Feb 18, 202046 min read

Financials - February 2020

Famous Dave's Parent to Buy Granite City

The acquisition will add two more concepts to BBQ Holdings’ rapidly expanding portfolio.

By Peter Romeo on Feb. 13, 2020

The parent company of the Famous Dave’s barbecue chain has agreed to buy Granite City Food & Brewery, the bankrupt operator of Granite City brewpubs and the Cadillac Ranch roadhouse chain.

The buyer, BBQ Holdings, indicated that it intends to continue operating the acquired 29 restaurants under their current brand identities rather than convert them to outlets of Famous Dave’s or its new sister concept, Clark Crew BBQ.

The purchase price was not revealed, but Granite had lined up a stalking horse bid of $7.5 million at the time it filed for Chapter 11 protection from creditors.

Other terms of the deal were not disclosed by BBQ Holdings, which was formerly known as Famous Dave’s of America. The company renamed itself last year in anticipation of adding more concepts to its fold. In December, the company opened Clark Crew in collaboration with barbecue pit master Travis Clark. A Famous Dave’s franchisee has opened a third concept, a fast casual called Real Famous BBQ.

The purchase of Granite City “aligns with our strategy to accelerate growth and expansion as a multibrand restaurant company,” BBQ Holdings CEO Jeff Crivello said in a statement. “We look forward to the synergies we can create between multiple brands.”

Granite City blamed its slide into bankruptcy largely on the downturn in shopping-mall traffic and the boom in delivery.“Consumers developed a preference for eating takeout or delivered food in the comfort of their own homes, as opposed to spending time for a sit-down meal at a casual-dining location,” CEO Dick Lynch said in the bankruptcy filing. “This led to declining foot traffic in shopping malls and retail outposts where many restaurants, including most of the debtors’ restaurants, are (or were) located.”

Famous Dave’s has been pushing off-premise business through partnerships with third-party delivery services. Takeout, delivery and catering now account for more than 50% of the brand’s sales, according to Crivello.

BBQ Holdings operates 31 restaurants and holds the franchise rights to 94 more, all in 33 states.

View source version at Famous Dave's

Good Times Restaurants Reports Results for the First Quarter Ending December 31, 2019

February, 12 2020

Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar, a full-service premium burger bar concept, and Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain, today reported financial results for the fiscal first quarter ended December 31, 2019.

Key highlights of the Company’s financial results include:

Total Revenues increased 21.5% to $30.8 million for the quarter
Total Restaurant Sales for Bad Daddy’s restaurants increased 25.0% to $22.8 million for the quarter
The Company opened two Bad Daddy’s restaurants during the first quarter, in Charleston and Columbia, South Carolina
Same Store Sales for company-owned Bad Daddy’s restaurants decreased 3.4% for the quarter
Total Restaurant Sales for Good Times restaurants increased $0.9 million for the quarter to $7.8 million
Same Store Sales for company-owned Good Times restaurants increased 5.8% for the quarter
Net Loss Attributable to Common Shareholders was $0.8 million for the quarter
Adjusted EBITDA* (a non-GAAP measure) for the quarter was $1.5 million
The Company ended the quarter with $3.3 million in cash and $14.4 million drawn against its senior credit facility

Ryan M. Zink, the Company’s Acting Chief Executive Officer, said, “I am pleased with the progress our team is making in turning our near-term primary focus towards service, hospitality, and operational excellence within our existing restaurants. Our first quarter of fiscal 2020 saw the addition of two new Bad Daddy’s restaurants, which continue to perform well as our operators embrace the objective to serve our guests with unmatched hospitality from day one. Additionally, we continue to experience same-store sales strength at our Good Times Burgers and Frozen Custard concept as we improve our service speed and order accuracy, while still providing the same high-quality, all-natural burgers our customers have come to expect.”

Mr. Zink continued, “Although we still experienced year-over-year margin erosion in our quarterly results, we made improvements sequentially throughout the quarter and significantly narrowed the year-over-year margin gap from where we ended fiscal 2019. We expect to make additional progress throughout the rest of this year. As a result of our fiscal calendar, we had an extra operating week during the first quarter, which in the current year consisted of fourteen weeks. This extra week contributed approximately $2.5 million of incremental revenues, contributed $0.3 million of incremental adjusted EBITDA, and reduced net loss by $0.2 million for the quarter. Same store sales at Bad Daddy’s continues to be an opportunity that we are keenly focused on, and to support this, beyond our operations initiatives we expect to moderately increase our advertising spending during the second and third fiscal quarters.”

View full version at Good Times

MGM Resorts International Reports Fourth Quarter And Full Year Financial And Operating Results

Announces 15% increase to Quarterly Cash Dividend, a new $3 billion Share Repurchase Program and Anticipated Launch of a Modified Dutch Auction Tender Offer to Purchase up to $1.25 billion of Common Stock Tomorrow at a Range Between $29 and $34 per Share

Feb 12, 2020, 16:55 ET

LAS VEGAS, Feb. 12, 2020 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter and year ended December 31, 2019.

Fourth Quarter 2019 Financial Highlights:

Consolidated Results

Consolidated net revenues increased 4% compared to the prior year quarter to $3.2 billion;
Consolidated operating income increased to $3.0 billion compared to $336 million in the prior year quarter. The current year quarter included a $2.7 billion gain related to the Bellagio real estate transaction;
Net income attributable to MGM Resorts of $2.0 billion, including the $2.7 billion gain discussed above, compared to net loss attributable to MGM Resorts of $23 million in the prior year quarter;
Diluted earnings per share of $3.91 in the current quarter compared to diluted loss per share of $0.06 in the prior year quarter;
Adjusted diluted earnings per share ("Adjusted EPS")(1) of $0.08 in the current quarter and Adjusted EPS was a loss per share of $0.03 in the prior year quarter; and
Consolidated Adjusted EBITDAR(2) decreased 3% to $682 million in the current quarter compared to $703 million in the prior year quarter, primarily attributable to a decrease in tables games revenues driven by Far East baccarat at the Company's domestic resorts and the inclusion of $24 million in insurance proceeds in the prior year quarter. Excluding Circus Circus Las Vegas, which was sold in December 2019, and the impact of the insurance proceeds discussed above, consolidated Adjusted EBITDAR increased 3% compared to the prior year quarter.

"We are proud of the progress we made during 2019 as we took important steps to evolve our organization," said Jim Murren, Chairman and CEO of MGM Resorts. "However, our fourth quarter results were below our expectations, primarily due to lower than expected hold, weakness in Far East baccarat, and certain one-time items. All other dimensions of our business in Las Vegas performed on or ahead of plan. For full year 2019, we generated strong consolidated net revenue and Adjusted EBITDAR, which increased 10% and 6%, respectively, year over year. We are also executing on our stated MGM 2020 plan, which is realizing material cost savings and revenue enhancements and transforming the way we operate to position MGM Resorts for future growth and long-term value creation. Finally, we were pleased to return more than $1.3 billion to shareholders in the form of dividends and buybacks in 2019."

"During the year, our team made meaningful strides in implementing our asset-light strategy to optimize our portfolio, strengthen our balance sheet and enhance free cash flow. This strategy is best positioning MGM Resorts for the future by providing the flexibility to invest in higher return growth opportunities. Following the monetization of the real estate of Bellagio and the sale of Circus Circus Las Vegas, we continued our momentum into the first quarter of 2020 with our announcement to monetize the real estate of MGM Grand Las Vegas. Our previously announced transactions are expected to provide total net cash proceeds to MGM Resorts of $8.2 billion, a portion of which we used to retire $3.1 billion of debt in the fourth quarter. We remain committed to reducing our net domestic financial leverage, excluding MGP, to approximately 1 time by year end 2020. We will have one of the strongest balance sheets in our industry and also the strongest in our recent history. Furthermore, with the expected launch of a modified Dutch auction tender offer tomorrow, we expect to continue to return value to shareholders on an efficient and expedited basis."

Mr. Murren concluded, "Looking ahead, we remain focused on monetizing our remaining owned real estate assets, which we expect will allow us to invest into high growth initiatives such as Japan and sports, as well as continue to further fortify our balance sheet and return capital to shareholders."

View full version at MGM Resorts

RAVE Restaurant Group, Inc. Reports Second Quarter 2020 Financial Results

Feb 12, 2020, 08:30 ET

DALLAS, Feb. 12, 2020 /PRNewswire/ -- RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the second quarter of fiscal 2020 ended December 29, 2019.

Second Quarter Highlights:

Pizza Inn domestic comparable store retail sales increased 2.4% in the second quarter of fiscal 2020 compared to the same period of the prior year.
Pie Five comparable store retail sales decreased 11.0% in the second quarter of fiscal 2020 compared to the same period of the prior year.
Total revenue decreased by $0.4 million to $2.8 million for the second quarter of fiscal 2020 compared to the same period of the prior year.
The Company recorded net income of $14 thousand for the second quarter of fiscal 2020 compared to net income of $0.2 million for the same period of the prior year.
On a fully diluted basis, net income decreased $0.02 per share to $0.00 per share for the second quarter of fiscal 2020 compared to $0.02 per share for the same period of the prior year.
Adjusted EBITDA for the second quarter of fiscal 2020 decreased $0.1 million from the same period of the prior year.
Cash and cash equivalents decreased $0.3 million to $2.0 million at the end of the second quarter of fiscal 2020.
Pizza Inn domestic unit count including PIE finished at 153.
Pizza Inn international unit count finished at 34.
Pie Five domestic unit count finished at 53.

"As we work through our transformation, we're making strategic investments in new leadership that will address underperforming areas of our business and create operational efficiencies that will lead to a stronger business model," said Brandon Solano, Chief Executive Officer of Rave Restaurant Group, Inc. "The ongoing improvements in operations, marketing and menu innovation will put us in position to drive long-term value and consistency for our consumers and shareholders."

The Company's net income per common share decreased $0.02 per share for the three months ended December 29, 2019, compared to basic net income of $0.02 per share compared to the same period of the prior year. The Company had net income of $14 thousand for the second quarter of fiscal 2020 and net income of $0.2 million compared to the same period of the prior year, on revenues of $2.8 million for the three months ended December 29, 2019 compared to $3.2 million in the comparable period in the fiscal year. The decline in revenue was primarily due to a decrease in franchise royalties and franchise license fees.

EBITDA of $0.1 million for the second quarter of fiscal 2020 was a $0.4 million decrease from the same period of the prior year.

Adjusted EBITDA of $0.0 million for the second quarter of fiscal 2020 was a $0.1 million decrease from the same period of the prior year.

View full version at Rave Restaurant Group

Denny’s Corporation Reports Results for Fourth Quarter and Full Year 2019

February 11, 2020 16:05 ET

SPARTANBURG, S.C., Feb. 11, 2020 (GLOBE NEWSWIRE) -- Denny’s Corporation (NASDAQ: DENN), franchisor and operator of one of America's largest franchised full-service restaurant chains, today reported results for its fourth quarter and full year ended December 25, 2019.

Fourth Quarter 2019 Highlights

Sold nine company restaurants to franchisees.
Total Operating Revenue was $113.8 million.
Domestic system-wide same-store sales** grew 1.7%, including an increase of 1.8% at domestic franchised restaurants and an increase of 0.5% at company restaurants.
Completed 27 remodels, including 26 at franchised restaurants.
Operating Income was $26.6 million.
Franchise Operating Margin* was $31.8 million, or 48.9% of franchise and license revenue, and Company Restaurant Operating Margin* was $8.7 million, or 17.7% of company restaurant sales.
Net Income was $18.6 million, or $0.31 per diluted share.
Adjusted Net Income* was $14.0 million, or $0.23 per diluted share.
Adjusted EBITDA* was $24.9 million.
Adjusted Free Cash Flow* was $12.1 million.
Repurchased $45.4 million of common stock.

Full Year 2019 Highlights

Sold 105 company restaurants to franchisees.
Total Operating Revenue was $541.4 million.
Domestic system-wide same-store sales** grew 2.0%, including an increase of 2.0% at domestic franchised restaurants and an increase of 1.9% at company restaurants.
Completed 144 remodels, including 141 at franchised restaurants.
Operating Income was $165.0 million.
Franchise Operating Margin* was $114.7 million, or 48.8% of franchise and license revenue, and Company Restaurant Operating Margin* was $48.0 million, or 15.7% of company restaurant sales.
Net Income was $117.4 million, or $1.90 per diluted share.
Adjusted Net Income* was $47.9 million, or $0.77 per diluted share.
Adjusted EBITDA* was $96.8 million.
Adjusted Free Cash Flow* was $29.8 million.
Repurchased $96.2 million of common stock.

John Miller, Chief Executive Officer, stated, “Denny's delivered its ninth consecutive year of domestic system-wide same-store sales** growth and substantially completed its refranchising strategy. With the proceeds from these transactions combined with strong cash flows generated by our business, we returned over $96 million to shareholders through our ongoing share repurchase program. As we look ahead, we will continue our efforts to upgrade the quality of our real estate portfolio and execute on our commitment of being the world's largest, most admired, and beloved family of local restaurants. This focus, along with the substantial completion of our refranchising strategy, should result in a higher quality, more asset-light business model and the sustainable creation of additional stakeholder value in the coming years."

Fourth Quarter Results

Denny’s total operating revenue was $113.8 million compared to $159.5 million in the prior year quarter. Franchise and license revenue was $65.0 million compared to $55.2 million in the prior year quarter. Company restaurant sales were $48.8 million compared to $104.4 million in the prior year quarter. These changes were primarily due to the Company's refranchising and development strategy.

Franchise Operating Margin* was $31.8 million, or 48.9% of franchise and license revenue, compared to $26.6 million, or 48.3%, in the prior year quarter. This margin rate expansion was primarily driven by the Company's refranchising and development strategy which yielded an increase in royalty revenue and an improved occupancy margin.

Company Restaurant Operating Margin* was $8.7 million, or 17.7% of company restaurant sales, compared to $16.9 million, or 16.2%, in the prior year quarter. This margin rate change was primarily due to the decrease in payroll and benefits costs and other operating costs from the leveraging benefit of refranchising restaurants. Offsetting these cost improvements was an increase in occupancy related expenses, including higher property insurance costs and the impact of refranchising restaurants.

Total general and administrative expenses were $15.4 million, compared to $15.7 million in the prior year quarter. This change was primarily due to a decrease in share-based compensation expense in addition to a reduction in personnel costs, partially offset by market valuation changes in the Company's deferred compensation plan liabilities and an increase in performance-based incentive compensation.

Interest expense, net was $3.6 million, compared to $5.4 million in the prior year quarter primarily due to a lower credit facility balance. Denny’s ended the quarter with $256.5 million of total debt outstanding, including $240.0 million of borrowings under its revolving credit facility.

The provision for income taxes was $5.1 million, reflecting an effective tax rate of 21.5%. Approximately $6.3 million in cash taxes was paid during the quarter.

Net income was $18.6 million, or $0.31 per diluted share, compared to $11.5 million, or $0.18 per diluted share, in the prior year quarter. Adjusted Net Income Per Share* was $0.23 compared to $0.18 in the prior year quarter.

View full version at Denny's

Ark Restaurants Announces Financial Results for the First Quarter of 2020

February, 11 2020

Ark Restaurants Corp. (Nasdaq:ARKR) yesterday reported financial results for the first quarter ended December 28, 2019.

Total revenues for the 13-weeks ended December 28, 2019 were $43,514,000 versus $40,548,000 for the 13-weeks ended December 29, 2018. The 13-weeks ended December 28, 2019 includes revenues of $2,422,000 related to JB’s on the Beach in Deerfield Beach, FL which was acquired on May 15, 2019. The 13-weeks ended December 29, 2018 includes revenues of $839,000 related to Durgin-Park which was closed on January 12, 2019.

Company-wide same store sales increased 3.5% for the 13-weeks ended December 28, 2019 as compared to the same period of last year.

The Company’s EBITDA from restaurant operations for the 13-weeks ended December 28, 2019, adjusted for non-controlling interests and non-cash stock option expense was $3,485,000 versus EBITDA from restaurant operations adjusted for non-controlling interests, non-cash stock option expense and losses incurred on the closure of Durgin-Park (discussed below) of $2,543,000 during the same 13-week period of last year. Net income for the 13-weeks ended December 28, 2019 was $1,513,000 or $0.43 per basic and diluted share, compared to a net loss of ($62,000) or ($0.02) per basic and diluted share, for the same 13-week period in the prior year.

As of December 29, 2018, the Company determined that it would not be able to operate Durgin-Park profitably due to decreased traffic at the Faneuil Hall Marketplace in Boston, MA, where it was located, and rising labor costs. As a result, included in the Consolidated Statement of Operations for the 13-weeks ended December 29, 2018 are losses on closure in the amount of $1,067,000 consisting of: (i) impairment of trademarks of $721,000, (ii) accelerated depreciation of fixed assets of $333,000, and (iii) write-offs of prepaid and other expenses of $13,000. The restaurant was closed on January 12, 2019.

The Company adopted the new lease accounting standards on September 29, 2019 (the first day of fiscal year 2020) which requires us to recognize assets and liabilities for leases with lease terms of more than twelve months on our balance sheet. We used a modified retrospective approach and therefore did not restate comparative periods for those lease contracts for which we have taken possession of the property as of September 28, 2019. Accordingly, prior period amounts were not revised and continue to be reported in accordance with the accounting standards then in effect. As a result of the adoption of this standard, we recorded right-of-use assets of $62,330,000 and lease liabilities related to our real estate operating leases of $63,943,000. The adoption of this standard did not materially impact retained earnings or our Consolidated Condensed Statement of Operations and had no impact on cash flows.

Ark Restaurants owns and operates 20 restaurants and bars, 17 fast food concepts and catering operations primarily in New York City, Florida, Washington, D.C, Las Vegas, Nevada and the gulf coast of Alabama. Five restaurants are located in New York City, two are located in Washington, D.C., five are located in Las Vegas, Nevada, three are located in Atlantic City, New Jersey, three are located on the east coast of Florida and two are located on the Gulf Coast of Alabama. The Las Vegas operations include four restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and six food court concepts and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino and a restaurant in the Tropicana Hotel and Casino. The operation at the Foxwoods Resort Casino in Connecticut consists of one fast food concept. The Florida operations include the Rustic Inn in Dania Beach, Shuckers in Jensen Beach and JB’s on the Beach in Deerfield Beach, and the operation of four fast food facilities in Tampa and six fast food facilities in Hollywood, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations. In Alabama, the Company operates two Original Oyster Houses, one in Gulf Shores and one in Spanish Fort.

View full version at Ark Restaurants

Chicken Salad Chick Reports 16th Consecutive Quarter Of Same-Store Sales Growth Following Record-Breaking Year Of Success

February, 11 2020

Fast casual chicken salad restaurant closes out 2019 with 40 new restaurants open and a 4.4% increase in comp sales

Chicken Salad Chick is reporting 2019 as its most successful year in company history, completing Q4 with 40 new restaurants opened throughout the year, including its first locations in Ohio and Illinois. The banner year for the brand also marked the grand opening of co-founder Stacy Brown's high-volume franchise location in her hometown of Rome, Georgia. The fast casual concept also signed 26 franchise agreements in 2019 to develop 60 new restaurants over the next several years in target markets such as Kansas City, Kansas; Austin, Texas; and Boca Raton, Florida. In addition to this tremendous system growth, the brand achieved its 16th consecutive quarter – fourth consecutive year – of same-store sales growth, reporting $153.3 million in system sales and a 4.4% increase in comp sales year over year.

"As I reflect on the tremendously successful year that 2019 was for Chicken Salad Chick, I'm incredibly proud of all that we've accomplished and know that none of it would have been possible without the tireless work of our outstanding team and dedicated franchise owners. Amazing things can happen when everyone is aligned in a shared purpose; for us, that's always been spreading joy, enriching lives and serving others," said Scott Deviney, CEO of Chicken Salad Chick. "Looking at the year ahead, as our brand is poised for another year of significant growth, we're energized to keep the momentum going and continue our accelerated expansion plans to bring more Chicks to communities across key regions in the U.S."

Chicken Salad Chick has become one of the fastest-growing restaurant chains in the U.S., more than quadrupling in size in the last four years, with systemwide sales increasing by 40.1% and unit count by 38.5% in 2019 alone. The brand's compounding success over the past several years has fueled a surge in franchise development and positioned it for further growth in 2020. Chicken Salad Chick plans to open more than 50 new restaurants this year throughout the Midwest and South in states like Ohio, Indiana, Illinois, Kentucky, Virginia, Texas, Arkansas and Florida. These efforts, coupled with the brand's concentric circle growth strategy, help to support its greater development goal to open 250+ locations within the next five years, bringing the total unit count to 400 by 2025.

Throughout the year, Chicken Salad Chick was recognized among the franchising and foodservice industries' most prestigious accolades, including Entrepreneur magazine's Top Food Franchises of 2019, QSR magazine's Best Franchise Deals and the Inc. 5000. Additionally, as a result of the brand's impressive growth and year-over-year results, Eagle Merchant Partners sold Chicken Salad Chick to prominent private equity firm, Brentwood Associates in November 2019 to add to the company's robust consumer portfolio.

To support its aggressive national growth strategy, Chicken Salad Chick is targeting franchise development throughout the Midwest region, specifically in states like Kansas, Nebraska, Iowa, Indiana, West Virginia and Virginia, and is actively seeking individuals with an entrepreneurial spirit who possess high energy and enthusiasm about the brand, marketing skills and the ability to manage a strong team. Restaurant experience is preferred. Interested candidates should have a minimum net worth of $600,000 and liquid assets of at least $150,000. Franchisees can expect the initial investment to be approximately $515,000 – $683,000 with a $50,000 initial franchise fee.

The Chicken Salad Chick concept was established in 2008 by co-founders, Stacy and Kevin Brown. With more than a dozen original chicken salad flavors as well as fresh side salads, gourmet soups, signature sandwiches and delicious desserts, Chicken Salad Chick's robust menu offers a variety of options suitable for any guest. Under the leadership of CEO Scott Deviney and the Chicken Salad Chick team, the company now has 149 restaurants currently open in 16 states and remains a standout brand within the fast casual segment.

View source version at Chicken Salad Chick

Restaurant Brands International Inc. Reports Full Year and Fourth Quarter 2019 Results

Feb 10, 2020, 06:30 ET

RBI delivers consolidated system-wide sales growth of 10% in Q4 and over 8% in 2019 More than 27,000 restaurants now open globally following 1,342 net restaurant openings in 2019 BURGER KING® delivers over 9% system-wide sales growth and adds over 1,000 net new restaurants in 2019 POPEYES® delivers transformational system-wide sales growth of over 42% in Q4 boosted by the Chicken Sandwich TIM HORTONS® announces plan to reignite growth in Canada by focusing on its fundamentals and founding values

TORONTO, Feb. 10, 2020 /PRNewswire/ - Restaurant Brands International Inc. (TSX/NYSE: QSR, TSX: QSP) today reported financial results for the full year and fourth quarter ended December 31, 2019.

Jose Cil, Chief Executive Officer of Restaurant Brands International Inc. ("RBI") commented, "We have three iconic restaurant brands that are together growing rapidly around the world. Last year, we shared a long-term aspiration to build the most loved restaurant brands in the world and have more than 40,000 restaurants open within 8-10 years. I'm proud that our 2019 results have us solidly on track."

"Burger King delivered its strongest year of restaurant growth in the last two decades. Popeyes launched an iconic Chicken Sandwich that has proven to be a game changer for the brand in every way. At Tim Hortons, our performance did not reflect the incredible power of our brand and it is clear that we have a large opportunity to refocus on our founding values and what has made us famous with our guests over the years, which will be the basis for our plan in 2020."

2019 Growth and Profitability Highlights:

System-wide Sales Growth of 8.3%
Net Restaurant Growth of 5.2%
Diluted EPS of $2.37 versus $2.42 in prior year
Adjusted Diluted EPS of $2.72 versus $2.63 in prior year
Net Income Attributable to Common Shareholders and Noncontrolling Interests of $1,109 million versus $1,143 million in prior year
Adjusted EBITDA of $2,304 million increased 6.5% organically versus the prior year
Net cash provided by operating activities of $1,476 million and Free Cash Flow of $1,414 million

Dividend Update:

RBI announced that its board of directors declared a dividend of $0.52 per common share and partnership exchangeable unit of Restaurant Brands International Limited Partnership ("RBI LP") for Q1 of 2020
In connection with the declared dividend, RBI also announced that it is targeting a total of $2.08 in dividends per common share and partnership exchangeable unit of RBI LP for 2020

Consolidated Operational Highlights

Three Months Ended December 31,

Twelve Months Ended December 31,

2019

2018

2019

2018

(unaudited)

System-wide Sales Growth

(2.9)%

2.4 %

(0.3)%

2.4 %

8.4 %

9.3 %

8.9 %

PLK

42.3 %

6.3 %

18.5 %

8.9 %

Consolidated

9.9 %

6.8 %

8.3 %

7.4 %

System-wide Sales (in US$ millions)

1,679

1,727

6,716

6,869

5,905

5,528

22,921

21,624

PLK

1,327

934

4,397

3,732

Consolidated

8,911

8,189

34,034

32,225

Net Restaurant Growth

1.8 %

2.1 %

1.8 %

2.1 %

5.9 %

6.1 %

5.9 %

6.1 %

PLK

6.9 %

7.3 %

6.9 %

7.3 %

Consolidated

5.2 %

5.5 %

5.2 %

5.5 %

System Restaurant Count at Period End

4,932

4,846

4,932

4,846

18,838

17,796

18,838

17,796

PLK

3,316

3,102

3,316

3,102

Consolidated

27,086

25,744

27,086

25,744

Comparable Sales

(4.3)%

1.9 %

(1.5)%

0.6 %

2.8 %

1.7 %

3.4 %

2.0 %

PLK

34.4 %

0.1 %

12.1 %

1.6 %

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

Consolidated Financial Highlights

<,td class="prngen10">

Three Months Ended December 31,

Twelve Months Ended December 31,

(in US$ millions, except per share data)

2019

2018

2019

2018

(unaudited)

Total Revenues

1,479

1,385

5,603

5,357

Net Income Attributable to Common Shareholders and Noncontrolling Interests

255

301

1,109

1,143

Diluted Earnings per Share

0.54

0.64

2.37

2.42

TH Adjusted EBITDA(1)

297

1,122

1,127

BK Adjusted EBITDA(1)

266

247

994

928

PLK Adjusted EBITDA(1)

188

157

Adjusted EBITDA(2)

622

581

2,304

2,212

Adjusted Net Income(2)

351

318

1,274

1,242

Adjusted Diluted Earnings per Share(2)

0.75

0.68

2.72

2.63

As of December 31,

2019

2018

(unaudited)

LTM Free Cash Flow(2)

1,414

1,079

Net Debt

10,763

11,372

Net Leverage(2)

4.7x

5.1x

(1)

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

(2)

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

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

The year-over-year change in Total Revenues on a GAAP basis was primarily driven by system-wide sales growth, the impact of the New Standard on franchise and property revenues and an increase in supply chain sales, which include sales of products, supplies and restaurant equipment, as well as sales to retailers, partially offset by FX movements.

The decrease in Net Income Attributable to Common Shareholders and Noncontrolling Interests for the full year and fourth quarter was primarily driven by an increase in income tax expense, the change in other operating expenses (income), net (driven by FX) and loss on early extinguishment of debt, partially offset by growth in segment income.

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

View full version at Restaurant Brands International

Nathan's Famous, Inc. Reports Third Quarter Results

And Declares Quarterly Cash Dividend of $.35 Per Share

February 07, 2020 08:30 ET

JERICHO, N.Y., Feb. 07, 2020 (GLOBE NEWSWIRE) -- Nathan's Famous, Inc. (NASDAQ:NATH) today reported results for the third quarter of its 2020 fiscal year that ended December 29, 2019.

For the fiscal quarter ended December 29, 2019:

Revenues were $21,376,000, as compared to $20,222,000 during the thirteen weeks ended December 23, 2018;
Income from operations was $3,863,000, as compared to $4,896,000 during the thirteen weeks ended December 23, 2018;
Adjusted EBITDA1, a non-GAAP financial measure, was $4,546,000, as compared to $5,485,000 for the thirteen weeks ended December 23, 2018;
Income before provision for income taxes was $1,573,000, as compared to $13,349,000 for the thirteen weeks ended December 23, 2018;
Income before provision for income taxes included a gain from the sale of real estate of $10,821,000 during the thirteen weeks ended December 23, 2018;
Net income was $1,213,000, as compared to $9,722,000 for the thirteen weeks ended December 23, 2018; and
Earnings per diluted share was $0.29 per share, as compared to $2.30 per share for the thirteen weeks ended December 23, 2018.

For the thirty-nine weeks ended December 29, 2019:

Revenues were $81,620,000, as compared to $79,720,000 during the thirty-nine weeks ended December 23, 2018;
Income from operations was $20,677,000, as compared to $22,463,000 during the thirty-nine weeks ended December 23, 2018;
Adjusted EBITDA1, a non-GAAP financial measure, was $22,840,000, as compared to $24,200,000 for the thirty-nine weeks ended December 23, 2018;
Income before provision for income taxes was $13,861,000, as compared to $26,331,000 for the thirty-nine weeks ended December 23, 2018;
Income before provision for income taxes included gains from sales of real estate of $11,177,000 during the thirty-nine weeks ended December 23, 2018;
Net income was $10,240,000, as compared to $19,001,000 for the thirty-nine weeks ended December 23, 2018; and
Earnings per diluted share was $2.43 per share, as compared to $4.50 per share for the thirty-nine weeks ended December 23, 2018.

__________________________ 1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please see the definitions of EBITDA and Adjusted EBITDA on page 5 of this release and the reconciliation of EBITDA and Adjusted EBITDA to net income in the table at the end of this release.

The Company also reported the following:

License royalties increased to $18,559,000 during the thirty-nine weeks ended December 29, 2019, (“fiscal 2020 period”), as compared to $18,160,000 during the thirty-nine weeks ended December 23, 2018. During the fiscal 2020 period, royalties earned under the retail agreement, including the foodservice program, from John Morrell & Co., increased 3.2% to $17,071,000, as compared to $16,536,000 of royalties earned during the thirty-nine weeks ended December 23, 2018.
In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, income from operations declined by approximately $1,481,000 to $6,244,000 during the fiscal 2020 period, as compared to $7,725,000 for the thirty-nine weeks ended December 23, 2018. Sales were $45,989,000 during the fiscal 2020 period, compared to sales of $44,308,000 during the thirty-nine weeks ended December 23, 2018, while the volume of hot dogs sold by the Company increased 3.9%. However, the sales and volume results were partially impacted by winding down the new re-distributor’s temporary service to certain of our regular distributor customers. Our average selling price, which is partially correlated to the beef markets, increased by approximately 0.2% during the fiscal 2020 period compared to the thirty-nine weeks ended December 23, 2018.
Sales from Company-operated restaurants were $11,710,000 during the fiscal 2020 period compared to $12,140,000 during the thirty-nine weeks ended December 23, 2018. Sales at the four comparable Company-owned restaurants increased by $685,000 or 6.2% during the fiscal 2020 period. Sales were positively affected, especially at our two Coney Island locations, by favorable weather conditions during the fiscal 2020 period in addition to higher sales at our other traditional Company-owned restaurants.
Revenues from franchise operations were $3,610,000 during the fiscal 2020 period, compared to $3,254,000 during the thirty-nine weeks ended December 23, 2018. Total royalties were $2,829,000 during the fiscal 2020 period as compared to $2,906,000 during the thirty-nine weeks ended December 23, 2018. Total franchise fee income was $781,000 during the fiscal 2020 period compared to $348,000 during the thirty-nine weeks ended December 23, 2018. We recognized $553,000 of forfeited fees in the fiscal 2020 period primarily from the termination of two Master Franchise Agreements and the closing of various domestic and international franchise locations. Fifteen new franchised outlets opened during the fiscal 2020 period.
During the fiscal 2020 period, we recorded Advertising Fund revenue of $1,752,000 and expense of $1,858,000.
During the fiscal 2020 period, the Board of Directors declared three quarterly cash dividends of $0.35 per share totaling $4,437,000.
Effective February 7, 2020, the Board of Directors declared its quarterly cash dividend of $0.35 per share payable on March 6, 2020 to shareholders of record at the close of business on February 24, 2020.
During the fiscal 2019 period, we sold a restaurant, including land, in Bay Ridge, Brooklyn, New York and our Florida office, recognizing gains of $11,177,000.

Certain Non-GAAP Financial Information:

In addition to disclosing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America ("US GAAP"), the Company is disclosing EBITDA, a non-GAAP financial measure which is defined as net income, excluding (i) interest expense; (ii) provision for income taxes and (iii) depreciation and amortization expense. The Company is also disclosing Adjusted EBITDA, a non-GAAP financial measure which is defined as EBITDA, excluding (i) share-based compensation and (ii) gain on disposal of property and equipment that the Company believes will impact the comparability of its results of operations.

The Company believes that EBITDA and Adjusted EBITDA are useful to investors to assist in assessing and understanding the Company's operating performance and underlying trends in the Company's business because EBITDA and Adjusted EBITDA are (i) among the measures used by management in evaluating performance and (ii) are frequently used by securities analysts, investors and other interested parties as a common performance measure.

EBITDA and Adjusted EBITDA are not recognized terms under US GAAP and should not be viewed as alternatives to net income or other measures of financial performance or liquidity in conformity with US GAAP. Additionally, our definitions of EBITDA and Adjusted EBITDA may differ from other companies. Analysis of results and outlook on a non-US GAAP basis should be used as a complement to, and in conjunction with, data presented in accordance with US GAAP. Please see the table at the end of this press release for a reconciliation of EBITDA and Adjusted EBITDA to net income.

About Nathan’s Famous Nathan’s is a Russell 2000 Company that currently distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and 10 foreign countries through its restaurant system, foodservice sales programs and product licensing activities. Last year, over 700 million Nathan’s Famous hot dogs were sold. Nathan’s was ranked #22 on the Forbes 2014 list of the Best Small Companies in America and was listed as the Best Small Company in New York State in October 2013. For additional information about Nathan’s, please visit our website at www.nathansfamous.com.

View full version at Nathan's Famous

Yum! Brands Reports Solid Fourth-Quarter Results and Completion of Strategic Transformation

February, 6 2020

System Sales Growth of 10%; Same-Store Sales Growth of 2%; GAAP Operating Profit Decline of (26)%; Core Operating Profit Growth of 14%

Yum! Brands, Inc. (NYSE: YUM) today reported results for the fourth-quarter and year ended December 31, 2019. Fourth-quarter GAAP EPS was $1.58, an increase of 51%. Full-year GAAP EPS was $4.14, a decrease of (12)%. Fourth-quarter EPS excluding Special Items was $1.00, an increase of 148%. Full-year EPS excluding Special Items was $3.55, an increase of 12%.

DAVID GIBBS & CHRIS TURNER COMMENTS

David Gibbs, CEO, said “I am proud to announce that we completed our three-year transformation of Yum!, having achieved all of our transformation goals and evolved into a more focused, more franchised and more efficient business. 2019 was a truly historic year for our company. For the full-year, we generated over $50 billion in system sales and ended the year with over 50,000 restaurants thanks to our world-class franchisees. We delivered results consistent with our long-term growth algorithm with same-store sales growth of 3% and net-new unit growth of 4%. We began 2020 by announcing an agreement to add the Habit Burger Grill to the Yum! family. When complete, this deal should enable us to offer an exciting new investment opportunity to our existing franchisees and expand an award-winning, trend-forward brand through the power of Yum!’s unmatched scale. As we move into the next phase of growth for Yum!, we will continue to focus on our four key growth drivers with a collaborative mindset to fuel strong results for years to come.”

Chris Turner, CFO, continued “Fourth-quarter results were a solid end to the year where we met or exceeded each component of our guidance, including full-year 2019 core operating profit growth, which was an increase of 12%, or 11% excluding the 53rd week. I'm especially pleased that we opened over 1,000 net new units in the fourth-quarter alone. We’ve emerged from our transformation a stronger company, and I look forward to accelerating the growth of our iconic brands, championing the customer experience and unlocking further value for our stakeholders.”

SUMMARY FINANCIAL TABLEFourth-QuarterFull-Year20192018% Change20192018% ChangeGAAP EPS$1.58$1.04+51$4.14$4.69(12)Special Items EPS1$0.58$0.64NM$0.59$1.52NMEPS Excluding Special Items$1.00$0.40+148$3.55$3.17+12

1See Reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Special Items.

All comparisons are versus the same period a year ago.

System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results.

Unless otherwise noted, all results include a 53rd week in 2019.

See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details.

View full version at Yum Brands

Farmer Bros. Co. Reports Second Quarter Fiscal 2020 Financial Results

February 06, 2020 16:05 ET

NORTHLAKE, Texas, Feb. 06, 2020 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (NASDAQ: FARM) (the "Company") today reported financial results for its second fiscal quarter ended December 31, 2019.

Second Quarter Fiscal 2020 Highlights:

Volume of green coffee processed and sold increased by 2.0 million to 29.4 million pounds, a 7.2% increase over the prior year period;
Green coffee pounds processed and sold through our DSD network were 9.0 million, or 30.6% of total green coffee pounds processed and sold
Direct ship customers represented 19.9 million, or 67.7%, of total green coffee pounds processed and sold
Distributor customers represented 0.5 million pounds, or 1.7%, of total green coffee pounds processed and sold
Net sales were $152.5 million, a decrease of $7.3 million, or 4.6%, from the prior year period;
Gross margin decreased to 28.8% from 33.3% in the prior year period, while operating expenses as percentage of sales improved to 23.0% from 33.0% in the prior year period;
Net income was $7.8 million compared to net loss of $10.1 million in the prior year period; and Adjusted EBITDA was $7.4 million compared to $12.4 million in the prior year period.*

(*Adjusted EBITDA, a non-GAAP financial measure, is reconciled to its corresponding GAAP measure at the end of this press release.)

“I am proud of the progress we have made against our turnaround strategy and five key initiatives during my first few months as Farmer Brothers’ CEO,” said Deverl Maserang, President and CEO. “While the Company faces challenges that require time and capital to address, I am confident that we are headed in the right direction and are focused on the right initiatives. We have a clearly defined plan and have laid the groundwork for a successful turnaround, and I am optimistic that the initiatives we are executing with urgency will put Farmer Brothers in a position of strength for the long term. I look forward to continuing to work closely with all our team members to drive growth and deliver enhanced value for our stakeholders.”

View full version at Farmer Bros. Co.

Dunkin' Brands Reports Fourth Quarter and Fiscal Year 2019 Results

Feb 06, 2020, 06:00 ET

CANTON, Mass., Feb. 6, 2020 /PRNewswire/ --

Fiscal year 2019 highlights include:

Dunkin' U.S. comparable store sales growth of 2.1%
Baskin-Robbins U.S. comparable store sales growth of 0.8%
Added 385 net new Dunkin' and Baskin-Robbins locations globally, including 211 net new Dunkin' locations in the U.S.
Revenues increased 3.7%
Diluted EPS increased by 6.6% to $2.89
Diluted adjusted EPS increased by 9.3% to $3.17

Fourth quarter highlights include:

Dunkin' U.S. comparable store sales growth of 2.8%
Baskin-Robbins U.S. comparable store sales growth of 4.1%
Added 146 net new Dunkin' and Baskin-Robbins locations globally, including 76 net new Dunkin' locations in the U.S.
Revenues increased 5.1%
Diluted EPS increased by 7.8% to $0.69
Diluted adjusted EPS increased by 7.4% to $0.73

Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' and Baskin-Robbins (BR), today reported results for the fourth quarter and fiscal year ended December 28, 2019.

"Our strong performance in 2019 is indicative of the progress we're making to transform our two beloved brands around the world. All business segments delivered positive comparable store sales growth in the fourth quarter and for the fiscal year, reflecting broad-based momentum across the system," said Dave Hoffmann, Dunkin' Brands Chief Executive Officer. "We had a strong finish to the year, led by Dunkin' U.S. comparable store sales growth of 2.8 percent in the fourth quarter, the highest quarterly comparable sales growth in six years, fueled by espresso and cold brew sales, coupled with the successful launch of the Beyond Sausage® Sandwich, and sustained performance of our national value platforms. Better quality food and beverage enabled by better equipment is a cornerstone of the Dunkin' Blueprint for Growth, which is the reason we are investing $60 million in high-volume brewers for our franchisees' restaurants in 2020 as part of our commitment to beverage leadership."

"We are pleased to have delivered on our revenue, operating income, and earnings per share targets for 2019. We also achieved our Dunkin' U.S. net development goal for the year, exceeded our first-year sales goals for new restaurants, and ended the year with more than 500 new and remodeled NextGen restaurants," said Kate Jaspon, Dunkin' Brands Chief Financial Officer. "We will be exiting 450 limited-menu Dunkin' Speedway owned and operated locations throughout 2020, closing under a termination agreement entered into with Speedway. These limited-menu locations are lower volume units, in total representing less than 0.5 percent of Dunkin' U.S. annual systemwide sales. By exiting these sites, with minimal financial impact, we're confident we'll be better positioned to serve many of these trade areas in the coming years with new Dunkin' NextGen restaurants that offer a broader menu."

View full version at Dunkin' Brands

Yum China Reports Fourth Quarter and Fiscal Year 2019 Results

Feb 05, 2020, 16:30 ET

Fourth quarter total revenues grew 6% or 8% in constant currency; Fourth quarter total system sales grew 8% and same-store sales grew 2% in constant currency; Opened 1,006 new stores in 2019

SHANGHAI, Feb. 5, 2020 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC) today reported unaudited results for the fourth quarter and year ended December 31, 2019. Reported GAAP results include Special Items, which are excluded from adjusted measures. Special Items are not allocated to any segment and therefore only impact reported GAAP results of Yum China. See "Reconciliation of Reported GAAP Results to Adjusted Measures" within this release.

Fourth Quarter Highlights

Total revenues increased 6% year over year to $2.03 billion from $1.91 billion (8% increase excluding foreign currency translation ("F/X")).
Total system sales grew 8% year over year, with growth of 10% at KFC and 1% at Pizza Hut, excluding F/X.
Same-store sales grew 2% year over year, with a 3% increase at KFC and flat same-store sales at Pizza Hut, excluding F/X.
Restaurant margin was 12.4%, compared with 11.5% in the prior year period.
Operating Profit increased 14% year over year to $94 million from $84 million (16% increase excluding F/X).
Reported an impairment charge of $11 million on intangible assets and goodwill attributable to DAOJIA.com.cn ("Daojia"), compared with $12 million in the prior year period. Excluding this Special Item in 2018 and 2019, Adjusted Operating Profit increased 12% year over year (14% increase excluding F/X).
Effective tax rate was 26.8%.
Net Income increased 22% to $90 million from $74 million in the prior year period, primarily due to the increase in operating profit and mark to market gain from our equity investment in Meituan Dianping, partially offset by the lapping of a tax benefit adjusting the provisional amount of transition tax related to US tax reform in the fourth quarter of 2018. Adjusted Net Income increased to $98 million from $46 million in the prior year period. (2% year over year increase excluding the mark to market gain of $24 million in the fourth quarter of 2019 and mark to market loss of $27 million in the fourth quarter of 2018 from our equity investment in Meituan Dianping, 4% increase excluding F/X).
Diluted EPS increased 21% to $0.23 from $0.19 in the prior year period. Adjusted Diluted EPS increased to $0.25 from $0.12 in the prior year period (flat year over year excluding the mark to market gain or loss from our equity investment in Meituan Dianping in 2019 and 2018, respectively, 5% increase excluding F/X).

Full Year Highlights

Total revenues increased 4% year over year to $8.78 billion from $8.42 billion (9% increase excluding F/X).
Total system sales grew 9% year over year, with growth of 11% at KFC and 3% at Pizza Hut, excluding F/X.
Same-store sales increased 3% year over year, with a 4% increase at KFC and a 1% increase at Pizza Hut, excluding F/X.
Restaurant margin was 16.0%, compared with 15.7% in the prior year.
Operating Profit decreased 4% year over year to $901 million from $941 million, primarily due to lapping the Wuxi re-measurement gain of $98 million in the first quarter 2018. Excluding the Wuxi re-measurement gain and other Special Items, Adjusted Operating Profit increased 7% year over year to $912 million from $855 million (12% increase excluding F/X).
Effective tax rate was 25.9%.
Net Income increased 1% to $713 million from $708 million in the prior year. Adjusted Net Income increased 20% to $729 million from $606 million in the prior year (5% year over year increase excluding the mark to market gain of $63 million in 2019 and mark to market loss of $27 million in 2018 from our equity investment in Meituan Dianping, 11% increase excluding F/X).
Diluted EPS increased 3% to $1.84 from $1.79 in the prior year. Adjusted Diluted EPS increased 23% to $1.88 from $1.53 in the prior year (7% year over year increase excluding the mark to market gain or loss from our equity investment in Meituan Dianping in 2019 and 2018, respectively, 13% increase excluding F/X).
Opened 1,006 new stores during the year, bringing total store count to 9,200 across more than 1,300 cities.

Key Financial Results

Fourth Quarter 2019

Full Year 2019

% Change

System Sales

Same-Store Sales

Net New Units

Operating Profit

System Sales

Same-Store Sales

Net New Units

Operating Profit

Yum China

+14

(4)

KFC

+10

+11

+18

+11

Pizza Hut

+73

+17

Fourth Quarter

Full Year

(in US$ million, except

% Change

for per share data and percentages)

2019

2018

Reported

Ex F/X

2019

2018

Reported

Ex F/X

Operating Profit

+14

+16

901

941

(4)

Adjusted Operating Profit<1>

105

+12

+14

912

855

+12

Net Income

+22

+23

713

708

Adjusted Net Income<1>

729

606

+20

+26

Basic Earnings Per Common Share

0.24

0.19

+26

1.89

1.84

Adjusted Basic Earnings Per

Common Share<1>

0.26

0.12

1.93

1.58

+22

+28

Diluted Earnings Per Common Share

0.23

0.19

+21

+26

1.84

1.79

Adjusted Diluted Earnings Per

Common Share<1>

0.25

0.12

1.88

1.53

+23

+29

<1> See "Reconciliation of Reported GAAP Results to Adjusted Measures" included in the accompanying tables of this release for further details.

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

NM refers to changes over 100%, from negative to positive amounts or from zero to an amount.

Percentages may not recompute due to rounding.

System sales and same-store sales percentages exclude the impact of F/X.

CEO and CFO Comments

"Fourth quarter results marked a strong finish to a solid year. We achieved our 13th consecutive quarter of system sales growth since the spin-off, and our operating profit grew double digits," said Joey Wat, CEO of Yum China. "In 2019, we expanded our footprint with over a thousand new stores, setting a new record for Company annual store openings and further strengthening our leading market position. We continue to innovate and invest across multiple fronts to ensure an excellent customer experience, both online and in-store."

Ms. Joey Wat continued, "Looking into 2020, the coronavirus outbreak is a major public health situation in China. Our top priority is the health and safety of our employees and customers. We have implemented various preventative measures across our restaurants and other workplaces to help protect our employees and customers. We will continue to monitor this fluid situation and respond accordingly. Despite this challenge and disruption to our business, we remain confident in the long-term market potential in China. We are differentiated by our world-class development, operations and innovation capabilities, which drove our success in the past and will help sustain our growth for years to come."

Andy Yeung, CFO of Yum China, added, "Our solid profit growth and healthy balance sheet enabled us to return $442 million to shareholders in 2019 through dividends and share repurchases. Looking ahead, while it is difficult to fully ascertain the expected impact of the coronavirus outbreak at this time, we can reasonably expect it to materially affect our 2020 sales and profits. Commodity and wage inflation are also expected to remain challenging, especially in the first half. Despite the headwinds, we are committed to grow in China and intend to step up our investment in digital, supply chain and emerging brands to support that growth."

View full version at Yum China

Chipotle Announces Fourth Quarter And Full Year 2019 Results

Q4 COMP SALES ACCELERATE TO 13.4% WITH 8% TRANSACTION GROWTH

Feb 04, 2020, 16:10 ET

NEWPORT BEACH, Calif., Feb. 4, 2020 /PRNewswire/ -- Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its fourth quarter and fiscal year ended December 31, 2019.

Fourth quarter highlights, year over year:

Revenue increased 17.6% to $1.4 billion
Comparable restaurant sales increased 13.4% with no net impact from loyalty deferral, and included 8.0% comparable restaurant transactions growth
Digital sales grew 78.3% and accounted for 19.6% of sales
Restaurant level operating margin was 19.2%, an increase of 220 bps
Diluted earnings per share was $2.55, net of a $0.31 after-tax impact from expenses related to legal, corporate restructuring, and certain other costs, a 121.7% increase from $1.15. Adjusted diluted earnings per share excluding these charges was $2.86, a 66.3% increase from $1.72.1
Opened 80 new restaurants including one relocation, and closed three

Full year 2019 highlights, year over year:

Revenue increased 14.8% to $5.6 billion
Comparable restaurant sales increased 11.1%, net of 20 bps from loyalty deferral, and included 7.0% comparable restaurant transactions growth
Digital sales grew 90.3% and accounted for 18.0% of sales
Restaurant level operating margin was 20.5%, an increase of 180 bps
Diluted earnings per share was $12.38, net of a $1.67 after-tax impact from expenses related to legal, corporate restructuring, restaurant closure costs, and certain other costs, a 96.2% increase from $6.31. Adjusted diluted earnings per share excluding these charges was $14.05, a 55.1% increase from $9.06.1
Opened 140 new restaurants including two relocations, and closed seven

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

"We had a strong ending to 2019 as Q4 marks the eighth-consecutive quarter of accelerating comparable sales, which highlights that running great restaurants with the right leaders and the right culture is delivering outstanding financial performance," said Brian Niccol, Chief Executive Officer, Chipotle. "For the full year, Chipotle's average unit volumes exceeded $2.2 million and digital sales surpassed a billion dollars, showing that our key strategies are working, and the Chipotle brand is thriving as we build a sustainable model that helps cultivate a better world."

View full version at Chipotle

Freddy's Frozen Custard & Steakburgers Announces Record-Breaking Systemwide Sales in 2019

Leading Restaurant Concept Achieves 12th Consecutive Quarter of Positive Same-Store Sales Growth

Feb 03, 2020, 11:53 ET

WICHITA, Kan., Feb. 3, 2020 /PRNewswire/ -- Leading fast-casual restaurant concept Freddy's Frozen Custard & Steakburgers announced today that it experienced record-breaking success in 2019, achieving its 12th consecutive period of positive same-store sales growth, as well as surpassing $500 million in annual systemwide sales for the first time in the company's history, a 14.5% increase year over year. Additionally, the brand opened 40 new restaurants throughout 2019, including its first international restaurants in Dubai and non-traditional units in universities and a casino.

"Despite many of the challenges faced by our industry, 2019 proved to be another strong year for the brand. We surpassed a new benchmark in systemwide sales, entered our very first international market with three new restaurants and continued consistent regional growth while staying true to our core values," said Randy Simon, President and CEO of Freddy's Frozen Custard & Steakburgers. "This momentum is a testament to our proven business model and our dedicated franchisees who continue to operate the Freddy's way. As we enter an exciting new decade, we plan to celebrate our next milestone opening in just a few months and look forward to further expanding our footprint into new markets throughout the year."

The fast-casual restaurant concept added 83 franchise restaurant options in 2019 with new and existing franchisees to expand its footprint throughout key markets including western Florida, Pennsylvania and Georgia. The brand experienced an exciting year for both international and non-traditional growth, celebrating the opening of three restaurants in Dubai and campus locations in Missouri State University and Colorado State University. As a result of its rapid expansion and success achieved, Freddy's was named the Best Franchise to Buy in America by Forbes Magazine for the second year in a row and was named one of QSR Magazine's 2019 Best Franchise Deals.

Freddy's continued commitment to giving back to the community fueled its annual National Frozen Custard Day promotion hosted in August, which resulted in a $15,000 donation to the Kids In Need Foundation, an organization that provides free school supplies to thousands of kids and teachers across the country. Through its annual promotion, the brand has raised $55,000 for the foundation to date. Beyond its various community give-back initiatives across local markets nationwide, Freddy's also shares a deep commitment to providing guests with high-quality products and hospitality. To further enhance the Freddy's experience, the brand partnered with Tillster, the global leader in digital ordering and engagement solutions for restaurants, to enhance its guest experience with digital offerings including a loyalty program for guests.

With a dozen restaurants slated to open in the first quarter of the year, Freddy's Frozen Custard & Steakburgers® plans to open more than 40 restaurants nationwide throughout the end of 2020. Franchise opportunities remain in areas across the U.S., including the Northeast, Upper Midwest and California. For more information about development opportunities, contact Markus Scholler, Vice President of Franchise Development, at 316-719-7850, or visit www.freddysusa.com/franchising.

About Freddy's Co-founded in 2002 by Scott Redler and Bill, Randy and Freddy Simon, Freddy's opened its first location in Wichita, Kansas, offering a unique combination of cooked-to-order steakburgers seasoned with Freddy's Famous Steakburger & Fry Seasoning®, Vienna® Beef hot dogs, shoestring fries paired with Freddy's Famous Fry Sauce® and frozen custard that is freshly churned throughout the day. Today, Freddy's has grown to more than 370 domestic locations that serve 32 states across the nation from California to Pennsylvania, Virginia, down the East Coast states to Florida and three international locations in Dubai. Freddy's has been named No. 1 on Forbes Best Franchises to Buy, QSR Magazine's 2019 Best Franchise Deals, Fast Casual's 2019 Movers & Shakers top 100, Entrepreneur's 2020 Franchise 500 top 100, Franchise Times magazine's 2020 Fast & Serious top 40 and many other nationwide and local industry awards. For more on Freddy's, visit the Newsroom and follow us on Facebook, Twitter and Instagram for the latest news.

View source version at Freddy's Frozen Custard

Luby's Reports First Quarter Fiscal 2020 Results

Feb 03, 2020, 08:30 ET

HOUSTON, Feb. 3, 2020 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its sixteen-week first quarter fiscal 2020 referred to as "first quarter." Comparisons in this earnings release are for the first quarter compared to the sixteen-week first quarter fiscal 2019.

Same-Store Sales Year-Over-Year Comparison

2020

2019

Luby's Cafeterias

1.7%

(3.0)%

Fuddruckers

0.1%

(11.2)%

Combo locations (1)

6.6%

(11.1)%

Cheeseburger in Paradise

(1.0)%

(0.6)%

Total same-store sales (2)

1.7%

(5.5)%

(1)

Combo locations consist of a side-by-side Luby's Cafeteria and Fuddruckers Restaurant at one property location.

(2)

Luby's includes a restaurant's sales results into the same-store sales calculation in the quarter after that store has been open for six complete consecutive quarters. In the first quarter, there were 72 Luby's Cafeterias locations, 34 Fuddruckers locations, all six Combo locations, and one Cheeseburger in Paradise location that met the definition of same-stores.

First Quarter Restaurant Sales: ($ thousands)

Restaurant Brand

2020

2019

Change

($)

Change

(%)

Luby's Cafeterias

60,785

62,643

(1,858)

(3.0)%

Combo locations

6,359

5,964

395

6.6%

Luby's cafeteria segment

67,144

68,607

(1,463)

(2.1)%

Fuddruckers restaurants segment

15,569

21,533

(5,964)

(27.7)%

Cheeseburger in Paradise segment

845

959

(114)

(11.9)%

Total Restaurant Sales

83,558

91,099

(7,541)

(8.3)%

Note: Luby's Cafeterias store count reduced from 78 at Q1 2019 start to 72 at Q1 2020 end; Fuddruckers store count reduced from 54 at Q1 2019 start to 34 at Q1 2020 end; Combo location count at six (12 restaurants) at Q1 2019 start and at Q1 2020 end; Cheeseburger in Paradise store count reduced from two at Q1 2019 start to one at Q1 2020 end.

Restaurant Counts:

August 28, 2019

FY20 Q1 Openings

FY20 Q1 Closings

December 18, 2019

Luby's Cafeterias(1)

—

(1)

Fuddruckers Restaurants(1)

—

(4)

Cheeseburger in Paradise

—

Total

124

—

(5)

119

(1)

Includes 6 restaurants that are part of Combo locations

Conference Call

Luby's will host a conference call on February 3, 2020 at 10:00 a.m. Central Time to discuss further its first quarter fiscal 2020 results. To access the call live, dial (412) 902-0030 and use the access code 13697984# at least 10 minutes prior to the start time, or listen live over the Internet by visiting the events page in the investor relations section of www.lubysinc.com. For those who cannot listen to the live call, a telephonic replay will be available through February 10, 2020 and may be accessed by calling (201) 612-7415 and using the access code 13697984#. Also, an archive of the webcast will be available after the call for a period of 90 days on the "Investors" section of the Company's website.

About Luby's

Luby's, Inc. (NYSE: LUB) operates 119 restaurants nationally as of December 18, 2019: 78 Luby's Cafeterias, 40 Fuddruckers, one Cheeseburger in Paradise restaurants. Luby's is the franchisor for 97 Fuddruckers franchise locations across the United States (including Puerto Rico), Canada, Mexico, Colombia, and Panama. Luby's Culinary Contract Services provides food service management to 33 sites consisting of healthcare, corporate dining locations, sports stadiums, and sales through retail grocery stores.

View source version at Luby's

McDonald's Reports Fourth Quarter And Full Year 2019 Results And Quarterly Cash Dividend

Full year results include:

- Systemwide sales surpassed $100 billion*

- Global comparable sales increase of 5.9% - highest in more than 10 years

- Consolidated revenues of $21.1 billion

Jan 29, 2020, 06:58 ET

CHICAGO, Jan. 29, 2020 /PRNewswire/ -- McDonald's Corporation today announced results for the fourth quarter and year ended December 31, 2019.

"2019 marked a year of significant milestones for McDonald's - including surpassing $100 billion in Systemwide sales and achieving our highest global comparable sales growth in over a decade," said McDonald's President and Chief Executive Officer Chris Kempczinski. "Through the execution of our Velocity Growth Plan, we once again served more customers the food they crave, marking three consecutive years of global comparable guest count growth."

Fourth quarter highlights:

Strong global comparable sales growth of 5.9% demonstrated broad-based strength with increases in the International Operated segment of 6.2%, the U.S. of 5.1%, and the International Developmental Licensed segment of 6.6%.
Consolidated revenues increased 4% (4% in constant currencies).
Systemwide sales increased 6% (7% in constant currencies).
Consolidated operating income increased 15% (16% in constant currencies), reflecting $140 million of prior year impairment charges. Excluding these charges, operating income increased 7% (9% in constant currencies).
Diluted earnings per share of $2.08 increased 14% (15% in constant currencies). Results for the fourth quarter 2019 included $0.11 per share of income tax benefit due to new regulations issued in the fourth quarter 2019 related to the Tax Cuts and Jobs Act of 2017 ("Tax Act"). Excluding this item, diluted earnings per share was $1.97.**

Full year highlights:

Global comparable sales grew 5.9%, reflecting increases in the International Operated segment of 6.1%, the U.S. of 5.0%, and the International Developmental Licensed segment of 7.2%.
Consolidated revenues were relatively flat with the prior year (increased 3% in constant currencies) at $21.1 billion.
Systemwide sales increased 4% (7% in constant currencies) to $100.2 billion.*
Diluted earnings per share of $7.88 increased 5% (7% in constant currencies).**
Cash provided by operations was $8.1 billion and free cash flow was $5.7 billion, a 36% increase over the prior year.

The Company returned $2.3 billion to shareholders through share repurchases and dividends in the fourth quarter and $8.6 billion for the full year, marking successful achievement of the Company's targeted return of $25 billion for the three-year period ended 2019.

On January 23, 2020, McDonald's Board of Directors declared a quarterly cash dividend of $1.25 per share of common stock payable on March 16, 2020 to shareholders of record at the close of business on March 2, 2020.

* Refer to page 4 for a definition of Systemwide sales.

** Refer to page 3 for additional details.

"In 2019, we completed our three-year cash return to shareholders target of $25 billion. This was a significant achievement given our substantial investments in Experience of the Future and technology," said Kevin Ozan, McDonald's Chief Financial Officer. "Our Velocity Growth Plan helped produce strong operating performance over the past several years, and our underlying financial strength continues to build long-term value for our shareholders. As we begin 2020, we remain committed to our capital allocation philosophy to reinvest in the business to drive profitable growth and return all free cash flow to shareholders through a combination of dividends and share repurchases."

Kempczinski concluded, "The broad-based momentum around the world continues to demonstrate the strength of the Velocity Growth Plan and the dedication of millions of global crew members executing that plan in McDonald's restaurants each and every day. As we look to 2020, we will continue to deliver delicious food and optimize our investments as we further transform the experience for our customers through added convenience and digital engagement."

View full version at McDonald's

Brinker International Reports Second Quarter Of Fiscal 2020 Results

Jan 29, 2020, 06:45 ET

DALLAS, Jan. 29, 2020 /PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) today announced results for the second quarter of fiscal 2020 ended December 25, 2019.

Highlights include the following:

Earnings per diluted share, on a GAAP basis, in the second quarter of fiscal 2020 decreased 12.0% to $0.73 compared to $0.83 in the second quarter of fiscal 2019 primarily due to changes in special items, partially offset by improved operating performance
Earnings per diluted share, excluding special items, in the second quarter of fiscal 2020 increased 13.5% to $1.01 compared to $0.89 in the second quarter of fiscal 2019 primarily due to improved operating performance (see non-GAAP reconciliation below)
Operating income, as a percentage of Total revenues, was 5.0% in the second quarter of fiscal 2020 compared to 6.3% in the second quarter of fiscal 2019 primarily due to changes in special items, partially offset by improved operating performance
Restaurant operating margin, as a percentage of Company sales, was 12.7% in the second quarter of fiscal 2020 compared to 12.4% in the second quarter of fiscal 2019 (see non-GAAP reconciliation below)
Brinker International's Company sales in the second quarter of fiscal 2020 increased 11.3% to $847.5 million compared to the second quarter of fiscal 2019 primarily due to increased capacity from the 116 Chili's restaurants acquired in the first quarter of fiscal 2020 and increased comparable restaurant sales. Total revenues in the second quarter of fiscal 2020 increased 9.9% to $869.3 million compared to the second quarter of fiscal 2019
Chili's company-owned comparable restaurant sales increased 2.0% in the second quarter of fiscal 2020 compared to the second quarter of fiscal 2019
Maggiano's company-owned comparable restaurant sales decreased 1.4% in the second quarter of fiscal 2020 compared to the second quarter of fiscal 2019
Chili's international franchise comparable restaurant sales decreased 0.9% in the second quarter of fiscal 2020 compared to the second quarter of fiscal 2019
Cash flows provided by operating activities in the twenty-six week period ended December 25, 2019 were $142.3 million and capital expenditures totaled $51.4 million resulting in free cash flow of $90.9 million (see non-GAAP reconciliation below)
The Company's Board of Directors approved a quarterly dividend of $0.38 per share on the common stock of the Company. The dividend will be payable March 26, 2020 to shareholders of record as of March 6, 2020

"Our second quarter of fiscal 2020 combined positive top line growth and effective P&L management, which resulted in double digit adjusted EPS growth," said Wyman Roberts, CEO and President. "Our strategic focus on core execution, value and convenience allows us to build positive results on top of previous positive results."

View full version at Brinker

American Blue Ribbon Holdings, LLC to Restructure Operations

January 27, 2020 09:52 AM Eastern Standard Time

NASHVILLE, Tenn.--(BUSINESS WIRE)--American Blue Ribbon Holdings, LLC (the “Company”) reported it had filed a petition for voluntary Chapter 11 reorganization today with the U.S. Bankruptcy Court of Delaware. Once approved by the Court, this filing will allow the Company to continue operation of its businesses and service to its customers in the ordinary course while it works through the important elements of a plan of reorganization. The Company also noted it has arranged debtor-in-possession (“DIP”) financing of $20 million from Cannae Holdings, Inc., its majority equity owner, in support of the filing and plan of reorganization.

The filing by the Company does not involve or affect the operations of O’Charley’s, LLC or 99 Restaurants, LLC which are not part of American Blue Ribbon Holdings, LLC. Fidelity Newport Holdings, LLC (“FNH”) owns ABRH, LLC which owns the Company. Both FNH and ABRH, LLC will continue operating in the ordinary course and are not parties to the filing.

The Company believes the reorganization will facilitate the Company’s Village Inn and Bakers Square restaurant brands evolution to a healthy core of restaurants and support an approach to the brands that is most beneficial for all stakeholders. As part of the reorganization, the Company will explore a variety of strategic and structural initiatives to best position the Company for success in the future.

Legendary Baking, LLC (“Legendary”), owned by the Company, will continue its current operations in the ordinary course. Legendary is a Blue Ribbon award winning manufacturer of over 25 million pies annually and, with the support of the DIP financing, will be able to conduct its business without interruption and looks forward to the support of its associates, suppliers and customers through this process.

The Company’s financial trends have been negative since 2017 as the restaurant operations struggled with declining sales and acceptable margins. Those challenges are similar to others in the industry particularly as it relates to higher wage rates. During 2018, a potential transaction to separate the Company’s businesses from existing equity ownership was proposed but did not ultimately occur after considerable effort. At that point in the third quarter of 2018, both the restaurant brands and Legendary Baking had new leadership designated to address the performance shortfalls.

During 2018, ABRH, LLC and other non-debtor affiliates assisted the Company in funding its operations. During 2019, in order to fund operating losses, the Company closed and sold its support facility in Denver, closed and sold three fee simple restaurant properties, and accelerated collections of Legendary Baking’s receivables, which were all one-time sources of cash flow.

The Company and ABRH, LLC leadership have worked diligently and strategically to improve the efficiency of the businesses, including substantial reductions in G&A expenses, while maintaining effective operational protocols with focus on improving the customer experience. While new leadership substantially improved the performance of the Company’s businesses with a reduction of its losses by over third, with most of the improvement coming from Legendary Baking, the expectations for 2020 were continued losses for the Company. ABRH, LLC and other non-debtor affiliate companies are no longer willing to fund the Company’s operations which led to the filing.

Accordingly, the Company filed the bankruptcy and closed 33 underperforming stores; obtained post-petition financing that will provide sufficient liquidity for the Company to fund operations during the case; and will explore its strategic options to create a healthy foundation for optimizing the performance of the businesses while under the protection of the Bankruptcy Code. We believe that these efforts will allow the Company and the businesses to maximize their value for the benefit of all stakeholders, including customers, employees and creditors.

The Company has established a toll free hotline for team members, customers and suppliers to address any questions at (833) 991-1558.

American Blue Ribbon Holdings, LLC is owned by ABRH, LLC. Its operations include Village Inn restaurants with 75 company owned locations and 84 franchised locations; Bakers Square with 22 company owned locations; and Legendary Baking with two manufacturing facilities producing over 25 million pies annually with over 75% of sales to third party customers.

View source version at American Blue Ribbon Holdings

Chopt buys Dos Toros, forms new holding company

AUTHOR Emma Liem Beckett

PUBLISHED Jan. 24, 2020

Dive Brief:

Chopt Creative Salad bought Dos Toros Taqueria on Thursday, according to a company release emailed to Restaurant Dive. The acquisition was financed by private equity firm L Catterton.
The purchase price and terms of the agreement were not disclosed. Chopt and Dos Toros will form a new holding company called Founders Table Restaurant Group, which will be supported by L Catterton, a Chopt investor. Chopt CEO Nick Marsh will lead the parent company.
Founders Table will roll out a new multi-concept ordering program and loyalty program later this year that will allow diners to browse and order from Chopt and Dos Toros and earn and redeem loyalty currency across both brands.

Dive Insight:

Combining a specialty salad chain and a taco joint under one roof may seem unusual at first glance, but Chopt and Dos Toros' shared focus on fresh, locally-sourced ingredients provides some commonalities.

The most interesting piece of this partnership, however, will be what each brand can learn from the other.

Chopt, for example, opened a pickup- and delivery-only restaurant in New York City last fall to meet an uptick in digital orders, which make up 40% of all company orders. Marsh told Forbes in November that the format provides diners with improved service and efficiency than its typical restaurants.

Dos Toros has also honed in on off-premise opportunity, leaning on catering to grow revenue. In 2019, the chain raked in $5 million in catering sales, or 10% of its overall sales, compared to the $120,000 it made in catering sales in 2012, according to Restaurant Business.

The taco chain has found success by creating a catering model that mirrors its in-restaurant experience, providing a 20-ingredient burrito bar to patrons. The strategy has strengthened diner loyalty — as of last year, 70% of Dos Toros' catering orders were placed by repeat customers.

This two-pronged focus on off-premise could help both brands accelerate growth with the help of a shared loyalty program.

"This program will enhance the valuable relationships both brands, Chopt and Dos Toros, have with the customers," Marsh said in a statement emailed to Restaurant Dive. "Our goal is to cement our loyal bases and expand our reach by encouraging trial between Chopt and Dos Toros and potentially additional brands in the future."

Despite healthy growth and competitive off-premise offerings, both Chopt and Dos Toros have to contend with crowded restaurant segments. Rival salad chain Sweetgreen, for example, bought meal delivery company Galley Foods in Washington, D.C. last year, which will give the chain access to Galley's logistics technology, courier operations and production capacity. The chain also opened an ambitious "3.0" store format in built to maximize efficiency, though this model has experienced hiccups since opening. And Dos Toros is nowhere close to Chipotle's annual revenue — in 2018, the smaller chain reached $50 million, while Chipotle reported revenue of $4.8 billion. Still, if the brands continue to invest in off-premise efficiencies and perfect the loyalty piece, both could see increased diner engagement.

View source version at Chopt

Clean Juice Celebrates Growth, New Partnerships In Fourth Quarter

January, 22 2020

Increased system-wide same-store net sales by 21% in December

In its fiscal fourth quarter of 2019, Clean Juice opened 7 new stores and added 13 new franchise units. In December, the company delivered a 21% increase in same-store sales.

"Our team is excited to watch the perpetual growth of Clean Juice as more communities desire healthier, on-the-go and organic food options," said Landon Eckles, founder and CEO of Clean Juice. "By staying true to our mission of providing the best quality, fully organic food and beverages, we've been successful at attracting guests and franchisees in new areas across the country."

In the fourth quarter of 2019, Clean Juice launched its catering partnership with ezCater, a renowned online business catering platform for restaurants, which is available at participating locations. The company also unveiled its partnership with multiple third-party delivery platforms to make its nutritious menu options even more accessible to guests. Diners can now order Clean Juice from UberEats, DoorDash, Postmates and Grubhub across many of its locations nationwide.

Highlights from Fiscal Fourth Quarter and December 2019:

Increased system-wide same-store net sales by 21% in December
Reported a 17% increase in year-over-year average guest spend per visit in December
Launched nationwide third-party delivery and catering programs
Offered its first-ever "Organic Vision 2020" juice cleanse presale that sold more than 215 cleanses
Unveiled its Fall and Winter Menus featuring seasonal Toasts, Greenoa™ Bowls and value combos at attractive price points
Opened 80th store located in Winston-Salem, N.C.

The fourth quarter results, particularly in December, are a reflection of Clean Juice's focus on new sales channels as well as the culmination of immense development since the start of 2019. This year, the Clean Juice franchise opened 33 locations across the country, including its 50th store in January in Nashville, Tenn. as well as numerous first-time markets. Stores are now operating in Baltimore, Md.; Lake Charles, La.; Morristown, N.J.; Naperville (Chicago), Ill.; Nashville, Tenn.; and Yorba Linda, Calif. Clean Juice expects to continue its explosive growth with another 35 stores set to open in 2020.

Clean Juice also received numerous accolades and industry awards in 2019. Highlights include Top Emerging Franchise by Franchise Gator, Top 100 Movers & Shakers by Fast Casual, 2019 Top New Franchise from Entrepreneur, and ranking number 431 on the 2019 Inc. 5000 by Inc. magazine.

"Looking back on the past year, we are so proud of the massive progress we've made in every aspect of our business, none of which would be possible without our dedicated franchise partners, staff and, of course, our guests," said Eckles. "We are humbled by the support and success we've had and look forward to seeing what the new year will bring."

While the concept of juicing has been around since the 1970s, Eckles and his wife, Kat, discovered a market need for an all-organic juice bar and healthier fast food options. With no existing concept, they created their own store in Charlotte, N.C. that ultimately led to franchising and an unrelenting mission to provide communities with a truly healthy and delicious organic product. Since June 2016, the company has sold over 140 franchises in 23 states.

View source version at Clean Juice

Shrinking Krystal Files for Bankruptcy

The fast-food burger chain has gone into debt protection with $65 million in debt and closing units, says RB’s The Bottom Line.

By Jonathan Maze on Jan. 21, 2020

Not even an all-you-can-eat burger offer could save Krystal from bankruptcy.

The 300-unit chain filed for Chapter 11 bankruptcy protection this week, after months of executive changes, store closings and staff cuts all meant to improve the company’s deteriorating finances.

The chain closed 44 locations, including 13 on one day in December, according to bankruptcy filings. It also has about $65 million in secured debt, including a $1.5 million second-lien loan taken out in October to provide the Chattanooga, Tenn.-based chain with working capital.

The filing comes after numerous efforts that, several months ago, appeared to give the company some life, including an all-you-can-eat offer that company officials proudly proclaimed a success.

Krystal also filed for bankruptcy despite an equity infusion in 2018 that cut the company’s debt in half and helped to fund a scrape-and-rebuild remodel of nine locations that generated strong sales shortly after reopening.

Those nine locations generated same-store sales growth ranging from nearly 30% to 107.5%, the company said.

Yet according to bankruptcy court documents the remodels were costly, about $950,000 per location. And even though Krystal reversed years of same-store sales declines last year, it would prove to be too late.

Bankruptcy filings said the company faced numerous “strong industry-specific headwinds” that hurt sales, including competition, delivery and labor challenges. “It is not uncommon for quick-service restaurants to face store-level turnover rates in excess of 200%,” the company said in a filing.

But Krystal’s biggest problem dates back to 2015, when the company took out $115 million in debt.

It cut that debt with an April 2018 equity infusion. That came at the same time as the brand brought in former McAlister’s Deli executive Paul Macaluso to be the CEO, and set about to revamp its operations.

The company was in need of a revamp: Between 2015 and 2018, the chain’s system sales declined by 10%, even though it had roughly the same number of restaurants, according to data from Restaurant Business sister company Technomic.

The equity infusion did not prevent the company’s financial deterioration. The company defaulted on financial requirements in its lending agreements at the end of the year, receiving a “going concern” designation.

Krystal defaulted again last year, leading to a forbearance agreement with its lenders and, ultimately, numerous changes in the brand and its operations.

It announced plans in October to sell as many as 150 locations to franchisees in several states to “spur the chain’s growth.”

That would double franchise operations and would get the company more in line with many of its fast-food competitors—though notably, rival White Castle is all company-operated.

It has been closing company-owned units for months: The 44 restaurants it shut down toward the end of 2019 represented one out of every five Krystal locations and 13% of its total unit count before the closures. It now has about 300 restaurants.

In November, Krystal shook up its executive team: Macaluso left the company, taking the CEO job at Another Broken Egg Cafe. Krystal named former Captain D’s executive Tim Ward president and ex-Qdoba executive Bruce Vermilyea CFO.

Complicating matters, however, was a payment card security incident at certain restaurants between last July and September. Krystal uses multiple point-of-sale systems, however, which likely kept the security breach from being worse.

View source version at Krystal

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Financials - February 2020

And Declares Quarterly Cash Dividend of $.35 Per Share

AUTHOR Emma Liem Beckett

PUBLISHED Jan. 24, 2020

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