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Earl Enterprises Acquires Brio Italian Grille and Bravo! Italian Kitchen
June 12, 2020
Orlando, FL (RestaurantNews.com) Earl Enterprises announced today the asset acquisition of BRIO Italian Grille and BRAVO! Italian Kitchen from FoodFirst Global Restaurants. BRIO and BRAVO! join Earl Enterprises’ existing collection of restaurants that include Planet Hollywood®, Buca di Beppo®, Bertucci’s®, Earl of Sandwich®, Chicken Guy! ®, and more.
“We’re very excited about adding these restaurants to our group and look forward to not only investing in the future of BRIO and BRAVO!, but also the employees who are the backbone of these two restaurants,” said Robert Earl, Chairman of Earl Enterprises. “As a bright light in this challenging time, once all locations are fully operational, we look forward to welcoming back more than 4,000 employees who have been in limbo since FoodFirst filed for bankruptcy.”
BRIO Italian Grille is a polished Italian restaurant serving dishes that include Pasta Alla Vodka, Chicken Limone, Gorgonzola Salmon Fresca, and more. Focused on using only the finest and freshest ingredients, BRIO (meaning “lively” or “full of life”) operates under the philosophy that “to eat well is to live well.” Their goal is to bring the gracious hospitality and exquisite authenticity of a rustic Italian country villa into each of their restaurants. BRIO has locations in 12 states, including Arizona, California, Delaware, Florida, Kentucky, Michigan, Missouri, Nevada, New Jersey, Ohio, Texas, and Utah.
At BRAVO! Italian Kitchen, guests can expect made-to-order Italian cuisine such as Chicken Marsala, Chicken Parmesan, and Pasta Woozie featuring grilled chicken, fresh fettuccine and house alfredo, and more. Prepared to perfection based on traditional regional recipes, these classic dishes, combined with an ambiance created to mirror that of a lively family gathering, ensures an unparalleled dining experience for guests. BRAVO! restaurants currently operate across 12 states, including Alabama, Florida, Kentucky, Michigan, Missouri, North Carolina, New Mexico, Ohio, Pennsylvania, Tennessee, Virginia, and Wisconsin.
Fans of these two beloved restaurants can rest assured that the inspired cuisine, gracious service, and unique charm that make up the brand identities of BRIO and BRAVO! will not only be preserved but nurtured to reach even greater heights by Earl Enterprises through their steadfast devotion to cultivating an environment for exceptional hospitality.
About BRIO Italian Grille
BRIO Italian Grille is a casually elegant restaurant that takes its inspiration from Italy’s famed Amalfi Coast. The chef-driven menu is rooted in the Italian Mediterranean style of cooking with dishes that feature only the freshest ingredients and recipes that have been handed down for generations, as well as luxury wine offered by the bottle imported directly from Italy. The perfect setting for creating mealtime memories, BRIO is passionately dedicated to providing an elevated ambiance that evokes timeless refinement and welcomes guests into the sanctity of their restaurants with the most gracious hospitality. For more information, visit www.BRIOitalian.com or follow along on Facebook @BRIOItalian, Twitter@BRIOItalian, or Instagram @BRIOTuscanGrille.
About BRAVO! Italian Kitchen
BRAVO! Italian Kitchen embraces the Italian Mediterranean way of joyful cooking, dining, and living that has been passed down for generations. Drawing inspiration from the renowned Amalfi Coast, the restaurant relies on recipes that feature handpicked ingredients to prepare exceptional dishes made from scratch. The menu emphasizes the use of classic regional staples such as fresh lemons, stone-pressed extra virgin olive oil, Mediterranean olives, and vine-ripened tomatoes. From seafood to pasta to pizza complemented by a selection of house wines, BRAVO! promises guests chef-crafted dishes that delicately balance flavors and textures to create meals that transport them to the Italian countryside for an unmatched dining experience. For more information, visit www.bravoitalian.com or follow along on Facebook @BravoItalian, Twitter @Bravo_Italian, or Instagram @BravoCucina.
About Earl Enterprises
Earl Enterprises is a recognized leader in the hospitality industry, building innovative, sustainable brands that guests can enjoy today and in the future, including restaurant brands Planet Hollywood, Buca di Beppo, Bertucci’s, Earl of Sandwich, Chicken Guy!, and more.
View full version at Earl Enterprises
Nathan's Famous, Inc. Reports Year-End and Fourth Quarter Results
And Declares its Quarterly Cash Dividend of $0.35 Per Share.
June 12, 2020 08:30 ET
JERICHO, N.Y., June 12, 2020 (GLOBE NEWSWIRE) -- Nathan's Famous, Inc. (“Nathan’s”, the “Company”, “we”, “us” or “our”) (NASDAQ:NATH) today reported results for its fiscal year and fourth quarter ended March 29, 2020.
Effective June 12, 2020, the Board of Directors declared its first quarterly cash dividend for fiscal 2021 of $0.35 per share, which is payable on June 26, 2020 to shareholders of record at the close of business on June 22, 2020. For the fiscal year ended March 29, 2020:
Revenues were $103,325,000 for the fifty-two weeks ended March 29, 2020 (“fiscal 2020”), as compared to $101,849,000 for the fifty-three weeks ended March 31, 2019 (“fiscal 2019”);
Adjusted EBITDA(1) for fiscal 2020, a non-GAAP financial measure, was $29,964,000, as compared to $30,399,000 for fiscal 2019;
Income before provision for income taxes was $18,014,000 for fiscal 2020, as compared to $29,410,000 for fiscal 2019;
Net income was $13,435,000 for fiscal 2020, as compared to $21,493,000 for fiscal 2019;
Earnings per diluted share was $3.19 per share for fiscal 2020, as compared to $5.09 per share for fiscal 2019; and
Excluding the gain from the sale of property and equipment, net income would have been $13,325,000 or $3.16 per diluted share for fiscal 2019 as compared to net income of $13,435,000 or $3.19 per diluted share for fiscal 2020.
For the fourth quarter ended March 29, 2020:
Revenues were $21,705,000 for the thirteen weeks ended March 29, 2020 (“fourth quarter fiscal 2020), as compared to $22,129,000 during the fourteen weeks ended March 31, 2019 (“fourth quarter fiscal 2019”);
Adjusted EBITDA(1) for the fourth quarter fiscal 2020, a non-GAAP financial measure, was $7,124,000, as compared to $6,199,000 for the fourth quarter fiscal 2019;
Income before provision for income taxes was $4,153,000 for the fourth quarter fiscal 2020, as compared to $3,079,000 for the fourth quarter fiscal 2019;
Net income was $3,195,000 for the fourth quarter fiscal 2020, as compared to $2,492,000 for the fourth quarter fiscal 2019; and
Earnings per diluted share for the fourth quarter fiscal 2020 were $0.76 per share, as compared to $0.59 per share for the fourth quarter fiscal 2019.(1) EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please see the definitions of EBITDA and Adjusted EBITDA on page 3 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 $25,859,000 during fiscal 2020, as compared to $23,615,000 during fiscal 2019. During fiscal 2020, total royalties earned under the John Morrell & Co., agreement increased 11.3% to $23,680,000, as compared to $21,271,000 of royalties earned during fiscal 2019. Licensee sales and royalties, which are reported by our licensees, were not affected by the additional week in fiscal 2019.
In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, income from operations decreased by approximately $2,614,000 to $7,688,000 during fiscal 2020, as compared to $10,302,000 during fiscal 2019. Sales for the Branded Product Program were $57,586,000 during fiscal 2020, compared to sales of $57,960,000 during fiscal 2019. During the 52-week fiscal 2020 period, the volume of business decreased by approximately 2.1% and our average selling prices increased by approximately 0.8% as compared to the 53-week fiscal 2019 period. Foodservice sales during the 53rd week of fiscal 2019 were $2,090,000. On a comparative 52-week basis, sales would have been approximately $55,870,000 for fiscal 2019.
Sales from Company-operated restaurants were $12,973,000 during the fiscal 2020 period compared to $13,601,000 during the fiscal 2019 period. Sales were reduced by $1,188,000 associated with the sale of a restaurant during the fiscal 2019 period. Sales from our Company-owned restaurants during the 53rd week of fiscal 2019 were approximately $142,000. Comparable Company-owned restaurant sales in fiscal 2020, excluding sales from the restaurant that was sold in fiscal 2019, increased by approximately $560,000 or 4.5% as compared to the comparable period last year.
Revenues from franchise operations were $4,572,000 during fiscal 2020, as compared to $4,171,000 during fiscal 2019. Total royalties declined by $339,000 or 9.2% to $3,327,000 in the fiscal 2020 period as compared to $3,666,000 in the fiscal 2019 period. Total franchise fee income, including cancellation fees, was $1,245,000 during fiscal 2020, as compared to $505,000 during fiscal 2019. Sixteen new franchised outlets opened during fiscal 2020, including five international locations.
Advertising fund revenue was $2,335,000 during fiscal 2020 and $2,502,000 during fiscal 2019.
During fiscal 2019, Nathan’s sold its restaurant, including land, in Bay Ridge, Brooklyn, New York and its regional office building in Ft. Lauderdale, Florida recognizing gains, before transaction costs of $11,177,000, or $8,168,000 net of tax.
On March 6, 2020, we paid the $0.35 per share regular cash dividend that was declared by the Board of Directors effective February 7, 2020 to shareholders of record at the close of business on February 24, 2020.
Effective June 12, 2020, the Board of Directors declared its first quarterly cash dividend for fiscal 2021 of $0.35 per share, which is payable on June 26, 2020 to shareholders of record at the close of business on June 22, 2020.
COVID-19 Update
Since the rapidly evolving COVID-19 outbreak and the implementation of “stay-at-home” and dining room closure orders in mid-March 2020, operations at our Company-owned restaurants and our franchisees' restaurants have been disrupted. As of March 29, 2020, three of our four Company-owned restaurants were open, and those three Company-owned restaurants were only offering food through take-out and delivery as we were prohibited from offering dine-in seating and service at our restaurants resulting from restrictions due to the COVID-19 pandemic. Our seasonal location on the Coney Island Boardwalk opened on May 15, 2020, observing the same cautions and restrictions.
The majority of our franchised locations have been temporarily closed due to their locations in venues that are closed (such as shopping malls and movie theaters) or venues operating at significantly reduced traffic (such as airports and highway travel plazas). Such closures and disruptions have materially impacted revenues at our Company-owned restaurants with significant declines since the middle of March 2020, as compared to the same period last year. Although franchisees are beginning to slowly re-open, we expect that franchised locations and the royalty revenue we receive from our franchisees will be negatively impacted. We are principally focused on the well-being and safety of our guests, franchisees, restaurant associates and all other employees. Since the situation around the COVID-19 virus is constantly changing, we may implement additional measures to ensure the safety of our team members and guests over time. We also expect to realize declines in sales and profits from our Branded Product Program during this period as many of our customers operate in venues that are currently closed and may be slow to reopen, such as professional sports venues, amusement parks, shopping malls and movie theaters. During March 2020, royalties from license agreements were significantly higher than March 2019 due to significantly higher sales of consumer-packaged goods through grocery channels. During the continuation of shut-down regulations in response to COVID-19, we currently expect similar results although there can be no assurance that this will continue to occur during such time.
View full version at Nathan's Famous
Bloomin’ Brands Provides Business Update Related to the COVID-19 Pandemic
June 11, 2020 08:00 AM Eastern Daylight Time
TAMPA, Fla.--(BUSINESS WIRE)--Bloomin’ Brands, Inc. (Nasdaq: BLMN) today announced a business update related to COVID-19 as well as recent sales results and details on cash utilization and liquidity.
Statement from David Deno, Chief Executive Officer
The priorities for Bloomin’ Brands remain unchanged as we navigate these challenging times. We are focused on taking care of our people and serving food in a safe environment that protects both our Team Members and customers.
Since the onset of the pandemic, we have been nimble in adapting our business. This included a pivot to an off-premises model as dining rooms were forced to close. We were able to triple our off-premises sales per restaurant while our dining rooms were closed. Starting in early May states began the process of partially re-opening their economies. Our decision to not furlough any employees during this pandemic has allowed us to quickly prepare our restaurants for the reopening of dining rooms in a safe and efficient manner.
As of June 7, 2020, over 760 company-operated U.S. restaurants (approximately 74% of U.S. restaurants) have reopened with limited in-restaurant dining capacity in accordance with local mandates. At Outback Steakhouse, we had 373 restaurants open for dine-in service at limited capacity during the full week ended June 7, 2020. Comparable restaurant sales at these locations were down 13.6% from the prior year. We are encouraged by these sales trends as we begin to reopen our dining rooms. By the end of the month, we expect to have substantially all our domestic restaurant dining rooms opened with limited seating capacity.
We continue to adhere to the strongest of safety measures as we open dining rooms. These measures include additional sanitation and disinfecting practices, enhanced hand-washing protocols, use of gloves and facial protection for our employees, and we are also providing contactless payment options for our customers. In addition, each dining room seating configuration has been modified to adhere to social distancing and reduced capacity standards, and we are leveraging our table management notification system to allow guests to wait in their cars for their table.
We are tightly managing our cash usage and the recent convertible note transaction has further enhanced our liquidity position. We believe we are well positioned to build upon our recent success and emerge a stronger company as we navigate the ongoing crisis.
Cash Utilization and Liquidity Update
As of this morning, our total liquidity position was $493 million, which includes approximately $128 million of cash and $365 million of capacity on our revolving credit facility. This liquidity position includes the $202 million net proceeds from the recent convertible note offering. Our liquidity position over the last several weeks has improved due to increased sales performance, working capital inflows, and earned tax credits for employee relief pay related to the CARES Act.
View full version at Bloomin' Brands
Just Eat Takeaway.com to combine with Grubhub to create a leading global online food delivery player
Just Eat Takeaway.com N.V. (AMS: TKWY, LSE: JET), (the “Company” or “Just Eat Takeaway.com”), and Grubhub Inc. (NYSE: GRUB) (“Grubhub”) have entered into a definitive agreement whereby the Company is to acquire 100% of the shares of Grubhub in an all-stock transaction (the “Transaction”) to create the world’s largest online food delivery company outside of China, measured by Gross Merchandise Value (“GMV”) and revenues.
The Transaction represents Just Eat Takeaway.com’s entry into online food delivery in the United States (“U.S.”) and builds on the strategic rationale for its recent merger with Just Eat plc (“Just Eat”). A combined Just Eat Takeaway.com and Grubhub (the “Combined Group”) will become the world’s largest online food delivery company outside of China1, with strong brands connecting restaurant partners with their customers in 25 countries. The Combined Group will be built around four of the world’s largest profit pools in online food delivery: the U.S., the United Kingdom (“U.K.”), the Netherlands and Germany, increasing the Combined Group’s ability to deploy capital and resources to strengthen its competitive positions in all its markets. The Combined Group has strong leadership positions in almost all countries in which it is present and will become a significant player in North America. Just Eat Takeaway.com owns the leading Canadian business SkipTheDishes. The Combined Group is one of the few profitable players in the space and processed approximately 593 million orders in 2019 with more than 70 million combined active customers globally.
Key Terms
Under the terms of the Transaction, Grubhub shareholders will be entitled to receive American depositary receipts (“ADRs”) representing 0.6710 Just Eat Takeaway.com ordinary shares in exchange for each Grubhub share, representing an implied value of $75.15 for each Grubhub share (based on the undisturbed closing price of Just Eat Takeaway.com on 9 June 2020 of €98.602) and implying a total equity consideration (on a fully diluted basis) of $7.3 billion.
Immediately following completion of the Transaction, Grubhub shareholders are expected to own ADRs representing approximately 30.0% of the Combined Group (on a fully diluted basis).
On completion, Matt Maloney, CEO and founder of Grubhub, will join the Just Eat Takeaway.com Management Board and will lead the Combined Group’s businesses across North America and two current Grubhub Directors will join the Just Eat Takeaway.com Supervisory Board.
The Transaction is subject to the approval of both Just Eat Takeaway.com’s and Grubhub’s shareholders, as well as other customary completion conditions. Subject to satisfaction of the conditions, completion of the Transaction is anticipated to occur in the first quarter of 2021.
The Combined Group will be headquartered and domiciled in Amsterdam, the Netherlands, with its North American headquarters in Chicago and a significant presence in the U.K.
Just Eat Takeaway.com is listed on Euronext Amsterdam and the Main Market of the London Stock Exchange and will introduce an ADR listing in the U.S.
Both the Managing Board and the Supervisory Board of Just Eat Takeaway.com and the Board of Directors of Grubhub are recommending the Transaction to their respective shareholders. Jitse Groen, CEO and founder of Just Eat Takeaway.com, has entered into a voting and support agreement, and subject to and in accordance with the terms thereof, has committed to vote in favour of the Transaction at the Just Eat Takeaway.com extraordinary general meeting (“EGM”).
View full version at Just Eat Takeaway-Grubhub
Red Robin Gourmet Burgers Reports Results for the Fiscal First Quarter Ended April 19, 2020
June 10, 2020 06:30 AM Eastern Daylight Time
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the quarter ended April 19, 2020.
First Quarter 2020 Financial Summary Compared to First Quarter 2019
Total revenues were $306.1 million, a decrease of 25.3%, primarily resulting from the closure of the Company's dining rooms, and its operational shift to off-premise only in response to the COVID-19 pandemic;
Comparable restaurant revenue decreased 20.8% for the quarter after growing comparable restaurant revenue by 3.7% through the second fiscal period;
Comparable average Guest check increased 0.1%, resulting from a 1.6% increase in pricing and a 0.3% increase from lower discounting, partially offset by a 1.8% decrease from menu mix;
Comparable restaurant Guest counts decreased 20.9% for the quarter after growing comparable restaurant Guest counts by 0.9% through the second fiscal period;
Off-premise sales increased 86.1% and comprised 26.3% of total food and beverage sales;
GAAP loss per diluted share was $13.51 compared to GAAP earnings per diluted share of $0.05;
Adjusted loss per diluted share was $6.66 compared to adjusted earnings per diluted share of $0.19 (see Schedule I);
Net loss was $174.3 million compared to net income of $0.6 million; and
Adjusted EBITDA was a loss of $10.7 million compared to adjusted EBITDA of $34.3 million (see Schedule III).
Paul J.B. Murphy III, Red Robin’s President and Chief Executive Officer, said, "We entered 2020 with accelerating business momentum, generating positive comparable restaurant revenue of 3.7% and positive Guest counts of 0.9% through the end of our second fiscal period. However, the COVID-19 pandemic resulted in an immediate shift of our priorities, inclusive of pivoting to a 100% off-premise model, the preservation of liquidity and the reduction of costs amid the ongoing uncertainty."
"Since the onset of the health crisis, we have significantly improved our off-premise execution, resulting in a material improvement in Guest satisfaction scores. Comparable restaurant revenue trends have also shown continual improvement week by week, including (39.7)% for the week ending June 7th. Importantly, we have recently begun opening dining rooms with limited capacities of up to 50% in our largest and highest volume market on the West Coast. In total, we have re-opened approximately 270 dining rooms with disciplined health and safety protocols and our new hospitality model we call TGX. Sales are exceeding our expectations, accompanied by record high dine-in Guest satisfaction scores and continued, strong retention of our elevated off-premise sales. For the week ending June 7th, restaurants with open dining rooms generated total comparable restaurant revenue of (26.7)%, including off-premise sales of 40% of total food and beverage sales. The substantive actions the organization implemented has positioned us well to not only manage through these near-term challenging times, but to succeed in the long-term, post-COVID environment."
View full version at Red Robin
J. Alexander’s Holdings, Inc. Reports Results for First Quarter Ended March 29, 2020
June 09, 2020 08:19 AM Eastern Daylight Time
NASHVILLE, Tenn.--(BUSINESS WIRE)--J. Alexander’s Holdings, Inc. (NYSE: JAX) (the “Company”), owner and operator of J. Alexander’s, Redlands Grill, Stoney River Steakhouse and Grill and other restaurants, today reported results for the first quarter ended March 29, 2020.
Business Update and 2020 Outlook
Average weekly same store sales1 for fiscal 2020 compared to monthly periods of 2019 are as follows:
January
February
March
April
May
(4 weeks)
(4 weeks)
(5 weeks)
(4 weeks)
(4 weeks)
J. Alexander’s/Grill Restaurants
+3.0%
+1.3%
(37.0)%
(81.0)%
(61.5)%
Stoney River Steakhouse and Grill
+0.5%
(3.1)%
(37.2)%
(78.3)%
(62.0)%
When governmental restrictions on dine-in service began during March 2020 as a result of the novel coronavirus (“COVID-19”) pandemic, the Company quickly shifted its service model to a carry-out platform, under which management projected that average weekly sales would likely range between 10-20% of historical volumes. During the period from mid-March 2020 through the end of April 2020, prior to the reopening of dining rooms on a limited basis in certain markets, the Company experienced sales volumes that were approximately 18% of the sales recorded during the same period in the prior year, with sales growing steadily on a weekly basis during that timeframe. Since the week beginning April 27, 2020 when the Company has been able to begin to reopen dining rooms with limited capacities in Tennessee, Georgia, Florida, Texas, Ohio, and other markets, sales volumes have continued to increase, and for the week ended May 31, 2020 totaled approximately 61% of sales recorded during the same period in the prior year.
As of June 9, 2020, the Company has reopened dining rooms on a limited capacity basis at all of its restaurant locations while continuing to also offer carry-out service at all of its locations. Off-premise sales have grown significantly since the Company began operating on the new service model in March 2020. Specifically, off-premise sales only during the week ended May 31, 2020 totaled approximately 29% of total sales and were up approximately 35% over the week ended March 29, 2020, which was the first full week of primarily carry-out only sales. This increase is being driven by increased digital marketing and email campaigns to drive guest awareness, the addition of curbside service, investments that the Company has made in its online ordering platform partnership with ChowNow, and through menu innovation to include family-style meals (offering a complete meal for larger parties including salad, entrée, side items and dessert) and butcher shop sales of cook-at-home, hand-cut steaks. The Company is also offering bottles of wine to-go in most markets and is testing delivery in a limited number of markets.
The Company is not providing guidance for fiscal 2020 in light of the current uncertain consumer environment and unprecedented global market and economic conditions.
View full version at J. Alexander's
Brinker International Provides Business Update In Response To COVID-19
More than 82% of Chili's and Maggiano's restaurants have reopened dining rooms across the U.S.
Jun 09, 2020, 07:30 ET
DALLAS, June 9, 2020 /PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) today announced business results as Chili's® Grill & Bar and Maggiano's Little Italy® restaurants continue the process of reopening dining rooms per state and local guidelines.
"As we reopen our dining rooms across the country, our commitment is to do so safely, including training for team members and physical changes in our restaurants. With hospitality in our DNA, we're glad to be together again, but at a safe distance," said Wyman Roberts, chief executive officer of Brinker International. "Our guests are telling us they are glad to be back at the table, too, as demonstrated by increasing sales as dining rooms reopen."
As of June 8, 2020, there are 873 Chili's restaurants with dining rooms open
Comparable restaurant sales for these Chili's locations with open dining rooms for the week ended June 3, 2020 are down approximately 11% compared to the prior year
Chili's continues to outpace the casual dining industry and grow market share. Third-party data indicates Chili's comparable restaurant sales are on average more than 20 percentage points better than comparable restaurant sales for the casual dining industry over the last five weeks
Chili's has retained more than 70% of off-premise sales after dining rooms have reopened as of the week ending June 3, 2020 compared to the week ending April 29, 2020 when dining rooms had begun to reopen
The company is generating positive operating cash flow and utilizing it to pay down outstanding debt. The company is also substantially current with all rent obligations
Sales performance for Brinker and its reportable segments are as follows:
View full version at Brinker
BURGERFI TO GO PUBLIC AFTER PROPOSED MERGER WITH OPES ACQUISITION CORP.
The fast-growing burger chain has a non-binding letter-of-intent to merge with the blank-check company.By Jonathan Maze on Jun. 08, 2020
BurgerFi on Monday said it has a “non-binding letter-of-intent” to merge with a shell company that will ultimately take the fast-casual burger chain public.The North Palm Beach, Fla.-based better-burger concept, which operates nearly 125 company and franchised units, has reached a deal to combine with Opes Acquisition Corp., a “blank check” investment company that takes money from public investors and makes an acquisition.The two firms said they expect to reach an agreement by the end of this month, with a deal expected to close by the fall of this year. It will then be publicly traded on the Nasdaq Stock Exchange.“BurgerFi represents a tremendous partner for Opes in what we believe will be an attractive public market company given its rapid ascension as a nationally recognized brand in the ‘better burger’ space,” Ophir Sternberg, Opes’ chairman, said in a statement.Terms of the proposed deal were not available, but BurgerFi shareholders will roll over most of their equity into the combined company.BurgerFi has grown quickly, though at a more measured pace in recent years than more well-known rivals such as Habit Burger and Shake Shack. System sales grew 3% last year to $141 million, according to data from Restaurant Business sister company Technomic.
The company has averaged 18% growth over the past five years, compared to 11% for the fast-casual burger space, according to Technomic.
The deal suggests that acquisitions in the restaurant industry are beginning to re-emerge as the pandemic-induced shutdown eases and industry sales begin to return.
By merging with Opes, BurgerFi will get funding to support its growth and will become a publicly traded firm, which will give it access to more types of capital in the future.
Company founder John Rosatti said the partnership “will enable us to further strengthen the BurgerFi brand and accelerate our growth as we continue to expand and bring the best burgers to even more customers around the world.”
Restaurant companies have been popular targets for blank-check investment firms. The blank-check company is publicly traded and merges with an established company. The shell firm then takes on the established company’s name, thereby taking it public.
In recent years such deals have fallen through, however: Both Chuck E. Cheese’s owner CEC Entertainment in 2019, and TGI Friday’s this year, have seen mergers with blank-check companies collapse. Yet some companies have gone public this way, including Del Taco.
View source version at BurgerFi
Luby's Reports Second Quarter Fiscal 2020 Results
Jun 03, 2020, 16:40 ET
HOUSTON, June 3, 2020 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its twelve-week second quarter fiscal 2020 ended March 11, 2020, referred to as "second quarter." Comparisons in this earnings release are for the second quarter compared to the twelve-week second quarter fiscal 2019.
Same-Store Sales Year-over-Year Comparison:
Q1 2020
Q2 2020
YTD Q2 2020
Luby's Cafeterias
1.7%
1.3
%
1.5
%
Fuddruckers
0.1%
0.4
%
0.2
%
Combo locations (1)
6.6%
6.8
%
6.7
%
Cheeseburger in Paradise
(1.0)%
9.4
%
3.2
%
Total same-store sales (2)
1.7%
1.6
%
1.7
%
(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 second quarter, there were 72 Luby's Cafeterias locations, 33 Fuddruckers locations, all six Combo locations, and one Cheeseburger in Paradise location that met the definition of same-stores.
Second Quarter Restaurant Sales: ($ thousands)
Restaurant Brand
Q2 2020
Q2 2019
Change ($)
Change (%)
Luby's Cafeterias
$
43,302
$
44,266
$
(964)
(2.2)
%
Combo locations
4,653
4,355
298
6.8
%
Luby's cafeteria segment
47,955
48,621
(666)
(1.4)
%
Fuddruckers restaurants segment
11,789
16,156
(4,367)
(27.0)
%
Cheeseburger in Paradise segment
647
592
55
9.3
%
Total Restaurant Sales
$
60,391
$
65,369
$
(4,978)
(7.6)
%
Note: Luby's Cafeterias store count reduced from 76 at Q2 2019 start to 72 at Q2 2020 end; Fuddruckers store count reduced from 51 at Q2 2019 start to 33 at Q2 2020 end; Combo location count at six (12 restaurants) at Q2 2019 start and at Q2 2020 end; Cheeseburger in Paradise store count at one at Q2 2019 and at Q2 2020 end.
Restaurant Counts:
August 28, 2019
FY20 YTDQ2 Openings
FY20 YTDQ2 Closings
March 11, 2020
Luby's Cafeterias(1)
79
—
(1)
78
Fuddruckers Restaurants(1)
44
—
(5)
39
Cheeseburger in Paradise
1
—
—
1
Total
124
—
(6)
118
(1)
Includes 6 restaurants that are part of Combo locations
View full version at Luby's
Cracker Barrel Reports Third Quarter Fiscal 2020 Results And Provides Business Update
June, 2 2020
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) today reported its financial results for the third quarter ended May 1, 2020 and provided an update regarding the impact of the coronavirus disease ("COVID-19") pandemic on the Company's business.
COVID-19 Business Update
Beginning in March, the unprecedented circumstances and rapidly changing market conditions caused by the COVID-19 pandemic resulted in significant disruptions to the restaurant industry and to the Company's business. As previously disclosed, the Company undertook numerous actions in response to the pandemic to bolster its liquidity and to adapt its operations to the current environment.
In connection with its actions addressing the COVID-19 pandemic, the Company provided the following update:
For the third quarter of fiscal 2020, when compared to the comparable period in 2019, comparable restaurant sales declined 41.7% and comparable store retail sales declined 45.5%.
All Cracker Barrel stores have remained open. However, all stores were operating in an off-premise-only model with no dine-in service from late March through late April, with incremental dine-in openings initiating thereafter.
For the week ending May 29, 2020, when compared to the comparable period in 2019, comparable store restaurant sales for stores with limited dine-in service decreased approximately 32% compared to approximately 76% for stores that were limited to an off-premise-only business model.
As of May 29, 2020, 505 stores had limited dine-in service, and the Company expects that substantially all stores will have limited dine-in service by the end of June.
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5/29Comparable store restaurant sales(79%)(74%)(62%)(55%)(45%)Comparable store retail sales(83%)(73%)(67%)(53%)(38%)Number of comparable stores with dine-in service available for the full fiscal period015115270434
On May 28, 2020 the Company increased outstanding debt by drawing approximately $40 million through an exercise of an accordion feature to increase borrowing capacity under its credit facility. Amounts drawn through the exercise of the accordion feature are scheduled to mature in May 2021.
"The past several months have presented unprecedented challenges for Cracker Barrel, the industry and our country. I believe our strategic priorities, such as accelerating our off-premise business, combined with the rapid actions we took to bolster liquidity, strengthen our business model and adapt our operations to the circumstances have positioned us well for the recovery period to come," said Cracker Barrel President and Chief Executive Officer Sandra B. Cochran. "I am inspired by the tireless work of our teams and how they continue to deliver our mission of Pleasing People during this difficult time. Our Company also greatly appreciates our loyal guests who love and have continued to support our brand, and we're looking forward to welcoming them back into our stores. While there continues to be significant uncertainty, and we expect our industry will be challenged in the coming months, Cracker Barrel remains a trusted and highly differentiated brand, and I believe we have the appropriate strategies in place to navigate this environment and to strengthen our business model."
View full version at Cracker Barrel
FAT Brands Inc. Reports First Quarter 2020 Financial Results and Provides Business Updates Related To COVID-19
June, 1 2020
FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT last week reported fiscal first quarter 2020 financial results for the 13-week period ending March 29, 2020 and provided an update on the business as it relates to the COVID-19 pandemic.
Andy Wiederhorn, President and CEO of FAT Brands, commented, “The first five months of 2020 have been unprecedented, and our mission has been steadfast - to guide our franchisees and their employees through these challenging times as safely as possible so they may best serve their communities and guests. As we are now moving into the re-opening phase in many locations both domestically and internationally, our operations teams have worked tirelessly with our franchisees to prepare – from operating practices and procedures that align with local, state and federal regulations; to overall safety, sanitation and social distancing measures to provide comfort to guests; and finally to redesigned menu and serving options. As we look forward to the second half of the year, I am confident that our franchisees will be in a position to navigate successfully through this new landscape.”
Wiederhorn continued, “During the first quarter, we closed the whole business securitization which has provided us with a significantly lower cost of capital as well as a platform to fuel growth not only through our strong development pipeline but also through the execution of our acquisition strategy.”
Fiscal First Quarter 2020 Highlights
Total revenues of $4.4 million compared to $4.9 million in the first quarter of 2019. Excluding advertising revenues, revenues were $3.5 million, down from $3.9 million in the first quarter of 2019.
System-wide sales were down 10.5% y/y
System-wide sales (excluding Ponderosa & Bonanza) declined 1.6% y/y
United States sales decline of 13.7% y/y
Canada sales decline of 0.3% y/y
Other International(1) sales were down 1.8%
System-wide same-store sales decline of 10.5% y/y
System-wide same-store sales decline (excluding Ponderosa & Bonanza) of 12.1% y/y
United States same-store sales decline of 10.0% y/y
Canada same-store sales decline of 10.2% y/y
Other International(1) sales decline of 13.1% y/y
Seven new franchised store openings during the first quarter 2020
Store count as of March 29, 2020: 374 stores system-wide
Net loss of $2.4 million or $0.20 per share on a basic and fully diluted basis, as compared to net loss of $710,000 or $0.06 per share on a basic and fully diluted basis in the first quarter of 2019
EBITDA(2) of ($362,000) as compared to $820,000 in the first quarter of 2019
Adjusted EBITDA(2) of $283,000 as compared to $1.5 million in the first quarter of 2019. The reconciliation of EBITDA to Adjusted EBITDA can be found in the accompanying financial tables.(1)Excludes Canada, includes Puerto Rico.(2)EBITDA and Adjusted EBITDA are non-GAAP measures defined below, under “Non-GAAP Measures”. A reconciliation of GAAP net income to EBITDA and adjusted EBITDA is included in the accompanying financial tables.
COVID-19 Business Update
With the re-opening of many domestic and international jurisdictions, our franchisees are moving from the to-go only model to modified in-store dining with certain capacity or other restrictions. As of today, approximately 90 locations remain temporarily closed worldwide.
As our franchisees have re-opened their stores, we have been providing guidance and assistance with the procurement of PPE for employees, updates to seating plan layouts including the utilization of non-traditional dining areas such as outdoor space, and the reconfiguration of the buffet concept in our Ponderosa and Bonanza brands to either table service or cafeteria-style buffets.
Our development pipeline remains strong with the opening of seven locations through March 29, 2020 and another three locations subsequent to the end of the period.
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Red Robin Provides Business and Operational Update
June, 1 2020
158 Company-operated Dining Rooms have Re-opened as of May 24, 2020
Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) last week provided a business and operational update and reported preliminary sales results for the fiscal first quarter ended April 19, 2020.
Relevant Highlights Year-To-Date Include
Through the first eight weeks of fiscal 2020, comparable restaurant revenue grew 3.7%, driven in part by positive Guest counts.
Since the mid-March peak impact of the COVID-19 pandemic, substantial improvement in revenue with consistent and sequential increases in each of the last five weeks; preliminary comparable restaurant revenue was -47.0% for the week ended May 24, 2020.
Re-opening dining rooms with a measured and strategic approach and a focus on health and safety; preliminary comparable restaurant revenue for restaurants with re-opened dining rooms was -31.9% for the week of May 24, 2020.
Maintaining significantly higher off-premise sales, which have tripled when compared to pre-COVID-19 levels.
With improving revenue and previously taken cost reductions, reduced estimated average cash burn to $2 million per week for the second fiscal quarter.
As of May 29, 2020, the Company has approximately $80 million of total liquidity.
Finalized an amendment to its credit facility, which provides further financial flexibility during the COVID-19 pandemic.
Paul J.B. Murphy III, Red Robin’s President and Chief Executive Officer, said, “We are very encouraged by our five sequential weeks of sales improvement through May 24th due to the continued strong growth in off-premise sales and early traction in dine-in sales. We attribute these trends to our enhanced execution, developed around our strategic plan and implemented on an accelerated basis as restaurants re-open, which has resulted in record dine-in and off-premise Guest satisfaction scores. Across our 158 re-opened dining rooms, sales have been positively impacted by the accelerated implementation of our new hospitality model, coupled with strong health and safety standards. Notably, restaurants with re-opened dining rooms are still capturing meaningful off-premise sales, demonstrating the enduring and growing popularity of Red Robin for off-premise occasions.”
Mr. Murphy added, “The health and safety of our Guests and Team Members is paramount. In addition, our Team Members have done an outstanding job protecting the health and safety of our Guests while also delivering on the Red Robin brand promise. We sincerely thank them for their dedication and commitment to our communities during these difficult times and know how eager they are to welcome our Guests back into our restaurants for elevated dine-in experiences as more dining rooms re-open.”
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Krystal Announces New Ownership
May 22, 2020
The Original Quick-Service Restaurant Chain Reveals New Equity Partners
Atlanta, GA (RestaurantNews.com) Krystal Restaurants LLC is pleased to announce that it has been acquired by funds managed by affiliates of Fortress Investment Group LLC (”Fortress”) and its operating partner, Golden Child Holdings, effective Monday, May 18.
“The new partnership is excited to continue growing the brand, maintaining an overriding focus on enhancing customer experience,” said Angela Johnson, VP of Marketing for Krystal Restaurants, LLC. “Even during this unusual time, our iconic brand continues to perform well and we see exceptional opportunities for growth looking ahead.”
Krystal filed for bankruptcy in January 2020, and as part of the reorganization process, the company was marketed for sale, with Fortress emerging as the successful acquirer of the business. Both Fortress and Golden Child have strong ties to Atlanta, the South and the Krystal brand.
Founded in 1998, Fortress Investment Group is a global investment manager with offices in Atlanta and approximately $43.5 billion of assets under management (as of Dec. 31, 2019). Golden Child is an active investor and manager in the restaurant sector and has extensive turnaround experience.
Effective immediately, Thomas Stager, will take over operations as President. Mr. Stager is a tenured restaurant leader and operator who has led successful turnaround assignments in both franchisee and franchisor sectors with large brands including Pizza Hut and Arby’s. He replaces former President and COO Tim Ward, who along with former CFO Bruce Vermilyea, are no longer with the Company. More company plans will be announced in the near future.
About Krystal Restaurants LLC
Founded in Chattanooga, Tennessee, in 1932, Krystal Restaurants LLC is the original quick-service restaurant chain in the South and was selected to USA Today’s 2019 Top-10 Best Regional Fast Food List. Krystal hamburgers are still served fresh and hot off the grill on the iconic square bun at 300 restaurants in 10 states. Krystal’s Atlanta-based Restaurant Support Center serves a team of over 6,000 employees. For more information, visit krystal.com.
View source version at Krystal
Good Times Restaurants Reports Second Quarter Results and Business Update in Connection to COVID-19
May, 18 2020
Good Times Restaurants Inc. (Nasdaq: GTIM) on Friday provided an update in connection with the COVID-19 pandemic and reported financial results for the fiscal second quarter ended March 31, 2020.
Business update from Ryan Zink, President and CEO of Good Times Restaurants:
As the restaurant industry has been flipped upside down by the COVID-19 pandemic, our restaurant-level and support teams have been nimble and quick to respond in an ever-changing environment. The early stage of this crisis was a formidable challenge through which our team was able to transform the business to meet the immediate need, but more importantly this pandemic has been an experience where our team members have truly shown their values, capabilities, and mostly, their endurance.
We entered this quarter with high hopes, looking to change our focus from one of unit development, to one of operations excellence and improved operating results. We were well along that path two months into the quarter and then the world found itself in a crisis unlike my generation has ever seen. With a large amount of debt already on the books from five years of developing Bad Daddy’s, I made the decision to draw most of our remaining available line of credit to provide immediate liquidity in what was looking to be a contraction in sales beyond what anyone could have imagined even a few days earlier.
The weeks that ensued thereafter included many difficult decisions, including pay reductions at all levels of management, including significant reductions among executive officers, as well as employee lay-offs, all in the name of survival. The Company’s Board of Directors also waived fees to be paid to its members during the third fiscal quarter. The quality of the people in this organization, and of the people among the many partners of our Company, is unmatched in our industry and has enabled us to continue to be fighting strong today. We did not close any of our restaurants completely, offering our drive-thru service at Good Times and delivery and carryout at each of our Bad Daddy’s. I am hopeful that the worst has passed, and we are now engaged in re-building our restaurant teams as we have re-opened dining rooms in Alabama, Georgia, Oklahoma, South Carolina, and Tennessee, and prepare to reopen in North Carolina and Colorado.
Given our limited liquidity, we were not able to provide as much support to our employees as some other larger organizations with stronger balance sheets were able to do. We applied for PPP loans, which were funded on May 7th, and we will use these funds to increase payroll as we re-hire employees and restore pay for restaurant management and support staff that was reduced in March. Without this funding, we would not be able to do so.
I would like to thank all those who have helped us through this period of time, including first and foremost our team members, who have demonstrated grit and perseverance, working amidst an overall uncertainty around the nature of the pandemic and with ever-changing regulations. I would also like to thank our lender, our landlords, suppliers, and vendor partners who have provided us their confidence and support in various ways throughout this difficult time. As our partners have found, we are not a team that gives up in the face of adversity, but rather one who rises to the occasion and plays to win against what appear to be impossible odds.
To my team members – thank you yet once again for your fighting spirit.
-Ryan
Key highlights of the Company’s financial results include:
Total Revenues decreased 3.6% to $26.2 million for the quarter
Total Restaurant Sales for Good Times restaurants increased to $6.7 million for the quarter
Same Store Sales for company-owned Good Times restaurants increased 3.0% for the quarter
Same Store Sales for company-owned Bad Daddy’s restaurants decreased 15.7% for the quarter
Net Loss Attributable to Common Shareholders was $14.9 million for the quarter, reflecting goodwill impairment of $10.0 million and long-lived asset impairment of $4.4 million
Adjusted EBITDA*, a non-GAAP measure, for the quarter was $0.8 million
The Company ended the quarter with $4.1 million in cash and $16.8 million drawn against its senior credit facility
*For a reconciliation of restaurant level operating profit and Adjusted EBITDA to the most directly comparable financial measures presented in accordance with GAAP and a discussion of why the Company considers them useful, see the financial information schedules accompanying this release.
View full version at Good Times Restaurant
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