Nov 19, 201973 min read

Financials - November 2019

Chanticleer Holdings Reports Operating Results for the Quarter Ended September 30, 2019 and the first nine months of 2019

November 14, 2019 16:00 ET

CHARLOTTE, N.C., Nov. 14, 2019 (GLOBE NEWSWIRE) -- Chanticleer Holdings, Inc. (NASDAQ: BURG) (“Chanticleer,” or the “Company”), owner, operator and franchisor of multiple branded restaurants in the U.S. and abroad, today announced financial results for the quarter ended September 30, 2019.

Financial Highlights for the Quarter Ended September 30, 2019 and for the first nine months of 2019

Revenue was $9.7 million in the third quarter of 2019 compared with $10.1 million in the third quarter of 2018. Revenue was $30.6 million in the first nine months of 2019 compared with $30.5 million in the first nine months of 2018.
Cost of sales as a percentage of restaurant sales increased to 33.6% in the third quarter of 2019 compared to 33.1% in the third quarter of 2018. Cost of sales as a percentage of restaurant sales was 33.5% in the first nine months of 2019 compared with 33.3% in the first nine months of 2018.
Operating loss was $4.2 million in the third quarter of 2019 compared to $670,000 in the third quarter of 2018. Operating loss was $8.9 million in the first nine months of 2019 compared to $3.5 million in the first nine months of 2018. These operating losses were primarily driven by non-cash impairment charges related to closing underperforming ABC, BGR and one domestic Hooters units in sub premium locations and selling assets, eliminating deep discounting across all brands, streamlining delivery processes while greatly reducing delivery costs, improving employee benefits for all team members, partnering with legal and other consulting costs to win a hard fought union campaign and ramping up marketing spend around our new loyalty platforms. The Company expects its investment in these initiatives to drive operational improvements in the fourth quarter of 2019 and 2020.
Net loss attributable to Common Shareholders was $3.9 million ($0.39 per share) in the third quarter of 2019, compared to net loss of $1.3 million ($0.34 per share) in the third quarter of 2018. For the first nine months of 2019, net loss attributable to Common Shareholders was $9.1 million ($1.54 per share) compared to $4.7 million ($1.35 per share) in the first nine months of 2018.
Non-GAAP Restaurant EBITDA was $835,000 in the third quarter of 2019 compared to $919,000 in the third quarter of 2018. Non-GAAP Restaurant EBITDA was $2.2 million in the first nine months of 2019 compared to $3.2 million in the first nine months of 2018. Non-GAAP Restaurant EBITDA improved over 10% in the third quarter of 2019 compared to the second quarter of 2019.
During the first nine months of 2019, the Company opened three new Little Big Burger locations along with the opening of a Little Big Burger in the concession area of the Charlotte Motor Speedway. The Company plans on opening another Little Big Burger location in late 2019 or early 2020 depending on construction timeframes.

Other Important Financial and Operational Highlights post-September 30, 2019:

On October 10, 2019, the Company entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with Sonnet BioTherapeutics, Inc., a New Jersey corporation (“Sonnet”), and Biosub Inc., a Delaware corporation and wholly-owned subsidiary of Chanticleer (“Merger Sub”). Upon the terms and subject to the satisfaction of the conditions described in the Merger Agreement, including approval of the transaction by Chanticleer’s shareholders and Sonnet’s shareholders, Merger Sub will be merged with and into Sonnet (the “Merger”), with Sonnet surviving the Merger as a wholly-owned subsidiary of Chanticleer. The shareholders of Sonnet will become the majority owners of Chanticleer’s outstanding common stock upon the closing of the Merger. Additionally, as part of this transaction, Chanticleer will spin-off its current restaurant operations, including all assets and liabilities, into a newly created entity (the “Spin-Off Entity”), the equity of which will be distributed out to the current stockholders of Chanticleer. Terms of the Merger include a payment of $6,000,000 to Chanticleer from Sonnet, a portion of which is intended to repay certain of Chanticleer’s outstanding indebtedness in conjunction with the spin-off of the existing Chanticleer assets and liabilities. Although the spin-off entity intends to eventually apply for listing of its shares on the Nasdaq Stock Market, the new entity expects that it will need to initially trade its shares on the OTC Market following the spin-off.Pursuant to the Merger Agreement, each share of common stock of Sonnet, no par value per share (other than Cancelled Shares (as defined in the Merger Agreement) and Dissenting Shares (as defined in the Merger Agreement)), issued and outstanding immediately prior to the effective time of the Merger (the “Effective Time”) shall be automatically converted into the right to receive an amount of shares of common stock, par value $0.0001 per share, of Chanticleer (“Chanticleer Common Stock”) equal to the Common Stock Exchange Ratio (as defined in the Merger Agreement) (the “Merger Consideration”). As a result, immediately following the Effective Time, the former Sonnet shareholders will hold approximately 94% of the outstanding shares of Chanticleer Common Stock and the shareholders of Chanticleer will retain ownership of approximately 6% of the outstanding shares of Chanticleer Common Stock. In addition, at the closing of the Merger, Chanticleer will issue to the Spin-Off Entity a warrant to purchase that number of shares of Chanticleer Common Stock equal to two percent (2%) of the number of shares of issued and outstanding Chanticleer Common Stock of Chanticleer at Closing. The Warrant will be a five-year warrant, will have an exercise price of $0.01 per share and will not be exercisable for 180 days following the Closing. Upon completion of the Merger, Chanticleer will change its name to Sonnet BioTherapeutics Holdings, Inc.
On October 31, 2019, the Company entered into a sale of business agreement for three of its South Africa Hooters locations. The total purchase price was R5,700,000 (approximately $385,000). The net proceeds received by the Company was approximately $170,000. The Company anticipates closing on the sale of the remaining two South Africa Hooters locations by the end of November 2019.
On November 6, 2019, the Company sold Just Fresh through the sale of 100% of the membership interest of JF Restaurants, LLC. The purchase price was $500,000 with $125,000 due at closing and the remaining $375,000 in the form of a promissory note to be paid in full by December 31, 2019. The sale agreement included the assumption of trade payables at the closing date. The Company also entered into a Management Services Agreement whereby the Company will continue to act as the manager of JF Restaurants, LLC until the note is repaid in full. As manager, the Company will be entitled to a management fee of 5% of the monthly net cash flow from the operation of the restaurants.

Fred Glick, President of Chanticleer commented, “During the third quarter, we streamlined operations to focus on our core burger brand segments by selling off non-burger brand locations and closing several unprofitable locations. As a result, we incurred substantial impairment charges which impacted the third quarter financial results. Several strategic initiatives, and the accompanying ROI, were launched toward the end of the third quarter and beginning of the fourth quarter instead of the original plan to roll out in the early third quarter, which impacted operating results. However, in the third quarter, we launched our loyalty app for LBB and acquired over 30,000 loyalty members, helping drive positive same store sales of 1.67% in October. We launched loyalty apps for BGR and ABC brands in the early fourth quarter. Other ongoing strategic initiatives include our exclusive partnership with door dash, which continues to drive off-premise volume. By year-end, we will offset delivery costs with higher delivery menu pricing. We believe our Beyond burger partnership is strong, as we sold over 50,000 Beyond burgers in just over 4 months, representing over 5% of food sales at our burger concepts.”

Glick continued, “Based on our marketing segmentation results, our BGR and ABC brands have greatly enhanced their menu offerings in the fourth quarter with the launch of three new exclusive, sustainably raised, never ever burgers including: Chipotle infused Bison Burger, Harissa infused Lamb Burger and Truffle infused Wagyu Beef Burger, as well as upgrading several quality cues, and a menu hike of approximately 5%. Initial results and guest feedback have been extremely encouraging, as the three burgers represent over 10% of BGR’s sales mix. Finally, we are actively testing toast kiosks in all brands as we look for technology accelerators to help offset increasing labor costs.”

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Bankrupt, Houlihan’s Accepts $40M Bid From Landry’s

Parent company HRI Holdings is simultaneously seeking Chapter 11 bankruptcy protection and a purchase by Tilman Fertitta's empire.

By Peter Romeo on Nov. 14, 2019

The parent company of Houlihan’s and several sister restaurant concepts has filed for Chapter 11 bankruptcy protection while simultaneously accepting a “stalking horse” offer to be acquired by Landry’s for $40 million and the assumption of certain liabilities.

The moves follow the closing of 12 unprofitable stores, according to court documents. The closures have pared the company’s restaurant portfolio to 47 polished-casual establishments, 34 of which operate under the Houlihan’s name. It is also the franchisor of 23 additional locations.

The filings indicate that HRI Holding Corp. owes about $47 million on a December 2015 loan. HRI has not made a debt or principal payment since December 2018, the documents show. The company agreed in June to seek a sale as a way of meeting its debt obligations. The loan comes due in December 2020.

For Landry’s, the extensive holding company of Houston billionaire Tilman Fertitta, the purchase of Houlihan’s and its sister brands would add another five concepts to a fold that already includes polished casual ventures such as Morton’s The Steakhouse, McCormick & Schmick’s, Mastro’s, Chart House and Salt Grass Steak House.

In addition to Houlihan’s and J. Gilbert’s, Houlihan’s operates or franchises Bristol Seafood Grill, Devon Seafood Grill and a new concept, Make Room for Truman.

Landry’s has amassed its empire in part through the use of stalking horse bids, typically lowball offers that serve as the minimum bid in an auction of assets. In exchange for essentially establishing a minimum bid, the stalking horse bidder is typically promised compensation for any costs related to its acquisition efforts if a higher bid is put forth.

HRI said it has received new financing commitments to keep its restaurants open until a transaction is completed. It also indicated that it intends to complete any deal by the end of the year.

"We expect the process to be seamless for our guests, team members and vendors and look forward to continuing to provide our guests with the same great experience they expect when they dine with us," said HRI CEO Mike Archer in a statement.

View source version at Houlihan's

Freshii Inc. Announces Third Quarter 2019 Results; Renewal of Normal Course Issuer Bid

November 13, 2019 19:45 ET

TORONTO, Nov. 13, 2019 (GLOBE NEWSWIRE) -- Fast-growing, health and wellness brand Freshii Inc. (TSX: FRII) (the “Company”) today announced financial results for the third quarter ended September 29, 2019 (“Q3 2019”).

Highlights for the Third Quarter Fiscal 2019:

System-wide sales grew to $49.2 million in Q3 2019, compared to $45.8 million in the 13 weeks ended September 30, 2018 (“Q3 2018”), an increase of 7%;
The Company opened 10 net new stores in Q3 2019, comprised of 16 openings and 6 closures. During the 52 weeks ended September 29, 2019, the Company opened 33 net new stores, resulting in year-over-year net new store growth of 8%;
Royalty revenue and coordination fees, the Company’s most predictable and stable recurring revenue streams, totaled $4.8 million for Q3 2019, an increase of $0.6 million or 14% over Q3 2018;
Same-store sales growth for Q3 2019 was (3.7%), compared to same-store sales growth of (0.8%) for Q3 2018;
Net income (loss) was ($0.4) million for Q3 2019, no change compared to Q3 2018;
Adjusted EBITDA was $1.8 million for Q3 2019, an increase of $0.4 million or 29% over Q3 2018;
Selling, general and administrative expenses were $3.6 million for Q3 2019, an increase of $0.1 million or 3% over Q3 2018;
The Company adopted IFRS 16 on December 31, 2018, a new standard on leases that affects the manner in which the Company records the expense of lease obligations. See note 3 in the Company’s interim financial statements for Q3 2019 (available at www.sedar.com) for further details and a summary of these changes.

Matthew Corrin, Chairman and Chief Executive Officer of Freshii, said,

“Freshii has grown into a leading healthy food brand with more than 700 points of distribution between our growing restaurant network and our ever-expanding retail partnerships. We currently do business in 16 countries, in over 200 cities and growing. In Q3 2019, we continued to work closely as a new management team to evolve our strategy for omnichannel growth, while growing system wide sales for the 12th consecutive quarter as a public company and generating strong Adjusted EBITDA and cash-flow. Our increased cash-flow will be valuable as we execute our go-forward strategy based around three pillars: driving sales through marketing and menu initiatives; strengthening the trust and confidence our franchise partners have in our brand; and, delivering a world-class customer experience.”

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

Nov 13, 2019, 07:30 ET

DALLAS, Nov. 13, 2019 /PRNewswire/ -- RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the first quarter of fiscal 2020 ended September 29, 2019.

First Quarter Highlights:

Pizza Inn domestic comparable store retail sales increased 3.1% in the first quarter of fiscal 2020 compared to the same period of the prior year.
Pie Five comparable store retail sales decreased 12.2% in the first quarter of fiscal 2020 compared to the same period of the prior year.
Total revenue decreased by $0.1 million to $2.9 million for the first quarter of fiscal 2020 compared to the same period of the prior year.
The Company recorded net income of $0.2 million for the first quarter of fiscal 2020 compared to net income of $0.1 million for the same period of the prior year.
On a fully diluted basis, net income remained stable at $0.01 per share for both the first quarter of fiscal 2020 and the same period of the prior year.
Adjusted EBITDA of $0.4 million for the first quarter of fiscal 2020 decreased $0.1 million from the same period of the prior year.
Cash and cash equivalents increased to $2.4 million as of the end of the first quarter of fiscal 2020, a $0.2 million increase during the quarter.
Pizza Inn domestic unit count including PIE finished at 152.
Pizza Inn international unit count finished at 34.
Pie Five domestic unit count finished at 56.

The Company's net income of $0.2 million in the first quarter of fiscal 2020 was an increase of $0.1 million compared to the same period of the prior year. Diluted income per share was $0.01 in both the first quarter of fiscal 2020 and the same period of the prior year. The increase in net income in the first quarter of fiscal 2020 over the prior year was largely due to improvements in the Pizza Inn Franchising segment and reduced general and administrative expense.

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

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

"I'm excited to join RAVE and committed to competing hard to drive traffic and increase profitability," said Brandon Solano, Chief Executive Officer of RAVE Restaurant Group, Inc. "Pizza Inn continues to grow comp sales and we plan to build on that momentum in the coming quarters. Pie Five has experienced challenges, but we're facing them head on. Pie Five has a strong core offering and we are working on a plan to increase consumer relevance, profitable traffic and unit economics."

View full version at RAVE Restaurant Group

TGI Fridays to go public

Posted 11.12.2019

By Sam Danley

DALLAS — TGI Fridays is planning to go public. The casual dining chain announced a definitive agreement to merge with Allegro Merger Corp., a blank-check special purpose acquisition company, early next year in a transaction valued at $380 million.

TGIF Holdings, L.L.C. shareholders will receive approximately $30 million in cash and stock upon completion of the transaction, and Allegro will assume approximately $350 million of net debt. TriArtisan Capital Advisors L.L.C., the majority owner of TGI Fridays, will exchange most of its ownership for shares of Allegro, the companies said.

“Allegro’s board and I believe that Fridays is an unparalleled iconic international brand, and we are excited to be able to bring this opportunity to our shareholders,” said Eric Rosenfeld, chief executive officer at Allegro Merger Corp. “Fridays’ highly predictable stream of franchise and licensing revenue is very attractive, and we believe that Fridays provides a compelling value to our shareholders.”

The merger is subject to approval by Allegro shareholders. It is expected to close in the first quarter of 2020.

TGI Fridays has 396 domestic units and 442 international units in more than 55 countries. Systemwide sales were approximately $2 billion last year, with an average unit volume of $2.7 million.

The company made several leadership changes throughout the past year. Ray Blanchette became c.e.o. in October 2018. He was joined by John Neitzel, president and chief operating officer for franchise locations. Jim Mazany, chief operating officer for company stores, joined the team in June.

“The first order of business when I took over this company was to bring in the best talent to improve operations and innovation,” Mr. Blanchette said. “This transaction is the next significant strategic move and will allow us to gain public company status and access incremental equity capital to accelerate the rejuvenation of this iconic global brand.”

View source version at TGI Fridays

Nathan's Famous, Inc. Reports Second Quarter Results and Declares Quarterly Cash Dividend of $.35 Per Share

November 08, 2019 08:30 ET

JERICHO, N.Y., Nov. 08, 2019 (GLOBE NEWSWIRE) -- Nathan's Famous, Inc. (NASDAQ:NATH) today reported results for the second quarter of its 2020 fiscal year that ended September 29, 2019.

For the fiscal quarter ended September 29, 2019:

Revenues were $29,726,000, as compared to $29,330,000 during the thirteen weeks ended September 23, 2018;
Income from operations was $7,366,000, as compared to $8,480,000 during the thirteen weeks ended September 23, 2018;
Adjusted EBITDA1, a non-GAAP financial measure, was $8,123,000, as compared to $9,153,000 for the thirteen weeks ended September 23, 2018;
Income before provision for income taxes was $5,103,000, as compared to $6,463,000 for the thirteen weeks ended September 23, 2018;
Net income was $3,658,000, as compared to $4,484,000 for the thirteen weeks ended September 23, 2018; and
Earnings per diluted share was $0.87 per share, as compared to $1.06 per share for the thirteen weeks ended September 23, 2018.

For the twenty-six weeks ended September 29, 2019:

Revenues were $60,244,000, as compared to $59,498,000 during the twenty-six weeks ended September 23, 2018;
Income from operations was $16,814,000, as compared to $17,567,000 during the twenty-six weeks ended September 23, 2018;
Adjusted EBITDA1, a non-GAAP financial measure, was $18,296,000, as compared to $18,748,000 for the twenty-six weeks ended September 23, 2018;
Income before provision for income taxes was $12,288,000, as compared to $12,982,000 for the twenty-six weeks ended September 23, 2018;
Net income was $9,027,000, as compared to $9,279,000 for the twenty-six weeks ended September 23, 2018; and
Earnings per diluted share was $2.14 per share, as compared to $2.19 per share for the twenty-six weeks ended September 23, 2018.

_______________ 1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please see the definitions of EBITDA and Adjusted EBITDA on pages 2 and 3 of this release and the reconciliation of EBITDA and Adjusted EBITDA to net income in the table at the end of this release.

The Company also reported the following:

License royalties increased to $14,147,000 during the twenty-six weeks ended September 29, 2019, (“fiscal 2020 period”), as compared to $13,844,000 during the twenty-six weeks ended September 23, 2018. During the fiscal 2020 period, royalties earned under the retail agreement, including the foodservice program, from John Morrell & Co., increased 2.3% to $13,092,000, as compared to $12,795,000 of royalties earned during the twenty-six weeks ended September 23, 2018.
In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, income from operations declined by approximately $934,000 to $4,327,000 during the fiscal 2020 period, as compared to $5,261,000 for the twenty-six weeks ended September 23, 2018. Sales were $32,295,000 during the fiscal 2020 period, compared to sales of $31,855,000 during the twenty-six weeks ended September 23, 2018, while the volume of hot dogs sold by the Company increased 2.2%. However, the sales and volume results were partially related to winding down the new re-distributor’s temporary service to certain of our regular distributor customers. Our average selling price, which is partially correlated to the beef markets, decreased by approximately 0.4% during the fiscal 2020 period compared to the twenty-six weeks ended September 23, 2018.
Sales from Company-operated restaurants were $10,048,000 during the fiscal 2020 period compared to $10,189,000 during the twenty-six weeks ended September 23, 2018. Sales at the four comparable Company-owned restaurants increased by $633,000 or 6.7% during the fiscal 2020 period. Sales were positively affected, especially at our two Coney Island locations, by favorable weather conditions during the fiscal 2020 period in addition to higher sales at our other traditional Company-owned restaurants.
Revenues from franchise operations were $2,575,000 during the fiscal 2020 period, compared to $2,343,000 during the twenty-six weeks ended September 23, 2018. Total royalties were $2,027,000 during the fiscal 2020 period as compared to $2,101,000 during the twenty-six weeks ended September 23, 2018. Total franchise fee income was $548,000 during the fiscal 2020 period compared to $242,000 during the twenty-six weeks ended September 23, 2018. Thirteen new franchised outlets opened during the fiscal 2020 period.
During the fiscal 2020 period, we recorded Advertising Fund revenue of $1,179,000 and expense of $1,549,000.
During the fiscal 2020 period, the Board of Directors declared two quarterly cash dividends of $0.35 per share totaling $2,958,000.
Effective November 8, 2019, the Board of Directors declared its quarterly cash dividend of $0.35 per share payable on December 6, 2019 to shareholders of record at the close of business on November 25, 2019.

Certain Non-GAAP Financial Information:

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

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

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

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

View source version at Nathan's Famous

Noodles & Company Announces Third Quarter 2019 Financial Results

November 07, 2019 16:05 ET

Adjusted Net Income Increased 118%; Restaurant Contribution Margin Increased 70 bps; Comparable Sales Increased 2.1% System-Wide With 7.6% Two Year Comparable Sales Growth

BROOMFIELD, Colo., Nov. 07, 2019 (GLOBE NEWSWIRE) -- Noodles & Company (Nasdaq: NDLS) today announced financial results for its third quarter ended October 1, 2019.

Key highlights for the third quarter of 2019 versus the third quarter of 2018 include:

Total revenue increased 1.4% to $118.3 million from $116.7 million, primarily due to the increase in comparable restaurant sales.
Comparable restaurant sales increased 2.1% system-wide, comprised of a 2.2% increase at company-owned restaurants and a 1.6% increase at franchise restaurants.
Digital sales grew 47% and accounted for 23% of sales and contributed to an increase in total off premise sales of 490 bps to 54% of sales.
Net income was $4.2 million, or $0.09 per diluted share, compared to net income of $1.1 million, or $0.02 per diluted share.
Adjusted net income(1) increased 118% to $4.1 million, or $0.09 per diluted share, compared to an adjusted net income of $1.9 million, or $0.04 per diluted share.
Restaurant contribution margin(1) increased 70 basis points to 17.1%.
Adjusted EBITDA(1) increased 6.4% to $11.0 million from $10.4 million.

______________________

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

“We are pleased with our results from the third quarter, which marked the sixth consecutive quarter of positive comparable sales growth,” said Dave Boennighausen, Chief Executive Officer. “The Company continues to make strides in expanding both the top and bottom line resulting in a 118% increase in our adjusted net income, and is further evidence that the Company is on a continued strong upward trajectory.”

Boennighausen continued “We are proud that the team continued to deliver solid comparable sales growth with two year growth of 7.6% system-wide, especially as our sales driving marketing and promotional activity will be more concentrated during the fourth quarter to support the recent launches of our Cauliflower noodle and our new rewards program. Our culinary, operational, and digital initiatives position the brand well to continue to drive AUV and margin expansion. Additionally, we are very pleased with the performance thus far of our new restaurants opened this year and look to accelerate new restaurant growth in the quarters to come.”

Third Quarter 2019 Financial Results

Total revenue increased $1.6 million in the third quarter of 2019, or 1.4%, to $118.3 million, compared to $116.7 million in the third quarter of 2018. This increase was primarily due to the increase in comparable restaurant sales and new restaurant openings, partially offset by the impact of restaurants closed since the beginning of the third quarter of 2018, most of which were approaching the expiration of their leases. Average unit volume (“AUV”) for the quarter increased $50,000 to $1,157,000 compared to $1,107,000 in the third quarter of 2018.

In the third quarter of 2019, system-wide comparable restaurant sales growth was 2.1%, comprised of a 2.2% increase at company-owned restaurants and a 1.6% increase at franchise restaurants.

There were three new company-owned restaurants opened, two company-owned restaurants closed and five company-owned restaurants refranchised to a franchisee in the third quarter of 2019. The Company had 458 restaurants at the end of the third quarter 2019, comprised of 391 company-owned restaurants and 67 franchise restaurants.

For the third quarter of 2019, the Company reported net income of $4.2 million, or $0.09 per diluted share, compared with net income of $1.1 million in the third quarter of 2018, or $0.02 per diluted share. Income from operations for the third quarter of 2019 was $5.0 million, compared to $2.1 million in the third quarter of 2018. Closure costs in the third quarter of 2019 included ongoing costs as well as adjustments to liabilities as lease terminations occur.

Restaurant contribution margin increased 70 bps to 17.1% in the third quarter of 2019, compared to 16.4% in the third quarter of 2018. This increase was primarily due to leverage on increased AUV and lower utilities costs, offset by increased third-party delivery fees associated with higher delivery sales.

Adjusted net income was $4.1 million, or $0.09 per diluted share, in the third quarter of 2019, compared to adjusted net income of $1.9 million, or $0.04 per diluted share, in the third quarter of 2018. Adjusted EBITDA increased to $11.0 million in the third quarter of 2019 from $10.4 million in the third quarter of 2018.

View full version at Noodles

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

November 07, 2019 16:06 ET

NORTHLAKE, Texas, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (NASDAQ: FARM) (the "Company") today reported financial results for its first fiscal quarter ended September 30, 2019.

First Quarter Fiscal 2020 Highlights:

Volume of green coffee processed and sold increased by 0.5 million to 26.0 million pounds, a 2.0% increase over the prior year period;
Green coffee pounds processed and sold through our DSD network were 8.3 million, or 32.0% of total green coffee pounds processed and sold
Direct ship customers represented 17.4 million, or 67.0%, of total green coffee pounds processed and sold
Distributor customers represented 0.3 million pounds, or 1.0%, of total green coffee pounds processed and sold
Net sales were $138.6 million, a decrease of $8.8 million, or 6.0%, from the prior year period;
Gross margin decreased to 29.3% from 32.7% in the prior year period, while operating expenses as percentage of sales improved to 24.3% from 34.1% in the prior year period;
Net income was $4.7 million compared to net loss of $3.0 million in the prior year period; and
Adjusted EBITDA was $4.0 million compared to $11.0 million in the prior year period.*

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

“After my first weeks as CEO, I remain excited about joining Farmer Brothers at this critical moment in the Company’s history,” said Deverl Maserang, President and CEO. “I recognize and understand the challenges and the opportunities we face, and I believe we have the assets, the platform, as well as a talented and dedicated employee base to return the Company to growth and profitability.”

Mr. Maserang continued, “Under the leadership of Chris Mottern, solid progress was made towards identifying key priorities aimed at improving and evolving our business for the future. As CEO, I have refined these and am committed to focusing on: optimizing our supply chain, elevating our execution, enhancing our service capability, differentiating our product portfolio through innovation, and engaging our talent. I look forward to working with all our employees to execute with purpose and urgency on our strategic initiatives in order to best position Farmer Brothers to deliver enhanced value for our stakeholders.”

View full version at Farmer Brothers

Carrols Restaurant Group, Inc. Reports Financial Results for the Third Quarter 2019

November 07, 2019 07:00 AM Eastern Standard Time

SYRACUSE, N.Y.--(BUSINESS WIRE)--Carrols Restaurant Group, Inc. (“Carrols” or the “Company”) (Nasdaq: TAST) today reported financial results for the third quarter ended September 29, 2019.

Highlights for the Third Quarter of 2019 versus the Third Quarter of 2018 Include:

Total restaurant sales increased 34.2% to $398.4 million (including $71.6 million in restaurant sales from the Cambridge acquisition completed in the second quarter) from $296.9 million in the prior year quarter;
Comparable restaurant sales for the Company’s Burger King restaurants increased 4.5% compared to a 1.6% increase in the prior year quarter;
As described below, the Company realized it had been combining the sales discounts with respect to separate Whopper® value meal promotions between June 3 and August 26, 2019, which resulted in significant additional sales discounts relative to the advertised promotions that reduced restaurant sales by approximately $8.3 million. Excluding the impact of the excess sales discounts, comparable restaurant sales for the third quarter would have increased approximately 7.4%;
Adjusted EBITDA(1) was $25.6 million compared to $26.5 million in the prior year quarter. The impact of the excess sales discounts above reduced Adjusted EBITDA in the third quarter by approximately $7.3 million. Excluding the impact of the excess sales discounts Adjusted EBITDA in the third quarter of 2019 would have been approximately $32.9 million;
Net loss was $6.8 million, or $0.15 per diluted share, compared to net income of $3.6 million, or $0.08 per diluted share, in the prior year quarter; and
Adjusted net loss(1) was $3.9 million, or $0.09 per diluted share, compared to adjusted net income of $4.2 million, or $0.09 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 (loss) from operations in the tables at the end of this release.

Daniel T. Accordino, Chairman and Chief Executive Officer of Carrols, commented, “Our comparable restaurant sales growth during the third quarter included the successful introduction of the Impossible™ Whopper®, which has contributed incremental restaurant sales since its launch in August and we believe will continue to positively impact our restaurant sales. The 2 for $6 Mix & Match sandwich platform has also performed consistently well while the $1 Crispy Taco provided a new value offering to the Burger King menu. Although a strong quarter from a comparable restaurant sales perspective, we were negatively impacted by the excess discounts we applied to all Whopper value meals relative to the advertised promotions. As a result, our comparable restaurant sales growth was reduced by approximately 290 basis points and Adjusted EBITDA was reduced by approximately $7.3 million. Excluding this impact, our comparable restaurant sales would have increased in the third quarter by approximately 7.4% and our Adjusted EBITDA would have been approximately $32.9 million. Once these excess sales discounts were identified and removed in our pricing of Whopper value meals, our top line results subsequently improved as our September comparable restaurant sales increased 7.9%. Looking ahead, we believe that Burger King’s marketing calendar will allow us to maintain the momentum we experienced through the end of the third quarter and which continued into October.”

Accordino continued, “Restaurant-level profitability and Adjusted EBITDA during the third quarter were also challenged by higher commodity costs, including a 10.7% increase in beef costs, continued labor rate increases, as well the lower restaurant-level EBITDA margins at the Cambridge restaurants, due largely to the investment in training restaurant staff as part of the integration. We also began installation of our point-of sale systems at the Cambridge Burger King restaurants during the third quarter and expect to have all Burger King restaurants installed by the middle of November. This will be an important step in improving controls over sales and optimizing food and labor costs at these restaurants in 2020. We anticipate the full integration of the Cambridge restaurants will be complete by year end. As has been the case with past acquisitions, the investments we are making in training reduced temporarily restaurant-level profitability at the Cambridge restaurants, however we are confident that we will be able to deliver meaningful value creation from the Cambridge restaurants, as we have done in the past with other acquisitions.”

Accordino concluded, “Longer-term, Carrols’ foundation of two world-class brands with significant scale advantages and a supportive franchisor partner bode well for realizing growth opportunities across multiple attractive markets. We believe we are well positioned to capture growth from two of our recent impactful product innovations, the Impossible Whopper at Burger King and the Popeye’s chicken sandwich.

View full version at Carrols Restaurant Group

FAT Brands Inc. Reports Fiscal Third Quarter 2019 Financial Results

Conference call and webcast will be held at 5:00 p.m. ET today

November 07, 2019 04:05 PM Eastern Standard Time

LOS ANGELES--(BUSINESS WIRE)--FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) today reported fiscal third quarter 2019 financial results for the 13-week period ending September 29, 2019.

Andy Wiederhorn, President and CEO of FAT Brands, commented, “We are pleased with our performance in the third quarter which included nearly 11% revenue growth and EBITDA growth of over 70%, as we continue to execute our brand acquisition strategy. During the quarter we successfully integrated our latest acquisition, Elevation Burger, which is now running at full synergies. We have built a considerable brand pipeline from which we will acquire synergistic brands to add to our unique platform.”

Wiederhorn continued, “We continue to pursue financing that will lower our cost of capital. To that end, we recently completed the initial closing of our Series B preferred offering with significant insider purchases. Furthermore, in the next few months, we expect to close a whole-business securitization deal that will further reduce our cost of capital and provide ample permanent capital to pursue our growth strategy.”

Fiscal Third Quarter 2019 Highlights

Total revenues of $6.5 million, up 10.6% from $5.9 million in the third quarter of 2018. Excluding advertising revenues, revenues grew 10.5% to $5.3 million from $4.8 million in the third quarter of 2018.
System-wide sales growth of 7.5% y/y and 19.4% YTD
United States sales growth of 4.5% y/y and 24.9% YTD
Canada sales growth of 5.2% y/y and 5.5% YTD
Other International(1) sales growth of 24.1% y/y and 6.7% YTD
System-wide same-store sales growth of (1.3%) y/y and (1.0%) YTD
United States same-store sales growth of (0.1%) y/y and 0.2% YTD
Canada same-store sales growth of 2.5% y/y and 2.7% YTD
Other International(1) sales growth of (10.5%) y/y and (9.4%) YTD
Six new franchised store openings during the third quarter 2019, with two additional openings thus far in the fourth quarter
Store count as of September 29, 2019: 384 stores system-wide
Net income of $1,154,000 or $0.10 per share on a basic and fully diluted basis, as compared to net income of $10,000 or $0.00 per share on a basic and fully diluted basis in the third quarter of 2018
EBITDA(2) of $3.0 million as compared to $1.8 million in the third quarter of 2018
Adjusted EBITDA(2) of $2.3 million as compared to $2.2 million in the third 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.

Key Financial Definitions

New store openings - The number of new store openings reflects the number of stores opened during a particular reporting period. The total number of new stores per reporting period and the timing of stores openings has, and will continue to have, an impact on our results.

Same-store sales growth - Same-store sales growth reflects the change in year-over-year sales for the comparable store base, which we define as the number of stores open for at least one full fiscal year regardless of whether the brand during the prior measurement period was owned by FAT Brands or a predecessor. Given our focused marketing efforts and public excitement surrounding each opening, new stores often experience an initial start-up period with considerably higher than average sales volumes, which subsequently decrease to stabilized levels after three to six months. Thus, we do not include stores in the comparable base until they have been open for at least one full fiscal year.

System-wide sales growth - System wide sales growth reflects the percentage change in sales in any given fiscal period compared to the prior fiscal period for all stores in that brand only when the brand is owned by FAT Brands. Because of acquisitions, new store openings and store closures, the stores open throughout both fiscal periods being compared may be different from period to period.

View full version at FAT Brands

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

November 07, 2019 04:05 PM Eastern Standard Time

AUSTIN, Texas--(BUSINESS WIRE)--Chuy’s Holdings, Inc. (NASDAQ:CHUY) today announced financial results for the third quarter ended September 29, 2019.

Highlights for the third quarter ended September 29, 2019 were as follows:

Revenue increased 7.8% to $109.1 million from $101.2 million in the third quarter of 2018.
Comparable restaurant sales increased 2.6%.
Net loss was $1.8 million, or $0.11 per diluted share, compared to net loss of $7.5 million, or $0.44 per diluted share, in the third quarter of 2018. Net loss in the third quarter of 2019 included impairment and closure costs of $7.3 million ($5.9 million, net of tax or $0.35 per diluted share). Net loss in the third quarter of 2018 included impairment costs of $12.3 million ($11.0 million, net of tax or $0.64 per diluted share).
Adjusted net income(1) increased by 17.9% to $4.1 million, from $3.5 million, and net income per diluted share increased 25.0% to $0.25 from $0.20, in the third quarter of 2018.
Restaurant-level operating profit(1) increased 11.4% to $15.8 million compared to $14.2 million in the third quarter of 2018.
One restaurant opened during the third quarter of 2019, which brings the total number of opened restaurants through the third quarter to five.

(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 are pleased with the positive trajectory of our business, helped in part by the initiatives we’ve put in place to drive sustainable top-line growth and improve profitability. Not only did we deliver solid top-line growth and our sixth consecutive quarter of positive comparable restaurant sales, we also improved our restaurant level profitability, both on a dollar and margin basis, and grew our adjusted diluted earnings per share by 25% during the third quarter. As we look ahead, we will build upon this momentum and utilize our digital marketing, investment in technology and our off-premise strategy to further improve brand awareness and drive frequency in both newer and existing markets. As a result of our off-premise strategy, our off-premise sales have increased over 13%”

Hislop added, “With our recent restaurant opening in the Columbus, Ohio area, we have now completed our 2019 restaurant development plan. More importantly, we are pleased with the continued progress in developing and testing our new real-estate analytics tool. We believe this tool will allow us to better identify new markets for our store expansion in the years to come. Currently, we are planning to fully utilize this tool for our 2021 development.”

View full version at Chuy's

The ONE Group Hospitality, Inc. Reports Third Quarter 2019 Results

Domestic Same Store Sales Increases 9.3%; Operating Income Increases 131%; Adjusted EBITDA Increases 30%

Updates 2019 and Issues 2020 Financial Targets

November 07, 2019 04:05 PM Eastern Standard Time

DENVER--(BUSINESS WIRE)--The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the third quarter ended September 30, 2019. The Company also updated its previously announced financial targets for 2019 and issued financial targets for 2020, both inclusive of the acquisition of Kona Grill, which was completed on October 4, 2019.

Highlights for the third quarter ended September 30, 2019 compared to the same period last year were as follows:

Total GAAP revenues increased 10.5% to $22.1 million from $20.0 million;
Domestic same store sales* for STK restaurants increased 9.3%;
GAAP net income attributable to The ONE Group was $460,000, or $0.02 net income per share, compared to GAAP net loss of $305,000, or $0.01 net loss per share; and
Adjusted EBITDA** increased 30% to $2.6 million compared to $2.0 million in the prior year.

*Same store sales represents total US food and beverage sales at owned and managed STK units opened for at least a full 18-month period. Revenues from locations where we do not directly control the event sales force (The W Hotel, Westwood, CA and our locations in Europe) are excluded from this measure.

**We define Adjusted EBITDA as net income (loss) before interest expense, provision for income taxes, depreciation and amortization, non-cash impairment loss, non-cash rent expense, pre-opening expenses, non-recurring gains and losses, stock-based compensation, results from discontinued operations and certain transactional costs. Adjusted EBITDA has been presented in this press release and is a supplemental measure of financial performance that is not required by, or presented in accordance with, GAAP. Refer to the reconciliation of Adjusted EBITDA to Net Income (loss) in this release.

Emanuel “Manny” Hilario, President and CEO of The ONE Group, stated, "Same store sales growth accelerated to 9.3% against a formidable comparison of 6.9% from the same period last year, reflecting the popularity of our unique VIBE dining program and continued ability to expand our market share within the upscale dining segment. We also increased overall profitability by controlling restaurant-level operating and corporate expenses, resulting in 30% growth in Adjusted EBITDA.”

Mr. Hilario continued, “We recently opened an STK restaurant at the Condado Vanderbilt Hotel in San Juan, Puerto Rico and a new restaurant brand, ANGEL Roofbar & Dining, at the Hotel Calimala in Florence, Italy. We have one additional STK restaurant slated to open, in Scottsdale, Arizona, by year-end. In 2020, we intend to accelerate our development and currently project six to eight openings, consisting of five to six STK restaurants and one to two food and beverage venues.”

Mr. Hilario added, “Last month, The One Group marked a milestone event by acquiring Kona Grill, an excellent brand with 24 high performing domestic restaurants. We foresee a meaningful opportunity at Kona Grill to embed elements of our bar-business knowledge and unique VIBE dining program, improve its operating margins through efficiencies and scale, and leverage its G&A as part of our corporate infrastructure. These efforts will serve to define the brand’s next chapter by elevating the Kona Grill guest experience while driving better top and bottom line performance. In doing so, we can create long-term value for our shareholders.”

Mr. Hilario concluded, “Our updated 2019 outlook reflects Kona Grill contributing approximately $23 million to $24 million in revenues and additive to Adjusted EBITDA to our consolidated fourth quarter 2019. For 2020, we expect up to 78% growth in our total GAAP revenues, including approximately $100 million in sales from Kona Grill, and expect to generate between $23 million and $25 million in Consolidated Adjusted EBITDA, representing up to 80% growth compared to this year.”

View full version at The ONE Group

J. Alexander’s Holdings, Inc. Reports Results For Third Quarter Ended September 29, 2019

November 07, 2019 04:14 PM Eastern Standard 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 third quarter ended September 29, 2019.

Third Quarter 2019 Highlights Compared To The Third Quarter Of 2018

Net sales for the third quarter of 2019 were $56,867,000 compared to $56,730,000 reported in the third quarter of 2018.
Income from continuing operations before income taxes totaled $342,000 for the third quarter of 2019, including the impact of transaction, contested proxy and other related expenses of $117,000. This compares to a loss from continuing operations before income taxes of $713,000 in the third quarter of 2018 which included profits interest expense of $1,240,000 from the quarterly valuation of the Black Knight Advisory Services, LLC (Black Knight) profits interest grant. The Company also incurred consulting fees of $139,000 in the third quarter of 2018 under its management consulting agreement with Black Knight. As previously reported, both the management consulting agreement and the profits interest grant related to Black Knight have been terminated, and therefore no such expenses have been recorded in the third quarter of 2019.
The Company recorded net income of $771,000 in the third quarter of 2019 compared to a net loss of $633,000 reported in the third quarter of 2018, which was impacted by the same factors as previously noted affecting income (loss) from continuing operations. Results for the most recent quarter included an income tax benefit of $495,000 compared to an income tax benefit of $198,000 in the third quarter of 2018.
Basic and diluted earnings per share were $0.05 for the third quarter of 2019 compared to a loss of $0.04 for the third quarter of 2018.
Average weekly same store sales per restaurant (1) for the third quarter of 2019 were down 2.0% to $105,700 for the J. Alexander’s/Grill restaurants and down 0.7% to $71,100 for the Stoney River restaurants compared to the third quarter of 2018.
Adjusted EBITDA (2) was $4,375,000 in the third quarter of 2019, up 6.7% from $4,100,000 in the comparable quarter of 2018.
Restaurant Operating Profit Margin (3) was 8.9% in the most recent quarter compared to 9.7% for the corresponding quarter of 2018.
Cost of sales as a percentage of net sales in the third quarter of 2019 was 31.8% compared to 31.5% in the third quarter of 2018.

The Company’s restaurant labor and related costs as a percentage of net sales were 33.1% in the third quarter of 2019 compared to 32.8% of net sales in the third quarter of 2018. Other restaurant operating expenses were 21.0% of net sales in the third quarter of 2019 compared to 21.1% of net sales in the same quarter of 2018.

The average weekly guest counts within the same store base of the Company’s J. Alexander’s/Grill collection were down 2.9% in the third quarter of 2019 compared to the third quarter of 2018. Guest counts within the same store base at the Company’s Stoney River Steakhouse and Grill restaurants were down 0.4% for the third quarter of 2019 compared to the third quarter of 2018. With respect to average guest checks, which include alcoholic beverage sales, the average guest check within the J. Alexander’s/Grill same store base of restaurants during the third quarter of 2019 was $32.17, up 0.9% from $31.87 recorded during the third quarter of 2018. The average guest check within the same store base of Stoney River Steakhouse and Grill restaurants was $42.36 during the third quarter of 2019, down 0.1% from $42.41 recorded in the third quarter of 2018.

On a consolidated basis, average weekly guest counts within the Company’s J. Alexander’s/Grill locations in the third quarter of 2019 were down 2.5% from the third quarter of 2018, while average weekly guest counts within the Company’s Stoney River Steakhouse and Grill locations increased 1.9% for the third quarter of 2019 compared to the same quarter a year ago. Average guest checks on a consolidated basis for the J. Alexander’s/Grill restaurants increased 0.8% from $31.95 in the third quarter of 2018 to $32.19 for the third quarter of 2019. Average guest checks for the Stoney River Steakhouse and Grill restaurants decreased 1.4% from $42.41 in the third quarter of 2018 to $41.82 in the third quarter of 2019.

The effect of menu pricing for the third quarter of 2019 was estimated to be a 0.5% increase for the J. Alexander’s/Grill restaurants and a 0.9% increase for the Stoney River Steakhouse and Grill restaurants compared to the third quarter of 2018. For the J. Alexander’s/Grill restaurants, management estimated that inflation in total food costs was 0.8% for the third quarter of 2019 compared to the same quarter in 2018, and beef costs were determined to have increased by an estimated 4.7% compared to the same quarter of the prior year. For the Stoney River Steakhouse and Grill restaurants, inflation for the third quarter of 2019 was estimated to total 2.8%, with beef costs up by 6.2% from the comparable quarter of 2018.

View full version at J. Alexander's

The Wendy's Company Reports Third Quarter 2019 Results

Nov 06, 2019, 07:00 ET

DUBLIN, Ohio, Nov. 6, 2019 /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) today reported unaudited results for the third quarter ended September 29, 2019.

"We delivered a strong quarter of sales and earnings growth, demonstrating that we are building an even stronger foundation for the Wendy's® brand," President and Chief Executive Officer Todd Penegor said. "We remain relentlessly focused on executing our plan to accelerate same-restaurant sales and drive global restaurant expansion across the globe. We are well positioned to drive growth in 2020 and beyond to achieve our vision of becoming the world's most thriving and beloved restaurant brand, and to become an accelerated, efficient growth company."

Third 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

Third Quarter

Year-to-Date

2019

2018

2019

2018

(Unaudited)

Systemwide Sales Growth(1)

North America

5.5%

1.2%

3.8%

2.2%

International(2)

9.2%

13.2%

9.8%

13.2%

Global

5.7%

1.7%

4.1%

2.7%

North America Same-Restaurant Sales Growth(1)

4.4%

(0.2)%

2.4%

1.1%

Restaurant Openings

North America - Total / Net

27 / 15

23 / 7

76 / 23

64 / 11

International - Total / Net

13 / 9

14 / 6

35 / 9

42 / 24

Global - Total / Net

40 / 24

37 / 13

111 / 32

106 / 35

Systemwide Sales (In US$ Millions)(3)

North America

$2,660

$2,523

$7,782

$7,530

International(2)

$138

$127

$411

$386

Global

$2,798

$2,650

$8,193

$7,916

(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

Third Quarter

Year-to-Date

2019

2018

B / (W)

2019

2018

B / (W)

(In Millions Except Per Share Amounts)

(Unaudited)

Total Revenues

437.9

400.6

9.3

1,281.8

1,192.1

7.5

Adjusted Revenues(1)

351.1

319.0

10.1

1,027.9

947.1

8.5

Company-Operated Restaurant Margin

16.2%

15.7%

0.5

15.9%

15.8%

0.1

General and Administrative Expense

46.2

46.5

0.6

146.3

146.1

(0.1)

Operating Profit

79.0

77.3

2.2

225.9

204.1

10.7

Net Income

46.1

391.2

(88.2)

110.4

441.3

(75.0)

Adjusted EBITDA

109.9

107.2

2.5

329.4

307.6

7.1

Reported Diluted Earnings Per Share

0.20

1.60

(87.5)

0.47

1.79

(73.7)

Adjusted Earnings Per Share

0.19

0.17

11.8

0.51

0.42

21.4

Cash Flows from Operations

237.5

229.7

3.4

Capital Expenditures

(41.0)

(39.7)

(3.3)

Free Cash Flow(2)

192.3

181.1

6.2

(1) Total revenues less advertising funds revenue.

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

Third Quarter Financial Highlights

Revenues and Adjusted Revenues The increase in revenues and adjusted revenues was primarily driven by higher sales at Company-operated restaurants and an increase in franchise royalty revenue. Higher sales at Company-operated restaurants was the result of positive same-restaurant sales and an increase in the number of restaurants in operation. The increase in franchise royalty revenue was primarily driven by positive same-restaurant sales and new restaurant development. Revenues and adjusted revenues also benefited from an increase in franchise rental income which was driven by approximately $10 million in pass-through payments related to subleases as the result of the new lease accounting standard. This incremental revenue was completely offset by a corresponding increase in franchise rental expense.

View full version at Wendy's

Diversified Restaurant Holdings, Inc. To Be Acquired By ICV Partners

Stockholders to receive $1.05 per share in cash, representing a 111% premium to the 30-day volume weighted average price

November 06, 2019 06:30 AM Eastern Standard Time

TROY, 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 sports bars across five states, today announced the execution of a definitive merger agreement with investment entities affiliated with ICV Partners, LLC (together with its affiliates, “ICV”), a leading private investment firm that supports strong lower middle market companies.

Under the terms of the agreement, ICV has agreed to acquire the Company in an all cash transaction valued at approximately $130 million, including the assumption of outstanding indebtedness and transaction expenses. DRH’s common stockholders will receive $1.05 per share in cash, representing an approximate 123% premium to the Company’s closing share price on November 5, 2019, and an approximately 111% premium to the 30-day volume weighted average stock price.

“This transaction validates the strength of our franchise, creates a strong future for our employees, and provides a significant platform from which ICV can continue to build, while also rewarding our stockholders for their commitment,” commented Michael Ansley, Founder of DRH, Executive Chairman and Acting CEO. He added, “These are exciting times for the Buffalo Wild Wings brand. Inspire Brands has reignited the sports bars with an improved menu, better customer experience and strong support for its franchisees. With the strength of ICV, our franchise can better leverage this effort and further the long history of BWW customer loyalty.”

The transaction is structured as a merger of the Company with a newly-formed entity affiliated with ICV, with DRH continuing as the surviving entity of such merger. Upon closing, stockholders of DRH will receive $1.05 per share in cash.

The Company’s merger agreement with ICV was unanimously approved by the Company’s Board of Directors following a previously announced review of strategic alternatives undertaken by the Company. The closing of the transaction is subject to stockholder approval, the consent of BWW, and other customary closing conditions. The Company and ICV expect to complete the transaction by the end of 2019 or early 2020, following the annual meeting of stockholders at which the transaction will be an item presented for stockholder approval.

Michael Ansley and Jason Curtis, collectively holding approximately 34% of the outstanding shares of the Company, have entered into voting agreements committing them to, among other things and subject to its terms, vote in favor of adopting the merger agreement.

Duff & Phelps acted as exclusive financial advisor to the Company and provided a fairness opinion to the Company’s Board of Directors in connection with the transaction, and Dykema served as legal counsel to the Company. DLA Piper served as legal counsel for ICV in connection with the transaction.

About Diversified Restaurant Holdings, Inc.

Diversified Restaurant Holdings, Inc. is one of the largest franchisees for Buffalo Wild Wings with 64 franchised sports bars in key markets in Florida, Illinois, Indiana, Michigan and Missouri. DRH’s strategy is to generate cash, reduce debt and leverage its strong franchise operating capabilities for future growth. The Company routinely posts news and other important information on its website at http://www.diversifiedrestaurantholdings.com.

About ICV Partners

Founded in 1998, ICV Partners is a leading private investment firm that supports management leaders of strong lower middle market companies. Over its first four funds, the principals of ICV have crafted a strong track record of helping companies expand their footprint and improve performance over the long term and across a variety of industries. Additional information is available at www.icvpartners.com.

View source version at Diversified Restaurant Holdings

Bloomin’ Brands Announces 2019 Q3 Diluted EPS of $0.11 and Adjusted Diluted EPS of $0.10

Q3 GAAP Operating Margin Expansion of 100 bps and 60 bps on a Comparable Adjusted Basis

Reaffirms Full-Year 2019 Guidance for Adjusted Diluted EPS and Adjusted Operating Margin

Company Exploring Strategic Alternatives to Maximize Shareholder Value

November 06, 2019 07:00 AM Eastern Standard Time

TAMPA, Fla.--(BUSINESS WIRE)--Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the third quarter 2019 (“Q3 2019”) compared to the third quarter 2018 (“Q3 2018”).

Highlights for Q3 2019 include the following:

Comparable restaurant sales increased 0.2% at U.S. Outback Steakhouse, representing its 11th consecutive quarter of positive comparable restaurant sales
Comparable restaurant sales increased 11.2% for Outback Steakhouse in Brazil
Opened eight new restaurants, including five international franchise locations

Diluted EPS and Adjusted Diluted EPS

Our Q3 2019 results include the impact of the new lease accounting standard adopted in Q1 2019. 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 which represents a two cent reduction in earnings per share on the quarter. The following table includes both a reported and a comparable basis that adjusts for this lease accounting change.

The following table reconciles Diluted earnings per share to Adjusted diluted earnings per share for the periods as indicated below.

2019

2018

CHANGE

Diluted earnings per share

0.11

0.04

0.07

Adjustments

(0.01

)

0.06

(0.07

)

Adjusted diluted earnings per share

0.10

—

Remove new lease accounting standard impact (1)

—

(0.02

)

0.02

Adjusted diluted earnings per share on a comparable basis (1)

0.10

0.08

0.02

______________

See Non-GAAP Measures later in this release.

(1)

In Q3 2018 both GAAP and adjusted diluted earnings per share include the benefit of deferred gains on sale-leaseback transactions of approximately $0.02. For comparability, we have presented adjusted diluted earnings per share excluding this benefit that we no longer recognize in 2019 as a result of the adoption of the new lease accounting standard.

CEO Comments

“Q3 earnings per share increased 25% on a comparable adjusted basis as we focus on building healthy traffic and improving profitability,” said David Deno, CEO. “U.S. comp sales were flat with traffic significantly outperforming the industry. We have intentionally moderated our average check increases to further strengthen our value relative to competition across the portfolio. This pricing discipline combined with sales momentum from investments in the customer experience and off-premises is building, with October trends significantly out-pacing the industry. This strategy combined with disciplined cost management, drove operating margins higher by 60 basis points on comparable adjusted basis versus last year. We remain well positioned to finish the year strong and achieve our earnings commitments.”

View full version at Bloomin' Brands

Papa John’s Announces Third Quarter 2019 Results

November 06, 2019 07:35 AM Eastern Standard Time

LOUISVILLE, Ky.--(BUSINESS WIRE)--Papa John’s International, Inc. (NASDAQ: PZZA) today announced financial results for the three and nine months ended September 29, 2019.

Highlights

Third quarter 2019 loss per diluted share of ($0.10) as compared to third quarter 2018 loss per diluted share of ($0.42)
Excluding Special items, adjusted earnings per diluted share of $0.21 compared to $0.19 for the third quarter of 2018
Third quarter system-wide North America comparable sales increase of 1.0%
Third quarter international comparable sales increase of 1.6%; international franchise sales increase of 10.1%, excluding the impact of foreign currency
Refranchised 44 restaurants in the third and fourth quarters
2019 outlook revised for comparable sales and net global unit development

Rob Lynch, President & CEO said, “We are very pleased to have positive comparable sales in North America for the first time in two years. I have spent a large part of my first two months meeting with our franchisees, team members, and other key stakeholders. We are all focused on the right things – reinforcing the quality of our food, improving our unit economics, and promoting a company culture that sets us up to win for years to come. While there is much work to do, we have put in place a clear strategic roadmap to align the interests of our customers, employees, franchisees, and shareholders. Our strategic priorities will guide our path to a brighter future.”

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Fiesta Restaurant Group, Inc. Reports Third Quarter 2019 Results

Company Completes Key Executive Hires and Continues Progress on Strategic Drivers of Future Growth

November 05, 2019 04:05 PM Eastern Standard Time

DALLAS--(BUSINESS WIRE)--Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ: FRGI), parent company of the Pollo Tropical® and Taco Cabana® restaurant brands, today reported results for the 13-week third quarter 2019, which ended on September 29, 2019.

Fiesta President and Chief Executive Officer Richard Stockinger said, "Although quarterly comparable restaurant sales declined, we experienced sequential improvement at both brands as a result of our everyday value platform, LTO promotions and growing sales traction from our investments in off premise channels. In addition, third quarter comparable restaurant sales at Pollo Tropical were negatively impacted by Hurricane Dorian by approximately 150 basis points and by planned sales cannibalization of roughly 80 basis points. We were encouraged by the fact that Pollo Tropical comparable restaurant transactions exceeded the industry benchmark for the quarter and comparable restaurant sales were positive for the period in September following the hurricane, with improvement across all Florida markets. We launched Taco Cabana's value platform, 'TC Time', in September, which helped drive the brand's comparable restaurant transactions above the industry benchmark index in Texas during the month."

Mr. Stockinger continued, "We continued to make strong progress during the quarter on our sales-building initiatives of menu innovation and simplification, everyday value platforms, and off premise dining including online, delivery and catering. The sales performance in September is only partially reflective of those efforts. We expect those investments will continue to accelerate results for the remainder of the year and into 2020. We also continue to focus on restaurant level margin improvement. Excluding the impact of lease accounting changes and the hurricane impact, Pollo Tropical restaurant margins would have increased, and Taco Cabana restaurant margins would have been flat to last year, despite the sales decline."

Mr. Stockinger added, "We were also very excited to have filled two more key positions in our senior leadership team during the third quarter. We named industry veteran Dirk Montgomery as our new CFO and Hope Diaz joined Fiesta as our new CMO. They each bring very strong capability and deep restaurant experience to Fiesta and they will help us accelerate the speed of our progress."

Mr. Stockinger concluded, "As we close out the year and look toward 2020, we expect stable food costs for the remainder of 2019 and 2020 vs. the prior year based on supply commitments in place across key commodities. We will maintain our focus on building sales growth across in store and off premise channels by continuing to enhance our brands' attractiveness to guests."

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Red Robin Gourmet Burgers Reports Results for the Fiscal Third Quarter Ended October 6, 2019

November 05, 2019 04:05 PM Eastern Standard Time

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) (“Red Robin” or the “Company”), a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the quarter ended October 6, 2019.

Third Quarter 2019 Financial Summary Compared to Third Quarter 2018

Comparable restaurant revenue increased 1.6% (using constant currency rates), the third consecutive quarter of improved trends;
Comparable restaurant guest counts decreased 3.1%;
Off-premise sales, including catering, increased 37.3% and comprised 13.2% of total food and beverage sales, including catering;
Total revenues were $294.2 million, a decrease of 0.2%;
GAAP loss per diluted share was $0.14 compared to earnings per diluted share of $0.13;
Adjusted loss per diluted share was $0.24 compared to adjusted earnings per diluted share of $0.16 (see Schedule I);
Net loss was $1.8 million compared to net income of $1.7 million; and
Adjusted EBITDA was $14.7 million compared to $24.2 million (see Schedule III).

Paul J.B. Murphy III, Red Robin’s President and Chief Executive Officer, said, “I am encouraged by the current momentum at Red Robin, reflected in rising operating and guest metrics, complemented by an effective new omni-channel creative campaign, that are driving better topline results. The team is making progress strengthening and transforming the dine-in business while investing in our strategic priorities. While there still is much work to do, these efforts are enabling us to build our brand reputation and the confidence of our Guests, which are critical to driving sustainable improvements in sales and profitability for years to come.”

Murphy added, “On behalf of the entire Red Robin team, I would like to thank Pattye Moore for her tremendous contributions during her tenure as interim CEO and for her service to the Company over the past 12 years. Under her effective leadership, the executive team established a stronger operational foundation that we can now build upon to create value for stockholders, Guests, Team Members, and other stakeholders.”

Third Quarter 2019 Operating Results

Total revenues, which primarily include Company-owned restaurant revenue and franchise royalties, decreased 0.2% to $294.2 million in the third quarter of 2019, from $294.9 million in the third quarter of 2018. Restaurant revenue decreased $0.4 million due to a $4.8 million decrease from restaurant closures, partially offset by a $4.4 million, or 1.6%, increase in comparable restaurant revenue.

System-wide restaurant revenue (which includes franchised units) for the third quarter of 2019 totaled $351.9 million, compared to $351.0 million for the third quarter of 2018.

Comparable restaurant revenue(1) increased 1.6% in the third quarter of 2019 compared to the same period a year ago, driven by a 4.7% increase in average guest check, partially offset by a 3.1% decrease in guest count. The increase in average guest check comprised a 3.2% increase in menu mix and a 1.5% increase in pricing. The increase in menu mix was primarily driven by the Company’s current menu and promotional strategy, resulting in lower Tavern burger sales and higher Finest burger and entrée sales.

Net loss was $1.8 million for the third quarter of 2019 compared to a net income of $1.7 million for the same period a year ago. Adjusted net loss was $3.1 million for the third quarter of 2019 compared to adjusted net income of $2.1 million for the same period a year ago (see Schedule I).

Restaurant-level operating profit margin (a non-GAAP financial measure) was 16.1% in the third quarter of 2019 compared to 16.8% in the same period a year ago. Cost of sales as a percentage of restaurant revenue remained flat. Restaurant labor costs as a percentage of restaurant revenue increased 90 basis points due to higher average wage rates and increased manager staffing levels. Other restaurant operating costs increased 30 basis points primarily due to a 70 basis point increase in third party delivery fees, partially offset by a 20 basis point decrease in utilities and a 20 basis point decrease in other restaurant expenses. Occupancy costs decreased 60 basis points due to restaurant closures. Schedule II of this earnings release defines restaurant-level operating profit, discusses why it is a useful metric for investors, and reconciles this metric to income from operations and net income, in each case under GAAP.

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Shake Shack Announces Q3 2019 Financial Results

November, 5 2019

Total Revenue Grew 31.9% to $157.8 Million - Same-Shack Sales Increased 2.0% - System-wide Year-Over-Year Unit Growth of 35%

Shake Shack Inc. (NYSE:SHAK) today reported its financial results for the third quarter ended September 25, 2019, a period that included 13 weeks.

Financial Highlights for the Third Quarter 2019 compared to the Third Quarter 2018:

Total revenue increased 31.9% to $157.8 million.
Shack sales increased 31.5% to $152.4 million.
Same-Shack sales increased 2.0%.
Licensed revenue increased 43.3% to $5.4 million.
Shack system-wide sales increased 35.0% to $239.1 million.
Operating income was $8.2 million, or 5.2% of total revenue, which included the impact of costs associated with the Company's enterprise-wide system upgrade implementation, Project Concrete, and other one-time items totaling $1.4 million, resulting in a decrease of 12.6%.
Shack-level operating profit*, a non-GAAP measure, increased 17.4% to $35.1 million, or 23.1% of Shack sales.
Net income was $11.4 million and adjusted EBITDA*, a non-GAAP measure, increased 9.1% to $23.3 million.
Net income attributable to Shake Shack Inc. was $10.3 million and adjusted pro forma net income*, a non-GAAP measure, increased $2.2 million to $10.0 million, or $0.26 per fully exchanged and diluted share.
Seventeen net system-wide Shack openings, comprised of 11 domestic company-operated Shacks and six net 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 and adjusted EBITDA to net income, 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're pleased to report total revenue grew nearly 32% and the team delivered another quarter of positive Same-Shack sales of 2%, continuing to drive positive traffic of 1.2%. Based on our results to date, we are raising our 2019 revenue guidance, including our licensing revenue guidance."

Garutti concluded, “This has been the biggest development year in Shack history as we’ve grown our presence around the country and internationally in the new markets of Mainland China, Singapore, the Philippines and Mexico. In 2020, we will continue to expand even further within key domestic and international markets. Overall, we continue to execute this year’s plan while gearing up for the key strategic initiatives of 2020. We’ll be focused more than ever on putting our people first, simplifying and supporting our operations, and enhancing our winning guest experience."

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Ruth’s Hospitality Group, Inc. Reports Q3 2019 Financial Results

– Third Quarter GAAP EPS of $0.16 –

– Declares $0.13 Per Share Quarterly Dividend –

November 01, 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 third quarter ended September 29, 2019.

Highlights for the third quarter of 2019 were as follows:

Total revenues in the third quarter of 2019 increased 4.0% to $103.0 million compared to $99.0 million in the third quarter of 2018.
Net income in the third quarter of 2019 increased 25.7% to $4.5 million, or $0.16 per diluted share, compared to net income of $3.6 million, or $0.12 per diluted share, in the third quarter of 2018.

- Net income in the third quarter of 2019 included $0.3 million in acquisition-related expenses associated with the acquisition of the three restaurants from our Philadelphia and Long Island franchisee, and a $0.3 million income tax benefit related to the impact of discrete income tax items. Net income in the third quarter of 2018 included $0.4 million in acquisition-related expenses associated with the acquisition of the six restaurants of our Hawaiian franchisee, as well as a $0.1 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 $0.15 in the third quarter of 2019, compared to $0.13 in the third 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.

During the third quarter of 2019, the Company completed the acquisition of three franchised restaurants with two in the Philadelphia, PA area and one on Long Island, NY as well as development rights for this territory.
The Company returned $17.3 million through dividends and share repurchases during the third quarter of 2019.

Cheryl Henry, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “I’m pleased with the strength of our third quarter results including a comp sales increase of 0.6% and pro-forma earnings per share of $0.15. I’m particularly proud of the commitment to excellence from our team and our franchise partners, who through their execution delivered these achievements in spite of weather-related headwinds and a 19% increase in beef costs during the quarter.”