning with a company that would be able to drive more impact than just financing," said Seth Jensen, CFO. "Ultimately, we chose 10 Point Capital due to their expertise in franchising and the shared vision for the brand."

Slim Chickens is currently seeking single and multi-unit franchisees to open locations in the Southeastern, Midwestern and Northeast U.S.

ABOUT 10 POINT CAPITAL  10 Point Capital helps founders create dominant franchise brands. With deep roots in the franchise industry, 10 Point Capital helps emerging concepts accelerate their growth by providing investment capital and using a proven Franchise Acceleration Plan to help them evolve into mature, thriving brands. The leadership team at 10 Point Capital is behind the success of the top-ranked, rapidly growing fast casual restaurant concept Tropical Smoothie Cafe, which has grown to more than 750 locations nationwide. For more information on 10 Point Capital, visit www.10pointcapital.com.

ABOUT SLIM CHICKENS   Slim Chickens opened in 2003 in Fayetteville, Arkansas, with a focus on fresh, delicious food with a southern flair in a fast-casual setting. Guests can always expect fresh chicken tenders and wings cooked to order and served with house made dipping sauces. With over 80 locations opened and a fanatical following in 14 states as well as international locations in Kuwait and London, the eternally cool brand is an emerging national and international franchise leading the "better chicken" segment with a goal to grow over 600 restaurants over the next decade. Southern hospitality is not just for the South; everyone, everywhere can appreciate honest food and socialize with friends and neighbors. To learn more about the brand, visit slimchickens.com. For more information about Slim Chickens franchise opportunities visit slimchickensfranchise.com or call Jackie Lobdell, Executive Director of Franchise Development at (630) 300-4798.

View source version at Slim Chickens




Luby's Reports Third Quarter Fiscal 2019 Results



Jul 15, 2019, 08:30 ET



HOUSTON, July 15, 2019 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its twelve-week third quarter fiscal 2019 referred to as "third quarter."  Comparisons in this earnings release are for the third quarter compared to third quarter fiscal 2018.

Third Quarter Key Metrics

  1. Same-store sales decreased 4.0%

  2. Culinary Contract Services sales increased by 14% to $7.6 million, up from $6.6 million and segment profit increased $0.2 million with margins above 10%

  3. Five company owned Fuddruckers restaurants were re-franchised.

  4. Loss from continuing operations of $5.3 million compared to loss of $14.1 million in the third quarter fiscal 2018

  5. Store level profit as a percent of restaurant sales was 10.2%, up from 8.5% -- a 170 basis points improvement (see non-GAAP reconciliation below)

  6. Adjusted EBITDA decreased $0.3 million (see non-GAAP reconciliation below)

Chris Pappas, President and CEO, commented, "Our turn-around plan is two-fold:  establishing appropriate cost structures for our business and growing guest traffic and sales.  We continue to make progress in efficiently managing restaurant-level costs, resulting in a store level profit improvement, despite the decline in same-store sales in the third quarter.  However, we recognize that our turn-around depends on growing guest traffic and sales.  While our same-store sales have not yet achieved the improvement we are striving for, we do see a number of positive developments based on our recent efforts and initiatives aimed at growing guest traffic. For instance, at our cafeteria brand, guest traffic has continually trended better throughout the current fiscal year.  At both of our core brands, we are providing menu price points that offer compelling everyday value options starting in the $7.00 to $9.00 range, while still including additional premium offerings at higher price points. This value orientation is helping to improve our guest traffic trends and will be central to growing sales.

Our culinary contract services business added seven net new locations compared to last year, which are generating incremental sales and profit.  This continues to be a terrific segment of our business with significant growth potential. We continue to pursue new clients for our signature offering.  In our Fuddruckers franchise system, we made solid progress on our plans to transition to a primarily franchise model outside our core Houston, Texas market:  five locations in the San Antonio market transitioned from company-operated restaurants to franchise-operated locations.

Through the leadership of our chief operating officer, Todd Coutee, the re-alignment of team members into the right positions is substantially complete in restaurant operations.  The restaurant leadership team and the entire organization are fully focused on increasing guest traffic by driving restaurant and guest service initiatives to delight our guests. We are putting all the pieces in place so that when we turn the corner and return to sales growth, we are better positioned for future profitability."

View source version at Luby's


Brinker International Enters Into A Letter Of Intent To Acquire 116 Franchised Chili’s Restaurants

July 10, 2019


Dallas, TX  (RestaurantNews.com)  Today, Brinker International, Inc. (NYSE: EAT), a leader in the casual dining industry, announced it has executed a letter of intent to acquire 116 Chili’s® Grill & Bar restaurants from its 14-year franchisee, ERJ Dining.

The restaurants, primarily located in the Midwest, generate approximately $300 million of annualized revenue. The transaction is expected to close in the first quarter of Brinker’s fiscal year 2020, subject to completion of due diligence and normal closing conditions.

The acquisition is expected to be EPS accretive and generate incremental free cash flow in fiscal year 2020. Brinker intends to fund the purchase price from its existing credit facility and expects its adjusted leverage ratios to rise slightly above previously announced targets in the short term.

“This acquisition is a compelling opportunity to further invest in our brand, broaden our scale and create growth in earnings and cash flow,” said Joe Taylor, chief financial officer and executive vice president of Brinker. “We appreciate the relationship we developed with ERJ over the years and view these well-established restaurants as a solid foundation for further growth in these markets.”

About Brinker International

Brinker International, Inc. is one of the world’s leading casual dining restaurant companies. Based in Dallas, Texas, as of March 27, 2019, Brinker owned, operated, or franchised 1,676 restaurants under the names Chili’s® Grill & Bar (1,623 restaurants) and Maggiano’s Little Italy® (53 restaurants).

View source version at Brinker


CEC Entertainment, Inc. Announces Preliminary Unaudited Comparable Venue Sales Results For The Second Quarter And Year-To-Date 2019

Private Placement Concurrent with Business Combination Transaction Increased to $114 Million from $100 Million



Jul 01, 2019, 09:00 ET



IRVING, Texas, July 1, 2019 /PRNewswire/ -- CEC Entertainment, Inc. ("CEC" or the "Company"), a nationally recognized leader in family entertainment and dining, today announced preliminary unaudited comparable venue sales results for its second quarter and year-to-date periods ended June 30, 2019.

Second Quarter and Year-to-Date 2019 Sales Results

Comparable venue sales increased 0.4% in the second quarter of 2019 and increased 4.5% in the first half of 2019.

"We generated our fifth consecutive quarter of comparable venue sales growth due to the positive impact of the All You Can Play game packages and More Tickets initiatives and despite the estimated 1.8% negative impact from the shift of Easter and the corresponding timing of Spring Breaks in the second quarter 2019 versus the first quarter 2018. Through the first half of 2019, our comparable venue sales growth was an impressive 4.5%," said Tom Leverton, Chief Executive Officer. "Looking ahead, we are re-affirming the annual guidance that we first laid out in April. Our team is doing a solid job of advancing the Chuck E. Cheese brand through planned initiatives while simultaneously further improving the guest experience. We continue to be pleased with the results of our venue re-imaging project and are on track to complete the targeted 60 venue remodels in the back half of this year."

As of June 30, 2019, the Company's system-wide portfolio consisted of:




Chuck E. Cheese's

Peter Piper Pizza

Total

Company operated

516

38

554

Domestic franchised

25

61

86

International franchised

68

42

110

Total

609

141

750

During the second quarter of 2019, there were 3 net international franchised Chuck E. Cheese openings and one Peter Piper Pizza franchise closure.

Business Combination

On April 8, 2019 CEC and Leo Holdings, Corporation (NYSE: LHC) ("Leo"), a publicly traded special purpose acquisition company, announced that Leo and Queso Holdings, Inc. ("Queso"), the parent company of CEC, together with Queso's controlling stockholder, an entity owned by funds managed by affiliates of Apollo Global Management, LLC (NYSE: APO) (together with its consolidated subsidiaries, "Apollo"), have entered into a definitive business combination agreement.

The Boards of Directors of both Leo and Queso have unanimously approved the proposed transaction. Completion of the transaction is subject to Leo shareholder approval and other customary closing conditions.

Concurrent with the consummation of the transaction, additional investors will purchase $114 million of Leo common stock in a private placement. This reflects an incremental $14 million investment of primary capital on the same terms as other PIPE investors, the substantial majority of which is being made by a highly respected investor with a strong track record in the consumer sector. After giving effect to any redemptions by the public shareholders of Leo, the balance of the approximately $200 million in cash held in Leo Holdings' trust account, together with the $114 million in private placement proceeds, will be used to pay down indebtedness and de-leverage the Company's existing capital structure as well as pay expenses associated with the transaction.

"The additional proceeds funded through the private placement reflect these investors' strong confidence in the transaction, while lowering the proceeds necessary to meet the minimum cash requirement under the business combination agreement from 75% to 68% of cash in trust," said Lyndon Lea, Chairman and Chief Executive Officer, Leo Holdings, Corp. "We look forward to closing the business combination transaction following the approval of our shareholders."

Leo expects to hold a shareholder vote by the end of July 2019 and to close the business combination shortly thereafter. A record date of June 21, 2019 has been established.

CEC and Leo have issued a business update presentation that can be found at https://www.chuckecheese.com/company/investor-relations under the tab "Business Combination". The presentation will also be furnished today to the Securities and Exchange Commission (the "SEC") and can be viewed on the SEC's website at www.sec.gov.

Annual Guidance

The Company is again reiterating its annual guidance that was referenced in the investor presentation related to the definitive business combination agreement with Leo, which includes the following:

  1. Total revenues of $929 million;

  2. Comparable venue sales growth of 4.2%;

  3. Adjusted EBITDA(1) of $187 million;

  4. Four net Peter Piper Pizza openings and 11 net international franchised Chuck E. Cheese openings; and

  5. Capital expenditures of $95 million to $105 million.




_______________

(1)

For our definition of Adjusted EBITDA, see the "Non-GAAP Financial Measures" section within this press release. The Company provides guidance on Adjusted EBITDA, but does not provide a reconciliation of such guidance to the most directly comparable financial measures because of the high variability and inherent difficulty in making accurate forecasts of some of the information excluded from Adjusted EBITDA.

About CEC Entertainment, Inc.

CEC Entertainment, Inc. is the nationally recognized leader in family dining and entertainment with both its Chuck E. Cheese and Peter Piper Pizza venues. As America's #1 place for birthdays and the place Where A Kid Can Be A Kid®, Chuck E. Cheese's goal is to create positive, lifelong memories for families through fun, play and delicious handmade pizza. With the first-of-its-kind gaming experience, All You Can Play, kids have access to play every game at Chuck E. Cheese, as many times as they want on any day, without any restrictions. Committed to providing a fun, safe environment, Chuck E. Cheese helps protect families through industry-leading programs such as Kid Check®. As a strong advocate for its local communities, Chuck E. Cheese has donated more than $16 million to schools through its fundraising programs and supports its new national charity partner, Boys and Girls Clubs of America. Peter Piper Pizzafeatures dining, entertainment and carryout with a neighborhood pizzeria feel and "pizza made fresh, families made happy" culture. Peter Piper Pizza takes pride in delivering quality food and fun that reconnects family and friends. With a bold design and contemporary layout, an open kitchen revealing much of their handcrafted food preparation, the latest technology and games, and beer and wine for adults, Peter Piper Pizza restaurants appeal to parents and kids alike.  As of June 30, 2019, the Company and its franchisees operated a system of 609 Chuck E. Cheese's and 141 Peter Piper Pizza venues, with locations in 47 states and 14 foreign countries and territories. For more information, visit chuckecheese.com and peterpiperpizza.com.

View source version at CEC Entertainment


Hooters of America, LLC Acquired by Nord Bay Capital and TriArtisan Capital Advisors

July 1, 2019


Tampa Bay, FL & New York & Atlanta  (RestaurantNews.com)  Hooters of America, LLC (“HOA”, “Hooters” or the “Company”) announced today that Nord Bay Capital (“Nord Bay”) and its advisor TriArtisan Capital Advisors LLC (“TriArtisan”) have closed on a transaction to acquire HOA from H.I.G. Capital (“H.I.G.”), Chanticleer Holdings (NASDAQ: BURG) and other investors. Financial terms of the deal were not disclosed. As part of the transaction, the selling entities will each retain a stake in the Company.

Terry Marks, Chief Executive Officer, HOA commented: “The partnership with Nord Bay and TriArtisan comes at an ideal time for the company, bringing fresh partners with complementary skills and experience to support our next phase of growth to the benefit of all our employees, franchisees and customers. Our core business is strong with a world-famous and differentiated brand, a first-rate management team and a loyal base of experienced franchisees. In addition, we are pleased with the early results of our new fast casual concept and plan additional openings later this year.”

Marks continued: “Since joining HOA, I have had the opportunity to work closely with our investors and I want to personally thank all of them for their guidance. In particular, I would like to recognize H.I.G. for its leadership on the board. I am pleased that all will remain invested in HOA, which speaks to their confidence in the brand’s positive trajectory and future upside.”

Hooters of America, LLC, is the franchisor and operator of more than 430 Hooters restaurants in 38 states and 27 countries. Known for its world-famous Hooters style chicken wings since 1983, Hooters has been liberating their guests from the ordinary through great food, fun and world-class hospitality.

William Pepper, Principal, Nord Bay Capital, stated: “Hooters is an iconic global brand that has shown strong financial growth and development. With nine consecutive quarters of same store sales growth and thirteen consecutive quarters outperforming the casual dining bar & grill category, we see Hooters as a real jewel in the restaurant category. We’re excited to work with Terry, his senior leadership team, along with the Hooters global franchise community and employees to drive continued success in the years to come.”

Rohit Manocha, a TriArtisan Founding Partner, said; “As a true innovator in the chicken wing space for over 35 years, Hooters is highly differentiated in a category that is more popular than ever. Terry and the senior leadership team have done a tremendous job elevating the Company and tapping into what today’s consumer wants. We are confident about the future growth of this great brand.”

Piper Jaffray Companies served as financial advisor to the Company.

About Hooters of America, LLC

Hooters of America, LLC, is the franchisor and operator of more than 430 Hooters restaurants in 38 states and 27 countries. Known for its world-famous Hooters Style chicken wings, the first Hooters opened its doors in 1983 in Clearwater, Florida. Expectations were so modest at the time that the simple fact the doors opened was deemed worthy of a toast. Since then millions have been liberated from the ordinary at Hooters while enjoying great food, fun and one-of-a-kind hospitality that can only be served up by the Hooters Girls. For more information about Hooters visit www.hooters.com.

About Nord Bay Capital (“Nord Bay”)

Nord Bay Capital is a Florida-based family office with an emphasis on direct and co-investments for middle-market opportunities. Specifically, Nord Bay Capital focuses on established, non-cyclical companies with strong market positions, and partners with management to grow and build brand value.

About TriArtisan Capital Advisors LLC (“TriArtisan”)

TriArtisan Capital Advisors is an established, New York-based private equity investing firm. TriArtisan’s flexible institutional capital allows it to invest in companies requiring a broad range of investment needs including leveraged buyouts, growth equity investments, spin-offs, carve-outs, roll-ups, recapitalizations and restructurings. In each of its investments, TriArtisan partners with high quality management teams to support them in achieving returns for its institutional and management partners. For more information, please visit the firm’s website at www.triartisan.com.

View source version at Hooters


QSR Group Holdings Joins Church's Chicken® As Newest Franchisee, Acquires 45 U.S. Restaurants



Jun 25, 2019, 16:00 ET



ATLANTA, June 25, 2019 /PRNewswire/ -- Florida-based QSR Group Holdings, LLC ("QSR") recently closed an acquisition of 45 existing Church's Chicken® restaurants previously operated by Falcon Holdings, LLC and its affiliates. QSR acquired restaurants in Alabama, Georgia, Florida, Ohio and Michigan, and also signed a multi-year, multi-unit development agreement to build six new restaurants within those markets. QSR was founded by Casey Askar and Sam Askar, and QSR's three local affiliates will be the franchisees of the restaurants.

"QSR is well-experienced in the quick-service restaurant space as franchisees and as franchisors with more than 200 restaurants in their portfolio," said Pete Servold, EVP Franchise and Company Operations for Church's Chicken. "The fact that we've attracted experienced franchisees who see the great potential of the brand and seek to complement the initiatives of existing owners makes it a good deal for all parties involved."

QSR plans to re-image their newly acquired existing Church's Chicken locations with the first round of renovations slated to start in 2020. The re-imaged restaurants will feature the Church's Chicken STAR image design, which is the brand's latest design initiative. All newly opened and renovated Church's Chicken locations in the United States, including Puerto Rico, are incorporating this package, which boasts modern design and décor elements accented with contemporary lighting. The design package includes interior and exterior features.

"We are very excited about our opportunity to become a Church's Chicken franchisee," said Casey Askar, QSR's Chairman. "We believe in the strong corporate brand, and overall customer loyalty will help us redefine success in the markets that we are planning to serve."

To maintain operational continuity and connection to the surrounding communities, QSR is rehiring all of the prior operator's employees in the restaurants they are acquiring, as well as individuals who have served in leadership positions with the prior owner outside of the restaurants' four walls. The restaurants will continue Church's culinary legacy by serving the brand's signature dishes, including freshly prepared fried chicken, scratch-made Honey-Butter Biscuits™, and homestyle sides.

For more information about Church's Chicken, visit www.churchs.com.

About Church's Chicken® Founded in San Antonio, TX in 1952 by George W. Church, Church's Chicken® is one of the largest quick service restaurant chicken chains in the world. Church's® specializes in Original and Spicy Chicken freshly prepared throughout the day in small batches that are hand-battered and double-breaded, Tender Strips®, Honey-Butter Biscuits™ made from scratch and freshly baked, and classic, home-style sides all for a great value. Church's® (along with its sister brand Texas Chicken® outside the Americas) has more than 1,500 locations in 23 countries and international territories and system-wide sales of more than $1 billion. For more information, visit www.churchs.com. Follow Church's® on Facebook at www.facebook.com/churchschicken and Twitter at www.twitter.com/churchschicken.

View source version at Church's Chicken


Del Frisco’s Restaurant Group, Inc. to Be Acquired by L Catterton

June 24, 2019


Stockholders to Receive $8.00 in Cash Per Share

Irving, TX  (RestaurantNews.com)  Del Frisco’s Restaurant Group, Inc. (the “Company” or “Del Frisco’s”) (NASDAQ: DFRG) and L Catterton, the largest and most global consumer-focused private equity firm, today announced that they have entered into a definitive agreement under which affiliates of L Catterton (the “Purchaser”) will acquire the Company in an all cash transaction valued at approximately $650 million. Del Frisco’s stockholders will receive $8.00 per share, representing a 22% percent premium to the closing share price on December 19, 2018, the last trading day prior to Company’s announcement of a strategic alternatives process, and a premium of approximately 21% to the 30-day volume weighted average price ended on June 21, 2019.

The agreement was unanimously approved by Del Frisco’s Board of Directors following a thorough review of a full range of strategic alternatives by Del Frisco’s Strategic Alternatives Review Committee (the “Committee”), which was first announced on December 20, 2018. The transaction is expected to be completed by the fourth quarter of 2019, subject to approval by Del Frisco’s stockholders, expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as well as other customary closing conditions. Engaged Capital and certain of its affiliates, collectively holding nearly 10% of the outstanding shares of the Company, have entered into voting agreements committing them to, among other things and subject to its terms, vote in favor of adopting the acquisition agreement.

“Over the course of our review, the Committee evaluated a full range of strategic, financial and capital structure alternatives to best serve the interests of our stockholders. After a thorough process, including considering Del Frisco’s current operations and future prospects, the Committee and the Board is confident that this transaction offers the most promising opportunity to realize the highest value for our stockholders,” said Joe Reece, Committee Chairman, Del Frisco’s Restaurant Group, Inc.

“In consultation with our outside advisors, the Board has been evaluating several strategic and financial alternative options since December 2018. This transaction offers immediate liquidity at a significant premium for our stockholders while providing the best path forward for our Del Frisco’s brands, our employees, and loyal guests,” said Ian R. Carter, Board Chairman, Del Frisco’s Restaurant Group, Inc.

L Catterton brings a distinguished track record of fostering the growth and success of world class experiential brands. Together with their deep operational expertise in the restaurant industry, I am confident L Catterton will be a great long-term partner,” said Norman Abdallah, Chief Executive Officer, Del Frisco’s Restaurant Group, Inc.

Del Frisco’s comprises four leading brands across two distinct business lines — Del Frisco’s Grille and Del Frisco’s Double Eagle Steakhouse in the steak and grill category, and bartaco and Barcelona Wine Bar in the upscale regionally-inspired cuisine category. Upon the close of the transaction, L Catterton plans to run the bartaco and Barcelona Wine Bar businesses separately from the steakhouse brands in order to nurture the unique attributes of the brands.

“At L Catterton, we bring more than just capital – we bring significant operational expertise to our investments,” said Andrew Taub, Managing Partner at L Catterton. “Over the last 30 years, L Catterton has invested in nearly 30 restaurant concepts globally to create a number of industry leaders. Del Frisco’s has four outstanding brands in two distinct and attractive categories – upscale regionally-inspired cuisine, and steak and grill. We’re excited to partner with the Company to harness the power of these brands by operating the upscale regionally-inspired brands separately from the steak and grill concepts.”

L Catterton has invested in restaurant concepts such as Bloomin’ Brands Inc. (including Outback Steakhouse, Fleming’s Prime Steakhouse, Carrabba’s Italian Grill, and Bonefish Grill), CÉ LA VI, Cheddar’s Scratch Kitchen, Crystal Jade, Culinary Concepts by Jean-Georges, P.F. Chang’s, Uncle Julio’s and many more.

Piper Jaffray & Co. acted as financial advisor and Kirkland & Ellis LLP acted as legal counsel to Del Frisco’s and its Board of Directors. Credit Suisse served as financial advisor and Gibson Dunn LLP served as legal advisor to L Catterton.

About Del Frisco’s Restaurant Group, Inc.

Based in Irving, Texas, Del Frisco’s Restaurant Group, Inc. is a collection of 78 restaurants across 17 states and Washington, D.C., including Del Frisco’s Double Eagle Steakhouse, Del Frisco’s Grille, Barcelona Wine Bar, and bartaco.

Del Frisco’s Double Eagle Steakhouse creates an environment where our guests can celebrate life through cuisine that is bold and innovative, award-winning wine lists, hand crafted specialty cocktails and superior hospitality with each dining occasion. 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. 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.

For further information about our restaurants, to make reservations, or to purchase gift cards, please visit: www.DelFriscos.com, www.DelFriscosGrille.com, www.BarcelonaWineBar.com, and www.bartaco.com. For more information about Del Frisco’s Restaurant Group, Inc., please visit www.DFRG.com.

About L Catterton

With over $15 billion of equity capital across six fund strategies in 17 offices globally, L Catterton is the largest consumer-focused private equity firm in the world. L Catterton’s team of more than 150 investment and operating professionals partners with management teams around the world to implement strategic plans to foster growth, leveraging deep category insight, operational excellence, and a broad thought partnership network. Since 1989, the firm has made over 200 investments in leading consumer brands. L Catterton was formed through the partnership of Catterton, LVMH and Groupe Arnault. For more information about L Catterton, please visit lcatterton.com.

View source version at Del Frisco's


FAT Brands Completes Acquisition of Elevation Burger

June 20, 2019

Rapidly Growing West Coast Franchisor Adds Better-for-You Burger Joint to its Portfolio of Esteemed Brands

Los Angeles, CA (RestaurantNews.com) FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) announced that it has successfully completed the acquisition of Elevation Burger for $10 million which was funded through a combination of sellers’ notes and cash. With the acquisition of Elevation Burger, FAT Brands now franchises more than 400 restaurants around the world with annual system-wide sales exceeding $400 million.

Elevation Burger was originally conceived in 2002 by Hans Hess as a healthier burger offering. Delivering authentic, sustainably prepared food, Elevation Burger offers grass-fed, free-range options that are better for consumers and for the environment. Elevation Burger franchises 44 locations across the U.S. and internationally. Utilizing FAT Brands‘ vast expertise and resources, the acquisition is set to propel Elevation’s forthcoming expansion, both globally and domestically.

“Elevation Burger’s slogan ‘Ingredients Matter’ aligns well with FAT Brands‘ commitment in providing guests with fresh, authentic, tasty food,” said Andy Wiederhorn, President and CEO of FAT Brands. “We are thrilled to partner with the brand in this next chapter as they expand domestically and internationally and offer more consumers their organic, free-range, grass-fed offerings.”

For more information, please visit www.fatbrands.com.

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 seven restaurant brands, Fatburger, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, that have approximately 335 locations open and 200 under development in 32 countries.

About Elevation Burger

Elevation Burger was originally conceived in 2002 by founder Hans Hess, who set out to create a healthier burger with a great taste on par with those he was accustomed to having on the West Coast. Hans determined that organic, grass-fed beef was the key to a burger that truly stands apart from the rest in terms of taste, quality and sustainability. The brand’s slogan, “Ingredients Matter™,” is a reflection of Elevation Burger’s focus on offering quality food products that make a difference both to guests and the environment. Elevation Burger is committed to offering an exceptionally flavorful, nutritionally superior product through ingredients such as 100 percent USDA-certified organic, grass-fed, free-range beef that is ground on premise and fresh-cut fries cooked in heart-healthy olive oil. For more information, visit Elevation Burger online at http://www.elevationburger.com, on Facebook at http://www.facebook.com/ElevationBurger, on Twitter @ElevationBurger or on Instagram @elevationburger.

View source version at FAT Brands



Diversified Restaurant Holdings Reports Second Quarter To-date Preliminary Same-Store Sales of 7.2%


Comparable sales trends accelerated throughout the second quarter, with both traffic and average ticket up


June 19, 2019 06:45 AM Eastern Daylight Time


SOUTHFIELD, Mich.--(BUSINESS WIRE)--Diversified Restaurant Holdings, Inc. (Nasdaq:SAUC) ("DRH" or the "Company"), one of the largest franchisees for Buffalo Wild Wings® ("BWW") with 64 stores across five states, plans to announce today at the 19th Annual Oppenheimer Consumer Growth and E-Commerce Conference in Boston preliminary unaudited sales results for the second quarter through June 16, 2019, of 7.2%.

“With the majority of our second quarter in the books, we are on pace to achieve our third consecutive quarter of same-store sales growth and, importantly, saw accelerated gains in both traffic and average check. We are especially pleased with our strong traffic levels given reduced promotional activity and recent menu price increases to combat inflationary pressures,” commented David G. Burke, President and CEO. “While the Easter shift negatively impacted comparable sales in April, the latest BWW brand enhancing initiatives, a favorable sports calendar and our focus on guest experience, loyalty attachment and development of the delivery channel helped drive an accelerated rate of growth well into this year’s second quarter.”

DRH will webcast a presentation at 3:20 p.m. Eastern Time today. A link to the webcast, along with presentation materials, will be available on the Company’s website at www.diversifiedrestaurantholdings.com. An archive of the presentation can be accessed in the Investors section of the website following the conference, along with a transcript once available.

Preliminary results remain subject to the completion of normal quarter-end accounting procedures and are subject to change. The Company expects to release financial and operating results for its 2019 second quarter in early August.

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. The Company routinely posts news and other important information on its website at http://www.diversifiedrestaurantholdings.com.

View full version at Diversified Restaurant Holdings

1 view0 comments

Recent Posts

See All

Comments


bottom of page