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Another big Burger King franchisee declares bankruptcy
Meridian Restaurants Unlimited, which operates 118 Burger King restaurants in nine states out west, filed for Chapter 11 bankruptcy protection, blaming a combination of low sales and soaring inflation.By Jonathan Maze on Mar. 08, 2023
Meridian Restaurants Unlimited, one of Burger King’s largest franchisees with 118 locations, declared federal bankruptcy protection this month, citing a combination of low sales and skyrocketing costs for food and labor.The Utah-based Meridian operates restaurants in Utah, Montana, Wyoming, Minnesota, Nebraska, Kansas, Arizona, North and South Dakota. The company had $14 million in unsecured loans with City National Bank.But the company’s biggest issue is sales and costs. According to court filings, the company acquired locations with lower-than-average sales, believing it could improve their results. Meridian’s unit volumes are lower than average for the Burger King system, which itself is a relatively low $1.4 million per location—about $500,000 less than Wendy’s and less than half that of McDonald’s.
At the same time, costs for food and labor have taken off. According to court documents, wage rates have increased 33% over the past two years, while food costs are up 22%. The average wage is $4.38 per hour higher than it was in April 2020, according to court documents.
The pandemic, and Burger King’s performance overall, have resulted in a decline in foot traffic and revenue “without proportionate decreases in rental obligations, debt service and other liabilities.”
Because the company’s restaurants had lower-than-average volumes from the get-go, they had “greater sensitivity to the recent, dramatic rise in labor, commodity and maintenance costs.”
The filing notes that some restaurants have operated at a loss “for many years,” making it difficult for the company to meet its financial obligations.
Meridian, however, believes that recent improvements in customer service scores and work by Burger King to identify potential cost savings and margin improvements could pave the way for a recovery. The company needs a financial restructuring to accomplish that, according to the filing.
This is the second major bankruptcy filing by a Burger King franchisee this year, following the filing in January by the 90-unit Toms King. Some of the company’s biggest franchisees had their bonds downgraded last year. And average per-store EBITDA, or earnings before interest, taxes, depreciation and amortization, declined to $140,000 per location in 2022, down 22% since 2018.
It comes after Burger King’s sales struggles in recent years conspired with generationally high inflation to put the brand in a bind. Burger King announced a $400 million revitalization initiative, called “Reclaim the Flame,” that features assistance for remodels and a major investment in marketing. That effort has shown some early results.
At the same time, the company acknowledged that its revitalization would still result in franchisees filing for bankruptcy or selling their business to other operators.
View source version at Meridian Restaurants Unlimited
Noodles & Company Announces Fourth Quarter and Full Year 2022 Financial Results
March 08, 2023 16:05 ET
Fourth Quarter 2022 Company-Owned Comparable Restaurant Sales Increase 10.2%; Significant Expansion of Operating Margin and Restaurant Contribution Margin Compared to Fourth Quarter 2021
BROOMFIELD, Colo., March 08, 2023 (GLOBE NEWSWIRE) -- Noodles & Company (Nasdaq: NDLS) today announced financial results for the fourth quarter and fiscal year ended January 3, 2023, and provided a 2023 business outlook.
Key highlights for the fourth quarter of 2022 compared to the same quarter of 2021 include:
Total revenue increased 18.9% to $136.5 million from $114.8 million.
Comparable restaurant sales increased 10.2% for company-owned restaurants, 1.3% for franchise restaurants and 8.7% system-wide.
Net income was $1.0 million, or $0.02 per diluted share, compared to a net loss of $4.7 million, or $0.10 loss per diluted share.
Operating margin was 1.3% compared to an operating margin of (3.8)%.
Adjusted net income(1) was $1.3 million, or $0.03 per diluted share, compared to adjusted net loss(1) of $2.5 million, or $0.05 loss per diluted share.
Restaurant contribution margin(1) increased 280 basis points to 15.2%.
Adjusted EBITDA(1) increased 101.6% to $9.9 million from $4.9 million.
Five new company-owned restaurants opened.
Key highlights for fiscal year 2022 compared to fiscal year 2021 include:
Total revenue increased 7.2% to $509.5 million from $475.2 million.
Comparable restaurant sales increased 6.0% for company-owned restaurants, 3.4% for franchise restaurants and 5.6% system-wide.
Net loss was $3.3 million, or $0.07 loss per diluted share, compared to net income of $3.7 million, or $0.08 per diluted share.
Operating margin was (0.2)% compared to an operating margin of 1.2%.
Adjusted net loss(1) was $0.5 million, or $0.01 loss per diluted share, compared to adjusted net income(1) of $7.8 million, or $0.17 per diluted share.
Restaurant contribution margin(1) decreased 200 basis points to 13.9%.
Adjusted EBITDA(1) decreased 13.3% to $33.1 million from $38.1 million.
Sixteen new company-owned restaurants and three franchised restaurants opened in 2022.
_____________________
(1)Restaurant contribution margin, EBITDA, adjusted EBITDA, and adjusted net income (loss) are non-GAAP measures. Reconciliations of operating income (loss) to restaurant contribution margin, net income (loss) to EBITDA and adjusted EBITDA, and net income (loss) to adjusted net income (loss) are included in the accompanying financial data. See “Non-GAAP Financial Measures.”
Dave Boennighausen, Chief Executive Officer of Noodles & Company remarked, “During the fourth quarter, our results reflected significant growth relative to the prior year, including company comparable restaurant sales of 10.2% with positive traffic growth and restaurant level margin expansion of 280 basis points, resulting in adjusted EBITDA more than doubling to $9.9 million. These results were fueled by continued momentum in sales, a more normalized cost environment for chicken, and the realization of efficiencies and leverage across several of our cost and expense items.”
Boennighausen continued, “With progress in our positioning from a menu, digital and loyalty perspective, a more favorable COGS environment giving strong visibility into continued margin expansion, and a robust pipeline supporting increased unit growth of high return restaurants, we believe we are well positioned to carry our trend of significant earnings growth from the fourth quarter into the full 2023 fiscal year.”
View full version at Noodles & Company
Generational Equity Advises The RM Restaurant Group in its Sale to Xperience Restaurant Group
March 07, 2023 08:00 AM Eastern Standard Time
DALLAS--(BUSINESS WIRE)--Generational Equity, a leading mergers and acquisitions advisor for privately held businesses, is pleased to announce the sale of its client The RM Restaurant Group to Xperience Restaurant Group, a portfolio company of Z Capital Partners LLC, the private equity fund management arm of Z Capital Group LLC (“ZCG”). The transaction closed February 27, 2023.
The RM Restaurant Group (dba Rio Mambo Tex Mex y Mas and THE RIM scratch craft), is a collection of six restaurants, across two restaurant concepts, in Fort Worth, Texas and surrounding areas. Rio Mambo Tex Mex y Mas, with four separate locations, provides an ingredient driven menu in a contemporary setting. THE RIM scratch craft eats serves ‘food with soul, and a side of vibe’ and features an eclectic interior and great music.
The Company offers excellent service to clients with a high level of quality ingredients, which drives word-of-mouth referrals and repeat business from customers. Historically, the Company received a large portion of its sales through repeat business, which is responsible for generating approximately 80% of total revenue.
The primary means for expanding its customer base are the Company’s community engagement, advertising and marketing initiatives, outstanding reputation, and positive word-of-mouth referrals from existing clients. Additionally, RM also maintains two websites, www.riomambo.com and www.therimrestaurant.com.
Xperience Restaurant Group (XRG) is a leading casual and fine dining operator having iconic brands that serve unique experiences, great food, and unparalleled beverage offerings. Through its bold leadership, innovation, and brand development, XRG has transformed the U.S. Mexican dining landscape with its origination of Taco Tuesday, tableside presentations, and pioneering cocktail program.
For over 65 years XRG’s brands have become synonymous with being the best-in-category with recent accolades including Best Mexican Restaurants, Best Taco Tuesday, and Best Happy Hours in various media outlets throughout the country. XRG currently operates 68 restaurants, including El Torito, El Torito Grill, Chevys Fresh Mex, SOL Mexican Cocina, Solita Tacos & Margaritas, Acapulco, Las Brisas, Sinigual, and Who Song & Larry’s.
ZCG is a leading, privately held merchant bank comprised of private markets asset management, business consulting services, technology development and solutions. For almost 30 years, ZCG Principals have invested approximately $26 billion and have industry leading track records in private equity and credit. In Asset Management, ZCG has approximately $6.5B of AUM and its investors are some of the largest and most sophisticated global institutional investors including pension funds, endowments, foundations, sovereign wealth funds, central banks, and insurance companies. ZCG has a global team comprised of over 375 professionals.
“To find a group whose culture so closely aligned with ours, and who is passionate about expanding our concepts while keeping all of our leadership intact is nothing short of a miracle. My family feels truly blessed,” said Brent Johnson, Founder and President of The RM Restaurant Group.
“With its rich heritage, authentic flavors, and loyal customer base, this acquisition aligns perfectly with our growth strategy and commitment to providing our guests with the best dining experiences,” said Randy Sharpe, CEO of XRG. “We are excited to welcome the talented team behind this group and look forward to building on its success in the years to come.”
Generational Equity Executive Managing Director of M&A Central Region, Michael Goss, and his team led by Vice President, M&A, Jacob Mangalath, with the support of Vice President, M&A, Lance Thomasson successfully closed the deal. Senior Managing Director, Doug Morrow established the original relationship with The RM Restaurant Group.
“Brent Johnson built these brands on one foundational theme, 'Relationships Matter'. All of the restaurants exemplify this perfectly and have become staples in the communities they serve,” said Mangalath.
Mangalath added, “We are very blessed to have found the perfect buyer who shares these same values. Backed by ZCG, Xperience Restaurant Group has the experience, talent, and resources to take Rio Mambo and the RIM across the country.”
About Generational Equity
Generational Equity, Generational Capital Markets (member FINRA/SIPC), Generational Wealth Advisors, Generational Consulting Group, and DealForce are part of the Generational Group, which is headquartered in Dallas and is one of the leading M&A advisory firms in North America.
With more than 350 professionals located throughout 16 offices in North America, the companies help business owners release the wealth of their business by providing growth consulting, merger, acquisition, and wealth management services. Their six-step approach features strategic and tactical growth consulting, exit planning education, business valuation, value enhancement strategies, M&A transactional services, and wealth management.
The M&A Advisor named the company Investment Banking Firm of the Year three years in a row, Valuation Firm of the Year in 2020, and North American Investment Bank of the Year in 2022 as well as Consulting Firm of the Year. The Global M&A Network named Generational USA Investment Bank of the Year in 2023. For more information visit https://www.genequityco.com/ or the Generational Equity press room.
View source version at Xperience Restaurant Group
First Watch Restaurant Group, Inc. Reports Strong 2022 Financial Results and Provides 2023 Outlook
March 07, 2023 07:00 ET
Total revenues of $730.2 million, up 21.5% and System-wide sales of $914.8 million, up 21.9%
Same-restaurant sales growth of 14.5% and Same-restaurant traffic growth of 7.7%
Income from operations margin of 2.4% and Restaurant level operating profit margin of 17.9%
43 system-wide restaurants opened across 16 states
BRADENTON, Fla., March 07, 2023 (GLOBE NEWSWIRE) -- Watch Restaurant Group, Inc. (NASDAQ: FWRG) (“First Watch” or the “Company”), the leading Daytime Dining concept serving breakfast, brunch and lunch, today reported financial results for the thirteen weeks ended December 25, 2022 (“Q4 2022”) and fiscal year ended December 25, 2022 (“2022”) compared to the thirteen weeks ended December 26, 2021 (“Q4 2021”) and fiscal year ended December 26, 2021 (“2021”) and provided an outlook for the fiscal year ending December 31, 2023 (“2023”).
“First Watch delivered another impressive year in 2022, achieving a 21.5% increase in total revenues and same-restaurant sales and traffic growth of 14.5% and 7.7%, respectively, when compared to a strong 2021,” said Chris Tomasso, First Watch CEO and President. “We’re off to an encouraging start to 2023, with same-restaurant sales and traffic growth of 15.7% and 8.5%, respectively through the first two periods of the quarter. 2023 also marks our 40th operating year and I’m not only proud of all First Watch has accomplished since we opened our doors in 1983, but optimistic about what we are poised to achieve.”
View full version at First Watch
Portillo’s Inc. Announces Fourth Quarter and Fiscal Year 2022 Financial Results
March 02, 2023 08:00 ET
CHICAGO, March 02, 2023 (GLOBE NEWSWIRE) -- Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today reported financial results for the fourth quarter and fiscal year ended December 25, 2022.
Michael Osanloo, President and Chief Executive Officer of Portillo’s, said “Portillo’s had a great first full year as a publicly-traded company. We focused on delivering delicious food at an unbeatable value and realizing operational improvements that enhanced the guest experience. We ended 2022 with strong momentum that we’re already using as a springboard into 2023. Looking ahead, I’m particularly excited about our near-term development pipeline. We’re building our presence in the Sunbelt where we’ve already received warm welcomes from Portillo’s fans that have been waiting for us for a long time.”
Financial Highlights for the Fourth Quarter 2022 vs. Prior Year:
Total revenue increased 8.6% or $12.0 million to $150.9 million;
Same-restaurant sales increased 6.0%;
Operating income increased $29.0 million to $6.4 million;
Net income increased $36.5 million to $2.7 million;
Restaurant-Level Adjusted EBITDA* decreased $3.0 million to $32.0 million; and
Adjusted EBITDA* decreased $5.1 million to $18.1 million.
Financial Highlights for Fiscal Year 2022 vs. Prior Year:
Total revenue increased 9.7% or $52.2 million to $587.1 million;
Same-restaurant sales increased 5.4%;
Operating income increased $11.3 million to $41.3 million;
Net income increased $30.6 million to $17.2 million;
Restaurant-Level Adjusted EBITDA* decreased $9.6 million to $132.5 million; and
Adjusted EBITDA* decreased $13.5 million to $85.0 million.
*Adjusted EBITDA and Restaurant-Level Adjusted EBITDA are non-GAAP measures. Please see definitions and the reconciliations of these non-GAAP measures accompanying this release.
View full version at Portillo's
Fiesta Restaurant Group, Inc. Reports Fourth Quarter 2022 Results
Fourth Quarter 2022 Comparable Restaurant Sales Growth of 11.0% vs. Fourth Quarter 2021
January 2023 Comparable Restaurant Sales Growth of 10.2% and Positive Comparable Transaction Growth vs. January 2022
March 02, 2023 04:05 PM Eastern Standard Time
DALLAS--(BUSINESS WIRE)--Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ: FRGI), parent company of the Pollo Tropical® restaurant brand, today reported results for the 13-week fourth quarter, which ended on January 1, 2023, and provided a business update related to current operations.
Fiesta Interim Chief Executive Officer Dirk Montgomery said, "During the fourth quarter, we continued the double-digit comparable restaurant sales momentum from the third quarter with improved margins while continuing to make progress on the key priorities we communicated previously, including ongoing increases in operations staffing levels and tangible headway on G&A expense reduction."
Montgomery added, "As discussed in prior quarters, we are intensely focused on transaction growth. We are pleased that the decline in year-over-year comparable transactions, which had slowed in previous quarters and reached -2.4% in December, turned positive to modest year-over-year transaction growth at the start of 2023, and further improved in fiscal February month-to-date. In addition, early 2023 transaction momentum has been strong in our key South Florida markets, which are generating positive transaction growth in 2023 vs. 2022 year-to-date."
Montgomery added, "Fourth quarter 2022 loss from operations was $4.4 million and (4.5%) of restaurant sales compared to a loss from operations in the fourth quarter 2021 of $7.1 million and (8.0%) of restaurant sales. The decrease in loss from operations was primarily driven by increased revenue partially offset by increased commodity costs and restaurant operating expenses."
Montgomery further commented, “Similar to the third quarter 2022, we generated continued year-over-year growth in Restaurant-level Operating Profit(1) a non-GAAP financial measure, driven by our comparable sales growth and targeted margin improvement actions. Restaurant-level Operating Profit Margins of 16.2% improved vs. third quarter 2022 restaurant-level operating margins of 14.1% and vs. fourth quarter 2021 restaurant-level operating margins of 14.3%. Pricing originally targeted for December 2022 was deferred to allow us to obtain additional marketing insights and competitive benchmarks that support selective pricing action that will now be taken in March 2023. This year we are targeting restaurant-level operating margins of 18% on a run rate basis through the combination of continuing transaction growth and pricing."
Montgomery added, "After transitioning to the interim CEO role in December, I moved quickly to ensure that we maintained momentum while sharpening our focus on operations excellence and the opportunities that we believe will have the biggest impact on transaction growth and margin expansion. We have developed four key themes to guide our revised strategic focus - all still aimed at growing traffic and improving margins but with a more focused and disciplined approach: 1) Building operations excellence; 2) Creating a great guest experience across all channels; 3) Enhancing the Pollo Tropical brand; and 4) Developing great teams."
Montgomery further commented, "We also continued our ongoing progress during the fourth quarter on two other key strategic initiatives. Our refresh/remodel program is generating a consistent sales lift(2) in comparison to Pollo Tropical local market unit restaurant sales trends, and we completed 32 refreshes and remodels through the end of the fourth quarter. In addition, we are realizing G&A efficiencies through the implementation of a number of initiatives including accounting outsourcing and downsizing of the Dallas office completed in February 2023 and service vendor renegotiations. Those initiatives are expected to meaningfully contribute toward our target of reducing our G&A expense run rate to 8.5% to 9.0% of restaurant sales."
Montgomery concluded, "Our leadership team looks forward to building on the momentum we established in 2022. Going forward, we expect our more focused approach to accelerate ongoing traffic growth across all channels while we also take action to improve margins."
View full version at Fiesta Restaurant Group
Dine Brands Global, Inc. Reports Fourth Quarter and Fiscal 2022 Results
Applebee’s® and IHOP® Positive Quarterly Comparable Sales Continued in Q4
Expanded into Fast Casual Segment with Acquisition of Fuzzy’s Taco Shop®
Returned Over $151 Million to Shareholders and Retired $40 Million of Long-Term Debt
March 01, 2023 07:00 AM Eastern Standard Time
GLENDALE, Calif.--(BUSINESS WIRE)--Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee’s Neighborhood Grill & Bar®, IHOP® and Fuzzy’s Taco Shop® restaurants, today announced financial results for the fourth quarter and fiscal 2022.
“The common denominator in the solid quarter and full-year results was the hard work of our entire team, from our franchisees to our creative and agile brand leaders,” said John Peyton, chief executive officer of Dine Brands Global, Inc. “Despite ongoing economic pressures and uncertainties, our value-oriented brands reliably continue to meet our customers’ needs and expectations. In tandem with supporting and investing in our brands, we have also taken actions to strengthen our business and create shareholder value, via the acquisition of Fuzzy’s Taco Shop and through the incremental and accretive retirement of our long-term debt and repurchase of shares.”
Vance Chang, chief financial officer, added, “We remain encouraged by the strength of our asset-light business model and even in the face of macro-challenges, we were able to achieve EBITDA above our guidance, return capital to shareholders and retire long-term debt under par.”
View full version at Dine Brands
THE WENDY'S COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2022 RESULTS
Mar 01, 2023, 07:00 ET
DUBLIN, Ohio, March 1, 2023 /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) today reported audited results for the fourth quarter and full year ended January 1, 2023. The Company previously issued preliminary unaudited results for the fourth quarter and full year ended January 1, 2023 on January 13, 2023.
"Our strong 2022 results and the progress we made against our strategic growth pillars have laid the foundation for continued growth for years to come," President and Chief Executive Officer Todd Penegor said. "In the fourth quarter, our breakfast sales accelerated while our global digital business reached record highs, and over the course of the year we opened over 275 restaurants across the globe despite a difficult operating environment. We anticipate our significant business momentum and the sound execution of our key priorities will deliver a new gear of efficient, accelerated growth for the next several years. I am confident that Wendy's® best days are yet to come, and we will continue to make meaningful progress towards achieving our vision of becoming the world's most thriving and beloved restaurant brand."
Fourth Quarter and Full Year 2022 Summary See "Disclosure Regarding Non-GAAP Financial Measures" and the reconciliation tables that accompany this release for a discussion and reconciliation of certain non-GAAP financial measures included in this release.
Operational Highlights
Fourth Quarter
Full Year
2022
2021
2022
2021
Systemwide Sales Growth(1)
U.S.
7.2 %
(0.7) %
5.3 %
8.6 %
International(2)
16.8 %
13.5 %
19.2 %
20.7 %
Global
8.4 %
0.8 %
6.8 %
9.8 %
Same-Restaurant Sales Growth(1)
U.S.
5.9 %
6.1 %
3.9 %
9.2 %
International(2)
9.9 %
18.1 %
12.4 %
17.6 %
Global
6.4 %
7.3 %
4.9 %
10.0 %
Systemwide Sales (In US$ Millions)(3)
U.S.
$2,976
$2,775
$11,694
$11,111
International(2)
$414
$367
$1,606
$1,397
Global
$3,390
$3,141
$13,301
$12,507
Restaurant Openings
U.S. - Total / Net
38 / (3)
54 / 37
139 / 56
123 / 57
International - Total / Net
40 / 18
27 / 21
137 / 90
87 / 64
Global - Total / Net
78 / 15
81 / 58
276 / 146
210 / 121
Global Reimaging Completion Percentage
79 %
72 %
(1) Systemwide sales growth and same-restaurant sales growth are calculated on a constant currency basis and include sales by both Company-operated and franchise restaurants.
(2) Excludes Venezuela and Argentina.
(3) Systemwide sales include sales at both Company-operated and franchise restaurants.
Financial Highlights
Fourth Quarter
Full Year
2022
2021
B / (W)
2022
2021
B / (W)
(In Millions Except Per Share Amounts)
(Unaudited)
(Unaudited)
Total Revenues
$ 536.5
$ 473.2
13.4 %
$ 2,095.5
$ 1,897.0
10.5 %
Adjusted Revenues(1)
$ 431.3
$ 373.4
15.5 %
$ 1,689.3
$ 1,507.5
12.1 %
Company-Operated Restaurant Margin
14.5 %
14.5 %
— %
13.8 %
16.7 %
(2.9) %
General and Administrative Expense
$ 68.5
$ 64.4
(6.4) %
$ 255.0
$ 243.0
(4.9) %
Operating Profit
$ 84.0
$ 76.9
9.2 %
$ 353.3
$ 367.0
(3.7) %
Reported Effective Tax Rate
29.0 %
(2.3) %
(31.3) %
27.2 %
16.7 %
(10.5) %
Net Income
$ 41.3
$ 52.1
(20.8) %
$ 177.4
$ 200.4
(11.5) %
Adjusted EBITDA
$ 123.5
$ 102.7
20.3 %
$ 497.8
$ 467.0
6.6 %
Reported Diluted Earnings Per Share
$ 0.19
$ 0.24
(20.8) %
$ 0.82
$ 0.89
(7.9) %
Adjusted Earnings Per Share
$ 0.22
$ 0.16
37.5 %
$ 0.86
$ 0.82
4.9 %
Cash Flows from Operations
$ 259.9
$ 345.8
(24.8) %
Capital Expenditures
$ (85.5)
$ (78.0)
(9.7) %
Free Cash Flow(2)
$ 213.1
$ 263.0
(19.0) %
(1) Total revenues less advertising funds revenue.
(2) Cash flows from operations minus capital expenditures, the impact of our advertising funds and cash paid for taxes related to the disposition of the New York market in Q2 2021.
View full version at Wendy's
Jack in the Box Inc. Reports First Quarter 2023 Earnings
Jack in the Box same-store sales of +7.8%, +9.0% on a two-year basis
Del Taco same-store sales of +3.0%, +7.4% on a two-year basis(1)
Jack in the Box systemwide sales growth of +7.9%, Del Taco systemwide sales growth of +2.9%(1)
Diluted EPS of $2.54; Operating EPS of $2.01
6 New Restaurant Openings, 1 Restaurant Closure for Jack in the Box
Jack in the Box added 4 development agreements for 36 future restaurants in Q1, now totaling 72 agreements for 303 restaurants since program launch
Jack in the Box completes new-franchisee development agreements for entry into Florida and Arkansas
March 01, 2023 08:30 AM Eastern Standard Time
SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the Jack in the Box and Del Taco segments in the first quarter, ended January 22, 2023.
"We are very pleased with our first quarter results, and enthusiastic about the momentum we are building for 2023 and our ongoing transformation story," said Darin Harris, Jack in the Box Chief Executive Officer. "We continue to see our marketing, operations and development strategies take hold which, along with outstanding execution by franchisees and operators, produced strong top-line performance, improved restaurant metrics, and an excellent start to the year. Traffic improvement and robust comps, combined with anticipated positive net unit growth, position us to drive meaningful systemwide sales growth in 2023, and improve franchise profitability in an operating environment that remains challenging."
Jack in the Box Performance
Same-store sales increased 7.8% in the first quarter with franchise same-store sales of 7.4% and company-operated same-store sales of 12.6%. Company-operated restaurants experienced growth in both average check and traffic while franchise restaurants had growth in average check, partially offset by a decline in traffic. Systemwide sales for the first quarter increased 7.9%.
Restaurant-Level Margin(2), a non-GAAP measure, was 19.8%, an increase of 150 bps from a year ago driven by strong sales leverage and change in mix of restaurants.
Franchise-Level Margin(2), a non-GAAP measure, was 44.4%, an increase of 280 bps from a year ago, driven by higher sales and rent contribution, additional revenue from the Hawaii transaction, and lower costs toward bad debt expense. When removing this previously announced Hawaii transaction — which included a one-time payoff of enhanced royalty rates prior to the sale of the market, positively impacting Jack franchise revenues by $6.7 million and Operating EPS by $0.23 — Franchise-Level Margin for the first quarter was 42.8%.
Jack net restaurant count was positive in the first quarter, with six franchise openings and one company-owned closure. As of Q1, and since the launch of the development program in mid-2021, the Company currently has 72 signed agreements for a total of 303 restaurants. Under these agreements, 25 restaurants have opened, leaving 278 remaining for future development. In the first quarter and thereafter, Jack in the Box also completed new franchisee development agreements to enter Arkansas and Florida, as well as additional agreements to expand and further develop the existing St. Louis, Hawaii and Nashville markets. It will be the first time in over 30 years Jack in the Box has had a presence in Florida, and the first time in the brand's history to open in Arkansas.
View full version at Jack in the Box
CRACKER BARREL REPORTS SECOND QUARTER FISCAL 2023 RESULTS
Feb 28, 2023, 08:00 ET
Board declares $1.30 quarterly dividend per share
LEBANON, Tenn., Feb. 28, 2023 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the second quarter of fiscal 2023 ended January 27, 2023.
Second Quarter Fiscal 2023 Highlights
The Company reported second quarter total revenue of $933.9 million. Compared to the prior year second quarter, total revenue increased 8.3%.
Comparable store restaurant sales increased 8.4%, while comparable store retail sales increased 4.1%.
GAAP operating income for the second quarter was $39.0 million, or 4.2% of total revenue, and adjusted1 operating income was $42.2 million, or 4.5% of total revenue.
GAAP net income was $30.5 million, or 3.3% of total revenue. EBITDA1 was $67.7 million, or 7.3% of total revenue.
GAAP earnings per diluted share were $1.37, and adjusted1 earnings per diluted share were $1.48.
The Company announced that its Board of Directors declared a regular quarterly dividend of $1.30 per share.
Commenting on the second quarter results, Cracker Barrel President and Chief Executive Officer, Sandra B. Cochran said, "I am pleased with our second quarter results, as we delivered sales and operating income margin that exceeded expectations. I was especially pleased with our off-premise and retail performance. We saw strong demand for our holiday Heat n' Serve offerings, we meaningfully grew our catering business, and guests responded well to our retail assortments. We are making great progress on key initiatives, and I believe we are well-positioned to deliver further performance improvements in the back half of the fiscal year."
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Carrols Restaurant Group, Inc. Reports Financial Results for the Fourth Quarter and Full Year 2022
February 28, 2023 07:00 ET
SYRACUSE, N.Y., Feb. 28, 2023 (GLOBE NEWSWIRE) -- Carrols Restaurant Group, Inc. (“Carrols” or the “Company”) (Nasdaq: TAST), the largest BURGER KING® franchisee in the United States, today reported its financial results for the fourth quarter and full year ended January 1, 2023.
Highlights for the Fourth Quarter of 2022 versus the Fourth Quarter of 2021 include:
Total restaurant sales increased 7.0% to $445.1 million in the fourth quarter of 2022 compared to $416.1 million in the fourth quarter of 2021;
Comparable restaurant sales for the Company's Burger King® restaurants increased 6.2%;
Comparable restaurant sales for the Company’s Popeyes® restaurants increased 9.2%;
Adjusted EBITDA(1) totaled $25.4 million compared to $13.9 million in the prior year quarter;
Adjusted Restaurant-Level EBITDA(1) totaled $46.9 million compared to $34.2 million in the prior year quarter;
Net Loss was $19.1 million, or $0.38 per diluted share, compared to Net Loss of $16.4 million, or $0.33 per diluted share, in the prior year quarter;
Adjusted Net Loss(1) was $2.5 million, or $0.05 per diluted share, compared to Adjusted Net Loss of $7.5 million, or $0.15 per diluted share, in the prior year quarter; and
Free Cash Flow(2) of $14.5 million compared to $8.8 million in the prior year quarter.
Highlights for the Full Year 2022 versus the Full Year 2021 include:
Total restaurant sales increased 4.7% to $1,730.4 million in the full year of 2022 compared to $1,652.4 million in the full year of 2021;
Comparable restaurant sales for the Company's Burger King® restaurants increased 3.9%;
Comparable restaurant sales for the Company’s Popeyes® restaurants increased 4.9%;
Adjusted EBITDA(1) totaled $62.5 million compared to $81.6 million in the prior year;
Adjusted Restaurant-Level EBITDA(1) totaled $141.9 million compared to $157.0 million in the prior year;
Net Loss was $75.6 million, or $1.49 per diluted share, compared to Net Loss of $43.0 million, or $0.86 per diluted share, in the prior year;
Adjusted Net Loss(1) was $35.7 million or $0.70 per diluted share, compared to Adjusted Net Loss of $21.3 million, or $0.43 per diluted share, in the prior year; and
Free Cash Flow(2) of a use of $16.4 million in the full year of 2022 compared to $22.9 million generated in the prior year.
(1)Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted Net Income (Loss) are non-GAAP financial measures. Refer to the definitions and reconciliation of these measures to net income (loss) or to income (loss) from operations in the tables at the end of this release.
(2)Free Cash flow is a non-GAAP financial measure. Refer to the definition and reconciliation of this measure in the tables at the end of this release.
View full version at Carrols
Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal Fourth Quarter and Fiscal Year Ended December 25, 2022
Issues Outlook for Fiscal 2023
February 28, 2023 04:05 PM Eastern Standard Time
ENGLEWOOD, 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 fiscal fourth quarter and year ended December 25, 2022.
Highlights for the Fourth Quarter of Fiscal 2022, Compared to the Fourth Quarter of Fiscal 2021
Total revenues are $290.1 million, an increase of 2.4% compared to 2021.
Comparable restaurant revenue increased 2.5%.
Eighth consecutive quarter of positive comparable restaurant revenue growth.
Comparable restaurant revenue(1) includes a benefit of approximately $2.9 million due to the Company's assessment of breakage related to its Red Robin Royalty® program. Excluding this benefit, comparable restaurant revenue would have increased 1.5% compared to the fourth quarter of 2021.
Net loss is $44.2 million, an increase of $22.9 million compared to 2021 and includes a non-cash impairment charge of $25.0 million.
Adjusted EBITDA(2) (a non-GAAP metric) was $8.9 million in 2022 and 2021.
G.J. Hart, Red Robin’s President and Chief Executive Officer, said, “We completed important work in 2022 and now turn the page to a fresh new year. The ‘North Star’ plan we rolled out in January will guide our efforts over the next three years and is geared towards delivering the exceptional restaurant experience our Guests deserve. I am incredibly optimistic about Red Robin’s future and confident the investments we are making will resonate with Guests and drive value for our shareholders. We are moving aggressively to capture the opportunities in front of us, and are encouraged with very strong comparable restaurant sales through the first 9 weeks of our fiscal 2023."
View full version at Red Robin
Corner Bakery Is in Deep Trouble
The fast casual chain has been quietly declining for years.
By Angela L. Pagán
February 27, 2023
When’s the last time you visited a Corner Bakery for a quick muffin or Caesar salad? Maybe not recently enough, it turns out. Nation’s Restaurant News reports that Corner Bakery Cafe has declared bankruptcy and is seeking protection from its creditors. The filing, dated February 22, is hardly a surprise—the chain has been struggling for years.
The fast casual cafe and bakery chain, founded in 1991, was bought by Pandya Restaurant Growth Brands in 2020, around the same time that company also bought Boston Market. And while Boston Market has certainly had its ups and downs in recent years, it looks to be doing better than Corner Bakery, the latter of which is somewhere between $20 million and $34 million in debt, as reported by Restaurant Business.
For the uninitiated, Corner Bakery is similar to Panera Bread, in that it’s a fast casual cafe chain offering soups, sandwiches, salads, and pasta entrees, along with various breakfast and bakery items like cinnamon rolls, muffins, bagels, and yogurt parfaits. If that sounds like a broad menu that doesn’t really have any defining specialties, well, that might be part of the problem. While Panera has taken some big swings lately with chicken sandwiches and a flatbread pizza menu, Corner Bakery seems to have played it safe, debuting a spring menu last year that included blueberry pancakes and hazelnut cold brew coffee.
I admit I sort of forgot about the chain up until hearing this news, and I imagine many others did as well. The chain does not appear to have run any sort of splashy new promotion or product since the summer of 2022, when loyalty program members were offered freebies and discounts throughout the month.
The chain’s decline in recent years has been evident in other ways as well. The chain ranked 118th in sales in 2021, according to data on the top 500 restaurants from Datassential—down eight spots from just the year before. Per Technomic’s Top 500 Chain Restaurant Reports for 2018 and 2019 the chain remained in the No. 154 spot. Not exactly a threat to the top performers. (Not even Subway.) The Takeout reached out to Pandya Restaurant Brands but has not received a response.
Crain’s Chicago Business reports that Corner Bakery currently has 20 locations in Illinois, with the majority being in Chicago and a new one planned to open this spring. The planned opening of a new location is surprising, given this recent news of the chain’s financial woes. Kevin Schimpf, director of industry research and insights at Technomic, also told Crain’s Chicago Business that Corner Bakery’s number of locations had declined for the past seven years.
View source version at Corner Bakery Cafe
Domino's Pizza® Announces Fourth Quarter and Fiscal 2022 Financial Results
Feb 23, 2023, 07:30 ET
Global retail sales growth (excluding foreign currency impact) of 5.2% for the fourth quarter; 3.9% growth for fiscal 2022
U.S. same store sales growth of 0.9% for the fourth quarter; 0.8% decline for fiscal 2022
International same store sales growth (excluding foreign currency impact) of 2.6% for the fourth quarter; 0.1% growth for fiscal 2022
Global net store growth of 361 for the fourth quarter; 1,032 for fiscal 2022
Diluted EPS up 4.2% to $4.43 for the fourth quarter; down 7.5% to $12.53 for fiscal 2022
ANN ARBOR, Mich., Feb. 23, 2023 /PRNewswire/ -- Domino's Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world, announced results for the fourth quarter and fiscal 2022. Global retail sales, excluding the negative impact of foreign currency, grew 5.2% in the fourth quarter of 2022 and grew 3.9% in fiscal 2022. Without adjusting for the impact of foreign currency, global retail sales declined 1.1% in the fourth quarter of 2022 and declined 1.3% in fiscal 2022.
U.S. same store sales grew 0.9% during the fourth quarter of 2022 and declined 0.8% in fiscal 2022. International same store sales (excluding foreign currency impact) grew 2.6% during the fourth quarter of 2022 and grew 0.1% in fiscal 2022. The Company had fourth quarter global net store growth of 361 stores, comprised of 43 net U.S. store openings and 318 net international store openings. The Company had 456 gross store openings and 95 closures during the fourth quarter of 2022. In fiscal 2022, the Company had global net store growth of 1,032 stores, comprised of 126 net U.S. store openings and 906 net international store openings. The Company had 1,276 gross store openings and 244 closures during fiscal 2022.
Diluted EPS for the fourth quarter of 2022 was $4.43, an increase of 4.2% from diluted EPS of $4.25 in the fourth quarter of 2021. Diluted EPS for fiscal 2022 was $12.53, a decrease of 7.5% from diluted EPS of $13.54 in fiscal 2021. Diluted EPS for fiscal 2021 was negatively impacted by expenses associated with the Company's April 2021 recapitalization transaction (the "2021 Recapitalization"). Diluted EPS for fiscal 2022 declined 7.9% from diluted EPS, as adjusted of $13.60 in fiscal 2021. Refer to the Financial Results Comparability and the Comments on Regulation G sections below for additional information.
During the fourth quarter of 2022, the Company refranchised 114 U.S. Company-owned stores in Arizona and Utah for $41.1 million (the "2022 Store Sale"). In connection with the 2022 Store Sale, the Company recorded a $21.2 million pre-tax gain on the sale of the related assets and liabilities, which included a $4.3 million reduction in goodwill.
Subsequent to the end of the fourth quarter of 2022, on February 21, 2023, the Company's Board of Directors approved a 10% increase to the quarterly dividend and a $1.21 per share quarterly dividend was declared on its outstanding common stock for shareholders of record as of March 15, 2023 to be paid on March 30, 2023.
"We pride ourselves on being a work-in-progress brand and there is no better way to describe this period in our history," said Russell Weiner, Domino's Chief Executive Officer. "The Domino's system has a lot to be proud of while also having opportunities to address. We experienced significant pressure on our U.S. delivery business in 2022 and focused our efforts on creating solutions. We also drove continued momentum in our U.S. carryout business and achieved strong international store growth. Over half of our orders in the U.S. now come through the carryout channel, and we are #1 in both the delivery and carryout QSR pizza segments. Our brand and company are better positioned than ever to win in the marketplace and create meaningful value for our shareholders."
View full version at Domino's
Ruth’s Hospitality Group, Inc. Reports Fourth Quarter 2022 Financial Results
– Increases Quarterly Dividend to $0.16 Per Share –
February 23, 2023 07:00 AM Eastern Standard Time
WINTER PARK, Fla.--(BUSINESS WIRE)--Ruth’s Hospitality Group, Inc. (the “Company”) (Nasdaq: RUTH) today reported financial results for its fourth quarter and fiscal year ended December 25, 2022 and provided a business update.
Fourth Quarter Highlights
Total restaurant sales in the fourth quarter increased 9.6% compared to 2021 driven by comparable sales growth of 4.5% and incremental sales from six new restaurants that opened over the last 12 months. Comparable sales increased 5.5% compared to 2019.
Fourth quarter average weekly sales for Company-owned restaurants were $130.0 thousand in 2022 compared to $123.0 thousand in 2021.
Franchise income in the fourth quarter of 2022 was $5.8 million compared to $5.5 million in the fourth quarter of 2021. Fourth quarter 2022 comparable restaurant sales at franchisee-owned restaurants increased 2.8% compared to 2021.
Food and beverage costs, as a percentage of restaurant sales, decreased 93 basis points to 33.2% compared to the fourth quarter of 2021. Total beef costs decreased 4% compared to the fourth quarter of 2021.
Net income in the fourth quarter of 2022 was $12.4 million, or $0.38 per diluted share, compared to net income of $13.8 million, or $0.40 per diluted share, in the fourth quarter of 2021.
Adjusted earnings per share(1) increased 13.1% to $0.38 in the fourth quarter of 2022, compared to adjusted earnings per share(1) of $0.34 in the fourth quarter of 2021.
Adjusted EBITDA(1) increased 12.2% to $24 million in the fourth quarter of 2022, compared to adjusted EBITDA(1) of $21.4 million in the fourth quarter of 2021.
CEO Comments
Cheryl Henry, President, Chief Executive Officer and Chairperson of the Board of Ruth’s Hospitality Group, Inc., commented, “Our fourth quarter performance marked the end to another impressive year for our team at Ruth’s Chris Steak House as we generated double-digit top-line growth and strong earnings for the year. Combined with debt reduction and returning excess capital to shareholders through dividends and share repurchases, we believe we delivered on our total return strategy on all fronts and have given ourselves a solid foundation to build on for the future.”
Henry added, “As we look to 2023, I am excited about our opportunities to grow and evolve our 57-year-old iconic brand. We have a promising restaurant pipeline; the launch of Phase 2 of our Data Digital Transformation is expected to drive the next evolution of the brand; and our capital position remains strong. Together with our veteran operators and franchise partners, we believe we are well-positioned to continue to elevate our business in the years to come.”
View full version at Ruth's Hospitality
Beyond Meat® Reports Fourth Quarter and Full Year 2022 Financial Results
February 23, 2023 16:05 ET
EL SEGUNDO, Calif., Feb. 23, 2023 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ: BYND) (“Beyond Meat” or “the Company”), a leader in plant-based meat, today reported financial results for its fourth quarter and full year ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights1
Net revenues were $79.9 million, a decrease of 20.6% year-over-year.
Gross profit was a loss of $2.9 million, or gross margin of -3.7% of net revenues.
Net loss was $66.9 million, or $1.05 per common share. Net loss as a percentage of net revenues was -83.6%.
Adjusted EBITDA was a loss of $56.5 million, or -70.7% of net revenues.
Full Year 2022 Financial Highlights1
Net revenues were $418.9 million, a decrease of 9.8% year-over-year.
Gross profit was a loss of $23.7 million, or gross margin of -5.7% of net revenues.
Net loss was $366.1 million, or $5.75 per common share. Net loss as a percentage of net revenues was -87.4%.
Adjusted EBITDA was a loss of $278.0 million, or -66.4% of net revenues.
Beyond Meat President and CEO Ethan Brown commented, “We are making solid progress in our transition to a sustainable growth model, one that emphasizes the achievement of cash flow positive operations within the second half of 2023. We continue to execute this pivot upon three primary pillars. One, driving margin recovery and operating expense reduction through the implementation of lean value streams across our beef, pork, and poultry platforms. Two, bringing inventory levels down while generating cash flow through more aggressive, efficient management. And three, placing greater emphasis on near-term retail and foodservice growth drivers while also supporting strategic key long-term partners and opportunities.”
Brown continued, “Our fourth quarter results clearly demonstrate delivery against our strategy and plan, including solid sequential progress on margin recovery and operating expense reduction, and continued inventory drawdown. We are proud of our team's continued pace of innovation including Beyond Steak, which continues to win awards for its taste and outstanding health profile, as well as the just launched McPlant Nuggets in Germany, the second plant-based protein co-developed with Beyond Meat as part of the McPlant platform. As we navigate current conditions, we remain intently focused on positioning Beyond Meat to capture the vast opportunity to be a major protein provider in the $1.4 trillion meat industry and play a leadership role in transitioning global consumers to delicious plant-based meats in support of critically important health, climate, environmental, and animal welfare objectives."
View full version at Beyond Meat
Papa Johns Announces 2022 Fourth Quarter and Full Year Financial Results
Global system-wide restaurant sales up 3%(a) for full year
Third straight year of positive North America comparable sales
System-wide units up 4.5%(b) for full year
February 23, 2023 07:00 AM Eastern Standard Time
LOUISVILLE, Ky.--(BUSINESS WIRE)--Papa John’s International, Inc. (NASDAQ: PZZA) (“Papa Johns®”) today announced financial results for the fourth quarter and year ended December 25, 2022.
Fourth Quarter Highlights
North America comparable sales were up 1% from a year ago and up 26% on a three-year stack; International comparable sales were down 3% from a year ago and up 20% on a three-year stack.
117 net unit openings in the fourth quarter largely within international markets.
Global system-wide restaurant sales were $1.20 billion, a 3%(a) increase over the prior year.
Total revenues of $526 million were down $3 million, or less than 1%, from a record fourth quarter 2021. Revenues increased 3% excluding the impact of refranchising 90 restaurants in the first quarter of 2022.
Diluted earnings per common share of $0.66, compared with $0.67 for 2021; adjusted diluted earnings per common share(c) of $0.71 compared with $0.75 a year ago.
Full Year Highlights
North America comparable sales were up 1% from a year ago and up 30% on a three-year stack; International comparable sales were down 5% from a year ago and up 20% on a three-year stack.
244 net unit openings(b) for the full year 2022 driven by continued international growth.
Global system-wide restaurant sales were $4.84 billion, a 3%(a) increase over the prior year.
Record total revenues of $2.10 billion were up $34 million, or 2%, from 2021.
Diluted earnings per common share of $1.89 compared with $0.12 for 2021; adjusted diluted earnings per common share(c) of $2.94 compared with $3.51 a year ago.
“We had a strong finish to 2022, posting our third straight year of positive North America comparable sales,” said Rob Lynch, Papa Johns’ President and CEO. “Our performance demonstrates the resiliency of our brand, the agility of our teams and the strength of our business model despite the macro headwinds we faced. This past year, we continued to introduce impactful menu innovations, such as our Epic Pepperoni Stuffed Crust and New York Style pizzas, addressed the need of value-seeking consumers with Papa Pairings, continued to grow our Papa Rewards loyalty program and further expanded our footprint domestically and internationally.”
“Looking ahead to 2023, we will continue to grow on top of the solid foundation we have built over the past three years as we deliver on our strategic priorities and build the world’s best pizza company,” added Lynch. “Investments in product and digital innovation, combined with strong operational excellence, will continue to enhance the customer experience and contribute to healthy North America comparable sales and unit economics. Our differentiated brand positioning, winning product innovation and operational excellence will continue to deliver strong unit development and system-wide sales growth globally.”
View full version at Papa Johns
Sweetgreen, Inc. Announces Fourth Quarter 2022 Financial Results
February 23, 2023 04:05 PM Eastern Standard Time
LOS ANGELES--(BUSINESS WIRE)--Sweetgreen, Inc. (NYSE: SG) (the “Company”), the mission-driven, next generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for its fourth fiscal quarter ended December 25, 2022.
“We enter 2023 with solid momentum and remain confident in the strength of the sweetgreen brand to endure for years to come,” said Co-Founder and CEO Jonathan Neman. “In 2022 we were faced with a challenging economic backdrop and some specific operating challenges. Accordingly, we went back to basics and focused on our Intimacy at Scale playbook, which is showing signs of success. As we begin 2023, customers remain core to everything we do as we focus on disciplined, capital-efficient growth and our path to profitability.”
Fourth Quarter 2022 Financial Results
For the fourth quarter of fiscal year 2022, compared to the fourth quarter of fiscal year 2021:
Total revenue was $118.6 million versus $96.4 million in the prior year period, an increase of 23%.
Same-Store Sales Change of 4% versus Same-Store Sales Change of 36% in the prior year period.
AUV of $2.9 million versus AUV of $2.6 million in the prior year period.
Total Digital Revenue Percentage of 61% and Owned Digital Revenue Percentage of 40%, versus Total Digital Revenue Percentage of 65% and Owned Digital Revenue Percentage of 43% in the prior year period.
Loss from operations was $(47.7) million and loss from operations margin was (40)% versus loss from operations of $(47.8) million and loss from operations margin of (50)% in the prior year period.
Restaurant-Level Profit(1) was $12.8 million and Restaurant-Level Profit Margin was 11%, versus Restaurant-Level Profit of $12.3 million and Restaurant-Level Profit Margin of 13% in the prior year period.
Net loss was $(49.3) million versus net loss of $(66.2) million in the prior year period.
Adjusted EBITDA(1) was $(17.9) million versus Adjusted EBITDA of $(14.2) million in the prior year period and Adjusted EBITDA Margin was (15)% for both period.
10 Net New Restaurant Openings in both periods.
Full Year Fiscal 2022 Financial Results
For fiscal year 2022 compared to fiscal year 2021 :
Total revenue was $470.1 million versus $339.9 million in the prior fiscal year, an increase of 38%.
Same-Store Sales Change of 13% versus Same-Store Sales Change of 25% in the prior fiscal year.
AUV of $2.9 million versus AUV of $2.6 million in the prior fiscal year.
Total Digital Revenue Percentage of 62% and Owned Digital Revenue Percentage of 41%, versus Total Digital Revenue Percentage of 67% and Owned Digital Revenue Percentage of 46% in the prior fiscal year.
Loss from operations was $(193.3) million and loss from operations margin was (41)% versus loss from operations of $(134.4) million and loss from operations margin of (40)% in the prior fiscal year.
Restaurant-Level Profit(1) was $69.3 million and Restaurant-Level Profit Margin was 15%, versus Restaurant-Level Profit of $40.4 million and Restaurant-Level Profit Margin of 12% in the prior fiscal year.
Net loss was $(190.4) million versus net loss of $(153.2) million in the prior fiscal year.
Adjusted EBITDA(1) was $(49.9) million versus Adjusted EBITDA of $(63.1) million in the prior fiscal year and Adjusted EBITDA Margin was (11)% versus (19)% in the prior year period.
36 Net New Restaurant Openings versus 31 Net New Restaurant Opening in the prior fiscal year.
(1) Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Restaurant-Level Profit, Restaurant-Level Profit Margin, and Adjusted EBITDA to the most directly comparable financial measures presented in accordance with GAAP, are set forth in the schedules accompanying this release. See “Reconciliation of GAAP to Non-GAAP Measures.”
View source version at Sweetgreen
FAT BRANDS INC. REPORTS FOURTH QUARTER AND FULL YEAR 2022 FINANCIAL RESULTS
February 22, 2023 16:30 ET
LOS ANGELES, Feb. 22, 2023 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) today reported fourth quarter and full year 2022 financial results for the fiscal year ended December 25, 2022.
Andy Wiederhorn, President and CEO of FAT Brands, commented, “The fourth quarter marked yet another strong performance for FAT Brands, as evidenced by our robust unit development and profitable revenue growth. After a very active acquisition strategy in 2021, I am particularly pleased with the momentum of our organic growth strategy during 2022.”
“With over 140 store openings during 2022, we achieved a new milestone for FAT Brands, including 44 that opened in the fourth quarter. We plan to continue this robust unit growth with between 150 and 175 units slated to open in 2023. We are seeing strong new franchisee activity as well as continued demand from existing franchise partners to develop other brands within our portfolio, which is very encouraging as we look beyond our current unit development pipeline of over 1,000 locations representing 60% EBITDA growth over the next several years.”
“We are extremely impressed with how our 2021 acquisitions have seamlessly fit into our portfolio and the demand we are experiencing for them from our franchisee base. In addition to our organic growth momentum, we will lean into the expansion of our high-growth brands, particularly our sports lodge category, and continue to expand our factory business.”
“We also continue to work on reducing our cost of capital and are pursuing strategies to significantly reduce our leverage ratio over the next 24 to 36 months.”
Fiscal Fourth Quarter 2022 Highlights
Total revenue improved 39.9% to $103.8 million compared to $74.2 million in the fourth quarter of 2021
System-wide sales growth of 22.1% in the fourth quarter of 2022 compared to the prior year quarter
Year-to-date system-wide same-store sales growth of 2.7% in the fourth quarter of 2022 compared to the prior year
44 new store openings during the fourth quarter of 2022 and over 140 openings during the year
Net loss of $70.8 million, or $4.29 per diluted share, compared to $19.6 million, or $1.38 per diluted share, in the fourth quarter of 2021
Adjusted EBITDA(1) of $19.6 million compared to $10.4 million in the fourth quarter of 2021
Adjusted net loss(1) of $43.0 million, or $2.60 per diluted share, compared to $16.5 million, or $1.16 per diluted share, in the fourth quarter of 2021
Fiscal Year 2022 Highlights
Total revenue increased 242.5% to $407.2 million compared to $118.9 million in 2021
System-wide sales growth of 108.0% compared to 2021
Year-to-date system-wide same-store sales growth of 6.0% in 2022 compared to 2021
Over 140 new store openings during 2022
Net loss of $126.2 million, or $7.66 per diluted share, compared to $31.6 million, or $2.15 per diluted share, in 2021
Adjusted EBITDA(1) of $88.8 million compared to $21.1 million 2021
Adjusted net loss(1) of $80.9 million, or $4.91 per diluted share, compared to $20.6 million, or $1.41 per diluted share, in 2021
(1) EBITDA, Adjusted EBITDA and adjusted net loss are non-GAAP measures defined below, under “Non-GAAP Measures”. Reconciliation of GAAP net loss to EBITDA, adjusted EBITDA and adjusted net loss are included in the accompanying financial tables.
View full version at FAT Brands
Wingstop Inc. Reports Fiscal Fourth Quarter and Full Year 2022 Financial Results
Feb 22, 2023, 08:01 ET
Delivers 19th Consecutive Year of Domestic Same Store Sales Growth and 13.2% Increase in Unit Count in Fiscal Year 2022
DALLAS, Feb. 22, 2023 /PRNewswire/ -- Wingstop Inc. (NASDAQ: WING) today announced financial results for the fiscal fourth quarter and fiscal year ended December 31, 2022, periods that benefited from a 53rd week as compared to fiscal 2021.
Highlights for the fiscal fourth quarter 2022 compared to the fiscal fourth quarter 2021:
System-wide sales increased 28.9% to $775.7 million
61 net new openings in the fiscal fourth quarter 2022
Domestic same store sales increased 8.7%
Domestic restaurant AUV of $1.6 million
Digital sales of 63.2%, an increase of 1.9% to the prior fiscal fourth quarter
Total revenue increased 45.6% to $104.9 million
Net income increased 155.2% to $17.6 million, or $0.59 per diluted share, compared to net income of $6.9 million, or $0.23 per diluted share in the prior fiscal fourth quarter
Adjusted EBITDA, a non-GAAP measure, increased 71.6% to $34.7 million, compared to adjusted EBITDA of $20.2 million in the prior fiscal fourth quarter
Highlights for the fiscal year 2022 compared to the fiscal year 2021:
System-wide sales increased 16.8% to $2.7 billion
System-wide restaurant count increased 13.2% to 1,959 worldwide locations with 228 net openings
Domestic same store sales increased 3.4%
Total revenue increased 26.6% to $357.5 million
Net income increased 24.1% to $52.9 million, or $1.77 per diluted share, compared to $42.7 million, or $1.42 per diluted share, in the prior fiscal year. Adjusted net income and adjusted earnings per diluted share, both non-GAAP measures, increased 37.3% to $55.4 million, or $1.85 per diluted share, compared to $40.3 million, or $1.35 per diluted share in the prior fiscal year
Adjusted EBITDA, a non-GAAP measure, increased 23.1% to $108.8 million, compared to adjusted EBITDA of $88.4 million in the prior fiscal year
Adjusted EBITDA, adjusted net income, adjusted earnings per diluted share, and cost of sales excluding pre-opening expenses are non-GAAP measures. Reconciliations of adjusted EBITDA, adjusted net income, adjusted earnings per diluted share, and cost of sales excluding pre-opening expenses to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States ("GAAP") are set forth in the schedule accompanying this release. See "Non-GAAP Financial Measures."
"Wingstop delivered another record year in 2022 highlighted by 13.2% unit growth and an industry-leading 19th consecutive year of positive same store sales growth. We delivered 8.7% domestic same store sales growth over the prior fiscal fourth quarter, which was driven entirely by transaction growth," said Michael Skipworth, President and Chief Executive Officer. "The combination of strong top-line growth and meaningful deflation in our business in 2022 has continued to strengthen our brand partners' unit economics and positioned the brand for continued long term growth on our path to scaling Wingstop into a Top 10 Global Restaurant Brand."
View full version at Wingstop
Dutch Bros Inc. Reports Fourth Quarter and Fiscal Year 2022 Financial Results
Annual Revenues Increased Almost 50% Year-over-Year to $739.0 million Driven by 133 New Systemwide Shop Openings in 2022
Welcomes New President, Christine Barone
Issues Additional Guidance for 2023
February 22, 2023 04:23 PM Eastern Standard Time
GRANTS PASS, Ore.--(BUSINESS WIRE)--Dutch Bros Inc. (NYSE: BROS; “Dutch Bros” or the “Company”) one of the fastest-growing brands in the food service and restaurant industry in the United States by location count, today reported financial results for the fourth quarter and year ended December 31, 2022.
Joth Ricci, Chief Executive Officer of Dutch Bros Inc., stated, “In 2022, we delivered another strong year of growth with revenue increasing almost 50% to $739.0 million, driven by 133 new shop openings systemwide. For the third consecutive year, we have exceeded our new shop development targets, doubling our shop count since March 2019, despite unprecedented disruption to communities and the economy. These results are a testament to our team’s ongoing ability to execute our proven strategy. As we continue on our 30+ year growth journey, we’re entering 2023 in a position to build market share, supported by our strong people development and new shop pipelines.”
He added, “This year, we are targeting 150 new systemwide shops, which will enable us to achieve our five-year goal of 800 systemwide shops by year-end. Additionally, we expect to be within striking distance of $1 billion in revenue in 2023 and 1,000 systemwide shops by the first half of 2025, creating jobs and opportunities for our employees and the communities in which we serve.”
He added, “On February 6, we welcomed Christine Barone as our new President. Christine will be instrumental in our next phase of growth, helping ensure we are scaling the business in a meaningful, efficient and effective way as we navigate market uncertainty.”
View full version at Dutch Bros
The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2022 and Provides Business Update
February 22, 2023 04:15 PM Eastern Standard Time
CALABASAS HILLS, Calif.--(BUSINESS WIRE)--The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the fourth quarter of fiscal 2022, which ended on January 3, 2023.
Total revenues were $892.8 million in the fourth quarter of fiscal 2022 compared to $776.7 million in the fourth quarter of fiscal 2021. The fourth quarter of fiscal 2022 included 14 weeks compared to 13 weeks in the fourth quarter of fiscal 2021; the additional week in fiscal 2022 contributed approximately $78.4 million of sales. Net loss and diluted net loss per common share were $3.3 million and $0.07, respectively, in the fourth quarter of fiscal 2022.
The Company recorded $41.5 million related to pre-tax charges of asset impairments and FRC acquisition-related items. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for the fourth quarter of fiscal 2022 were $27.4 million and $0.56, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 4.0% year-over-year in the fourth quarter of fiscal 2022 (14 weeks vs. 14 weeks). Relative to fiscal 2019, fourth quarter comparable restaurant sales at The Cheesecake Factory restaurants increased 11.4% (14 weeks vs. 14 weeks). Through February 21st, first quarter-to-date comparable sales for The Cheesecake Factory restaurants increased approximately 9.5% year-over-year and 17.0% as compared to the same period in fiscal 2019.
“Our fourth quarter performance was a solid finish to a challenging year marked by persistent inflation, volatility and a dynamic operating environment,” said David Overton, Chairman and Chief Executive Officer. “Our best-in-class operators continued to do an excellent job of managing their restaurants, building sales and delivering delicious, memorable experiences for our valued guests.
“During the quarter we opened eight new restaurants and successfully implemented incremental pricing to support our stated objective of recovering our operating margins. We believe the strong consumer demand we experienced at our new restaurant openings and continued positive sales trends following our pricing actions demonstrate the strength and resilience of our concepts. Building on this momentum, we remain intently focused on effectively managing through higher costs and potential macro headwinds to protect our longterm sales and margins. Given the strength of our operations team, our brands and our commitment to managing the business for longterm, profitable growth, we believe we are well-positioned to take market share and drive shareholder value in the quarters and years ahead.”
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