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Financials - August 2023
















Renowned International Restaurant Brand Fogo de Chão to be Acquired by Bain Capital Private Equity from Rhône Capital

  1. Company saw rapid unit and same-store traffic growth under Rhône’s ownership

  2. Investment by Bain Capital will fuel continued growth and expansion for global category leader in experiential dining





August 15, 2023 10:05 AM Eastern Daylight Time

DALLAS--(BUSINESS WIRE)--Fogo de Chão (“Fogo”), the internationally renowned restaurant brand from Brazil, today announced that it has entered into a definitive agreement to be acquired by Bain Capital Private Equity (“Bain Capital”) to accelerate its growth and expansion. Fogo will continue to operate under its current management team, led by Chief Executive Officer Barry McGowan. Funds affiliated with Rhône Capital (together with certain of their affiliates, “Rhône”) have owned Fogo since taking the company private in 2018. Financial terms of the private purchase were not disclosed. Founded in Southern Brazil in 1979, Fogo elevates the centuries-old cooking technique of churrasco in 76 locations worldwide. Under Rhône’s ownership, Fogo experienced rapid growth across markets and is in its third year of 15% annual growth. “Over the past several years, we made significant progress enhancing our unique offering and ability to bring the very best in experiential dining to more guests than ever before. We thank the Rhône team for their partnership during a critical and successful period in our history,” said McGowan. “Bain Capital shares our vision, and we are excited to leverage their extensive experience investing in and supporting the global growth of restaurant businesses. We are excited by this next chapter and believe there is tremendous upside in our future as we continue to execute against our growth plans with Bain Capital.” “Barry and his team have done an impressive job building on the brand’s differentiated concept, strong value proposition, and rich Brazilian heritage. Fogo is the clear market leader, and we believe the business is poised to continue its rapid growth as consumers increasingly seek unique and authentic dining experiences,” said Adam Nebesar, a Partner at Bain Capital. “We look forward to partnering with Barry and team, and supporting them with our experience and resources to help accelerate growth while maintaining Fogo’s distinctive authenticity,” added Mark Saadine, a Principal at Bain Capital. “When we took the company private in 2018, we embarked on a new chapter to refine the Fogo concept and experience. Despite the challenges the restaurant industry has faced in the last few years, we collaborated with Fogo’s talented leadership team to strengthen an already exceptional business while successfully executing an ambitious expansion plan across the U.S. and internationally,” said Lucas Flynn, Managing Director at Rhône. “We thank Barry and the Fogo leadership for their partnership, and we look forward to watching their continued success,” added Eytan Tigay, Managing Director at Rhône. The transaction is expected to close in September and is subject to customary closing conditions, including requisite regulatory approvals. Debt financing for the transaction is being led by Deutsche Bank, who is also serving as financial advisor to Bain Capital. PwC is serving as accounting advisor, and Kirkland & Ellis is serving as legal counsel to Bain Capital. Morgan Stanley & Co. LLC is serving as the exclusive financial advisor, Deloitte is serving as accounting advisor and Sullivan & Cromwell is serving as legal counsel to Fogo de Chão and Rhône. About Fogo de Chão Fogo de Chão (fogo-dee-shown) is an internationally renowned restaurant that allows guests to discover what’s next at every turn. Founded in Southern Brazil in 1979, Fogo elevates the centuries-old cooking technique of churrasco – the art of roasting high-quality cuts of meat over an open flame – into a cultural dining experience of discovery. In addition to its Market Table and Feijoada Bar – which includes seasonal salads and soup, fresh vegetables, imported charcuterie and more – guests are served simply-seasoned meats that are butchered, fire-roasted and carved tableside by gaucho chefs. Guests can also indulge in dry-aged or premium Wagyu cuts, seafood a la carte, All-Day Happy Hour including signature cocktails, and an award-winning South American wine list, as well as smaller, sharable plates in Bar Fogo. Fogo offers differentiated menus for all dayparts including lunch, dinner, weekend brunch and group dining, plus full-service catering and contactless takeout and delivery options. For locations and more information about Fogo de Chão, visit fogodechao.com. About Bain Capital Private Equity Bain Capital Private Equity has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity's global team of more than 280 investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications. Bain Capital has 23 offices on four continents. Since its inception, the firm has made primary or add-on investments in more than 1,150 companies. In addition to private equity, Bain Capital invests across multiple asset classes, including credit, public equity, venture capital and real estate, managing approximately $175 billion in total assets and leveraging the firm's shared platform to capture opportunities in strategic areas of focus. Bain Capital Private Equity has a long history of partnering with companies to accelerate growth, with strong experience in the consumer, retail, and restaurant industries. The firm’s global restaurant and food-related investments have included Bloomin’ Brands, Brakes Group Food Distribution, Burger King, Dessert Holdings, Domino’s Pizza, Domino's Pizza Japan, Dunkin’ Brands Group, Retail Zoo, Skylark Restaurants, and Valeo Foods. The firm has also made investments to support the growth of a number of companies founded in Brazil, some serving the domestic market and others expanding from that country to serve global markets. For more information, please visit: https://www.baincapitalprivateequity.com/. About Rhône Rhône, established in 1996, is a global private equity firm with a focus on investments in businesses with a transatlantic presence. Rhône’s investment philosophy includes the development of strong, strategic partnerships with the companies in which it invests. Rhône has a history of successful corporate carve-out transactions and working with entrepreneur and family-led businesses, and operates across its London, New York, Madrid, and Milan offices. Rhône has invested in a diversified portfolio of companies including investments in the business services, consumer, and industrial sectors. For more information about Rhône, its investment professionals, and its current portfolio, please visit: https://www.rhonegroup.com/.

View source version at Fogo de Chao


Carrols Restaurant Group, Inc. Reports Financial Results for the Second Quarter 2023

August 10, 2023 07:00 ET



Record quarterly revenue of $485.2 million, including comparable restaurant sales growth of 10.5%

Top-line strength helped deliver another quarter of improved profitability

SYRACUSE, N.Y., Aug. 10, 2023 (GLOBE NEWSWIRE) -- Carrols Restaurant Group, Inc. (“Carrols” or the “Company”) (Nasdaq: TAST), the largest BURGER KING® franchisee in the United States, today reported its financial results for the second quarter ended July 2, 2023.

Highlights for the Second Quarter of 2023 versus the Second Quarter of 2022 include:

  1. Total restaurant sales increased 9.8% to $485.2 million in the second quarter of 2023 compared to $441.9 million in the second quarter of 2022;

  2. Comparable restaurant sales for the Company’s Burger King® restaurants increased 10.4%;

  3. Comparable restaurant sales for the Company’s Popeyes® restaurants increased 11.6%;

  4. Adjusted EBITDA(1) totaled $44.3 million compared to $15.1 million in the prior year quarter;

  5. Adjusted Restaurant-Level EBITDA(1) totaled $67.8 million compared to $34.6 million in the prior year quarter;

  6. Net Income was $15.0 million, or $0.23 per diluted share, compared to a Net Loss of $26.5 million, or $0.52 per diluted share, in the prior year quarter;

  7. Adjusted Net Income(1) was $17.0 million, or $0.27 per diluted share, compared to Adjusted Net Loss of $8.9 million, or $0.18 per diluted share, in the prior year quarter; and

  8. Free Cash Flow(2) of $37.9 million compared to negative Free Cash Flow of $(5.7) million in the prior year quarter.

Management Commentary

Deborah Derby, President and Chief Executive Officer of Carrols, commented, “We had one of the best quarters in the Company’s 63-year history, as we achieved $485.2 million of restaurant sales; delivered Adjusted EBITDA of $44.3 million; generated free cash flow of $37.9 million; and reduced our net leverage ratio to 3.6 times. I’m also pleased to report that our Burger King restaurants are well on their way to achieving the highest possible operator rating as defined by our franchisor, which is a direct testament to the outstanding efforts of our field teams.”

Derby continued, “As we look ahead, we believe the combination of the work we have done to enhance the guest experience and the benefits from Burger King’s Royal Reset and Reclaim the Flame initiatives will continue to positively impact our traffic. Our top priorities remain fortifying our balance sheet, reducing our net debt, and staying the course on organic growth.”

View full version at Carrols Restaurant Group



Noodles & Company Announces Second Quarter 2023 Financial Results

Additionally Announces Share Repurchase Authorization

August 09, 2023 16:05 ET



BROOMFIELD, Colo., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Noodles & Company (Nasdaq: NDLS) today announced financial results for its second quarter ended July 4, 2023.

Key highlights for the second quarter of 2023 versus the second quarter of 2022 include:

  1. Total revenue decreased 4.5% to $125.2 million from $131.1 million in the second quarter of 2022.

  2. Comparable restaurant sales decreased 5.5% system-wide, comprised of a 5.9% decrease at company-owned restaurants and a 3.4% decrease at franchise restaurants.

  3. Net loss was $1.3 million, or $0.03 loss per diluted share, compared to net income of $1.3 million, or $0.03 per diluted share, in the second quarter of 2022.

  4. Operating margin was (0.2)% compared to 1.4% in the second quarter of 2022.

  5. Restaurant contribution margin(1) was 14.8% compared to 15.5% in the second quarter of 2022.

  6. Adjusted EBITDA(1) was $9.3 million, a decrease of $1.9 million compared to the second quarter of 2022.

  7. Adjusted net loss(1) was $0.8 million, or a $0.02 loss per diluted share, compared to adjusted net income of $2.4 million, or $0.05 per diluted share, in the second quarter of 2022.

  8. Six new company-owned restaurants opened in the second quarter of 2023.

_____________________

(1)Restaurant contribution margin, EBITDA, adjusted EBITDA, and adjusted net income (loss) are non-GAAP measures. Reconciliations of operating income (loss) to restaurant contribution margin, net income (loss) to EBITDA and adjusted EBITDA and net income (loss) to adjusted net income (loss) are included in the accompanying financial data. See “Non-GAAP Financial Measures.”

“During the beginning of the second quarter 2023, we saw meaningful softness in our guest trends. We attribute this in large part to being too aggressive on our pricing strategy, which included an incremental 5% increase in February of this year,” said Dave Boennighausen, Chief Executive Officer of Noodles & Company. “We have gained traction from our performance early in the second quarter as we pivoted to value messaging, with comparable restaurant sales improving from a 7.7% system-wide decline in May to a 3.8% decline in July, the first month of the third quarter.”

“We are aggressively executing strategies to further drive comparable restaurant sales growth,” Boennighausen continued. “We are particularly focused on price optimization, leverage of our new customer data platform and robust rewards database, and expansion of our growing catering business. Furthermore, we are assessing and reigniting our culinary offerings, including the launch of a broadly appealing Chicken Parmesan in September, as well as engagement of a leading industry culinary consultant to assist us in comprehensively evaluating and improving our menu. As we execute these strategies, our efforts to respond quickly and effectively will be further supported by digital menu boards, which we anticipate will be installed at 75% of company restaurants by the end of the third quarter.”

Boennighausen concluded, “We are encouraged by the growth in our dine-in sales during the second quarter, and believe the digital menu rollout will further support growth for in-restaurant sales while allowing the flexibility to execute quickly on our initiatives to enhance the brand across all channels. Average unit volumes have stabilized and are growing, and the cost environment continues to improve. This results in a business model that we believe can yield positive free cash flow while supporting new store growth, and we continue to anticipate meaningful Adjusted EBITDA growth in 2023 relative to the prior year. Additionally, as part of our strategy to deliver shareholder value, our Board of Directors has authorized a share repurchase program allowing the Company to repurchase up to $5.0 million of its common stock.”

View full version at Noodles & Company


The Wendy's Company and Flynn Restaurant Group Announce New Master Franchise Agreement for Australia



09 Aug, 2023, 10:00 ET





World's largest franchise operator will lead efforts to hyperscale Wendy's® and grow the brand across the countryDUBLIN, Ohio, Aug. 9, 2023 /PRNewswire/ -- The Wendy's Company has signed a new master franchise agreement with Flynn Restaurant Group to develop 200 Wendy's restaurants in Australia through 2034. Flynn Restaurant Group is the largest restaurant franchise operator in the world and will serve as the exclusive master franchisee in Australia. The news comes following the announcement earlier this year that the iconic American hamburger brand marked its intention to enter the Australian market. Wendy's sees Australia as a high priority, strategic growth market and the collaboration with Flynn Restaurant Group showcases Wendy's ambition to expand its international footprint using its franchising model. Following the positive reaction from Sydneysiders to a one-day Wendy's pop-up event in 2021, and the overwhelming interest following its intention to launch Down Under, it is clear fans are ready for Wendy's to arrive in Australia. Abigail Pringle, President, International and Chief Development Officer of The Wendy's Company, said, "Australia is a strategic market for long-term growth for Wendy's. Flynn Restaurant Group has incredible experience in the restaurant space, and we are thrilled to expand our relationship with them. They have a strong leadership team, great culture, vast industry knowledge, success with our brand in the U.S., and we are confident that Flynn Restaurant Group is the right partner to unlock growth for Wendy's in Australia." Ron Bellamy, Chief Operating Officer of Flynn Restaurant Group said, "We couldn't be more excited about expanding our partnership with Wendy's. It is a tremendous brand with significant untapped potential outside of the U.S. and we think it is an especially great fit for Australia, given the savvy nature of the Australian consumer. We look forward to expanding the brand in the market and in the process re-defining what Australians should expect from QSR." The agreement between Wendy's and Flynn Restaurant Group will drive growth in Australia primarily after 2025, with the ambition to hit 200 restaurants across the country through 2034, through a combination of equity stores and sub-franchise partners. In addition to Wendy's, Flynn's Restaurant Group operate restaurants for Applebee's, Taco Bell, Panera, Arby's and Pizza Hut throughout the US. Through their Wendy's franchise organization, Wend American, they currently operate nearly 200 Wendy's restaurants across five states. About Wendy's Wendy's® was founded in 1969 by Dave Thomas in Columbus, Ohio. Dave built his business on the premise, "Quality is our Recipe®," which remains the guidepost of the Wendy's system. Wendy's is best known for its made-to-order square hamburgers, using fresh, never frozen beef*, freshly-prepared salads, and other signature items like chili, baked potatoes and the Frosty® dessert. The Wendy's Company (Nasdaq: WEN) is committed to doing the right thing and making a positive difference in the lives of others. This is most visible through the Company's support of the Dave Thomas Foundation for Adoption® and its signature Wendy's Wonderful Kids® program, which seeks to find a loving, forever home for every child waiting to be adopted from the North American foster care system. Today, Wendy's and its franchisees employ hundreds of thousands of people across approximately 7,000 restaurants worldwide with a vision of becoming the world's most thriving and beloved restaurant brand. For details on franchising, connect with us at www.wendys.com/franchising. Visit www.wendys.com and www.squaredealblog.com for more information and connect with us on Twitter and Instagram using @wendys, and on Facebook at www.facebook.com/wendys. *Fresh beef available in the contiguous U.S., Alaska, and Canada. About Flynn Restaurant Group Flynn Restaurant Group LP is the largest franchise operator in the world and one of the 20 largest foodservice companies in the United States. Founded by Chairman & CEO Greg Flynn in 1999, Flynn Restaurant Group currently owns and operates 2,600 quick service, fast casual, and casual dining restaurants in the United States and Australia, generating $4.5 billion in sales and employing 75,000 people. It's affiliate, Flynn Properties Inc., owns 121 hotels in the United States and Mexico, including 109 franchised hotels. More information is available at https://www.flynnrestaurantgroup.com/.

View source version at Wendy's







THE WENDY'S COMPANY REPORTS SECOND QUARTER 2023 RESULTS



09 Aug, 2023, 07:00 ET




DUBLIN, Ohio, Aug. 9, 2023 /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) today reported unaudited results for the second quarter ended July 2, 2023. "I am proud of the entire Wendy's® system for delivering another quarter of meaningful sales and profit growth alongside sustained progress against our strategic growth pillars," President and Chief Executive Officer Todd Penegor said. "We continued to drive significant profit expansion, supported by strong same-restaurant sales momentum, resulting in an over 200 basis point year-over-year increase in U.S. Company-operated restaurant margin. During the quarter, our breakfast and late-night dayparts delivered outsized growth and we sustained our digital strength. We also continued to make progress against our development goal with 80 global restaurant openings year to date. With the results we delivered in the first half of the year and the significant runway remaining for each of our strategic growth pillars, I am confident we will deliver our short and long-term outlook, driving meaningful global growth in 2023 and beyond." Second Quarter 2023 Summary See "Disclosure Regarding Non-GAAP Financial Measures" and the reconciliation tables that accompany this release for a discussion and reconciliation of certain non-GAAP financial measures included in this release.




Operational Highlights

Second  Quarter

Year-to-Date

2022

2023

2022

2023

Systemwide Sales Growth(1)

U.S.

3.5 %

6.1 %

3.0 %

7.3 %

International(2)

22.7 %

12.7 %

21.1 %

16.6 %

Global

5.6 %

6.9 %

4.9 %

8.4 %

Same-Restaurant Sales Growth(1)

U.S.

2.3 %

4.9 %

1.7 %

6.0 %

International(2)

15.2 %

7.2 %

14.7 %

10.3 %

Global

3.7 %

5.1 %

3.1 %

6.5 %

Systemwide Sales (In US$ Millions)(3)

U.S.

$3,001

$3,185

$5,713

$6,129

International(2)

$419

$461

$779

$879

Global

$3,420

$3,646

$6,491

$7,009

Restaurant Openings

U.S. - Total / Net

29 / 14

19 / 4

74 / 45

39 / (1)

International - Total / Net

18 / 10

22 / 16

66 / 46

41 / 21

Global - Total / Net

47 / 24

41 / 20

140 / 91

80 / 20

Global Reimaging Completion Percentage

75 %

82 %

(1) Systemwide sales growth and same-restaurant sales growth are calculated on a constant currency basis and include sales

by both Company-operated and franchise restaurants.

(2) Excludes Argentina.

(3) Systemwide sales include sales at both Company-operated and franchise restaurants.




Financial Highlights

Second  Quarter

Year-to-Date

2022

2023

B / (W)

2022

2023

B / (W)

(In Millions Except Per Share Amounts)

(Unaudited)

(Unaudited)

Total Revenues

$   537.8

$   561.6

4.4 %

$ 1,026.4

$ 1,090.4

6.2 %

Adjusted Revenues(1)

$   432.9

$   451.8

4.4 %

$    829.0

$    879.2

6.1 %

U.S. Company-Operated Restaurant Margin

15.0 %

17.3 %

2.3 %

13.6 %

16.0 %

2.4 %

General and Administrative Expense

$     61.6

$     62.7

(1.8) %

$    124.0

$    125.0

(0.8) %

Operating Profit

$     96.3

$   109.3

13.5 %

$    171.2

$    193.8

13.2 %

Reported Effective Tax Rate

26.4 %

24.4 %

2.0 %

26.4 %

25.9 %

0.6 %

Net Income

$     48.2

$     59.6

23.7 %

$      85.6

$      99.5

16.2 %

Adjusted EBITDA

$   132.9

$   144.5

8.7 %

$    239.8

$    270.1

12.6 %

Reported Diluted Earnings Per Share

$     0.22

$     0.28

27.3 %

$      0.39

$      0.46

17.9 %

Adjusted Earnings Per Share

$     0.24

$     0.28

16.7 %

$      0.40

$      0.49

22.5 %

Cash Flows from Operations

$      98.2

$    141.5

44.1 %

Capital Expenditures

$     (30.9)

$     (30.2)

2.5 %

Free Cash Flow(2)

$      95.2

$    133.5

40.2 %

(1) Total revenues less advertising funds revenue.

(2) Cash flows from operations minus capital expenditures and the impact of our advertising funds

View full version at Wendy's


Jack in the Box Inc. Reports Third Quarter 2023 Earnings


Jack in the Box same-store sales of +7.9%; +17.5% on a three-year basis

Del Taco same-store sales of +1.7%; +12.3% on a three-year basis(1)

Jack in the Box systemwide sales growth of +8.0%, Del Taco systemwide sales growth of +1.6%(1)

Diluted EPS of $1.41; Operating EPS of $1.45

Jack in the Box now at 77 agreements for 340 restaurants since launch of the development program in mid-2021

Refranchised 73 Del Taco restaurants during and subsequent to Q3, which include accompanying development agreements for 71 Del Taco and Jack in the Box restaurants

Jack in the Box enters first new market in over a decade, with record-breaking Average Weekly Sales at inaugural Salt Lake City restaurant


August 09, 2023 08:30 AM Eastern Daylight Time

SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the Jack in the Box and Del Taco segments in the third quarter, ended July 9, 2023. "I am pleased to see strong results to begin the second half of 2023, highlighted by a record-breaking opening in Salt Lake City, as our strategic focus areas are beginning to take shape and sustain," said Darin Harris, chief executive officer. "Relentless focus on execution is supporting our momentum, which includes progress on gross openings and net unit growth, improving restaurant margins and franchise profitability, and outstanding sales performance led by late night. We are also making progress on the integration and refranchising of Del Taco, which is delivering incremental development commitments, as well as further progress toward net new unit growth and an asset-light company."

View full version at Jack in the Box



Dutch Bros Inc. Reports Second Quarter 2023 Financial Results


Opened 38 New Systemwide Shops in Q2 2023

Quarterly Revenue Increased 34% to $250 million

Announces Leadership Transition

Updates 2023 Guidance


August 08, 2023 04:05 PM Eastern Daylight Time

GRANTS PASS, Ore.--(BUSINESS WIRE)--Dutch Bros Inc. (NYSE: BROS; “Dutch Bros” or the “Company”), one of the fastest-growing brands in the food service and restaurant industry in the United States by location count, today reported financial results for the second quarter ended June 30, 2023. Joth Ricci, Chief Executive Officer of Dutch Bros, stated, “In Q2, we delivered 34% year over year revenue growth, driven by new shop openings and 3.8% systemwide same shop sales growth. Within the quarter, we continued to see meaningful company-operated shop margin expansion, driven by significant labor efficiency improvement. This speaks to the benefit of our company-operated model as we were able to effect changes across our shops and then directly benefit from those changes. In Q2, we continued to see general and administrative leverage, which taken together with our growing shop margins, demonstrates our commitment to profitable growth.” He continued, “In Q2, we executed against our traffic-driving initiatives, which underpinned 580 basis points of sequential same shop sales growth quarter-over-quarter. We are encouraged by customer response to these initiatives, and are excited to welcome new Chief Marketing Officer, Tana Davila, to build upon this momentum.” He concluded, “I am very proud of the team for what they have accomplished, and I am encouraged by the strength of the underlying business. Our people pipeline and systems are as strong as ever - we have a deep and growing bench of qualified operator candidates and low, and further improving, employee turnover. We continue to see meaningful expansion in shop profitability and leverage in general and administrative costs as we scale our business. We continue to keep a close eye on our costs, particularly those related to new shop development, which we are working diligently to mitigate. Taken together, this gives us confidence to remain committed to our long-term new shop growth plan.”

View full version at Dutch Bros


Restaurant Brands International Inc. Reports Second Quarter 2023 Results



08 Aug, 2023, 06:30 ET





Consolidated system-wide sales growth of +14% year-over-year

Global comparable sales of +10%, led by +12% at TH Canada, +12% at BK International and +8% at BK US 

RBI surpasses the 30,000-restaurant mark globally, generating over $40 billion in system-wide sales over the last 12 months

Topline strength helped deliver another quarter of improvement in both franchisee and RBI profitabilityTORONTO, Aug. 8, 2023 /PRNewswire/ - Restaurant Brands International Inc. ("RBI") (TSX: QSR) (NYSE: QSR) (TSX: QSP) today reported financial results for the second quarter ended June 30, 2023. Josh Kobza, Chief Executive Officer of RBI commented, "I am very proud of the continued performance of our teams and our franchisees who helped drive 14% growth in system-wide sales and another quarter of improved franchisee profitability. We are generating positive momentum and results behind each of our iconic brands by focusing on new menu innovations, supported by exceptional marketing and operations. I know the team is very motivated by the significant growth opportunities ahead of us in our home markets and around the world." Second Quarter 2023 Highlights:

  1. Consolidated comparable sales increased 9.6% and net restaurants grew 4.1% versus the prior year

  2. System-wide sales increased 14.0% year-over-year

  3. Net Income of $351 million versus $346 million in prior year

  4. Adjusted EBITDA of $665 million increased 10.3% organically versus the prior year

  5. Diluted EPS was $0.77 versus $0.76 in prior year

  6. Adjusted Diluted EPS of $0.85 increased 6.6% organically versus the prior year




Consolidated Operational Highlights

Three Months Ended June 30,

2023

2022

(Unaudited)

System-wide Sales Growth

    TH

15.0 %

16.3 %

    BK

13.8 %

13.2 %

    PLK

15.0 %

9.9 %

    FHS

5.1 %

N/A

Consolidated (a)

14.0 %

13.3 %

    FHS  (a)

N/A

2.2 %

System-wide Sales (in US$ millions)

    TH

$

2,024

$

1,838

    BK

$

6,901

$

6,134

    PLK

$

1,714

$

1,503

    FHS

$

307

$

292

Consolidated

$

10,946

$

9,767

Net Restaurant Growth

    TH

5.8 %

5.7 %

    BK

2.4 %

2.7 %

    PLK

10.9 %

8.1 %

    FHS

2.1 %

N/A

Consolidated (a)

4.1 %

4.0 %

    FHS (a)

N/A

2.5 %

System Restaurant Count at Period End

    TH

5,662

5,352

    BK

18,935

18,491

    PLK

4,269

3,851

    FHS

1,259

1,233

Consolidated

30,125

28,927

Comparable Sales

    TH

11.4 %

12.2 %

    BK

10.2 %

8.7 %

    PLK

6.3 %

1.4 %

    FHS

2.1 %

N/A

Consolidated (a)

9.6 %

8.2 %

    FHS (a)

N/A

(1.4) %




(a) Consolidated system-wide sales growth, consolidated comparable sales and consolidated net restaurant growth do not include the results of Firehouse Subs (FHS) for 2022. FHS 2022 growth figures are shown for informational purposes only.

Notes: (1) In our 2022 financial reports, our key business metrics included results from our franchised Burger King restaurants in Russia, with supplemental disclosure provided excluding these restaurants. We did not generate any new profits from restaurants in Russia in 2022 and do not expect to generate any new profits in 2023. Consequently, beginning in the first quarter of 2023, our reported key business metrics exclude the results from Russia for all periods presented. (2) 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 royalty revenues and advertising fund contributions are calculated based on a percentage of franchise sales. Additionally, if a restaurant is closed for a significant portion of a month, the restaurant is excluded from the monthly comparable sales calculation.

View full version at Restaurant Brands International



Beyond Meat® Reports Second Quarter 2023 Financial Results

August 07, 2023 16:06 ET



EL SEGUNDO, Calif., Aug. 07, 2023 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ: BYND) (“Beyond Meat” or “the Company”), a leader in plant-based meat, today reported financial results for its second quarter ended July 1, 2023.Second Quarter 2023 Financial Highlights1

  1. Net revenues were $102.1 million, a decrease of 30.5% year-over-year.

  2. Gross profit was $2.3 million, or gross margin of 2.2% of net revenues, compared to a loss of $6.2 million, or gross margin of -4.2% of net revenues, in the year-ago period.

  3. Gross profit and gross margin were positively impacted by lower materials costs, lower inventory reserves and lower logistics costs per pound, partially offset by higher manufacturing costs excluding depreciation, which included the impact from flow-through of higher cost inventory produced in the fourth quarter of 2022, and lower net revenue per pound.

  4. Gross profit and gross margin included the impact from a change in the Company’s accounting estimate associated with the estimated useful lives of its large manufacturing equipment made in the first quarter of 2023, which reduced COGS depreciation expense by approximately $5.1 million, or 5.0 percentage points of gross margin, relative to depreciation expense utilizing the Company’s previous estimated useful lives.

  5. Net loss was $53.5 million, or $0.83 per common share, compared to net loss of $97.1 million, or $1.53 per common share, in the year-ago period.

  6. Adjusted EBITDA was a loss of $40.8 million, or -40.0% of net revenues, compared to an Adjusted EBITDA loss of $68.8 million, or -46.8% of net revenues, in the year-ago period.1 This release includes references to non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” later in this release for the definitions of the non-GAAP financial measures presented and a reconciliation of these measures to their closest comparable GAAP measures. Beyond Meat President and CEO Ethan Brown commented, “The second quarter brought mixed results amidst otherwise strong progress toward our goal of sustainable long-term growth. Ongoing category headwinds compressed net revenues, which in turn impacted product sales mix and gross margin, overshadowing significant strides in operational efficiency, including meaningful year-over-year reductions in operating expenses, COGS per pound, and overall cash consumption. While we are reducing our full-year 2023 net revenues outlook, we nevertheless expect a modest return to year-over-year top-line growth in the third and fourth quarters of 2023, and, relative to the first half of 2023, a meaningful reduction in cash consumption and an increase in gross margin. As we look to the future, we remain steadfast in our belief that plant-based meat, and Beyond Meat specifically, will play an important part of the global response to a climate crisis that appears to be rapidly intensifying, while also delivering health benefits to the individual consumer.”

View full version at Beyond Meat


Fiesta Restaurant Group, Inc. Reports Second Quarter 2023 Results


Second Quarter 2023 Comparable Restaurant Sales Growth of 9.6% vs. Second Quarter 2022

Second Quarter 2023 Positive Comparable Transaction Growth of 3.6% vs. Second Quarter 2022


August 07, 2023 08:01 AM Eastern Daylight Time

DALLAS--(BUSINESS WIRE)--Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ: FRGI), parent company of the Pollo Tropical® restaurant brand, today reported results for the 13-week second quarter, which ended on July 2, 2023 and provided a business update related to current operations. As announced separately today, the Company has entered into a definitive agreement to be acquired by affiliates of Garnett Station Partners for $8.50 per share in cash. Please see our press release and 8-K filed today for additional details. Fiesta President and Chief Executive Officer Dirk Montgomery said, "Our focus on building traffic resulted in year-over-year comparable transaction growth of 3.6% and comparable sales growth of 9.6%. The growth initiatives we shared previously have improved our traffic growth, which continued into July with comparable transaction growth of 3.9%.” Montgomery added, “We delivered across all four of our previously identified key initiatives – all of which are aimed at creating growth across our business by increasing traffic and driving margin expansion. As a reminder, the initiatives are: 1) Building operations excellence; 2) Creating a great guest experience across all channels; 3) Enhancing the Pollo Tropical brand; and 4) Developing great teams. As a result of those initiatives, we made progress compared to the first quarter in key metrics including improved speed of service, higher guest satisfaction and reduced hourly and management turnover. We have also seen the impact of G&A expense efficiency initiatives, which resulted in our second quarter G&A expense coming in well below the second quarter of 2022 and the first quarter of 2023. We are making real progress toward our targeted G&A expense run rate of 8.5% to 9.0% of restaurant sales and expect that progress to continue over the remainder of 2023.” Montgomery continued, "Second quarter 2023 income from operations was $4.1 million and 3.9% of restaurant sales compared to a loss from operations in the second quarter 2022 of $(5.3) million and (5.4%) of restaurant sales. The increase in income from operations was primarily driven by increased restaurant sales and higher Restaurant-level Operating Profit compared to the second quarter 2022. Second quarter Restaurant-level Operating Profit(1), a non-GAAP financial measure, increased 20% from the first quarter of 2022 and was well above the second quarter of 2022, driven by our comparable restaurant sales growth and margin improvement actions.” Montgomery further commented, “Second quarter Restaurant-level Operating Profit Margins improved to 19.3%, reflecting our strong comparable transaction growth and phased pricing actions in 2022 and March 2023. Second quarter 2023 margins benefitted from lower than expected advertising expense due to timing shifts. We expect second half 2023 advertising expense to be above the second quarter 2023 levels with full year 2023 advertising expense as a percentage of sales of 3.5%. In addition, second quarter workers compensation expense was below historic run rates and is expected to trend back to historic levels. After taking into account those favorable items in the second quarter, we are pleased that our Restaurant-level Operating Margin exceeded our targeted level of 18% or more, and we will continue to target Restaurant-level Operating Profit Margins of 18.0% or greater through ongoing transaction growth and margin improvement initiatives." Montgomery concluded, "We are proud of our progress in the second quarter, and will continue to focus on driving traffic and margins during the remainder of 2023."

View full version at Fiesta Restaurant Group



Fiesta Restaurant Group, Inc. to be Acquired by Authentic Restaurant Brands


Fiesta Stockholders to Receive Significant, Immediate and Certain Value of $8.50 per Share in Cash

Fiesta’s Pollo Tropical Restaurants to Join Garnett Station’s Authentic Restaurant Brands Platform


August 07, 2023 08:00 AM Eastern Daylight Time

DALLAS & NEW YORK--(BUSINESS WIRE)--Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ: FRGI), parent company of the Pollo Tropical® restaurant brand, and Authentic Restaurant Brands (“ARB”), a portfolio company of Garnett Station Partners, LLC (“Garnett Station” or “GSP”), a New York-based principal investment firm, today announced that they have entered into a definitive agreement under which a wholly owned subsidiary of ARB will acquire the Company in an all cash transaction. ARB is a holding company with a portfolio of powerhouse, iconic regional food and beverage brands, with extraordinary customer brand loyalty and rich, authentic stories. Current brands include Primanti Bros Restaurant & Bar, P.J. Whelihan’s Pub & Restaurant and Mambo Seafood. ARB is led by industry veterans including Chairman Alex Macedo and CEO Felipe Athayde. Upon closing the transaction, Fiesta will operate as a privately held company and Pollo Tropical will remain based in Miami, FL. Fiesta’s leadership team will continue to operate Pollo Tropical as an independent brand within the ARB platform. Under the terms of the definitive merger agreement, which has been unanimously approved by Fiesta’s Board of Directors, Fiesta common stockholders will receive cash consideration of $8.50 per share. “Our Board formed a Special Committee comprising independent directors that worked with outside advisors and conducted a comprehensive review of a wide range of strategic alternatives to maximize shareholder value,” said Stacey Rauch, Fiesta’s Chair of the Board of Directors. “The Special Committee and, ultimately, the full Fiesta Board of Directors, determined that this transaction delivers significant, immediate and certain value to Fiesta stockholders while providing Pollo Tropical the scale, resources and flexibility for continued success as part of a private company.” Dirk Montgomery, Fiesta Restaurant Group President and Chief Executive Officer, said, “The transaction validates the actions we have taken to position Pollo Tropical in our markets, enhance the guest experience and improve performance across our footprint. With this transaction, Fiesta will be better positioned financially and operationally to advance our mission of providing great food and hospitality to our guests. Garnett Station has a proven track record of successfully identifying and partnering with iconic, regionally focused brands to help accelerate their growth. We look forward to working closely with Alex, Felipe and the rest of the Garnett Station and ARB teams and to benefiting from their extensive restaurant, digital and analytical expertise as we focus on supporting the success of our brand, franchisees and people.” “We have been fans of Fiesta and their Pollo Tropical restaurants for some time,” said Alex Macedo, Chairman of Authentic Restaurant Brands. “Pollo Tropical restaurants are a mainstay on the dining scene throughout Florida, and we are confident that ARB is a perfect partner to harness the power of the brand for the future.” “Fiesta and Pollo Tropical restaurants are a natural fit into ARB’s existing portfolio,” said Matt Perelman, Managing Partner and Co-Founder of Garnett Station Partners. “Pollo Tropical restaurants have a storied heritage and a deep-rooted connection with their local communities that perfectly align with ARB’s ethos and value proposition. ARB looks forward to working with Dirk and Fiesta’s leadership.” Transaction Details The transaction is expected to be completed in the fourth quarter of 2023 and is subject to approval by Fiesta'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. The definitive merger agreement also includes a 30-day “go shop” period that will allow the Company to affirmatively solicit alternative proposals from interested parties. The transaction is not subject to a financing contingency and affiliates of Jefferies Financial Group Inc. and AREX Capital Management, LP and its affiliated investors, who together own or control approximately 30% of the Company’s outstanding shares, have each entered into a voting agreement pursuant to which they have agreed, among other things, to vote their respective shares of common stock of Fiesta in favor of the transaction. In a separate press release, Fiesta announced its results for the second quarter of 2023. The Company’s earnings press release can be found on the Company’s investor relations website at www.frgi.com/investor-relations. In connection with the transaction, Fiesta will not host an earnings conference call. Advisors Jefferies LLC is acting as lead financial advisor and Gibson, Dunn & Crutcher LLP is serving as legal counsel to Fiesta in connection with the proposed transaction. Houlihan Lokey Capital, Inc. is acting as financial advisor to the Special Committee of the Fiesta Board of Directors. Guggenheim Securities is serving as lead financial advisor and Kirkland & Ellis LLP is acting as legal counsel to ARB and Garnett Station. William Blair & Company, LLC also is serving as a financial advisor to the Board of Directors of ARB. About Fiesta Restaurant Group, Inc. Fiesta Restaurant Group, Inc., owns, operates and franchises for the Pollo Tropical restaurant brand. The brand specializes in the operation of fast casual/quick service restaurants that offer distinct and unique flavors with broad appeal at a compelling value. The brands feature fresh-made cooking, drive-thru service, and catering. For more information about Fiesta Restaurant Group, Inc., visit www.frgi.com. About Authentic Restaurant Brands Authentic Restaurant Brands is a holding company of powerhouse, regional food and beverage brands with extraordinary customer brand loyalty and rich, authentic stories. Established in 2021, ARB is a Garnett Station portfolio company currently comprised of three market-leading, iconic brands each with over 25-year operating histories including Primanti Bros Restaurant & Bar based in Pennsylvania, West Virginia, Ohio, and Maryland, P.J. Whelihan's Pub & Restaurant based in the Greater Delaware Valley including Philadelphia and South Jersey and Mambo Seafood based in Houston, Texas. ARB is strongly committed to growing each of our brands by leveraging their respective foundations, while sharing best practices across our portfolio under our common ownership. For more information, please visit www.authenticrb.com. About Garnett Station Partners Garnett Station Partners is a principal investment firm founded in 2013 by Matt Perelman and Alex Sloane that manages over $2 billion of assets. Garnett Station partners with experienced and entrepreneurial management teams and strategic investors to build value for its portfolio of growth platforms. The firm draws on its global relationships, operational experience and rigorous diligence process to source, underwrite and manage investments. Core sectors include consumer and business services, health & wellness, automotive, and food & beverage. Garnett Station's culture is based on the principles of entrepreneurship, collaboration, analytical rigor and accountability. For more information, please visit www.garnettstation.com.

View source version at Fiesta Restaurant Group


FAT BRANDS INC. REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS

August 03, 2023 16:34 ET



Conference call and webcast today at 4:30 p.m. ET

LOS ANGELES, Aug. 03, 2023 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) today reported financial results for the fiscal second quarter ended June 25, 2023.

Andy Wiederhorn, Chairman of FAT Brands, commented, “In the last several years, we grew the FAT Brands portfolio to 17 iconic restaurant brands with approximately 2,300 units and annual system-wide sales of $2.2 billion. Year to date, we have opened 66 restaurants, including 25 that opened in the second quarter, and remain on track to open 175 new restaurants in 2023, representing 25% unit expansion year over year. We are seeing strong new franchisee activity as well as continued demand from existing franchise partners to develop other brands within our portfolio. So far in 2023, we have signed over 150 new franchise development deals bringing our total pipeline to over 1,100 signed agreements. This represents over 50% EBITDA growth over the next several years.”

“While franchise interest remains high across all of our brands, we are especially focused on the expansion of Twin Peaks. In 2023, we plan to open 18 to 20 new lodges, of which eight have opened so far, including our 100th location. We expect to end 2023 with approximately 115 lodges, a nearly 40 percent increase in unit count since our acquisition of the brand. As we previously announced, we intend to take Twin Peaks public in 2024, subject to market conditions.”

“Over the long term, we believe the opportunities for FAT Brands are considerable and we are well positioned for growth. We have a seasoned leadership team, coupled with a strong platform capable of seamlessly and cost-effectively integrating new brands. Additionally, our healthy and growing development pipeline will fuel organic growth for many years to come and will naturally deleverage our balance sheet.”

View full version at FAT Brands



Portillo’s Inc. Announces Second Quarter 2023 Financial Results

August 03, 2023 08:00 ET



OAK BROOK, Ill., Aug. 03, 2023 (GLOBE NEWSWIRE) -- Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today reported financial results for the second quarter ended June 25, 2023.

Michael Osanloo, President and Chief Executive Officer of Portillo’s, said, “We delivered another quarter of strong results that highlight the durability of our brand. We feel great about our recent new restaurant performance and are also delivering solid results in our core. To sustain this positive trajectory, we continue to focus on quality and execution. Our restaurants are fully-staffed, and we empower our Team Members to prioritize the guest experience by serving delicious, high-quality food in an engaging environment at a great price point. This creates a consistently outstanding experience for both our Team Members and guests.”

Financial Highlights for the Second Quarter 2023 vs. Second Quarter 2022:

  1. Total revenue increased 12.3% or $18.6 million to $169.2 million;

  2. Same restaurant sales increased 5.9%;

  3. Operating income decreased $0.1 million to $17.4 million;

  4. Net income decreased $0.9 million to $9.9 million;

  5. Restaurant-Level Adjusted EBITDA* increased $4.3 million to $42.7 million; and

  6. Adjusted EBITDA* increased $1.6 million to $29.2 million.

*Adjusted EBITDA and Restaurant-Level Adjusted EBITDA are non-GAAP measures. Please see definitions and the reconciliations of these non-GAAP measures in the accompanying financial information below.

View full version at Portillo's



Chuy’s Holdings, Inc. Announces Second Quarter 2023 Financial Results

August 03, 2023 16:05 ET



AUSTIN, Texas, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Chuy’s Holdings, Inc. (NASDAQ:CHUY) (the "Company") today announced financial results for the second quarter ended June 25, 2023.

Highlights for the second quarter ended June 25, 2023 were as follows:

  1. Revenue increased 7.3% to $119.0 million compared to $110.9 million in the second quarter of 2022.

  2. Comparable restaurant sales increased 3.2% as compared to the second quarter of 2022.

  3. Net income increased $2.8 million, or 36.4%, to $10.7 million, or $0.59 per diluted share, as compared to $7.9 million, or $0.41 per diluted share, in the second quarter of 2022.

  4. Adjusted net income(1) increased $2.7 million, or 31.6%, to $11.1 million, or $0.61 per diluted share, as compared to $8.4 million, or $0.44 per diluted share, in the second quarter of 2022.

  5. Restaurant-level operating margin(1) increased $4.6 million, or 21.6%, to $25.7 million as compared to $21.1 million in the second quarter of 2022. Restaurant-level operating margin(1) as a percentage of revenue increased 250 basis points to 21.6% as compared to 19.1% in the second quarter of 2022.

  6. Cash and cash equivalents were $82.6 million and the Company had no debt outstanding with $35.0 million available under its revolving credit facility.

(1) Adjusted net income and restaurant-level operating margin are non-GAAP measures. For reconciliations of adjusted net income and restaurant-level operating margin to the most directly comparable GAAP measure see the accompanying financial tables. For a discussion of why we consider them useful, see “Non-GAAP Measures” below.

Steve Hislop, President and Chief Executive Officer of Chuy’s Holdings, Inc., stated, “Our results marked another strong quarter with revenue growth of over 7%, including a 3.2% improvement in comparable restaurant sales. We also grew restaurant-level operating margin by over 21% and generated an industry-leading restaurant-level operating margin as a percentage of revenue of 21.6%, representing a 250 basis-point improvement over last year. We believe our performance year-to-date reflects our passion in providing our customers with the unique Chuy’s experience through our high-quality, made-from-scratch food and drinks offered at an incredible value.”

Hislop added, “We successfully opened a new restaurant in Oklahoma City, OK during the quarter, followed by another restaurant in Harker Heights, TX in July, both of which have performed in line with our expectations. As we look ahead, we believe our continued focus on four-wall operational excellence, thoughtful capital allocation, and exciting pipeline of unit growth, have positioned us well to capitalize on our positive momentum and the vast opportunities ahead of us.”

View full version at Chuy's



El Pollo Loco Holdings, Inc. Announces Second Quarter 2023 Financial Results

August 03, 2023 16:05 ET



COSTA MESA, Calif., Aug. 03, 2023 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced financial results for the 13-week period ended June 28, 2023

Highlights for the second quarter ended June 28, 2023 compared to the second quarter ended June 29, 2022 were as follows:

  1. Total revenue was $121.5 million compared to $124.1 million.

  2. System-wide comparable restaurant sales(1) decreased 3.4%.

  3. Income from operations was $10.9 million compared to $10.4 million.

  4. Restaurant contribution(1) was $17.6 million, or 16.9% of company-operated restaurant revenue, compared to $15.9 million, or 15.0% of company-operated restaurant revenue.

  5. Net income was $7.1 million, or $0.20 per diluted share, compared to net income of $7.1 million, or $0.20 per diluted share.

  6. Adjusted net income(1) was $8.0 million, or $0.23 per diluted share, compared to $7.6 million, or $0.21 per diluted share.

  7. Adjusted EBITDA(1) was $16.6 million, compared to $15.4 million.

(1)System-wide comparable restaurant sales, restaurant contribution, adjusted net income and adjusted EBITDA are not presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and are defined below under “Key Financial Definitions.” A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure is included in the accompanying financial data. See also “Non-GAAP Financial Measures.”

Larry Roberts, Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “We continued to progress in our four-wall operations, including drive-thru times, social media ratings and customer complaints across both company and franchise restaurants. These improvements would not have been possible without the exemplary efforts of every team member and franchise partner and culminated in restaurant contribution margin of 16.9% and adjusted earnings per share of $0.23.”

Roberts continued, “While our top line performance in the second quarter was below our expectations as we lapped last year’s extremely successful Beef Birria promotion, we are encouraged by sales trends over the past four weeks, with third quarter-to-date comparable system sales growth of 1.8% including a 2.1% increase in company comparable sales through July 26th. As we look to the back half of the year, we remain confident that the initiatives we have in place will deliver sales growth, improved margins and attract high-quality franchisees to the El Pollo Loco system.”

View full version at El Pollo Loco


The ONE Group Reports Second Quarter 2023 Financial Results


Opens Kona Grill in Riverton, UT

To Participate in Three Upcoming Investor Conferences


August 03, 2023 04:05 PM Eastern Daylight Time

DENVER--(BUSINESS WIRE)--The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the second quarter ended June 30, 2023. Highlights for the second quarter compared to the same period in 2022 are as follows:

  1. Total GAAP revenues increased 2.8% to $83.4 million from $81.1 million;

  2. Consolidated comparable sales* decreased 4.7% and increased 46.5% compared to 2019;

  3. GAAP net income attributable to The ONE Group was $0.6 million, or $0.02 per share ($0.06 adjusted net income per share)****, compared to GAAP net income of $4.1 million, or $0.13 per share ($0.15 adjusted net income per share)****

  4. Restaurant Operating Profit*** decreased 6.6% to $11.9 million from $12.8 million; and

  5. Adjusted EBITDA** was $8.5 million compared to $10.4 million. “We faced meaningful comparisons to last year as comparable sales in 2022 increased 12.8% on a consolidated basis and 19.8% at STK. We are encouraged by the momentum of the business as we saw sequential improvement in same store sales as we moved through the quarter, and we are pleased that we continue to significantly outperform our 2019 comparable sales. We recently opened a new Kona Grill in Riverton, Utah and the restaurant is off to a strong start. In addition, Kona Grill Columbus, STK San Francisco and STK Dallas, continue to perform strongly and above our investment model. We have developed seven new venues in the last twelve months, and we plan to accelerate this pace. As we look into the second half of the year, we have initiatives in place that, we anticipate, will drive positive comparable sales and margin improvements year over year,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group. Hilario continued, “We expect to open eight to twelve new venues in 2023 and target a new restaurant approximately every four to six weeks for the foreseeable future. We expect the significant investments we have made in our training teams, in-restaurant staffing and in G&A support will begin to show positive returns as we enter this new chapter of growth at The ONE Group. We believe we are early in our expansion story and have significant opportunity ahead, and we view our total addressable market as 200 STK restaurants globally and 200 Kona Grills domestically with best-in-class ROIs of between 40% and 50%.”

View full version at The ONE Group



Good Times Restaurants Reports Results for the Third Fiscal Quarter Ending June 27, 2023


August 03, 2023 04:05 PM Eastern Daylight Time

DENVER--(BUSINESS WIRE)--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard restaurant brands, today reported financial results for the third fiscal quarter ended June 27, 2023. Key highlights of the Company’s financial results include:

  1. Total Revenues for the quarter decreased 2.4% to $35.6 million compared to fiscal 2022 third quarter

  2. Total Restaurant Sales for Bad Daddy’s restaurants were $26.1 million for the quarter

  3. Same Store Sales1 for company-owned Bad Daddy’s restaurants decreased 1.4% for the quarter

  4. Total Restaurant Sales for Good Times restaurants were $9.1 million for the quarter

  5. Same Store Sales for company-owned Good Times restaurants increased 2.1% for the quarter

  6. Net Income Attributable to Common Shareholders was $0.3 million for the quarter

  7. Adjusted EBITDA2 (a non-GAAP measure) for the quarter was $2.1 million

  8. The Company ended the quarter with $3.7 million in cash and no long-term debt Ryan M. Zink, the Company’s Chief Executive Officer, said, “Our Good Times brand had a fantastic quarter for both sales and profits, as we posted positive same store sales despite meaningfully unfavorable weather comparisons. I am pleased with the improvements made in food costs at both brands and the improvement in labor costs made at Good Times during what is typically our highest sales-indexing quarter.” Mr. Zink continued, “We have invested in additional multi-unit supervisory roles at Bad Daddy’s to reduce spans of control as we seek to address declining sales in a couple of markets, most notably in the Atlanta market. We believe that the investment will pay off as we have already begun to see a turnaround in one of our most challenging restaurants in the market, which has followed the installation of a new general manager. We have completed construction of our upcoming Bad Daddy’s in Huntsville, Alabama, and are looking forward to its opening later this month.” “Additionally, in late July, we acquired a previously-franchised Good Times restaurant in Greenwood Village, Colorado, a southern suburb of Denver. We look forward to the contribution of this restaurant to our Company-owned results moving in the future,” Zink concluded.

View full version at Good Times Restaurant Group



Papa Johns Announces Second Quarter 2023 Financial Results; Increases Cash Dividend by 10%


August 03, 2023 07:00 AM Eastern Daylight Time

LOUISVILLE, Ky.--(BUSINESS WIRE)--Papa John’s International, Inc. (NASDAQ: PZZA) (“Papa Johns®”) today announced financial results for the second quarter ended June 25, 2023. Highlights

  1. North America comparable sales were down 1% compared with the second quarter of 2022 as the strength of Domestic Company-owned restaurants was offset by lower North America franchised restaurant comparable sales; International comparable sales were down 1% from a year ago and improved 5% from the first quarter.

  2. 47 net unit openings in the second quarter driven by International growth; On track to achieve 270 to 310 net new units in 2023.

  3. Global system-wide restaurant sales were $1.22 billion, a 2%(a) increase from the prior year second quarter.

  4. Total revenues of $515 million were down 2% from the second quarter a year ago driven by lower revenues in our North American commissary segment due to commodity price declines.

  5. Diluted earnings per common share was $0.54, compared with $0.70 for the second quarter of 2022; Adjusted diluted earnings per common share(b) was $0.59, compared with $0.74 for the second quarter a year ago.

  6. Announced 10% increase in annual dividend rate to $1.84 per share; declared third quarter dividend of $0.46. “We are pleased with the solid execution that our teams have demonstrated in what continues to be a challenging operating environment,” said Rob Lynch, President and CEO. “Our company restaurants continued their strong performance with positive comp sales growth and year-over-year margin improvement above and beyond the benefits of moderating food costs. However, this solid performance was not enough to offset the lower-than-anticipated comps our franchisees experienced during the quarter. That being said, our entire system saw sequential sales improvement throughout the quarter with positive North America comp sales in June. This positive momentum has carried over, and accelerated, into the third quarter and we expect it to continue as we optimize our system’s revenue management strategies and expand one of our most popular pizza platforms with the recent introduction of Garlic Epic Stuffed Crust Pizza.” Commenting on the Company’s International operations, Lynch stated, “Our international business is a long-term growth driver for Papa Johns. We’ve recently established a corporate-owned restaurant portfolio in the UK, our largest international market, allowing us to build a similar success model to the one we’ve created in the US. This model accelerates our ability to scale our company’s capabilities with franchisees in the UK, and worldwide, to grow comps and new unit development. While we know there will be macro-economic challenges ahead, particularly in the short term, we’re confident that we can improve sales and profitability within our UK market, and in our international segment overall.” Lynch concluded by stating, “The level of operating and fiscal discipline our team has implemented across our business over the past year is remarkable. Our continued investments in sales-driving capabilities and operational excellence, combined with the strength of our balance sheet, gives us confidence that we will produce positive comp sales and attractive new unit development growth in the back half of 2023 and over the long-term.”

View full version at Papa Johns



Shake Shack Announces Second Quarter 2023 Financial Results

  1. Total revenue of $271.8 million, up 17.8% versus 2022, including $261.8 million of Shack sales and $10.0 million of Licensing revenue.

  2. System-wide sales of $426.3 million, up 21.2% versus 2022.

  3. Same-Shack sales up 3.0% versus 2022.

  4. Operating income of $4.7 million.

  5. Shack-level operating profit(1) of $54.9 million, or 21.0% of Shack sales.

  6. Net income of $7.2 million.

  7. Adjusted EBITDA(1) of $37.1 million.

  8. Net income attributable to Shake Shack Inc. of $6.9 million, or earnings of $0.16 per diluted share.

  9. Adjusted pro forma net income(1) of $7.9 million, or earnings of $0.18 per fully exchanged and diluted share.

  10. Opened 10 new domestic Company-operated Shacks. Opened 13 new licensed Shacks, including locations in Thailand and China.


August 03, 2023 07:00 AM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) has posted its results for the second quarter of 2023 in a Shareholder Letter in the Quarterly Results section of the Company's Investor Relations website, which can be found here: Q2 2023 Shake Shack Shareholder Letter. Shake Shack will host a conference call at 8:00 a.m. ET. Hosting the call will be Randy Garutti, Chief Executive Officer, and Katherine Fogertey, Chief Financial Officer. The conference call can be accessed live over the phone by dialing (877) 407-0792, or for international callers by dialing (201) 689-8263. A replay of the call will be available until August 10, 2023 by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671; the passcode is 13738716. The live audio webcast of the conference call will be accessible in the Events & Presentations section of the Company's Investor Relations website at investor.shakeshack.com. An archived replay of the webcast will also be available shortly after the live event has concluded.

View full version at Shake Shack



Dine Brands Global, Inc. Reports Second Quarter 2023 Results


IHOP® Posts Ninth Consecutive Positive Comparable Restaurants Sales Quarter

Applebee’s® Posts -1% Comparable Restaurants Sales Quarter


August 03, 2023 07:00 AM Eastern Daylight Time

PASADENA, Calif.--(BUSINESS WIRE)--Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee’s Neighborhood Grill & Bar®, IHOP® and Fuzzy’s Taco Shop® restaurants, today announced financial results for the second quarter of fiscal 2023. “Dine Brands is well-positioned to invest in our brands, drive growth and maximize returns. Despite some market volatility, our business model’s resiliency is evident through consistent financial results, enabling us to pursue long-term growth opportunities, debt reduction and returning capital to shareholders,” said John Peyton, chief executive officer, Dine Brands Global. “Looking ahead, we will continue to maintain our disciplined approach to creating value for stakeholders and demand from our guests.” Vance Chang, chief financial officer, added, “Our focus, in collaboration with our franchisees, is to drive consistent sales and restaurant profitability over time. In addition to the near-term easing of commodities and labor pressure, the teams are making progress on restaurant-level initiatives to improve efficiency, reduce waste, and strengthen our concepts for both existing and future franchisees.”

View full version at Dine Brands



The Cheesecake Factory Reports Results for Second Quarter of Fiscal 2023 and Provides Business Update


August 02, 2023 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 2023, which ended on July 4, 2023. Total revenues were $866.2 million in the second quarter of fiscal 2023 compared to $832.6 million in the second quarter of fiscal 2022. Net income and diluted net income per share were $42.7 million and $0.87, respectively, in the second quarter of fiscal 2023. The Company recorded a pre-tax net expense of $0.6 million related to Fox Restaurant Concepts (“FRC”) acquisition-related expenses and impairment of assets and lease termination income. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for the second quarter of fiscal 2023 were $43.1 million and $0.88, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release. Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.5% year-over-year in the second quarter of fiscal 2023 and increased 14.1% relative to the second quarter of fiscal 2019, on an operating week basis. “I am pleased to report our second quarter results marked the third consecutive quarter of sequential profit margin expansion, finishing above our expectations, reflecting continued progress against our stated goal of recapturing our margins,” said David Overton, Chairman and Chief Executive Officer. “We delivered another quarter of comparable sales growth across our portfolio of concepts, with comparable sales at The Cheesecake Factory restaurants continuing to outpace the industry relative to 2019. Our experienced operators drove solid operational execution within our restaurants to deliver year-over-year improvements in labor productivity and hourly staff and manager retention.” “We opened three new restaurants during the second quarter, including two in the Miami area which opened to impressive demand, underscoring the strength of the consumer demand for our concepts and the unique dining experiences we provide for our guests. We remain intently focused on accelerating our unit growth and achieving our long-term unit growth objectives, despite ongoing construction and permitting challenges.”

View full version at The Cheesecake Factory



Yum! Brands Reports Second-Quarter Results


13% System Sales Growth Driven by 9% Same-Store Sales Growth and 6% Unit Growth;

1,025 Gross New Units and Record Digital Sales



August 02, 2023 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, 2023. Worldwide system sales excluding foreign currency translation grew 13%, with 9% same-store sales growth and 6% unit growth. Second-quarter GAAP operating profit grew 4%. Second-quarter core operating profit grew 12%. Second-quarter GAAP EPS was $1.46 and second-quarter EPS excluding Special Items was $1.41. Second-quarter EPS includes a favorable $0.09 mark-to-market impact from unrealized investment gains and a negative $0.05 impact from foreign currency translation. DAVID GIBBS COMMENTS David Gibbs, CEO, said, "Our broad-based momentum continued in the second quarter with system sales growth of 13% owing to 9% same-store sales growth and 6% unit growth. KFC, our largest division, led the quarter with an astounding 19% system sales growth. An impressive 1,025 gross new units this quarter and nearly 30% digital sales growth contributed to our robust system sales growth. I remain confident we are well positioned to thrive in any consumer spending environment given the broad consumer appeal of our iconic brands, including our craveable products, compelling value and easy experiences. With our strong year-to-date results and continued momentum, we expect to deliver full year 2023 results well above our long-term growth algorithm for system sales and core operating profit growth.”

View full version at Yum! Brands







Wingstop Inc. Reports Fiscal Second Quarter 2023 Financial Results



02 Aug, 2023, 08:01 ET





16.8% Domestic Same Store Sales Growth

Increases Outlook for Fiscal Year 2023DALLAS, Aug. 2, 2023 /PRNewswire/ -- Wingstop Inc. (NASDAQ: WING) today announced financial results for the fiscal second quarter ended July 1, 2023. Highlights for the fiscal second quarter 2023 compared to the fiscal second quarter 2022:

  1. System-wide sales increased 27.8% to $809.8 million

  2. 50 net new openings in the fiscal second quarter 2023

  3. Domestic same store sales increased 16.8%

  4. Domestic restaurant AUVs exceeded $1.7 million

  5. Digital sales increased to 65.2%

  6. Total revenue increased 27.9% to $107.2 million

  7. Net income increased 21.6% to $16.2 million, or $0.54 per diluted share, compared to net income of $13.3 million, or $0.44 per diluted share in the prior fiscal second quarter

  8. Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, increased 27.4% to $17.0 million, or $0.57 per diluted share, compared to $13.3 million, or $0.45 per diluted share in the prior fiscal second quarter

  9. Adjusted EBITDA, a non-GAAP measure, increased 47.1% to $34.4 million, compared to adjusted EBITDA of $23.3 million in the prior fiscal second quarterAdjusted EBITDA, adjusted net income, and adjusted earnings per diluted share are non-GAAP measures. Reconciliations of adjusted EBITDA, adjusted net income, and adjusted earnings per diluted share to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States ("GAAP") are set forth in the schedule accompanying this release. See "Non-GAAP Financial Measures." "Our second quarter demonstrated the continued strength and staying power of our strategies. We exceeded $1.7 million AUVs fueled by 16.8% growth in domestic same store sales, which was primarily due to transaction growth," said Michael Skipworth, President and Chief Executive Officer. "We opened 50 net new restaurants for the quarter and surpassed 2,000 restaurants globally. And yet, we're just getting started as we work toward our 20th consecutive year of same store sales growth and our vision of becoming a Top 10 Global Restaurant Brand."

View full version at Wingstop



Denny’s Corporation Reports Results For Second Quarter 2023

Reiterates Full Year 2023 Adjusted EBITDA Guidance

August 01, 2023 16:05 ET



SPARTANBURG, S.C., Aug. 01, 2023 (GLOBE NEWSWIRE) -- Denny’s Corporation (the "Company") (NASDAQ: DENN), owner and operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's") today reported results for its second quarter ended June 28, 2023 and provided a business update on the Company’s operations. Kelli Valade, Chief Executive Officer, stated, "We were pleased to report 3.0% Denny's domestic system-wide same-restaurant sales**, expansion of restaurant-level margins, and even higher growth in adjusted EBITDA for the quarter. We also nearly doubled adjusted free cash flow compared to the year-ago period, supporting our ability to repurchase shares under our authorization. As we continue to gain rich insights about our guests, we are excited about the opportunities to execute focused, long-term brand revitalization strategies at Denny's while also expanding the reach of Keke's." Second Quarter 2023 Highlights

  1. Total operating revenue grew 1.7% to $116.9 million compared to the prior year quarter.

  2. Denny's domestic system-wide same-restaurant sales** grew 3.0% compared to the equivalent fiscal period in 2022, including increases of 3.0% at domestic franchised restaurants and 3.0% at company restaurants.

  3. Opened 10 franchised restaurants, including 4 international Denny's locations and 1 Keke's location.

  4. Completed four Denny's remodels, including three franchised restaurant remodels.

  5. Operating income was $14.9 million compared to $13.9 million in the prior year quarter.

  6. Franchise Operating Margin* was $31.6 million, or 50.9% of franchise and license revenue, and Company Restaurant Operating Margin* was $8.3 million, or 15.1% of company restaurant sales.

  7. Net income was $8.5 million, or $0.15 per diluted share.

  8. Adjusted Net Income* and Adjusted Net Income Per Share* were $8.2 million and $0.14, respectively.

  9. Adjusted EBITDA* was $22.3 million.

  10. Cash provided by (used in) operating, investing, and financing activities was $19.5 million, ($0.6) million, and ($26.7) million, respectively.

  11. Adjusted Free Cash Flow* was $12.7 million.

  12. Repurchased $10.4 million of common stock.Second Quarter 2023 Results Total operating revenue increased 1.7% to $116.9 million compared to $115.0 million in the prior year quarter. Franchise and license revenue was $62.0 million compared to $65.9 million in the prior year quarter. This change was primarily driven by a $5.2 million decrease in initial and other fees, associated with the sale of kitchen equipment in the prior year quarter. These impacts were partially offset by Denny's franchised restaurants same-restaurant sales** growth and $1.7 million of Keke's franchise revenue in the current quarter.

View full version Denny's



First Watch Restaurant Group, Inc. Reports Strong Q2 2023 Financial Results

August 01, 2023 07:00 ET



Same-restaurant sales growth of 7.8% Income from operations margin of 5.3% and Restaurant level operating profit margin of 20.9% Net income of $8.0 million and Adjusted EBITDA of $25.8 million 9 system-wide restaurants opened across 6 states Raising 2023 Adjusted EBITDA guidance

BRADENTON, Fla., Aug. 01, 2023 (GLOBE NEWSWIRE) --  First Watch Restaurant Group, Inc. (NASDAQ: FWRG) (“First Watch” or the “Company”), the leading Daytime Dining concept serving breakfast, brunch and lunch, today reported financial results for the thirteen weeks ended June 25, 2023 (“Q2 2023”) and raises certain elements of its fiscal year 2023 guidance.

“Our teams across the system once again delivered strong results with same-restaurant sales growth of 7.8% driven by positive same-restaurant traffic growth in our dining rooms,” said Chris Tomasso, First Watch CEO and President. “This continued topline growth also translated to strong bottom-line performance. As we progress toward our potential of 2,200 domestic units, I am proud of our teams – both in the restaurants and at our home office -- for their continued focus on superior execution. We remain confident in our unique opportunity and the growth algorithm that underpins our long-term targets.

View full version at First Watch



Bloomin’ Brands Announces Q2 2023 Financial Results


Q2 Diluted EPS of $0.70 and Adjusted Diluted EPS of $0.74 Reaffirms 2023 Guidance for U.S. Comparable Restaurant Sales and EPS


August 01, 2023 07:00 AM Eastern Daylight Time

TAMPA, Fla.--(BUSINESS WIRE)--Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the second quarter 2023 (“Q2 2023”) compared to the second quarter 2022 (“Q2 2022”). CEO Comments “We delivered another strong quarter of results that continues to highlight the benefits of our portfolio,” said David Deno, CEO. “Earnings for the quarter were above expectations and revenues were in line. Our results reflect the investments we are making to elevate the customer experience as well as the ongoing execution of our growth strategy. We remain well positioned to deliver on our long-term goals of growing sustainable sales and profits while maximizing total shareholder return.” Diluted EPS and Adjusted Diluted EPS The following table reconciles Diluted earnings (loss) per share to Adjusted diluted earnings per share for the periods indicated (unaudited):


Q2

2023

2022

CHANGE

Diluted earnings (loss) per share

$

0.70

$

(0.72

)

$

1.42

Adjustments (1)

0.04

1.40

(1.36

)

Adjusted diluted earnings per share (1)

$

0.74

$

0.68

$

0.06

___________________

(1) Adjustments for Q2 2022 include losses in connection with the repurchase of the $125 million of our outstanding convertible notes (the “2025 Notes”) as well as the settlements of the related convertible senior note hedges and warrants (the “2025 Notes Partial Repurchase”). See Non-GAAP Measures later in this release.

View full version at Bloomin' Brands







Yum China Reports Second Quarter 2023 Results



31 Jul, 2023, 16:30 ET





Delivered record-breaking second quarter performance in Total Revenues, Operating Profit and net new adds  Total Revenues up 25%; System Sales grew 32% in constant currency; Operating Profit increased 216% Store openings accelerated, 655 net new adds in the first half, on track for full-year net new store targetSHANGHAI, July 31, 2023 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) today reported unaudited results for the second quarter ended June 30, 2023. Second Quarter Highlights

  1. Total revenues increased 25% year over year to $2.65 billion from $2.13 billion (a 32% increase excluding foreign currency translation ("F/X")).

  2. Total system sales increased 32% year over year, with increases of 32% at KFC and 30% at Pizza Hut, excluding F/X. Growth was mainly attributable to same-store sales, new unit contribution and lapping of temporary store closures in the prior year.

  3. Same-store sales increased 15% year over year, with increases of 15% at KFC and 13% at Pizza Hut, excluding F/X.

  4. Opened 422 net new stores during the quarter; total store count reached 13,602, as of June 30, 2023.

  5. Operating Profit increased 216% year over year to $257 million from $81 million (a 228% increase excluding F/X), primarily driven by sales leveraging and margin expansion.

  6. Adjusted Operating Profit increased 215% year over year to $259 million from $82 million (a 227% increase excluding F/X).

  7. Restaurant margin was 16.1%, compared with 12.1% in the prior year period.

  8. Effective tax rate was 24.7%.

  9. Net Income increased 138% to $197 million from $83 million in the prior year period, primarily due to the increase in Operating Profit.

  10. Adjusted Net Income increased 137% to $199 million from $84 million in the prior year period (a 207% increase excluding the net loss of $9 million in the second quarter of 2023 and net gain of $16 million in the second quarter of 2022, from the mark-to-market equity investment in Meituan; a 219% increase if further excluding F/X).

  11. Diluted EPS increased 135% to $0.47 from $0.20 in the prior year period.

  12. Adjusted Diluted EPS increased 135% to $0.47 from $0.20 in the prior year period (a 206% increase excluding the net loss from the mark-to-market equity investments in the second quarter of 2023 and net gain in the second quarter of 2022; a 219% increase if further excluding F/X).Key Financial Results




Second Quarter 2023

Year to Date Ended 6/30/2023

% Change

% Change

System Sales

Same-Store Sales

Net New Units

Operating Profit

System Sales

Same-Store Sales

Net New Units

Operating Profit

Yum China

+32

+15

+12

+216

+24

+11

+12

+147

   KFC

+32

+15

+12

+125

+24

+11

+12

+103

   Pizza Hut

+30

+13

+13

+216

+23

+10

+13

+120




Second Quarter

Year to Date Ended 6/30

(in US$ million, except

% Change

% Change

per share data and percentages)

2023

2022

Reported

Ex F/X

2023

2022

Reported

Ex F/X

Operating Profit

$

257

$

81

+216

+228

$

673

$

272

+147

+164

Adjusted Operating Profit(1)

$

259

$

82

+215

+227

$

678

$

275

+146

+162

Net Income

$

197

$

83

+138

+147

$

486

$

183

+166

+184

Adjusted Net Income(1)

$

199

$

84

+137

+147

$

491

$

186

+164

+181

Basic Earnings Per Common Share

$

0.47

$

0.20

+135

+145

$

1.16

$

0.43

+170

+188

Adjusted Basic Earnings    Per Common Share(1)

$

0.47

$

0.20

+135

+145

$

1.17

$

0.44

+166

+184

Diluted Earnings Per Common Share

$

0.47

$

0.20

+135

+145

$

1.15

$

0.43

+167

+186

Adjusted Diluted Earnings    Per Common Share(1)

$

0.47

$

0.20

+135

+145

$

1.16

$

0.44

+164

+182

(1) See "Reconciliation of Reported GAAP Results to Non-GAAP Adjusted Measures" included in the accompanying tables of this release for further details.

Note:  All comparisons are versus the same period a year ago. 

Percentages may not recompute due to rounding. 

System sales and same-store sales percentages exclude the impact of F/X. Effective January 1, 2018, temporary store closures are normalized in the same-store sales calculation by excluding the period during which stores are temporarily closed.CEO and CFO Comments Joey Wat, CEO of Yum China, commented, "We achieved outstanding results, delivering substantial growth in the top-line and bottom-line, in the second quarter, thanks to our teams' dedication and creativity. This once again demonstrates our anti-fragile business model and ability to capture opportunities in good times and stay resilient in bad times. Our innovative products and compelling value captured customer demand and drove double-digit same-store sales growth. KFC's "K-zza" and Pizza Hut's new menu items were hugely popular. Our exciting campaign with Genshin Impact and fun toy offerings with Sanrio and Pokemon spurred strong demand and brought consumers moments of joy. We registered record daily transactions of 8.5 million on Children's Day. Our amazing operations team, robust end-to-end digital capabilities and agile supply chain enabled us to flexibly handle surges in customer traffic through holiday periods and special marketing campaigns, while maintaining consistent quality and customer service. As a result of these collective efforts, our operating profit for the first half of this year already exceeded the entire year of 2022."

View full version at Yum China







McDONALD'S REPORTS SECOND QUARTER 2023 RESULTS



27 Jul, 2023, 07:00 ET




  1. Global comparable sales increased 11.7% for the quarter, with double-digit growth across each segment

  2. Digital Systemwide sales* in our top six markets were over $8 billion for the quarter, representing nearly 40% of their Systemwide salesCHICAGO, July 27, 2023 /PRNewswire/ -- McDonald's Corporation today announced results for the second quarter ended June 30, 2023. "Our second quarter results reflect consistently strong execution of our Accelerating the Arches strategy, with global comparable sales growth of 11.7% and double-digit comparable sales growth across each of our segments," said McDonald's President and Chief Executive Officer, Chris Kempczinski. "The McDonald's brand has never been stronger and I remain inspired by the ability of the McDonald's System to create cultural conversations and develop industry-leading innovations. While global macroeconomic challenges persist, we continue to invest in our growth drivers and our brand to meet the customer needs of tomorrow." Second quarter financial performance:

  3. Global comparable sales increased 11.7%, reflecting strong comparable sales across all segments:

  4. U.S. increased 10.3%

  5. International Operated Markets segment increased 11.9%

  6. International Developmental Licensed Markets segment increased 14.0%

  7. Consolidated revenues increased 14% (14% in constant currencies).

  8. Systemwide sales increased 12% (13% in constant currencies).

  9. Consolidated operating income increased 81% (82% in constant currencies). Results included $18 million of pre-tax restructuring charges related to the Company's internal effort to modernize ways of working (Accelerating the Organization). Excluding these current year charges, as well as prior year pre-tax charges and gains of $1.2 billion and $271 million, respectively, consolidated operating income increased 20% (21% in constant currencies).**

  10. Diluted earnings per share was $3.15, an increase of 97% (98% in constant currencies). Excluding the current year restructuring charges described above of $0.02 per share, diluted earnings per share was $3.17, an increase of 24% (25% in constant currencies) when also excluding prior year charges and gains and a tax settlement.** *Refer to page 4 for a definition of Systemwide sales. **Refer to page 2 for additional details on the second quarter 2023 and 2022.

View full version at McDonald's



BJ’s Restaurants, Inc. Reports Fiscal Second Quarter 2023 Results

July 27, 2023 16:03 ET



HUNTINGTON BEACH, Calif., July 27, 2023 (GLOBE NEWSWIRE) -- BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for its fiscal 2023 second quarter ended Tuesday, July 4, 2023.

Fiscal Second Quarter 2023 Compared to Fiscal Second Quarter 2022

  1. Total revenues increased 6.1% to $349.7 million

  2. Comparable restaurant sales increased 4.7%

  3. Total restaurant operating weeks increased 1.3%

  4. Net income of $11.9 million, compared to $0.3 million; diluted net income per share of $0.50, compared to $0.01

  5. Adjusted EBITDA of $31.8 million, compared to $23.4 million

“Our strong second quarter results demonstrate the continued momentum building in our business from the growth and productivity initiatives we began implementing last year,” commented Greg Levin, Chief Executive Officer and President. “The commitment by our restaurant team members to deliver gracious hospitality and serve memorable brewhouse experiences for our guests, coupled with these growth and productivity initiatives, drove our restaurant level operating margin to 14.5%, a 260 basis point improvement compared to last year. Furthermore, we surpassed our original annual cost savings target of $25 million in the second quarter, and the team continues to identify and realize additional margin enhancement opportunities,” continued Levin.

“Early in the second quarter, we opened our second new restaurant of the year in San Antonio, Texas. We are on schedule to open five new restaurants this year, including one relocation next month. Additionally, we are accelerating our remodel plan due to the encouraging results and financial return profile these remodeled restaurants have delivered to date. We now expect to remodel 35 to 40 restaurants this year, of which more than 20 remodels have been completed. We are excited about the opportunities to further strengthen the BJ’s concept in the near-term and remain confident in the long-term potential to grow to at least 425 restaurants, while delivering an attractive margin profile and creating significant shareholder value,” concluded Levin.

View full version at BJ's Restaurants



Texas Roadhouse, Inc. Announces Second Quarter 2023 Results

July 27, 2023 16:03 ET



LOUISVILLE, Ky., July 27, 2023 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 26 weeks ended June 27, 2023.

Financial Results

Financial results for the 13 and 26 weeks ended June 27, 2023 and June 28, 2022 were as follows:

Second QuarterYear to Date($000's)20232022% change20232022% changeTotal revenue$1,171,203$1,024,60614.3%$2,345,559$2,012,09216.6%Income from operations95,41285,91811.1%196,357176,05611.5%Net income82,27172,41913.6%168,658147,62114.3%Diluted earnings per share$1.22$1.0714.7%$2.51$2.1516.6% Results for the second quarter, as compared to the prior year as applicable, included the following:

  1. Comparable restaurant sales increased 9.1% at company restaurants and increased 9.2% at domestic franchise restaurants;

  2. Average weekly sales at company restaurants were $146,727 of which $18,496 were to-go sales as compared to average weekly sales of $135,552 of which $17,794 were to-go sales in the prior year;

  3. Restaurant margin dollars increased 8.3% to $182.8 million from $168.7 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 88 basis points to 15.7% as commodity inflation of 6.0% and wage and other labor inflation of 7.0% were partially offset by higher sales;

  4. Diluted earnings per share increased 14.7% primarily driven by higher restaurant margin dollars partially offset by higher depreciation and amortization and higher general and administrative expenses;

  5. Three company restaurants and three franchise restaurants were opened; and,

  6. The Company repurchased 213,975 shares of common stock for $23.4 million.

Results for the year-to-date period, as compared, to the prior year as applicable, included the following:

  1. Comparable restaurant sales increased 11.0% at company restaurants and increased 11.2% at domestic franchise restaurants;

  2. Average weekly sales at company restaurants were $147,579 of which $18,762 were to-go sales as compared to average weekly sales of $133,917 of which $18,671 were to-go sales in the prior year;

  3. Restaurant margin dollars increased 11.7% to $368.5 million from $329.9 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, decreased 70 basis points to 15.8% as commodity inflation of 7.4% and wage and other labor inflation of 7.4% were partially offset by higher sales;

  4. Diluted earnings per share increased 16.6% primarily driven by higher restaurant margin dollars partially offset by higher general and administrative expenses and higher depreciation and amortization expense;

  5. Nine company restaurants and four franchise restaurants were opened; and,

  6. The Company repurchased 306,726 shares of common stock for $33.1 million.

Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc. commented, “Once again, our operators generated tremendous sales momentum, including higher guest counts.  This increase in quarterly sales helped offset rising costs and allowed us to further grow our bottom line.”

Morgan continued, “On the development front, we have a significant number of company and franchise locations that will open in the second half of the year.  This includes the first franchise location for Jaggers, our fast-casual concept, that opened in Jacksonville, North Carolina, last week.  We remain confident that our continued development of all three concepts, along with a strong balance sheet and disciplined capital allocation strategy will generate long-term shareholder value.”

View full version at Texas Roadhouse



Sweetgreen, Inc. Announces Second Quarter 2023 Financial Results


July 27, 2023 04:05 PM Eastern Daylight Time

LOS ANGELES--(BUSINESS WIRE)--Sweetgreen, Inc. (NYSE: SG) (the “Company”), the mission-driven, next generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for its second fiscal quarter ended June 25, 2023. Second quarter 2023 financial highlights For the second quarter of fiscal year 2023, compared to the second quarter of fiscal year 2022:

  1. Total revenue was $152.5 million, versus $124.9 million in the prior year period, an increase of 22%.

  2. Same-Store Sales Change of 3%, versus Same-Store Sales Change of 16% in the prior year period.

  3. AUV of $2.9 million was consistent with the prior year period.

  4. Total Digital Revenue Percentage of 59% and Owned Digital Revenue Percentage of 37%, versus Total Digital Revenue Percentage of 62% and Owned Digital Revenue Percentage of 40% in the prior year period.

  5. Loss from operations was $(31.2) million and loss from operations margin was (20)%, versus loss from operations of $(42.7) million and loss from operations margin of (34)% in the prior year period.

  6. Restaurant-Level Profit(1) was $31.1 million and Restaurant-Level Profit Margin was 20%, versus Restaurant-Level Profit of $23.1 million and Restaurant-Level Profit Margin of 19% in the prior year period.

  7. Net loss was $(27.3) million, versus net loss of $(40.5) million in the prior year period.

  8. Adjusted EBITDA(1) was $3.3 million, versus Adjusted EBITDA of $(7.8) million in the prior year period; and Adjusted EBITDA Margin was 2%, versus (6)% in the prior year period.

  9. 10 Net New Restaurant Openings, versus 8 Net New Restaurant Opening in the prior year period.(1) Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin to the most directly comparable financial measures presented in accordance with GAAP, are set forth in the schedules accompanying this release. See “Reconciliation of GAAP to Non-GAAP Measures.” “As we entered 2023, we doubled down on our commitment to durability – balancing high growth and profitability – and our second quarter performance put that commitment into action,” said Jonathan Neman, Co-Founder and Chief Executive Officer. “In the second quarter, we recorded our ninth consecutive quarter of over 20% sales growth year over year. We delivered a restaurant level margin of over 20% as well as achieved Adjusted EBITDA profitability of $3.3 million. I could not be more optimistic about the future of Sweetgreen as we continue to execute on our mission and invest in profitable growth.” “The investments we’ve made in adapting our operating model to this new environment resulted in positive Adjusted EBITDA for the first time as a public company,” said Mitch Reback, Chief Financial Officer. “We believe the changes we have made will continue to drive improvements in our model well into the future.”

View full version at Sweetgreen







CHIPOTLE ANNOUNCES SECOND QUARTER 2023 RESULTS



26 Jul, 2023, 16:10 ET





RECORD QUARTERLY SALES AND EARNINGS PER SHARE AS COMPARABLE RESTAURANT SALES INCREASE 7.4% AND MARGINS EXPANDNEWPORT BEACH, Calif., July 26, 2023 /PRNewswire/ -- Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its second quarter ended June 30, 2023. Second quarter highlights, year over year:

  1. Total revenue increased 13.6% to $2.5 billion

  2. Comparable restaurant sales increased 7.4%

  3. In-restaurant sales increased 15.8%, while digital sales represented 38.0% of food and beverage revenue

  4. Operating margin was 17.2%, an increase from 15.3%

  5. Restaurant level operating margin was 27.5% 1, an increase of 230 basis points

  6. Diluted earnings per share was $12.32, a 33.2% increase from $9.25. Excluding a $0.33 after-tax impact from expenses related to restaurant and corporate level impairment and closure costs and corporate restructuring, adjusted diluted earnings per share was $12.65, a 36.0% increase from $9.30 1

  7. Opened 47 new restaurants with 40 locations including a Chipotlane "Chipotle's second quarter results demonstrate our ability to drive strong performance by focusing on exceptional food and exceptional people. Additionally, our investment in our employees, technology, and innovation in our restaurants along with expanding access and convenience in North America and laying the groundwork for international growth, set us up for long term success." said Brian Niccol, Chairman and CEO, Chipotle.

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Domino's Pizza® Announces Second Quarter 2023 Financial Results



24 Jul, 2023, 06:02 ET





Global retail sales growth (excluding foreign currency impact) of 5.8%

U.S. same store sales growth of 0.1%

International same store sales growth (excluding foreign currency impact) of 3.6%

Global net store growth of 197

Diluted EPS up 9.2% to $3.08ANN ARBOR, Mich., July 24, 2023 /PRNewswire/ -- Domino's Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world, announced results for the second quarter of 2023. Global retail sales grew 5.8% in the second quarter of 2023, excluding the negative impact of foreign currency. Without adjusting for the impact of foreign currency, global retail sales grew 4.3% in the second quarter of 2023. U.S. same store sales grew 0.1% during the second quarter of 2023. International same store sales (excluding foreign currency impact) grew 3.6% during the second quarter of 2023. The Company had second quarter global net store growth of 197 stores, comprised of 27 net U.S. store openings and 170 net international store openings. The Company had 253 gross store openings and 56 closures during the second quarter of 2023. Diluted EPS for the second quarter of 2023 was $3.08, an increase of 9.2% over the prior year quarter. Subsequent to the end of the second quarter of 2023, on July 20, 2023, the Company's Board of Directors declared a $1.21 per share quarterly dividend on its outstanding common stock for shareholders of record as of September 15, 2023, to be paid on September 29, 2023. The Company will host its Investor Day on December 7, 2023 at the Company's headquarters in Ann Arbor, Michigan. "We are executing our plan to restore delivery growth in the U.S.," said Russell Weiner, Domino's Chief Executive Officer. "Our efforts to improve service and staffing while driving value and innovation will continue to make a difference in driving order counts in this important part of our business. We will also benefit globally from the deal we recently announced with Uber. Over two-thirds of our stores around the world will have the ability to take orders from Uber Eats. We are excited to strategically enter the multi-billion dollar aggregator marketplace as the number one pizza brand in the world."

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