Financials - May 2019

CEC Entertainment, Inc. Reports Financial Results For The First Quarter 2019

Company to Participate at June Investor Conference

May 14, 2019, 07:00 ET

IRVING, Texas, May 14, 2019 /PRNewswire/ -- CEC Entertainment, Inc. ("CEC" or the "Company"), a nationally recognized leader in family entertainment and dining, today announced financial results for its first quarter ended March 31, 2019. First Quarter Results (1) Comparable venue sales increased 7.7% in the first quarter of 2019 compared to the first quarter of 2018, and total revenues increased $18.4 million, or 7.2%, to $273.3 million in the first quarter of 2019, compared to $254.9 million in the first quarter of 2018. The Company reported net income of $21.2 million for the first quarter of 2019, compared to net income of $12.2 millionfor the first quarter of 2018. Net income for the current quarter was positively impacted by the increase in Company-operated venue sales, partially offset by higher labor expenses from wage inflation, and increased entertainment and merchandise costs related to the All You Can Play and More Tickets strategic initiatives. Additionally, net income for the first quarter of 2019 was impacted by a $1.3 million increase in interest expense driven by the increase in LIBOR rates on our variable rate debt. "We are pleased with our results in the first quarter of 2019 as the positive impact of the All You Can Play game packages and More Tickets initiatives led to our fourth consecutive quarter of comparable venue sales growth," said Tom Leverton, Chief Executive Officer.  "Our team continues to make great progress in advancing our brand and improving the experience we deliver to our guests.  While our quarterly performance benefited from the comparison to last year and a shift in Easter, the result was strong with great flow through to earnings.  We remain optimistic about our venue remodel program, which is really a complete re-imaging of the venue, along with additional planned initiatives to improve our business and our profitability." Adjusted EBITDA(1) for the first quarter of 2019 increased $9.8 million, or 14.8%, to $76.1 million from $66.3 million for the first quarter of 2018.

View full version at CEC Entertainment

FAT Brands Inc. Reports Fiscal First Quarter 2019 Financial Results

May 14, 2019 04:05 PM Eastern Daylight Time

LOS ANGELES--(BUSINESS WIRE)--FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) today reported fiscal first quarter 2019 financial results for the 13-week period ending March 31, 2019. Andy Wiederhorn, President and CEO of FAT Brands, commented, “Results in the first quarter reflect continued strength of the Fatburger brand and improvements at the Hurricane brand, offset by softness at Ponderosa and Bonanza Steakhouses. During the quarter, we continued to execute our key strategic initiatives to drive same-store sales growth across our brands: third-party delivery, a remodel program, menu innovation including our preferred partnership with the provider of Impossible Burger, which we now offer in nearly all of our brands, and cross-selling brands to existing franchisees.” Wiederhorn continued, “Our pipeline for acquisitions remains robust, and we continue to seek synergistic opportunities where we can leverage our platform to drive efficiencies and growth. We are in the final stages of evaluating several acquisitions and expect to be able to announce an acquisition during the second quarter of this year.” Fiscal First Quarter 2019 Highlights

1. Total revenues of $4.9 million, up 35.9% from $3.6 million in the first quarter of 2018. Excluding advertising revenues, revenues grew 30.4% from $3.0 million in first quarter of 2018 to $3.9 million in first quarter of 2019.

2. System-wide sales growth of 26.4% y/y

3. United States sales growth of 39.7% y/y

4. Canada sales growth of 5.7% y/y

5. Other International(1) sales growth of (5.5%) y/y

6. System-wide same store sales growth of (1.3%) y/y

7. Fatburger worldwide same store sales growth of 1.8% y/y, and 2.9% y/y in North America

8. Buffalo’s Cafe worldwide same store sales growth of 2.9% y/y

9. Hurricane worldwide same store sales growth of 4.2% y/y

10. Ponderosa/Bonanza worldwide same store sales growth of (6.6%) y/y, and (5.5%) y/y excluding Puerto Rico

11. United States same-store sales growth of (0.4%) y/y

12. Canada same-store sales growth of 5.1% y/y

13. Other International(1) same-store sales growth of (9.1%) y/y

14. 5 new franchised store openings

15. Ending store count: 334 franchised stores, 7 company-managed stores

16. Net loss of $710,000 or $0.06 per share on a basic and fully diluted basis, as compared to net income of $509,000 or $0.05 per share on a basic and fully diluted basis in the first quarter of 2018

17. EBITDA(2) of $820,000, as compared to $940,000 in the first quarter of 2018

18. Adjusted EBITDA(2) of $1.5 million as compared to $1.1 million in the first quarter of 2018. 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.Events in the Quarter On January 29, 2019, the Company entered into a new loan agreement borrowing $20.0 million from The Lion Fund, L.P. and the Lion Fund II, L.P. and utilized the proceeds to repay the existing $16.0 million term loan from FB Lending, LLC plus accrued interest and fees, as well as to provide additional general working capital to the Company. On February 7, 2019, the Company’s Board of Directors approved the payment of a quarterly stock dividend equal to 2.13% on its common stock, representing an amount equal to $0.12 per share of common stock based on the closing price as of February 6, 2019. The dividend was paid on February 28, 2019 to shareholders of record as of the close of business on February 19, 2019. The Company issued 245,376 shares of common stock at a value of $5.64 per share (plus cash in lieu of fractional shares) in satisfaction of the dividend payable.

View full version at FAT Brands

Ark Restaurants Announces Financial Results for the Second Quarter of 2019

May 13, 2019 04:05 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Ark Restaurants Corp. (NASDAQ: ARKR) today reported financial results for the second quarter ended March 30, 2019. Total revenues for the 13 weeks ended March 30, 2019 were $35,311,000 versus $35,276,000 for the 13 weeks ended March 31, 2018. Total revenues for the 26 weeks ended March 30, 2019 were $75,859,000 versus $74,628,000 for the 26 weeks ended March 31, 2018. The 26 weeks ended March 30, 2019 and March 31, 2018 include revenues of $1,039,000 and $1,207,000, respectively, related to Durgin-Park which was closed January 12, 2019. Company-wide same store sales increased 0.9% for the 26 weeks ended March 30, 2019 compared to the same period in the prior year. The Company’s EBITDA, adjusted for non-controlling interests, non-cash stock option expense and losses incurred on the closure of Durgin-Park discussed below, for the 13 weeks ended March 30, 2019 was $1,323,000 versus $769,000 during the same period in the prior year. The Company’s EBITDA, adjusted for non-controlling interests, non-cash stock option expense and losses incurred on the closure of Durgin-Park discussed below, for the 26 weeks ended March 30, 2019 was $3,867,000 versus $2,841,000 during the same period in the prior year. As of December 29, 2018, the Company determined that it would not be able to operate Durgin-Park profitably due to decreased traffic at the Faneuil Hall Marketplace in Boston, MA, where it is located, and rising labor costs. As a result, included in the Statements of Operations for the 13 and 26 weeks ended March 30, 2019 are losses on closure in the amounts of $39,000 and $1,106,000, respectively, consisting of: (i) impairment of trademarks of $721,000, (ii) accelerated depreciation of fixed assets of $333,000, and (iii) write-offs of prepaid and other expenses of $52,000. The restaurant was closed on January 12, 2019. Net loss for the 13 weeks ended March 30, 2019, which includes losses as a result of non-cash write-offs on the closure of Durgin-Park in the amount of $39,000, was $669,000, or $0.19 per basic and diluted share compared to a net loss of $637,000, or $0.19 per basic share and diluted share for the same period last year. Net loss for the 26 weeks ended March 30, 2019, which includes losses as a result of non-cash write-offs on the closure of Durgin-Park in the amount of $1,106,000, was $731,000, or $0.21 per basic and diluted share compared to net income of $990,000, or $0.29 per basic share ($0.28 per diluted share), for the same period last year. The 26 weeks ended March 31, 2018 includes a discrete income tax benefit of $1.2 million related to changes in the tax law. Ark Restaurants owns and operates 19 restaurants and bars, 19 fast food concepts and catering operations primarily in New York City, Florida, Washington, D.C., Las Vegas, Nevada and the gulf coast of Alabama. Five restaurants are located in New York City, two are located in Washington, D.C., five are located in Las Vegas, Nevada, three are located in Atlantic City, New Jersey, two are located on the east coast of Florida and two are located on the Gulf Coast of Alabama. The Las Vegas operations include four restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and six food court concepts; and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino and a restaurant in the Tropicana Hotel and Casino. The operations at the Foxwoods Resort Casino consist of one fast food concept. The Florida operations include the Rustic Inn in Dania Beach, Shuckers, located in Jensen Beach, the operation of five fast food facilities in Tampa, and seven fast food facilities in Hollywood, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe. In Alabama, the Company operates two Original Oyster Houses, one in Gulf Shores, Alabama and one in Spanish Fort, Alabama. Except for historical information, this news release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve unknown risks, and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Important factors that might cause such differences are discussed in the Company's filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results could differ materially from those anticipated in these forward-looking statements, if new information becomes available in the future.

View full version at Ark Restaurants

The ONE Group Reports First Quarter 2019 Results

Domestic Same Store Sales Increases 8.6%

GAAP Income from Operations of $1.1 million / Adjusted EBITDA Increases 50%

Reiterates 2019 Financial Targets

May 09, 2019 04:05 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the first quarter ended March 31, 2019 and reiterated its 2019 financial targets. Highlights for the first quarter ended March 31, 2019 compared to the same period last year were as follows:

1. Total GAAP revenues increased 16.7% to $22.8 million from $19.5 million;

2. Domestic same store sales* for STK restaurants rose 8.6%;

3. GAAP income from operations was $1.1 million compared to $0.5 million;

4. GAAP net income attributable to The ONE Group was $0.9 million or $0.03 net income per share compared to GAAP net income of $0.2 million or $0.01 net income per share;

5. Adjusted EBITDA** increased 50% to $2.7 million from $1.8 million; and,

6. Total restaurant expenses decreased 210 basis points to 86.9% from 89.0% as a percentage of revenues; and

7. Opened one domestic Company-owned restaurant and one international-licensed STK. Emanuel “Manny” Hilario, President and CEO of The ONE Group stated, "We delivered another strong quarter as we continue to execute and demonstrate progress against our four-point strategy. Despite a formidable year-ago comparison in same store sales growth, we still outperformed our peers while distinguishing the STK brand through our execution and emphasis on imbuing VIBE dining into the entire restaurant experience. We also drove higher restaurant profitability through lower cost of sales and operating expenses as a percentage of owned restaurant sales and reduced G&A both in dollars and as a percentage of revenues. The entire STK team is making a stellar effort contributing to our ongoing success.” Mr. Hilario continued, “We are reiterating our financial targets for 2019. Our focus remains on sales-driving initiatives such as our elevated food program, national happy hour program, event business, and social-media driven marketing, while controlling restaurant level operating and corporate expenses.” Mr. Hilario concluded, “We opened an international-licensed STK in Doha and a Company-owned STK in Nashville during the first quarter, which are both off to strong starts, and have plans to open two to four additional STK restaurants and one to two Food and Beverage venues in the back half of 2019. Our limited capital expenditures of approximately $3.5 million reflects our prioritization of capital-light development and should enable us to generate strong free cash flow.”
   

View full version at The ONE Group

Good Times Restaurants Reports Q2 Results

Total Revenues increased 15% to $27.2 million in Q2

Conference Call Thursday, May 9, 2019, at 3:00 p.m. MT/5:00 p.m. ET

May 09, 2019 04:05 PM Eastern Daylight Time

DENVER--(BUSINESS WIRE)--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar, a full-service, upscale burger bar concept, and Good Times Burgers & Frozen Custard, a regional quick-service restaurant chain focused on fresh, high quality, all natural products, today announced its preliminary unaudited financial results for the second fiscal quarter ended March 26, 2019. Key highlights of the Company’s financial results include:

1. Total revenues increased 15% to $27,172,000 for the quarter

2. Total Restaurant Sales for Bad Daddy’s restaurants increased 27.8% to $20,384,000 and Bad Daddy’s Restaurant Level Operating Profit* (a non-GAAP measure) was $3,322,000 or 16.3% as a percent of sales

3. Same store sales for company-owned Bad Daddy’s restaurants increased 1.3% for the quarter on top of last year’s increase of 0.2%

4. The Company opened one new Bad Daddy’s restaurant during the quarter

5. Total Restaurant Sales for Good Times restaurants were $6,570,000 and Good Times Restaurant Level Operating Profit* (a non-GAAP measure) was $509,000 or 7.7% as a percent of sales

6. Net Loss Attributable to Common Shareholders was $450,000 for the quarter

7. Adjusted EBITDA* (a non-GAAP measure) for the quarter was $1,148,000

8. The Company ended the quarter with $3.4 million in cash and $12.3 million drawn against its senior credit facility Boyd Hoback, President and CEO, said, “Similar to our first quarter’s results, we continued to post favorable same-store sales results for Bad Daddy’s but our Good Times same-store sales were significantly impacted by more inclement weather compared to the prior year and were down 5.9% during the second quarter, adjusted for the impact of store closures on March 13th. However, subsequent to the end of the quarter we have returned to more seasonable weather and our same-store sales at Good Times have rebounded, up more than 4% so far in the third quarter, validating our assertion that the first and second quarter sales comps were largely the result of weather compared to the prior year. We opened one new Bad Daddy’s during the quarter which continues to post sales significantly ahead of our system average, even as it moves out of its honeymoon period. We have three additional Bad Daddy’s under development that we expect to open this fiscal year and one that we expect to open shortly after the end of the fiscal year.” Commenting on the Company’s earnings guidance, Ryan Zink, Chief Financial Officer, stated, “We are reaffirming our guidance from the prior quarter, which calls for Adjusted EBITDA of approximately $6.0 to $6.5 million and the opening of five new Bad Daddy’s restaurants for the 2019 fiscal year. We have updated our same-store sales assumptions at Good Times to reflect a return to positive same-store-sales.” Fiscal 2019 Outlook: The Company reiterated its guidance for fiscal 2019:

9. Total revenues of approximately $112 million to $114 million with a year-end revenue run rate of approximately $120 million

10. Total revenue estimates assume same-store sales of approximately +1% to +2% for the balance of the year for Good Times and Bad Daddy’s

11. General and administrative expenses of approximately $8.4 million to $8.6 million, including approximately $500,000 of non-cash equity compensation expense

12. The opening of five new Bad Daddy’s restaurants

13. Net loss of approximately $1.0 million including pre-opening expenses of approximately $1.7 million

14. Total Adjusted EBITDA* of approximately $6.0 million to $6.5 million

15. Capital expenditures (net of tenant improvement allowances) of approximately $7.0 to $7.5 million including approximately $0.6 million related to fiscal 2020 development. This does not include the use of approximately $3.0 million of cash in the previously disclosed acquisition of the non-controlling interest in three Bad Daddy’s restaurants.

16. Fiscal year-end long-term debt of approximately $13.5 to $14.0 million

View full version at Good Times

The Wendy's Company Reports First Quarter 2019 Results

May 08, 2019, 07:00 ET

DUBLIN, Ohio, May 8, 2019 /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) today reported unaudited results for the first quarter ended March 31, 2019. "We delivered strong earnings growth in the first quarter and are proud of our continued progress to build an even stronger foundation for the Wendy's brand," President and Chief Executive Officer Todd Penegor said. "We are executing on our plan to accelerate same-restaurant sales in North America and drive global restaurant expansion, fueled by a healthy restaurant economic model.  Our relentless focus on bringing every element of The Wendy's Way to life by providing food our customers love, friendly service, value, and an inviting atmosphere will continue to drive growth in the future." First Quarter 2019 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

First Quarter

2019

2018

(Unaudited)

Systemwide Sales Growth(1)

North America

3.0%

2.8%

International(2)

10.1%

13.7%

Global

3.3%

3.3%

North America Same-Restaurant Sales Growth(1)

1.3%

1.6%

Restaurant Openings

North America - Total / Net

29 / 5

16 / -9

International - Total / Net

14 / -6

17 / 8

Global - Total / Net

43 / -1

33 / -1

Systemwide Sales (In US$ Millions)(3)

North America

$2,458

$2,404

International(2)

$133

$127

Global

$2,591

$2,532

(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 beginning in the third quarter of 2018, Argentina.

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

Financial Highlights

First Quarter

2019

2018

B / (W)

(In Millions Except Per Share Amounts)

(Unaudited)

Total Revenues

$

408.6

$

380.6

7.4

%

Adjusted Revenues(1)

$

328.1

$

301.7

8.8

%

Company-Operated Restaurant Margin

15.0

%

13.9

%

1.1

%

General and Administrative Expense

$

49.3

$

50.4

2.2

%

Operating Profit

$

66.3

$

55.3

19.9

%

Net Income

$

31.9

$

20.2

57.9

%

Adjusted EBITDA

$

101.7

$

90.8

12.0

%

Reported Diluted Earnings Per Share

$

0.14

$

0.08

75.0

%

Adjusted Earnings Per Share

$

0.14

$

0.11

27.3

%

Cash Flows from Operations

$

62.0

$

68.7

(9.8)

%

Capital Expenditures

$

(11.2)

$

(10.6)

(5.7)

%

Free Cash Flow(2)

$

48.0

$

41.0

17.1

%

(1) Total revenues less advertising funds revenue.

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

View full version at Wendy's

RAVE Restaurant Group, Inc. Reports Third Quarter Fiscal 2019 Financial Results

May 08, 2019, 08:00 ET

DALLAS, May 8, 2019 /PRNewswire/ -- RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the third quarter of fiscal 2019 ended March 24, 2019. Third Quarter Highlights:

1. Total revenue increased by $0.4 million to $3.1 million for the third quarter of fiscal 2019 compared to $2.7 millionfor the same period of the prior year.

2. RAVE total comparable store domestic retail sales increased 1.1% in the third quarter of fiscal 2019 compared to the same period of the prior year.

3. Pizza Inn domestic comparable store retail sales increased 3.3% in the third quarter of fiscal 2019 compared to the same period of the prior year, while total Pizza Inn domestic retail sales increased 4.3%.

4. Pie Five comparable store retail sales decreased 4.4% in the third quarter of fiscal 2019 compared to the same period of the prior year, while total system-wide Pie Five retail sales decreased 18.1% primarily due to a decrease in average units open during the quarter.

5. The Company recorded a net loss of $0.3 million for the third quarter of fiscal 2019 compared to a net loss of $0.5 million for the same period of the prior year.

6. On a fully diluted basis, the Company had a net loss of $0.02 per share for the third quarter of fiscal 2019 compared to a net loss of $0.03 per share for the same period of the prior year.

7. Adjusted EBITDA of $0.4 million for the third quarter of fiscal 2019 increased $0.6 million from the same period of the prior year.

8. Cash and cash equivalents increased to $1.9 million as of the end of the quarter, a $0.5 million increase during the first nine months of the 2019 fiscal year.

9. Pizza Inn domestic unit count including PIE finished at 156.

10. Pizza Inn international unit count finished at 48.

11. Pie Five domestic unit count finished at 61. "Our third quarter results are another indication of progress for RAVE," said Scott Crane, Chief Executive Officer for RAVE Restaurant Group, Inc. "This quarter, we continued the trend of positive same store sales and also made key investments in international operations and development resources that should accelerate the growth for Pizza Inn, Pie Five, and PIE – both domestically and internationally – in the coming quarters."
    

View full version at RAVE

Carrols Restaurant Group, Inc. Reports Financial Results For the First Quarter 2019

Raises Guidance for Cambridge Merger

May 08, 2019 07:00 AM Eastern Daylight Time

SYRACUSE, N.Y.--(BUSINESS WIRE)--Carrols Restaurant Group, Inc. (“Carrols” or the “Company”) (Nasdaq: TAST) today reported financial results for the first quarter ended March 31, 2019. Carrols owned and operated 845 Burger King® restaurants on March 31, 2019. On April 30, 2019, the Company completed its previously announced merger with Cambridge Franchise Holdings, LLC (“Cambridge”) which resulted in Carrols acquiring 165 additional Burger King® and 55 Popeyes® restaurants in 10 Southeastern states. The Company currently operates 1,010 Burger King® and 55 Popeyes® restaurants in 23 states following the acquisition and is the largest franchisee of Restaurant Brands International, Inc. (the franchisor of Burger King®, Popeyes® and Tim Hortons®). Highlights for the First Quarter of 2019 versus the First Quarter of 2018 Include:

1. Restaurant sales increased 7.1% to $290.8 million from $271.6 million in the prior year quarter;

2. Comparable restaurant sales increased 2.4% compared to a 6.2% increase in the prior year quarter;

3. Adjusted EBITDA(1) was $13.1 million compared to $18.9 million in the prior year quarter;

4. Net loss was $11.5 million, or $0.32 per diluted share, compared to net loss of $3.1 million, or $0.09 per diluted share, in the prior year quarter; and

5. Adjusted net loss(1) was $10.4 million, or $0.29 per diluted share, compared to adjusted net loss of $2.8 million, or $0.08 per diluted share, in the prior year quarter.(1) Adjusted EBITDA, 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 from operations in the tables at the end of this release. Daniel T. Accordino, Chairman and Chief Executive Officer of Carrols, commented, “We increased restaurant sales by over 7% and delivered 2.4% growth in comparable restaurant sales during the first quarter of 2019 as we lapped our toughest comparable restaurant sales comparison from the prior year of 6.2%. Notable first quarter promotions included the $6 King Box, the $1.49 10-piece Spicy Chicken Nuggets, and the Big King XL.” Accordino continued, “Despite solid top line growth, restaurant level profitability was negatively affected on a year over year basis in the first quarter by promotional activity that accelerated during the second half of last year, and by continued labor cost pressures. Although discounting was much higher relative to the first quarter of 2018, these elevated levels began to taper off mid-way through the first quarter this year resulting in a modestly lower impact sequentially from the fourth quarter of 2018. We expect the impact from this discounting to subside as we move further into the year.” Accordino concluded, “We are excited to have completed our transformational merger with Cambridge and to welcome Matt Perelman and Alex Sloane to our Board of Directors. The transaction strengthens our position within the Burger King® system with opportunities to acquire and open new restaurants, while adding Popeyes® as a growth brand to further enhance our expansion alternatives. We are well along with our plans to integrate Cambridge over the next several months. We believe that as we assimilate these restaurants that there is good potential for us to improve their sales and overall restaurant-level financial performance. We also plan to leverage Cambridge’s development capabilities as we move forward with this new phase of our growth. Our updated annual guidance reflects our revised expectations for the core Carrols’ business along with expected contributions from the newly-acquired restaurants.”
   

View full version at Carrols

Potbelly Corporation Reports Results for First Fiscal Quarter 2019

May 07, 2019 16:05 ET

CHICAGO, May 07, 2019 (GLOBE NEWSWIRE) -- Potbelly Corporation (NASDAQ: PBPB) today reported financial results for the first fiscal quarter ended March 31, 2019.Key highlights for the thirteen weeks ended March 31, 2019 compared to the thirteen weeks ended April 1, 2018 include:

1. Total revenues decreased 4.7% to $98.1 million from $102.9 million.

2. Company-operated comparable store sales decreased 4.7%.

3. Three new shops opened, including one new company-operated shop and two franchised shops; eight shops closed, including seven company-operated shops and one franchised shop.

4. GAAP net loss attributable to Potbelly Corporation was $18.4 million, inclusive of a $13.6 million charge related to a valuation allowance on deferred tax assets, and a $0.0 impairment charge compared to a loss of $2.2 million, inclusive of a $0.0 million charge related to a valuation allowance on deferred tax assets, and a $2.0 million impairment charge. GAAP diluted loss per share was $0.76 compared to a GAAP diluted loss per share of $0.09.

5. Adjusted net loss1 attributable to Potbelly Corporation was $3.0 million compared to adjusted net income of $0.7 million. Adjusted diluted EPS1 was a loss of $0.12 compared to adjusted diluted EPS of $0.03.

6. EBITDA1 decreased to $0.7 million from $3.2 million.

7. Adjusted EBITDA1 decreased to $3.9 million from $7.6 million. Alan Johnson, President and Chief Executive Officer of Potbelly Corporation, commented, "Our company-operated same store sales were negatively impacted by the government shutdown and the unseasonably cold temperatures across our key markets during the first half of the first quarter. Consequently, we delivered revenue of $98.1 million, adjusted EBITDA of $3.9 million, and adjusted net loss of $0.12 per share in the first quarter of 2019.” Johnson continued, “Despite the soft start to the year, we maintain our relentless focus on executing our strategic initiatives to turn around the business. We are encouraged by the many initiatives that are working, led by our menu optimization initiative which has exceeded our expectations, consistent growth in our off-premise business, growth in our Potbelly Perks registrants and greater customer engagement and loyalty, and the significant progress we have made in the development of our Shop of the Future concept.  We are encouraged by the positive momentum in our franchise pipeline in the first quarter, where we signed two new franchisees with plans to open over 20 new shops over the next few years, which is about half the number of domestic units we have today.  Unfortunately, the incremental advertising investment that we launched in the second quarter has not generated the expected returns.  As a result, we are taking a step back to assess our marketing effort, and we expect to take our learnings and apply them with a fresh approach to drive a more productive outcome.”
   

View full version at Potbelly

Diversified Restaurant Holdings Reports 4.2% Increase in Same-Store Sales for First Quarter 2019

Comparable sales continue to trend positive in the second quarter, up 7.7% before Easter shift and 4.6% after, with both traffic and average ticket up

May 07, 2019 04:15 PM Eastern Daylight Time

SOUTHFIELD, Mich.--(BUSINESS WIRE)--Diversified Restaurant Holdings, Inc. (Nasdaq:SAUC) ("DRH" or the "Company"), one of the largest franchisees for Buffalo Wild Wings® ("BWW") with 64 stores across five states, today announced results for its first quarter ended March 31, 2019. First Quarter Information (compared with prior-year period unless otherwise noted)

1. Revenue totaled $40.6 million, up 2.6% despite one fewer restaurant

2. Same-store sales increased 4.2%

3. Net income was $0.1 million

4. Restaurant-level EBITDA(1) was $6.4 million or 15.7% of sales

5. Adjusted EBITDA(1) was $4.5 million or 11.1% of sales

6. Total debt of $99.5 million was down $3.0 million for the year-to-date period(1) See attached table for a reconciliation of GAAP net income to Restaurant-level EBITDA and Adjusted EBITDA "The increase in our first quarter sales, particularly the strong trend in March that has continued into the second quarter, is an exciting indication of things to come for the BWW brand. Despite headwinds early in the quarter due to severe winter weather hindering sales for two entire football playoff weekends in each of our three core Midwest markets, the quarter was our second consecutive positive result for same-store sales. Our focus on perfecting the execution of the delivery channel continues to pay-off, as delivery led the way for us early in the quarter. However, as the new brand media and product launches began in mid-March, we finally saw our dine-in traffic turn positive. In fact, since those launches, our dine-in same-store sales through the end of last week are up 3.0%," commented David G. Burke, President and CEO. "While we are disappointed that the revenue increase didn’t convert well to earnings this quarter, we are much more optimistic about the future. Cost of sales, labor and delivery expenses were all headwinds in the quarter as traditional wing prices were higher than expected and labor cost headwinds remain a concern. On the labor front, we made significant investments in training during the quarter around new brand initiatives, and while we don't expect these to be permanent costs, certain of these initiatives will also impact our labor line in the second quarter. Additionally, we implemented a menu price increase at the tail end of the quarter that will help to alleviate these pressures, and we are successfully and meaningfully driving down our delivery costs while continuing to ramp up sales. We have also taken another hard look at our G&A expenses, and will be executing reductions in the next several weeks approaching $1 million on an annualized basis. We expect these reductions to drive overhead expenses below 5% of sales for this year, and closer to 4.5% in future years when we get the full benefit of the reductions."
   

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Chuy’s Holdings, Inc. Announces First Quarter 2019 Financial Results

May 07, 2019 04:05 PM Eastern Daylight Time

AUSTIN, Texas--(BUSINESS WIRE)--Chuy’s Holdings, Inc. (NASDAQ:CHUY) today announced financial results for the first quarter ended March 31, 2019. Highlights for the first quarter ended March 31, 2019 were as follows:

1. Revenue increased 8.8% to $102.1 million from $93.9 million in the first quarter of 2018.

2. Comparable restaurant sales increased 3.2%.

3. Net income was $3.2 million, or $0.19 per diluted share, compared to net income of $3.2 million, or $0.19 per diluted share, in the first quarter of 2018. Net income in the first quarter of 2019 included closures costs of $0.4 million ($0.4 million, net of tax or $0.02 per diluted share).

4. Adjusted net income(1) was $3.6 million, or $0.21 per diluted share compared to net income of $3.2 million, or $0.19 per diluted share, in the first quarter of 2018.

5. Restaurant-level operating profit(1) was $15.7 million compared to $15.3 million in the first quarter of 2018.

6. One restaurant opened during the first quarter of 2019.

(1)Adjusted net income and restaurant-level operating profit are non-GAAP measures. For reconciliations of adjusted net income and restaurant-level operating profit to the most directly comparable GAAP measures see the accompanying financial tables. For a discussion of why we consider adjusted net income and restaurant-level operating profit useful, see “Non-GAAP Measures” below. Steve Hislop, President and Chief Executive Officer of Chuy’s Holdings, Inc. stated, “We were pleased with the trajectory of our top-line during the first quarter, resulting in positive comparable restaurant sales and the return of positive traffic. We believe our recent marketing efforts have contributed to the stabilization of our traffic trends as we have focused on improving brand awareness in newer markets and driving frequency in our existing markets. Looking ahead, we will continue to leverage our marketing, in addition to initiatives around technology, labor, and off-premise. Together with a disciplined development strategy and restaurant operation enhancements, we will continue to focus on opportunities to improve profitability.” Hislop added, “We successfully opened one new restaurant during the first quarter and have subsequently opened two additional restaurants during the second quarter. We are pleased with the performance of these three recent openings thus far as our operators and development team continue to do an excellent job of instilling the Chuy’s culture in our new restaurants. To better balance new unit growth with driving sales and improving restaurant profitability, we are maintaining our 2019 development plan of five to seven restaurants.”

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Papa John’s Announces First Quarter 2019 Results and Reaffirms 2019 Outlook

May 07, 2019 04:20 PM Eastern Daylight Time

LOUISVILLE, Ky.--(BUSINESS WIRE)--Papa John’s International, Inc. (NASDAQ: PZZA) today announced financial results for the first quarter ended March 31, 2019. Highlights

1. First quarter 2019 loss per diluted share of ($0.12)

2. Excluding Special charges, adjusted earnings per diluted share of $0.31 compared to $0.52 for first quarter of 2018

3. System-wide North America comparable sales decrease of 6.9%

4. International comparable sales decrease of 0.1%; international franchise sales increase of 10.5%, excluding the impact of foreign currency

5. 33 net unit openings in the first quarter of 2019 driven by International operations

6. The company issued $252.5 million of Series B Preferred Stock to certain funds affiliated with, or managed by, Starboard Value LP (collectively “Starboard”) and certain franchisees during the quarter Steve Ritchie, President and CEO of Papa John’s, said, “The first quarter was a time of promise for Papa John’s. We made further progress in transforming the culture, thinking and momentum within the company. We have significantly strengthened and refreshed the company’s leadership, adding talented members to the senior management team and highly-qualified directors to the board this year. At the same time, we continued reevaluating all aspects of our go-to-market strategy, identifying multiple opportunities to improve the customer experience, customer value proposition and franchisee unit economics. Last quarter, we made several improvements in the key drivers of our business. Substantial, positive change takes time and effort, but with the passion and dedication of our team members and franchise partners, I am very excited about the future of Papa John’s.”
   

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Fiesta Restaurant Group, Inc. Reports First Quarter 2019 Results

May 06, 2019 04:05 PM Eastern Daylight Time

DALLAS--(BUSINESS WIRE)--Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ:FRGI), parent company of the Pollo Tropical® and Taco Cabana® restaurant brands, today reported results for the 13-week first quarter 2019, which ended on March 31, 2019. Fiesta President and Chief Executive Officer Richard Stockinger said, "Due to recent changes in accounting standards, particularly with respect to lease accounting, it may be difficult to appreciate the progress we have made in improving our operating margins and positioning the Company for greater profitability in the future. We generated higher first quarter Adjusted EBITDA and Restaurant-level Adjusted EBITDA margins compared to the year-ago period, despite the negative impact of an increase in expense resulting from the new lease accounting standard. These improvements come from our constant focus on improving our operations and managing costs, while enhancing the experience and value proposition for our customer; however, we have yet to realize the benefits of this enhanced customer experience in terms of comparable restaurant sales growth. Comparable restaurant sales improved sequentially through the first quarter at Pollo Tropical due primarily to the relaunch of our ‘Pollo Time’ everyday value platform while trends at Taco Cabana were choppy in part due to unfavorable weather." Mr. Stockinger continued, "Over the long-term, we intend to improve sales and profits using the foundation we built through the now-completed Renewal Plan. This year, we look to deliver sustainable growth in comparable restaurant sales through a variety of sales initiatives supported by an impactful mix of digital and social media and traditional marketing. We are committed to amplifying our brands’ everyday value platforms, keeping our menus fresh through ongoing innovation, capitalizing on our growing 'My Pollo' and 'My TC' loyalty and e-club programs, and strengthening our partnership with DoorDash for delivery services. We are also excited by our catering opportunity, which is being positioned as a compelling ‘B to B’ and ‘B to C’ option offering delicious, fresh, flavorful food for any business or social occasion. We believe these efforts should in turn yield higher profitability and margins on a consolidated basis as we leverage favorable commodity costs and prior-year investments." First Quarter 2019 Financial Summary

1. Total revenues decreased 2.1% to $165.9 million in the first quarter of 2019 from $169.5 million in the first quarter of 2018;

2. Comparable restaurant sales at Pollo Tropical decreased 2.6%;

3. Comparable restaurant sales at Taco Cabana decreased 0.5%;

4. Net income of $2.3 million, or $0.08 per diluted share, in the first quarter of 2019, compared to net income of $4.2 million, or $0.15 per diluted share, in the first quarter of 2018;

5. Adjusted net income of $4.1 million, or $0.15 per diluted share, (which includes a $0.02 per diluted share negative impact from adoption of the new lease accounting standard) in the first quarter of 2019, compared to adjusted net income of $4.3 million, or $0.16 per diluted share, in the first quarter of 2018 (see non-GAAP reconciliation table below);

6. Adjusted EBITDA for Pollo Tropical of $14.3 million would have been $0.4 million higher absent accounting changes resulting from adoption of the new lease accounting standard in the first quarter of 2019, compared to $14.4 million in the first quarter of 2018;

7. Restaurant-level Adjusted EBITDA at Pollo Tropical of $21.2 million, or 23.3% of restaurant sales, would have been $0.4 million, or 0.4% of restaurant sales, higher absent accounting changes resulting from adoption of the new lease accounting standard in the first quarter of 2019, compared to $21.6 million, or 22.8% of restaurant sales in the first quarter of 2018 (see non-GAAP reconciliation table below);

8. Adjusted EBITDA for Taco Cabana of $2.9 million would have been $0.5 million higher absent accounting changes resulting from adoption of the new lease accounting standard in the first quarter of 2019, compared to $2.5 million in the first quarter of 2018;

9. Restaurant-level Adjusted EBITDA at Taco Cabana of $9.5 million, or 12.8% of restaurant sales, would have been $0.5 million, or 0.6% of restaurant sales, higher absent accounting changes resulting from adoption of the new lease accounting standard in the first quarter of 2019, compared to $8.7 million, or 11.7% of restaurant sales in the first quarter of 2018 (see non-GAAP reconciliation table below); and

10. Consolidated Adjusted EBITDA of $17.2 million would have been $0.8 million higher absent accounting changes resulting from adoption of the new lease accounting standard in the first quarter of 2019, compared to Consolidated Adjusted EBITDA of $17.0 million in the first quarter of 2018 (see non-GAAP reconciliation table below).

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

Reaffirms Guidance for Fiscal Year 2019

Company has Begun Optimizing its Restaurant Portfolio through Refranchising

May 06, 2019 04:05 PM Eastern Daylight Time

LAKE FOREST, Calif.--(BUSINESS WIRE)--Del Taco Restaurants, Inc. (“Del Taco” or the “Company”), (NASDAQ: TACO), the second largest Mexican-American quick service restaurant chain by units in the United States, today reported fiscal first quarter 2019 financial results for the 12-week period ending March 26, 2019. Del Taco also reaffirmed its previously announced guidance for fiscal year 2019. Fiscal First Quarter 2019 Highlights

1. System-wide comparable restaurant sales decreased 0.1%;

2. Company-operated comparable restaurant sales decreased 0.6%. Company-operated comparable restaurant sales were comprised of average check growth of 4.9%, including nearly 1% of menu mix growth, offset by a transaction decline of 5.5%;

3. Franchised comparable restaurant sales grew 0.4%;

4. Total revenue of $114.2 million representing 1.5% growth from the fiscal first quarter 2018;

5. Company-operated restaurant sales of $105.9 million representing 0.8% growth from the fiscal first quarter 2018;

6. Net income was $1.4 million, or $0.04 per diluted share, compared to $3.2 million, or $0.08 per diluted share, in the fiscal first quarter 2018;

7. Adjusted net income* was $1.7 million, or $0.04 per diluted share, compared to $3.2 million, or $0.08 per diluted share, in the fiscal first quarter 2018;

8. Restaurant contribution* margin of 15.8%, which includes an approximate 0.9% unfavorable impact from the adoption of the new lease accounting standard, compared to 18.4% in the fiscal first quarter 2018;

9. Adjusted EBITDA* of $12.1 million, which includes approximately $0.7 million of unfavorable impact from the adoption of the new lease accounting standard, compared to $13.9 million in the fiscal first quarter 2018; and

10. Four franchised restaurant openings and one franchised restaurant closure. The Company also purchased three franchised restaurants and refranchised 13 restaurants as part of its restaurant portfolio optimization program.* Adjusted net income, restaurant contribution, and adjusted EBITDA are non-GAAP measures and defined below under “Key Financial Definitions”. Please see the reconciliation of non-GAAP measures accompanying this release. John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “While our Mix2 and seasonal seafood promotions performed well in the quarter, driving nearly 1% of menu mix at company-operated restaurants, comparable restaurant sales and transactions were adversely impacted by unfavorable weather in California and throughout the West, as well as a delayed Lenten season. However, our second quarter comparable restaurant sales have returned to positive territory as we cycled the Lenten calendar shift and began to benefit from our transaction-driving initiatives including our digital transformation, value evolution, and menu innovation. We are encouraged by this sequential improvement and are pleased to reaffirm our guidance for the full year.”
    

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Shake Shack Announces First Quarter 2019 Financial Results

May, 3 2019

Total Revenue Grew 33.8% to $132.6 Million - Same-Shack Sales Increased 3.6% - System-wide Year-Over-Year Unit Growth of 30%

Shake Shack Inc.  (NYSE: SHAK) today reported its financial results for the first quarter ended March 27, 2019, a period that included 13 weeks. Financial Highlights for the First Quarter 2019 compared to the First Quarter 2018:

1. Total revenue increased 33.8% to $132.6 million.

2. Shack sales increased 33.8% to $128.6 million.

3. Same-Shack sales increased 3.6%.

4. Shack system-wide sales increased 33.5% to $195.2 million.

5. Operating income was $5.2 million, or 3.9% of total revenue, which included the impact of costs associated with Project Concrete and other one-time items totaling $0.5 million, resulting in a decrease of 20.8%.

6. Shack-level operating profit*, a non-GAAP measure, increased 12.5% to $27.0 million, or 21.0% of Shack sales.

7. Net income was $3.6 million and adjusted EBITDA*, a non-GAAP measure, increased 10.4% to $17.8 million.

8. Twelve system-wide Shack openings, comprised of five domestic company-operated Shacks and seven licensed Shacks.* Shack-level operating profit, adjusted EBITDA and adjusted pro forma net income are non-GAAP measures. Reconciliations of Shack-level operating profit to operating income, adjusted EBITDA to net income, and adjusted pro forma net income to net income attributable to Shake Shack Inc., the most directly comparable financial measures presented in accordance with GAAP, are set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures.” Randy Garutti, Chief Executive Officer of Shake Shack, stated, “We are pleased with the strong momentum from 2018 carried forward into the first quarter of this year. We grew total revenue by almost 34%, Adjusted EBITDA by over 10% and delivered positive same-Shack sales of 3.6%, including a return to positive traffic growth of 1.6%. Our performance was supported by the strength from new openings, the holiday shift and warm weather conditions across a number of key markets early in the quarter and the continued growth of our digital channels, where we see significant ongoing opportunities." Garutti concluded, “Based on our first quarter results, we are raising both our overall revenue and same-Shack Sales expectations for the year. We are on track to open 36 to 40 new company-operated Shacks, marking our largest class yet. We also plan to open 16 to 18 net new licensed Shacks with our international growth focused on Asia and our new markets of mainland China, Singapore, the Philippines and Mexico. 2019 is off to a solid start as we remain focused on the execution of our key strategic commitments that will continue to drive growth.”
   

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Ruth’s Hospitality Group Reports First Quarter 2019 Financial Results

– First Quarter GAAP EPS of $0.47 –

– Announces Acquisition of Three Franchised Restaurants and Territory Development Rights –

– Declares $0.13 Per Share Quarterly Dividend –

May 03, 2019 07:00 AM Eastern Daylight Time

WINTER PARK, Fla.--(BUSINESS WIRE)--Ruth’s Hospitality Group, Inc. (the “Company”) (NASDAQ:RUTH) today reported unaudited financial results for its first quarter ended March 31, 2019. Highlights for the first quarter of 2019 were as follows:

1. Restaurant sales in the first quarter of 2019 increased 2.4% to $113.0 million compared to $110.4 million in the first quarter of 2018. Average unit weekly sales were $111.4 thousand in the first quarter of 2019, an increase of 1.1% compared to $110.3 thousand in the first quarter of 2018.

2. Net income in the first quarter of 2019 was $13.9 million, or $0.47 per diluted share, compared to net income of $13.6 million, or $0.45 per diluted share, in the first quarter of 2018.

- Net income in the first quarter of 2019 included $39 thousand in acquisition-related expenses associated with the acquisition of the three restaurants from our Philadelphia and Long Island franchisee, and a $0.5 million income tax benefit related to the impact of discrete income tax items. Net income in the first quarter of 2018 included $0.5 million in acquisition-related expenses associated with the acquisition of our Hawaiian franchisee, and a $0.4 million income tax benefit related to the impact of discrete income tax items.

- Excluding these adjustments, as well as the results from discontinued operations, non-GAAP diluted earnings per common share were $0.45 in the first quarter of 2019, compared to $0.45 in the first quarter of 2018. The Company believes that non-GAAP diluted earnings per common share provides a useful alternative measure of financial performance to improve comparability of diluted earnings per common share between periods. Investors are advised to see the attached Reconciliation of non-GAAP Financial Measure table for additional information.

1. During the first quarter of 2019, the Company returned $6.5 million through dividends, share repurchases and debt repayments.

2. One new franchised Ruth’s Chris Steak House restaurant opened in the first quarter in China. Cheryl Henry, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “I’m pleased with our first quarter results, which included comparable restaurant sales growth, consistent margins year-over-year, and GAAP EPS of $0.47 despite weather challenges.” Henry added, “I’m excited to announce the acquisition of three franchised restaurants and development territory from longtime franchise partner Marsha Brown. This acquisition includes two restaurants in the Philadelphia, PA area and one on Long Island, NY. Additionally, we purchased the development rights to these areas which will contribute to our long-term growth strategy by unlocking valuable territory. I am thrilled to welcome these restaurants and our new team members to the Ruth’s Chris corporate family.”
   

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Dunkin' Brands Reports First Quarter 2019 Results

May, 2 2019

First quarter highlights include:

1. Dunkin' U.S. comparable store sales growth of 2.4%

2. Baskin-Robbins U.S. comparable store sales decline of 2.8%

3. Added 34 net new Dunkin' locations in the U.S.; total of 8 net new Dunkin' and Baskin-Robbins locations globally

4. Revenues increased 5.9%

5. Diluted EPS increased by 10.5% to $0.63

6. Diluted adjusted EPS increased by 8.1% to $0.67 Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' and Baskin-Robbins (BR), today reported results for the first quarter ended March 30, 2019. "While we are still in the early innings of the implementation of our Blueprint for Growth, Dunkin' U.S. delivered a strong first quarter, including 5.5 percent systemwide sales growth and a 2.4 percent increase in comparable store sales, which was the largest quarterly comparable store sales increase in four years. This solid performance, across both morning and afternoon, was driven by consistent, compelling national value promotions and continued beverage sales momentum. In particular, the relaunch of our highly successful handcrafted espresso platform, without impacting our trademark speed of service, has demonstrated our ability to deliver on the commitment of 'great coffee fast,'" said David Hoffmann, Dunkin' Brands Chief Executive Officer and President of Dunkin' U.S. "Going forward, the collaboration we have with our franchisees and licensees will remain our number one asset, and we will continue to work together to modernize our brands and deliver healthy growth." "Our first quarter financial performance included approximately 6 percent revenue growth and double-digit operating income growth," said Kate Jaspon, Chief Financial Officer, Dunkin' Brands Group, Inc. "We completed a $1.7 billion placement of securitized debt on April 30 that replaced our 2015 notes and were pleased to maintain our overall blended fixed interest rate across all of the outstanding securitized debt under four percent. The refinancing provides strong fixed rates as well as flexibility to navigate future market environments."
   

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

Earnings Per Diluted Share (GAAP) Increased 88%

Adjusted Earnings Per Diluted Share (Non-GAAP) Increased 71.2%

Net Income Increased 85.3%; Adjusted EBITDA (Non-GAAP) Increased 40.4%

May 01, 2019 06:15 AM Eastern Daylight Time

GLENDALE, Calif.--(BUSINESS WIRE)--Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill + Bar® and IHOP® restaurants, today announced financial results for the first quarter of 2019. “Dine Brands delivered another impressive quarter. Our performance and momentum reflect the continued improvement in our core business. We delivered double-digit growth in several key metrics. The implementation of multi-pronged strategies at Applebee’s and IHOP have produced positive results. Both brands reported positive comparable sales growth for the first quarter, lapping over positive sales results for the first quarter of 2018,” said Steve Joyce, Chief Executive Officer of Dine Brands Global, Inc. Mr. Joyce continued, “We are taking a long-term approach to managing the business and focusing on platforms that will deliver sustainable positive results. This includes expanding our off-premise business at both brands and investing in guest-facing technology, where we have made foundational changes to further enhance the guest experience. With the great work being done across the organization, I am enthusiastic about the road ahead.”

($ in 000's, except per share amounts)First Quarter20192018% ChangeTotal revenues, excluding Company restaurant sales$201,447$188,1637.1%Net income available to common stockholders per diluted share$1.73$0.9288.0%Diluted net income available to common stockholders per share, as adjusted(1)$1.90$1.1171.2%Net income$31,643$17,07385.3%Adjusted EBITDA(1)(2)$74,649$53,16940.4%

(1)See “Non-GAAP Financial Measures” and reconciliation of the Non-GAAP financial measure to the respective GAAP financial measure.(2)Does not conform to the definition of Covenant Adjusted EBITDA as found in the Base Indenture.Key Highlights

1. Total revenues, excluding Company restaurant sales, increased 7.1% to $201.4 million for the first quarter of 2019 compared to $188.2 million for the same period last year.

2. IHOP business segment reven,ues, inclusive of Rental and Financing revenues, accounted for approximately 66% of total revenues, excluding advertising revenues and Company restaurant sales, during the first quarter of 2019.

3. IHOP’s reported system-wide sales for the first quarter of 2019 increased 2.4% to $873.1 million compared to $852.9 million for the first quarter of 2018.

4. Gross profit for the first quarter of 2019 increased 22.8% to $102.6 million compared to $83.5 million for the first quarter of 2018. The increase in gross profit was mainly due to a $13.5 million franchisor contribution to the Applebee’s national advertising fund in the first quarter 2018 that did not recur in the first quarter of 2019. IHOP restaurant development and increased IHOP and Applebee’s royalties contributed to the increase in gross profit.

5. The Company restaurant segment contributed approximately $4.2 million of gross profit during their first full quarter of ownership.

6. GAAP earnings per diluted share increased 88.0% to $1.73 for the first quarter of 2019 compared to $0.92 for the first quarter of 2018.

7. Adjusted earnings per diluted share increased 71.2% to $1.90 for the first quarter of 2019 compared to $1.11 for the first quarter of 2018. (See “Non-GAAP Financial Measures” below.)

8. GAAP net income for the first quarter of 2019 increased 85.3% to $31.6 million compared to $17.1 million for the first quarter of 2018.

9. Consolidated adjusted EBITDA the first quarter of 2019 increased 40.4% to $74.6 million compared to $53.2 million for the first quarter of 2018. (See “Non-GAAP Financial Measures” and reconciliation of GAAP net income to consolidated adjusted EBITDA.)

10. For the three-month period ended March 31, 2019, the Company repurchased 151,316 shares of its common stock for a total cost of approximately $12.0 million and paid quarterly cash dividends totaling approximately $11.2 million.

11. Cash flows from operating activities were approximately $28.9 million for the first quarter of 2019 compared to approximately $16.5 million for the first quarter of 2018. Adjusted free cash flow was approximately $27.7 million for the first quarter of 2019. This compares to approximately $15.3 million for the first quarter of 2018. (See “Non-GAAP Financial Measures” and reconciliation of the Company’s cash provided by operating activities to adjusted free cash flow.)

12. Over 1,100 IHOP restaurants, or approximately 65% of the domestic system, have the new Rise ‘N Shine remodel image (including new restaurant openings).

13. Growth in off-premise sales at both brands during the first quarter of 2019 was primarily driven by online channels.

View full version at Dine Brands

Yum! Brands Reports Solid First-Quarter System Sales Growth of 8%; Same-Store Sales Growth of 4%; GAAP Operating Profit Decline of (22)%; Core Operating Profit Growth of 12%

Yum! Brands Reports Solid First-Quarter System Sales Growth of 8%; Same-Store Sales Growth of 4%; GAAP Operating Profit Decline of (22)%; Core Operating Profit Growth of 12%

May 01, 2019 07:00 AM Eastern Daylight Time

LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today reported results for the first-quarter ended March 31, 2019. Worldwide system sales excluding foreign currency translation grew 8%, with 7% net-new units and 4% same-store sales growth. First-quarter GAAP EPS was $0.83, a decrease of (35)%. First-quarter EPS excluding Special Items was $0.82, a decrease of (8)%. GREG CREED COMMENTS Greg Creed, CEO, said, “The third and final year of our transformation is underway and I’m thrilled with the progress towards our commitment to becoming a more focused, more franchised, and more efficient growth company. First-quarter results were a solid start to the year, reflecting particular strength at the KFC division and Taco Bell U.S. With this quarter, we have a healthy foundation to help us achieve our 2019 guidance. Through the lens of our four growth drivers, we continue to leverage our unprecedented scale and expand our capabilities with the goal of improving franchise economics and accelerating growth. We remain confident in our enviable business model and our commitment to lasting growth that maximizes shareholder value.” FIRST-QUARTER HIGHLIGHTS

1. Worldwide system sales excluding foreign currency translation grew 8%, with KFC at 9%, Taco Bell at 7%, and Pizza Hut at 7%. Adjusting the prior year base to include Telepizza, system sales growth excluding foreign currency translation would have been 7% worldwide and 1% for the Pizza Hut Division.

2. We opened 310 net units in the quarter. On a year-over-year basis, which takes into account the strategic alliance with Telepizza in the fourth-quarter 2018, net new unit growth was 7%.

3. We repurchased 1.1 million shares totaling $106 million at an average price of $94.

4. We reflected the change in fair value of our investment in Grubhub by recording $20 million of pre-tax investment expense, resulting in a negative ($0.05) impact in EPS. Our Grubhub investment unfavorably impacted year-over-year EPS growth by ($0.21).

5. Foreign currency translation unfavorably impacted divisional operating profit by $19 million.

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Carrols Restaurant Group, Inc. Completes Acquisition of 220 Restaurants Through Merger with Cambridge Franchise Holdings, LLC

May 01, 2019 09:15 AM Eastern Daylight Time

SYRACUSE, N.Y.--(BUSINESS WIRE)--Carrols Restaurant Group, Inc. ("Carrols" or the “Company”) (Nasdaq: TAST) announced that on April 30, 2019 it completed the acquisition of 165 Burger King® and 55 Popeyes® restaurants from Cambridge Franchise Holdings, LLC (“Cambridge”) in 10 Southern and Southeastern states. Carrols, which operates 1,010 Burger King® and 55 Popeyes® restaurants in 23 states following the acquisition, is the largest franchisee of Restaurant Brands International, Inc. (the franchisor of Burger King®, Popeyes® and Tim Hortons®). As previously announced, Carrols has also entered into an Area Development and Remodeling Agreement with Burger King Corporation (“BKC”) that pre-approves the Company for continued growth through both acquisitions and new restaurant development. Under the terms of the agreement, Carrols’ right of first refusal (“ROFR”) assigned to it by BKC has been expanded to allow for the acquisition of 500 additional Burger King® restaurants. Carrols has also assumed Cambridge’s existing Popeyes® Development Agreement and its ROFR for Popeyes® restaurant acquisitions in Tennessee and Kentucky. As part of these agreements, Carrols has agreed to develop 200 new Burger King®and 70 Popeyes® restaurants over the next six years, and to remodel or upgrade a number of its Burger King® restaurants (or restaurants to be acquired) to the Burger King of Tomorrow image over the same period. Carrols believes these development agreements provide it with a significant expansion runway for both brands. Dan Accordino, Chairman and CEO of Carrols, commented, “This transaction is an exciting growth catalyst for Carrols. We believe it strengthens our position in the Burger King system by providing us the opportunity to continue executing our acquisition and expansion strategy, and adds Popeyes®, a growing brand that further enhances our expansion alternatives. We also believe that we have the potential to improve the performance of the Cambridge restaurants and to leverage their footprint and development team as we launch the next phase of growth for the benefit of Carrols’ shareholders.” Concurrent with the transaction, Carrols refinanced all of Carrols and Cambridge’s indebtedness and entered into a $550 million secured senior credit facility which includes a $425 million Term Loan B facility due 2026 that bears interest at LIBOR + 3.25% and was issued at an OID of 99.5. Use of proceeds included (i) refinancing Carrols’ existing 8% notes, (ii) paying off Cambridge’s indebtedness, and (iii) paying certain fees and expenses related to the financing and the Cambridge transaction. The secured senior credit facility also included a $125 million, undrawn five-year revolving credit facility that will be used to execute Carrols’ growth initiatives as needed. Total consideration to Cambridge included (i) approximately 7.36 million shares of Carrols common stock (a 16.6% equity interest) and (ii) shares of 9% PIK Series C Convertible Preferred Stock that will be convertible into approximately 7.45 million shares of Carrols common stock. The conversion of the preferred stock will be subject to a vote of Carrols’ stockholders to occur at the Company’s 2019 Annual Meeting of Stockholders and will automatically convert into common stock upon stockholder approval of such conversion. All shares issued to Cambridge are subject to a two-year restriction on sale or transfer subject to certain limited exceptions. On a fully-diluted, as-if converted basis after giving effect to both the conversion of the Cambridge and BKC convertible preferred stocks to common stock, Cambridge would hold an approximate 24% equity interest in the Company. There was no cash consideration as part of the transaction. In conjunction with the merger, Alex Sloane and Matt Perelman, the Co-Founders of Cambridge, have joined the Carrols Board of Directors. “Matt and I are excited to join the Carrols Board and support the next phase of the Company’s growth. We believe that Carrols’ strong management team, efficient financing structure, partnership with RBI and compelling capital allocation plan provide for a long runway to enhance shareholder value,” said Alex Sloane, Co-Founder of Cambridge Franchise Holdings. About Cambridge Franchise Holdings and Garnett Station Partners Cambridge Franchise Holdings, controlled by Garnett Station Partners, was founded in 2014 when Matt Perelman and Alex Sloane partnered with Ray Meeks to grow his 23-unit Burger King® business. Since 2014, Meeks, Perelman and Sloane have grown Cambridge to include 165 Burger King® and 55 Popeyes® restaurants throughout the Southeast. Garnett Station Partners, founded by Co-Managing Partners Alex Sloane and Matt Perelman, is an investment firm focused on retail and consumer companies. About Carrols Restaurant Group, Inc. Carrols is the largest Burger King® franchisee in the United States and has operated Burger King® restaurants since 1976. Following the Cambridge merger, Carrols operates 1,010 Burger King® and 55 Popeyes® restaurants in 23 states. For more information on Carrols, please visit the company's website at www.carrols.com.

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J. Alexander’s Holdings, Inc. Reports Results for First Quarter Ended March 31, 2019

Same Store Sales Rise In Both Restaurant Concepts

May 01, 2019 04:10 PM 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 selected other restaurants, today reported results for the first quarter ended March 31, 2019. First Quarter 2019 Highlights Compared To The First Quarter Of 2018

1. Net sales were $64,734,000, an increase of 4.6% from $61,909,000 reported in the first quarter of 2018.

2. For the J. Alexander’s/Grill restaurants, average weekly same store sales per restaurant (1) were $118,700, a gain of 0.3% from $118,300 reported in the first quarter of 2018. For the Stoney River Steakhouse and Grill restaurants, average weekly same store sales per restaurant were $84,500, up 2.2% from $82,700 posted in the first quarter of 2018.

3. Income from continuing operations before income taxes was $4,146,000 for the first quarter of 2019 compared to income from continuing operations before income taxes of $1,842,000 in the first quarter of 2018. The principal factor impacting income from continuing operations before income taxes for the first quarter of 2018 was the quarterly valuation of the profits interest grant with Black Knight Advisory Services, LLC (“Black Knight”) which resulted in profits interest expense of $1,907,000 in the first quarter of 2018. The Company also incurred consulting fees of $244,000 in the first quarter of 2018 under its management consulting agreement with Black Knight. As previously reported, both the management consulting agreement and the profits interest grant are now terminated. Finally, in the first quarter of 2018, the Company’s income from continuing operations before income taxes was impacted by non-recurring transaction expenses of $926,000.

4. On March 15, 2019, the Company used cash on hand to pay Black Knight $705,000 representing the pro-rated 2018 consulting fee, which was accrued in fiscal 2018.

5. The Company recorded net income of $3,848,000 in the first quarter of 2019 compared to net income of $1,593,000 reported in the first quarter of 2018, which was impacted by the same factors noted above affecting income from continuing operations. Results for the most recent quarter included an income tax provision of $239,000 compared to an income tax provision of $138,000 in the corresponding quarter of 2018.

6. The basic and diluted income per share was $0.26 for the first quarter of 2019 compared to $0.11 for the first quarter of 2018.

7. Adjusted EBITDA (2) was $7,712,000 in the first quarter of 2019, down 5.4% from $8,151,000 in the first quarter of 2018.

8. Restaurant Operating Profit Margin (3) as a percent of net saleswas 14.0% in the most recent quarter compared to 15.9% for the same quarter of 2018.

9. Cost of sales as a percentage of net sales in the first quarter 2019 was 31.7% compared to 31.1% in the first quarter of 2018.

10. The Company adopted Accounting Standards Codification 842, Leases, (“ASC 842”) during the first quarter of 2019. ASC 842 requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months and requires additional related disclosures. The adoption of ASC 842 had a material impact on the Company’s assets and liabilities due to the recognition of operating lease right-of-use assets and lease liabilities on its condensed consolidated balance sheet as of the first day of fiscal 2019, which was the Company’s date of adoption. Additionally, the adoption required the Company to recognize an adjustment to its opening retained earnings for fiscal 2019 related to the impairment of the adoption-date right-of-use asset for one of the Company’s locations which is no longer in operation, but for which the Company remains party to a lease agreement. However, the adoption did not have a material effect on the Company’s condensed consolidated statement of income and condensed consolidated statement of cash flows for the first quarter of 2019.

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The Cheesecake Factory Reports Results for First Quarter of Fiscal 2019

May 01, 2019 04:15 PM Eastern Daylight Time

CALABASAS HILLS, Calif.--(BUSINESS WIRE)--The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the first quarter of fiscal 2019, which ended on April 2, 2019. Total revenues were $599.5 million in the first quarter of fiscal 2019 compared to $584.7 million in the first quarter of fiscal 2018. Net income and diluted net income per share were $27.0 million and $0.60, respectively, in the first quarter of fiscal 2019. Excluding the after-tax impact of the $1.5 million loss on the Company’s minority investments, net income and diluted net income per share for the first quarter of fiscal 2019 would have been $28.1 million and $0.62, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this release. Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.3% in the first quarter of fiscal 2019. “Both comparable sales at The Cheesecake Factory restaurants and adjusted earnings per share were at the higher end of our expectations during the first quarter,” said David Overton, Chairman and Chief Executive Officer. “Strong performance within the off-premise channel and across our marketing initiatives contributed to the top-line results. Importantly, our operators executed well, driving solid flow-through to support profitability.” Overton concluded, “The year is off to a great start and we look forward to continuing to deliver memorable experiences to our guests, bringing The Cheesecake Factory to new markets, both domestic and abroad, and positioning the Company for additional long-term growth potential.” Development The Company continues to expect to open as many as six Cheesecake Factory restaurants in fiscal 2019, including the Oxnard, California location that opened in April. In addition, the first location of the Company’s new fine fast-casual concept, Social Monk Asian Kitchen, opened during the first quarter of 2019, as expected. During fiscal 2019, the Company also continues to expect as many as five restaurants to open internationally under licensing agreements. This includes the fourth location in Mexico, which opened in February. In addition, the licensed Cheesecake Factory location in Beirut ceased operations today due to the geopolitical environment in Lebanon.

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Kona Grill Files for Bankruptcy ProtectionThe company closed an additional 15 locations and is up for sale, blaming overly aggressive growth, cost cuts and a stock buyback for its poor finances.

By Jonathan Maze on May. 01, 2019

Kona Grill filed for federal bankruptcy protection late Tuesday as the cash-strapped company closes unprofitable locations and tries to find a buyer.The company has closed an additional 15 locations, according to bankruptcy filings, and is now down to 27 restaurants—it operated 46 at the end of 2017.Kona Grill, which had its stock listing suspended last week, has $33.2 million in debt but had just $1.2 million in cash on hand as of the date of the bankruptcy filing, according to court documents.The company, in filings, blamed a steep sales decline that followed a rapid increase in store growth, which put the chain’s finances deep into the red.Kona doubled its footprint between 2013 and 2017, growing from 23 restaurants to 46. The rapid investment required a lot of capital, according to a declaration by Christopher Wells, who was appointed chief restructuring officer last month. Each restaurant cost $4 million to open.But traffic and unit volumes began declining in 2015 after five straight years of increases. The company spent $1 million in advertising in 2017, but that still didn’t help sales, which continued to decline.Kona Grill also used $15 million in capital to repurchase shares in 2016 and 2017, according to filings. That hurt the company’s liquidity even further.Kona stopped developing new locations in 2017 and started focusing instead on improving profitability and sales of its existing restaurants. The company closed four locations last year but also started working on “rapid cost-cutting efforts” to offset the decline in revenues.Kona cut restaurant-level support, training programs and culinary innovation. It also cut management staffing levels, “which negatively impacted guest experiences and restaurant-level standard-operating procedures.”“Although store-level profitability improved in the short-term, the reductions in staffing, marketing and customer-focused initiatives were unsustainable to counterbalance decreasing revenue trends,” Wells said in his declaration.A new credit agreement a year ago restricted Kona’s borrowing ability and tightened its financial covenants, which further limited the company’s ability to invest in its restaurants. This past March, the company hired Piper Jaffray to evaluate strategic alternatives, including a sale, and then the company hired restructuring specialist Alvarez & Marsal.Kona Grill’s sales fell 12.4% last year to $156.9 million.Kona Grill said last month that it might have to file for bankruptcy protection, and it appointed Jonathan Tibus, managing director with Alvarez & Marsal, as its CEO. Wells is also an Alvarez managing director.Kona has gone through a revolving door at CEO, with five changes in the position since last August.The company is also at war with its former CEO, Jim Kuhn, who has sued Kona over an unpaid severance agreement since he was fired last November. Kona has countered with a lawsuit of its own, blaming its former CEO for overly aggressive cost cuts that led to the worst same-store sales performance in company history.

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Brinker International Reports Third Quarter 2019 Results

April, 30 2019

Earnings per diluted share, on a GAAP basis, in the third quarter of fiscal 2019 increased 28.4% to $1.31 compared to $1.02 in the third quarter of fiscal 2018

Brinker International, Inc. (NYSE: EAT) today announced results for the fiscal third quarter ended March 27, 2019. Highlights include the following:

1. Earnings per diluted share, on a GAAP basis, in the third quarter of fiscal 2019 increased 28.4% to $1.31 compared to $1.02 in the third quarter of fiscal 2018

2. Earnings per diluted share, excluding special items, in the third quarter of fiscal 2019 increased 16.7% to $1.26 compared to $1.08 in the third quarter of fiscal 2018 (see non-GAAP reconciliation below)

3. Brinker International's Company sales in the third quarter of fiscal 2019 increased 2.7% to $811.6 million compared to the third quarter of fiscal 2018. Total revenues in the third quarter of fiscal 2019 increased 3.3% to $839.3 million compared to the third quarter of fiscal 2018

4. Chili's company-owned comparable restaurant sales increased 2.9% in the third quarter of fiscal 2019 compared to the third quarter of fiscal 2018. Chili's U.S. franchise comparable restaurant sales increased 2.0% in the third quarter of fiscal 2019 compared to the third quarter of fiscal 2018

5. Maggiano's company-owned comparable restaurant sales increased 0.4% in the third quarter of fiscal 2019 compared to the third quarter of fiscal 2018

6. Chili's international franchise comparable restaurant sales decreased 3.9% in the third quarter of fiscal 2019 compared to the third quarter of fiscal 2018

7. Operating income, as a percent of Total revenues, was 8.4% in the third quarter of fiscal 2019 compared to 8.9% in the third quarter of fiscal 2018 representing a decrease of approximately 50 basis points

8. Restaurant operating margin, as a percent of Company sales, was 14.3% in the third quarter of fiscal 2019 which included the impact of the sale leaseback transactions and adopting the new revenue accounting standard ("ASC 606"), compared to 16.1% in the third quarter of fiscal 2018 (see non-GAAP reconciliation below). Excluding the impact of the sale leaseback transactions and ASC 606, Restaurant operating margin would have been flat year-over-year

9. Cash flows provided by operating activities in the thirty-nine week period ended March 27, 2019 was $150.6 million and capital expenditures totaled $128.0 million resulting in free cash flow of $22.6 million(see non-GAAP reconciliation below) which was reduced by $75.0 million in cash tax payments related to the gain on the sale leaseback transactions. Proceeds from sale leaseback transactions of $468.8 millionare included in Cash flows provided by investing activities

10. The Company's Board of Directors approved a quarterly dividend of $0.38 per share on the common stock of the Company. The dividend will be payable June 27, 2019 to shareholders of record as of June 7, 2019 "Brinker posted strong comp sales growth and industry leading traffic again in the third quarter," said Wyman Roberts, CEO and President. "This marked our 5th consecutive quarter of significantly outperforming the category in traffic. Our focus continues to be on elevating our guest experiences and providing true every day value to increase the frequency and loyalty of our guests."
    

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Restaurant Brands International Inc. Reports First Quarter 2019 Results

April, 29 2019

BURGER KING® and POPEYES® deliver strong system-wide sales growth and continue expanding global restaurant footprint

Restaurant Brands International Inc. (TSX/NYSE: QSR, TSX: QSP) today reported financial results for the first quarter ended March 31, 2019. Jose Cil, Chief Executive Officer of Restaurant Brands International Inc. ("RBI") commented, "At BURGER KING® and POPEYES®, we saw strong system-wide sales growth driven by net restaurant growth, reflecting the strength of our brands and business model around the world. Underlying fundamentals at TIM HORTONS® remain strong and we are excited about our first three restaurants in China.  Overall, we are confident in the long-term growth prospects for each of our three iconic brands, and remain focused on providing a great guest experience while driving franchisee profitability." Consolidated Operational HighlightsThree Months Ended March 31,20192018(Unaudited)System-wide Sales GrowthTH0.5%2.1%BK8.2%11.3%PLK6.8%10.9%Consolidated6.4%9.2%System-wide Sales (in US$ millions)TH$1,547$1,608BK$5,289$5,149PLK$955$903Consolidated$7,791$7,660Net Restaurant GrowthTH1.9%2.8%BK5.7%6.9%PLK6.6%6.7%Consolidated5.1%6.1%System Restaurant Count at Period EndTH4,8664,774BK17,82316,859PLK3,1202,926Consolidated25,80924,559Comparable SalesTH(0.6)%(0.3)%BK2.2%3.8%PLK0.6%3.2%

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Bloomin’ Brands Announces 2019 Q1 Diluted EPS of $0.69 and Adjusted Diluted EPS of $0.75

April, 26 2019

Comparable restaurant sales increased 3.5% at U.S. Outback Steakhouse - Combined U.S. comparable restaurant sales increased 2.4%

Bloomin’ Brands, Inc. (Nasdaq:BLMN) today reported results for the first quarter 2019 compared to the first quarter 2018. Highlights for Q1 2019 include the following:

1. Comparable restaurant sales increased 3.5% at U.S. Outback Steakhouse

2. Combined U.S. comparable restaurant sales increased 2.4%

3. Comparable restaurant sales increased 3.7% for Outback Steakhouse in Brazil

4. Opened six new restaurants, including five in international marketsDiluted EPS and Adjusted Diluted EPS Our Q1 2019 results include the impact of adopting the new lease accounting standard. Among its impacts, we no longer recognize the benefit of deferred gains on sale-leaseback transactions, resulting in an increase to Other restaurant operating expense of approximately $3.1 million. This represents a three cent reduction in earnings per share. The following table includes both a reported and a comparable basis that adjusts for this lease accounting change. CEO Comments “The first quarter was a strong start to the year, and sets us up well to achieve our 2019 goals,” said David Deno, CEO. “Outback continues its strong sales momentum marking the ninth consecutive quarter of meaningful outperformance versus the industry. In addition, we continue to make progress against our growth platforms and this is showing up in increased sales and margin expansion across the portfolio. In the first quarter, operating margin grew on a comparable basis versus last year.”
   

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Chipotle Q1 Sales Comp Up 9.9%

April, 25 2019

EPS Increases 46.9% As Restaurant Margins Expand to 21%, and Sales Comp Accelerates To 9.9%

Chipotle Mexican Grill, Inc. (NYSE: CMG) yesterday reported financial results for its first quarter ended March 31, 2019. First quarter highlights, year over year:

1. Revenue increased 13.9% to $1.3 billion

2. Comparable restaurant sales increased 9.9%, net of 30 bps from loyalty deferral, and included 5.8% of comparable restaurant transaction growth and 2% in mix contribution

3. Digital sales grew 100.7% and accounted for 15.7% of sales for the quarter

4. Restaurant level operating margin was 21.0%, an increase from 19.5%

5. Diluted earnings per share was $3.13, net of a $0.27 after-tax impact from expenses related to restaurant asset impairment, corporate restructuring, and certain other costs, a 46.9% increase from $2.13. Adjusted diluted earnings per share excluding these charges was $3.40, a 59.6% increase from $2.13.1

6. Opened 15 new restaurants and closed 21 Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release. "The on-going improvement in each of our key operating metrics over the past few quarters gives us confidence that our mission to win today and cultivate the future, is resonating," said Brian Niccol, chief executive officer. "This is the fifth consecutive quarter of accelerating comps, which reinforces our view that when we connect with guests through culturally relevant marketing focused on Chipotle's great taste and real ingredients, and provide more convenient access with less friction, they respond enthusiastically." Results for the three months ended March 31, 2019: Revenue for the quarter was $1.3 billion, an increase of 13.9% from the first quarter of 2018. The increase in revenue was driven by a 9.9% increase in comparable restaurant sales and new restaurant openings. Comparable restaurant sales improved primarily as a result of a 5.8% increase in comparable restaurant transactions and included a 30 basis point negative impact as a result of deferred revenue from our Chipotle Rewards loyalty program. We opened 15 new restaurants during the quarter and closed 2, bringing the total restaurant count to 2,504. Food, beverage and packaging costs were 32.2% of revenue, a decrease of 20 basis points compared to the first quarter of 2018. The decrease was primarily due to the modest menu price increase at the end of 2018, partially offset by an increased demand for steak (a higher priced ingredient), and higher paper cost. Restaurant level operating margin was 21.0% in the quarter, an improvement from 19.5% in the first quarter of 2018.  The improvement was driven primarily by comparable restaurant sales increases and lower repair and maintenance expense, partially offset by wage inflation, increased marketing and promotional cost, and delivery expense associated with increased delivery sales. General and administrative expenses were 7.8% of revenue for the first quarter of 2019, an increase of 110 basis points over the first quarter of 2018. In dollar terms, general and administrative expenses increased compared to the first quarter of 2018 primarily due to $13.1 million in increased performance bonus expense including: non-cash stock-based compensation,  bonus expense, and associated taxes; $3.4 million in outside service expense related to company initiatives to support restaurant growth, including digitizing and modernizing our restaurant experience; $4.3 million related to restructuring; and $1.3 million in other expenses. The effective tax rate decreased to 22.2% in the first quarter of 2019, compared to 36.9% in the first quarter of 2018.  The decrease was primarily due to unfavorable discrete tax items in the first quarter of 2018 including equity vesting at an amount less than original book value and negative impacts from tax reform, and favorable discrete tax items in the first quarter of 2019 related to stock option exercises. Net income for the first quarter of 2019 was $88.1 million, or $3.13 per diluted share, compared to net income of $59.4 million, or $2.13 per diluted share, in the first quarter of 2018. Excluding the impact of restaurant asset impairment, corporate restructuring, and certain other costs, adjusted net income was $95.5 million and adjusted diluted earnings per share was $3.40.
   

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Luby's Reports Second Quarter Fiscal 2019 Results

Apr 22, 2019, 08:00 ET

HOUSTON, April 22, 2019 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its twelve-week second quarter fiscal 2019 referred to as "second quarter."  Comparisons in this earnings release are for the second quarter compared to second quarter fiscal 2018. Second Quarter Key Metrics

1. Same-store sales decreased 3.3%

2. Culinary Contract Services sales increased by 28% to $7.5 million, up from $5.9 million

3. Income from continuing operations of $6.6 million (including $12.7 million in gains on sales of property) compared to loss of $11.5 million in the second quarter fiscal 2018

4. Store level profit was 10.7%, up from 7.7% -- a 300 basis points improvement (see non-GAAP reconciliation below)

5. Adjusted EBITDA increased $2.9 million (see non-GAAP reconciliation below)Chris Pappas, President and CEO, commented, "We continue to make positive progress through our turn-around efforts to reduce costs while repositioning our brands for improved sales and increased store-level profit efficiencies to drive better financial results in 2019 and beyond. Since the beginning of the second quarter last year, we have closed 27 underperforming units and through our $45.0 million asset sales program that began last year, we have generated proceeds of $34.7 million. "Cost management remains a primary focus throughout our organization and even after adjusting for the number of closed stores, our cost run-rate came down in the second quarter. Store-level profit as a percentage of restaurant sales improved in the second quarter to 10.7% compared to 7.7% in the same quarter last year due primarily to effective cost controls to reduce food and supply expenses, efficient hourly labor scheduling, and reductions in repairs and maintenance expense. "While our same-store sale results for the quarter are below our expectations for the full year, they improved sequentially at both our Luby's Cafeteria and Fuddruckers brands. Our chief operating officer, Todd Coutee, continues to realign our organization by putting the right people in the right positions. Todd and the team are also hard at work at several initiatives to enhance sales at each brand with new everyday value choices, focus on  convenience and the dinner meal part, and re-introducing a breakfast service option at several Luby's locations. "Lastly, as we transition to primarily a franchise model for Fuddruckers, we converted five company-operated Fuddruckers restaurants to franchise-operated restaurants.  These restaurants are in the San Antonio market and were transferred in early April to a new franchise operator with prior Fuddruckers experience. We continue to work on additional re-franchising opportunities in markets outside of our home market in Houston, Texas."
   

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Diversified Restaurant Holdings Reports 4.2% Increase in Preliminary Same Store Sales for First Quarter 2019

April, 17 2019

Comparable sales trends accelerated in the month of March at a positive 8.0% - DRH announced that its franchisor exercised its right of first refusal on planned acquisition

Diversified Restaurant Holdings, Inc. (Nasdaq: SAUC), one of the largest franchisees for Buffalo Wild Wings with 64 stores across five states, announced preliminary unaudited sales results for the first quarter ended March 31, 2019. DRH also announced that its franchisor, Buffalo Wild Wings, Inc., has exercised its right of first refusal to acquire the assets of nine BWW restaurants located in the Chicago market that were previously subject to its Asset Purchase Agreement dated February 22, 2019. David G. Burke, President and CEO, stated, “The sales momentum that we enjoyed in the prior quarter has continued into 2019, with comparable sales up 4.2% for the first quarter. After layering on the latest brand enhancing initiatives launched in mid-March, which included a significant strategic media and marketing push around March Madness, we saw an additional measurable improvement in sales and traffic in March, with comparable sales up 8.0%.” Mr. Burke added, “While we are disappointed that our franchisor has elected to take this transaction, we are excited about the positive momentum in our core business and believe that it is a reflection of the investments we have made in focusing on guest experience, loyalty attachment and strong execution of the delivery channel. We believe these investments, coupled with the brand enhancements being continuously rolled out by BWW, leave DRH well positioned to achieve strong long-term growth and earnings performance.” Preliminary Q1 2019 Sales Results Total revenue for the 2019 first quarter was $40.6 million, up from $39.5 million in the first quarter of 2018, despite one fewer restaurant. First quarter comparable sales were up 4.2%, the second consecutive positive quarter. While sales were negatively impacted by significant weather-related headwinds in the Company’s Midwest markets early in the year, these impacts were largely offset by the shift in timing of the Easter holiday from the first quarter of 2018 to the second quarter of 2019. Preliminary results remain subject to the completion of normal quarter-end accounting procedures and are subject to change. The Company expects to release financial and operating results for its first quarter in early May.

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