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Financials - November 2020











BBQ Holdings, Inc. Reports Results for Third Quarter of Fiscal Year 2020


November 10, 2020 16:30 ET

MINNEAPOLIS, Nov. 10, 2020 (GLOBE NEWSWIRE) -- BBQ Holdings, Inc. (NASDAQ: BBQ) (the “Company”), an innovating global owner and operator of restaurants, today reported financial results for the third fiscal quarter ended September 27, 2020. Note: The third quarter results were affected by the COVID-19 pandemic as well as federal and state level mandates requiring restaurants to limit or eliminate in-store dining.

Third Quarter 2020 Highlights:

  1. Net income of $328,000, driven in part by a gain on a renegotiated leased asset of $630,000.

  2. Adjusted EBITDA, a non-GAAP measure was $2.0 million which includes a $1.1 million COVID-related expense addback.

  3. Company-owned Famous Dave’s third quarter same store net sales decreased 4.6% compared to third quarter 2019.

  4. Franchise-operated same store net sales decreased 10.0%.

  5. Granite City third quarter same store net sales decreased 25.9% compared to third quarter 2019.

  6. Same store sales at our Famous Dave’s restaurants increased 2.0% while same store sales at our Granite City restaurants decreased 23.8% during the four weeks ended October 25, 2020 compared to the same four-week period in 2019.

  7. Entered into a 25-unit development agreement with Bluestone Hospitality Group to open Famous Dave’s ghost kitchens and dual restaurant concepts with the Johnny Carino’s Italian brand.

Executive Comments

Jeff Crivello, CEO, commented, “We continue to allocate much of our time and resources to COVID-19 related regulations. With restaurants in 19 states, this is not an easy task. Nonetheless, we are pleased to return to positive EBITDA during the quarter. The team captured many wins during the quarter including signing of a 25-unit ghost kitchen development agreement with Bluestone Hospitality Group. Additionally, we are seeing success in the recent opening of a Famous Dave’s ghost kitchen within the St. Cloud Granite City Food & Brewery. To drive add-on revenues, we will be repeating this process in six more Granite City locations by the end of the first quarter 2021. The recent opening of the Texas T-Bone and Famous Dave’s dual concept has been very successful, and we hope to expand that concept as well. On the technical side, we launched our new website to make the ordering process even more seamless to our patrons. Finally, we our beginning the roll-out of our Symphony POS system which we feel will enhance the customer experience of our loyalty promotions as well as simplify our overall internal operating systems. It has been a busy quarter, but we feel the entrepreneurial spirit of BBQ Holdings is hitting on all cylinders, and we expect to continue driving sales in a variety of ways as we adapt to the ever-changing consumer.”

>View full version at BBQ Holdings


FAT Brands Inc. Reports Third Quarter 2020 Financial Results


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


November 10, 2020 04:01 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 2020 financial results for the 13-week period ending September 27, 2020.

Andy Wiederhorn, President and CEO of FAT Brands, commented, “Thank you to our franchise partners and employees who have shown perseverance as we all continue to battle hardships brought on by the COVID-19 pandemic.”

“Despite the pandemic, the third quarter proved to be transformative for FAT Brands as we successfully closed the acquisition of Johnny Rockets, completed the public offering of our Series B Preferred Stock, and expanded our whole-business securitization facility with the closing of the $40 million M-2 tranche of our Series 2020 facility. Johnny Rockets adds substantial scale to our platform with 325 locations around the world, 129 franchise partners and $316 million in FY 2019 system-wide sales. We believe there are significant synergies to be realized in the short and long-term and are excited to integrate the iconic Johnny Rockets brand into the Company.”

“In the third quarter, we continued to react to the ever-changing regulatory landscape on a state-by-state and country-by-country basis while executing on our organic growth strategies. Notably, our franchise partners opened six co-branded Fatburger & Buffalo’s Express locations, one Elevation Burger and five Johnny Rockets locations across the globe. As of November 6th, 2020, FAT Brands has opened 45 new stores this fiscal year, including Johnny Rockets, and we expect to open an additional 12 locations across our brands through the end of 2020. We began the roll-out of Chowly, a point-of-sale integrator for third-party delivery platforms, and HNGR, a native online-ordering and delivery-as-a-service platform, across our brands in September which resulted in an increase in the delivery sales of our franchise partners of over 40%, from $1.3 million in August to $1.8 million in September, for select domestic Fatburger and co-branded Fatburger & Buffalo’s Express locations. We believe that our prior efforts coupled with the rollout of HNGR and Chowly will position our franchise partners to maintain strong delivery and to-go sales in the future.”

Wiederhorn continued, “Throughout the third quarter, local restrictions eased across the country and dining rooms continued re-opening, albeit at capacity restrictions. We continue working diligently to optimize operations wherever possible, execute on our Johnny Rockets integration strategy, and support our new store development pipeline.”

Fiscal Third Quarter 2020 Highlights

  1. Total revenues declined 37% to $4.1 million compared to the third quarter of 2019, showing sequential improvement when compared to a decline in the prior quarter of 47%.

  2. System-wide sales growth of 52.8% q/q

  3. United States sales growth of 53.2% q/q

  4. Canada sales growth of 21.7% q/q

  5. Other International(1) sales growth of 123.0% q/q

  6. System-wide same-store sales growth of 63.2% q/q

  7. United States same-store sales growth of 64.2% q/q

  8. Canada same-store sales growth of 18.2% q/q

  9. Other International(1) sales growth of 213.6% q/q

  10. 12 new franchised store openings during the third quarter 2020

  11. Store count as of September 27, 2020: 678 stores system-wide

  12. Net (Loss) Income of $(0.6) million or $(0.05) per share on a basic and fully diluted basis, as compared to net income of $1.2 million or $0.10 per share on a basic and fully diluted basis in the third quarter of 2019

  13. EBITDA(2) of $0.1 million inclusive of acquisition costs of $0.5 million as compared to $3.0 million in the third quarter of 2019

  14. Adjusted EBITDA(2) of $0.6 million as compared to $2.3 million in the third quarter of 2019. The reconciliation of EBITDA to Adjusted EBITDA can be found in the accompanying financial tables.

(1) Excludes Canada, includes Puerto Rico.

(2) EBITDA and Adjusted EBITDA are non-GAAP measures defined below, under “Non-GAAP Measures”. A reconciliation of GAAP net income to EBITDA and adjusted EBITDA is included in the accompanying financial tables.

Summary of Third Quarter 2020 Financial Results

Total revenues were $4.1 million in the third quarter of 2020 and as compared to $6.5 million in the third quarter of 2019. Excluding advertising revenues, revenues were $3.3 million, down from $5.3 million in the third quarter of 2019. The revenue performance overwhelmingly reflects a decline in royalty revenue related to the impact of COVID-19, as well as lower franchise fees and advertising fees in 2020 compared to the prior year period and decreases in store opening fees related to the preferred application of ASC 606, which the Company adopted in the fourth quarter of 2019.

Costs and expenses increased to $4.9 million in the third quarter of 2020 compared to $3.6 million in the third quarter of 2019. Excluding refranchising losses of $0.3 million in 2020 and refranchising gains of $0.9 million in 2019 as well as an impairment charge in 2020 without comparable activity in the prior year, costs and expenses totaled $3.8 million and $4.6 million in the third quarter of 2020 and 2019, respectively.

Other income was $0.2 million in the third quarter of 2020, compared to other expense of $2.0 million in the third quarter of 2019, and consisted primarily of a gain in the amount of $1.7 million from an adjustment to a contingent purchase price payable which was partially offset by acquisition costs of $0.5 million; net interest expense of $0.5 million; and a loss of $0.4 million from the change in fair value of the derivative liability relating to the conversion feature of the Series A Preferred Stock. In the third quarter of 2019, other expense of $2.0 million consisted primarily of net interest.

The combination of the aforementioned revenue and expenses resulted in a net loss of $0.6 million in the third quarter of 2020, compared to a net income of $1.2 million in the third quarter of 2019.

View full version at FAT Brands




McDonald's Reports Third Quarter 2020 Results

- Comparable sales continued to improve globally, driven by positive comparable sales of 4.6% in the U.S.

- Diluted earnings per share of $2.35 increased 11%; excluding strategic gains, diluted earnings per share of $2.22 increased 5%

- McDonald's will host a virtual Investor Update today, beginning at 8:30 a.m. (Central Time) to share the evolution of its growth strategy and provide an update on strategic priorities



Nov 09, 2020, 06:58 ET



CHICAGO, Nov. 9, 2020 /PRNewswire/ -- McDonald's Corporation today announced results for the third quarter ended September 30, 2020.

"The resilience of the McDonald's system was on display during the third quarter as the competitive strength of our business and the 3 D's – Digital, Delivery and Drive Thru – led to significant global comparable sales recovery," said McDonald's Chief Financial Officer Kevin Ozan. "Our franchisees and restaurant teams around the world remain focused on running great restaurants and continuing to provide a safe environment for customers to enjoy our great tasting food."

Third quarter financial performance:

  1. Global comparable sales declined 2.2%. Monthly comparable sales results improved sequentially for all segments throughout the third quarter.

  2. Consolidated revenues decreased 2% (2% in constant currencies).

  3. Systemwide sales were flat with the prior year (decreased 1% in constant currencies).

  4. Consolidated operating income increased 5% (3% in constant currencies) and included $139 million of strategic gains on the sale of McDonald's Japan stock. Excluding these gains, operating income decreased 1% (2% in constant currencies).

  5. Diluted earnings per share of $2.35 increased 11% (10% in constant currencies). Excluding $0.13 per share of strategic gains related to the sale of McDonald's Japan stock, diluted earnings per share was $2.22 for the quarter, an increase of 5% (4% in constant currencies).

  6. The Company declared a 3% increase in its quarterly cash dividend to $1.29 per share, payable on December 15, 2020.




THIRD QUARTER COMPARABLE SALES

Increase/(Decrease)

Quarters Ended September 30,

2020

2019

U.S.

4.6%

4.8%

International Operated Markets

(4.4)

5.6

International Developmental Licensed Markets & Corporate

(10.1)

8.1

Total

(2.2)%

5.9%

  1. Comparable Sales: Monthly comparable sales results improved sequentially for all segments throughout the third quarter of 2020.

  2. U.S.: Comparable sales were positive throughout the quarter, benefiting from strong average check growth from larger group orders as well as strong performance at the dinner daypart. The Company's strategic marketing investments and resulting promotional activity drove low double-digit comparable sales for the month of September, including positive comparable sales across all dayparts. Comparable guest counts remained negative for the quarter.

  3. International Operated Markets: Comparable sales results improved throughout the quarter, with consumer sentiment and government regulations impacting the pace of recovery from COVID-19. Limited operations also remained in place for some markets. Comparable sales varied across markets with negative comparable sales in France, Spain, Germany and the U.K., partly offset by positive comparable sales in Australia.

  4. International Developmental Licensed Markets: Comparable sales results were impacted by negative comparable sales in Latin America and China, partly offset by strong positive comparable sales in Japan.




KEY FINANCIAL METRICS - CONSOLIDATED

Dollars in millions, except per share data

Quarters Ended September 30,

Nine Months Ended September 30,

2020

2019

Inc/ (Dec)

Inc/ (Dec)

Excluding

Currency

Translation

2020

2019

Inc/ (Dec)

Inc/ (Dec)

Excluding

Currency

Translation

Revenues

$

5,418.1

$

5,502.3

(2)

%

(2)

%

$

13,894.0

$

15,936.2

(13)

%

(12)

%

Operating income

2,526.4

2,409.3

5

3

5,181.1

6,777.2

(24)

(23)

Net income

1,762.6

1,607.9

10

8

3,353.3

4,453.2

(25)

(25)

Earnings per share-diluted

$

2.35

$

2.11

11

%

10

%

$

4.47

$

5.80

(23)

%

(23)

%

Results for the quarter reflected stronger operating performance in the U.S. due to higher sales-driven restaurant margins, partly offset by sales performance declines in the International Operated Markets and International Developmental Licensed Markets segments as a result of COVID-19. The nine months reflected sales performance declines in all segments as a result of COVID-19.

Results for the quarter and nine months 2020 included $139 million of pre-tax strategic gains, or $0.13 per share, related to the sale of McDonald's Japan stock, which reduced the Company's ownership by about 3%. Results for the nine months also included $0.01 per share of pre-tax strategic charges primarily due to the write-off of impaired software that was no longer being used of $26 million, partly offset by $13 million of income primarily comprised of a reversal of a reserve associated with the Company's sale of its business in the India Delhi market in January 2020.

Results for the nine months 2019 included $80 million of pre-tax strategic charges, or $0.07 per share, primarily related to impairment associated with the purchase of our joint venture partner's interest in the India Delhi market, partly offset by gains on the sales of property at the former Corporate headquarters.

View full version at McDonald's


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


November 06, 2020 08:30 ET

JERICHO, N.Y., Nov. 06, 2020 (GLOBE NEWSWIRE) -- Nathan's Famous, Inc. (NASDAQ:NATH) today reported results for the second quarter of its 2021 fiscal year that ended September 27, 2020.

For the fiscal quarter ended September 27, 2020:

  1. Revenues were $21,839,000 as compared to $29,726,000 during the thirteen weeks ended September 29, 2019;

  2. Income from operations was $7,584,000 as compared to $7,366,000 during the thirteen weeks ended September 29, 2019;

  3. Adjusted EBITDA1, a non-GAAP financial measure, was $8,040,000 as compared to $8,123,000 for the thirteen weeks ended September 29, 2019;

  4. Income before provision for income taxes was $5,058,000 as compared to $5,103,000 for the thirteen weeks ended September 29, 2019;

  5. Net income was $3,655,000 as compared to $3,658,000 for the thirteen weeks ended September 29, 2019; and

  6. Earnings per diluted share was $0.89 per share, as compared to $0.87 per share for the thirteen weeks ended September 29, 2019.

For the twenty-six weeks ended September 27, 2020:

  1. Revenues were $39,525,000, as compared to $60,244,000 during the twenty-six weeks ended September 29, 2019;

  2. Income from operations was $15,678,000, as compared to $16,814,000 during the twenty-six weeks ended September 29, 2019;

  3. Adjusted EBITDA1, a non-GAAP financial measure, was $16,590,000, as compared to $18,296,000 for the twenty-six weeks ended September 29, 2019;

  4. Income before provision for income taxes was $10,619,000, as compared to $12,288,000 for the twenty-six weeks ended September 29, 2019;

  5. Net income was $7,655,000, as compared to $9,027,000 for the twenty-six weeks ended September 29, 2019; and

  6. Earnings per diluted share was $1.86 per share, as compared to $2.14 per share for the twenty-six weeks ended September 29, 2019.

_____________________________

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

The Company also reported the following:

  1. License royalties increased to $18,791,000 during the twenty-six weeks ended September 27, 2020, (“fiscal 2021 period”), as compared to $14,147,000 during the twenty-six weeks ended September 29, 2019. During the fiscal 2021 period, royalties earned under the retail agreement, including the foodservice program, from John Morrell & Co., increased 33% to $17,460,000, as compared to $13,092,000 of royalties earned during the twenty-six weeks ended September 29, 2019. As consumers continue to shelter at home as a result of the COVID-19 pandemic, our licensing business continues to show strong consumer demand.

  2. In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, income from operations declined by approximately $2,803,000 to $1,524,000 during the fiscal 2021 period, as compared to $4,327,000 for the twenty-six weeks ended September 29, 2019.  Sales were $14,447,000 during the fiscal 2021 period, compared to sales of $32,295,000 during the twenty-six weeks ended September 29, 2019, while the volume of hot dogs sold by the Company decreased 57%.  As a result of the COVID-19 pandemic, sales and income from operations for the Branded Product Program continue to be negatively impacted as many of our customers operate in venues that are either currently closed, such as movie theaters, or venues operating at reduced capacity, such as professional sports arenas, amusement parks, and shopping malls.

  3. Sales from Company-operated restaurants were $4,928,000 during the fiscal 2021 period compared to $10,048,000 during the twenty-six weeks ended September 29, 2019. The decrease was primarily due to a decline in customer traffic related to the impact of the COVID-19 pandemic. Additionally, as stipulated under government orders, our Company-operated restaurants with dining rooms are operating at reduced capacity and maintaining social distancing protocols.

  4. Revenues from franchise operations were $667,000 during the fiscal 2021 period, compared to $2,575,000 during the twenty-six weeks ended September 29, 2019. Total royalties were $519,000 during the fiscal 2021 period as compared to $2,027,000 during the twenty-six weeks ended September 29, 2019. Total franchise fee income was $148,000 during the fiscal 2021 period compared to $548,000 during the twenty-six weeks ended September 29, 2019. As a result of the COVID-19 pandemic, a number of our franchised locations have been temporarily closed due to their locations being in venues which are closed, such as movie theaters, or venues operating at reduced traffic, such as airport and highway travel plazas. Despite the challenging operating environment, 6 new franchised outlets opened during the fiscal 2021 period.

  5. During the fiscal 2021 period, we recorded Advertising Fund revenue and expense in the amount of $692,000.

  6. During the fiscal 2021 period, the Board of Directors declared two quarterly cash dividends of $0.35 per share totaling $2,880,000.

  7. Effective November 6, 2020, the Board of Directors declared its quarterly cash dividend of $0.35 per share payable on December 4, 2020 to shareholders of record at the close of business on November 23, 2020.

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) 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 11 foreign countries through its restaurant system, foodservice sales programs and product licensing activities. Last year, over 700 million Nathan’s Famous hot dogs were sold. Nathan’s was ranked #22 on the Forbes 2014 list of the Best Small Companies in America and was listed as the Best Small Company in New York State in October 2013. For additional information about Nathan’s, please visit our website at www.nathansfamous.com.

>View full version at Nathan's Famous


NPC International Enters Into $816 Million Stalking Horse Asset Purchase Agreement with Flynn Restaurant Group


Seeks Court Approval of Flynn as Stalking Horse Bidder for Substantially All of NPC’s Assets

NPC’s Pizza Hut and Wendy’s Restaurants Across the Country Remain Open and Continue Serving Guests


November 06, 2020 01:39 PM Eastern Standard Time


LEAWOOD, Kan.--(BUSINESS WIRE)--NPC International, Inc. (“NPC” or the “Company”) announced today that it has entered into a stalking horse asset purchase agreement (the “APA”) with Flynn Restaurant Group LP through certain of its subsidiaries (“Flynn”) and will seek approval of Flynn as the stalking horse bidder from the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”). Flynn has agreed to acquire substantially all of NPC’s assets in a sale process under Section 363 of the U.S. Bankruptcy Code. The agreement is subject to Court approval and any higher or better offers pursuant to the bidding procedures and deadlines previously approved by the Court.

Under the terms of the APA, Flynn would acquire all of NPC’s more than 1,300 Pizza Hut and Wendy’s restaurants across the country, as well as NPC’s Shared Services assets for $816 million. Flynn has committed to offer employment to substantially all of NPC’s more than 30,000 full and part time employees.

Flynn is the largest restaurant franchisee in the United States. Founded in 1999 and headquartered in San Francisco, Flynn operates over 1,200 Applebee’s, Taco Bell, Panera and Arby’s restaurants across the country.

“This is a significant step in our restructuring process, and we are very pleased to have reached this agreement with Flynn, which validates the strong value and long-term potential of NPC’s business,” said Jon Weber, CEO & President of NPC’s Pizza Hut division. “As we continue to work through the sale process and solicit bids for our assets from other interested parties in accordance with the Court approved bidding procedures, our restaurants across the country will remain open.”

“An important aspect of the stalking horse agreement is Flynn’s commitment to offer employment to substantially all of NPC’s employees,” said Carl Hauch, CEO & President of NPC’s Wendy’s division. “We are pleased that Flynn recognizes the unique value of our team of employees, and we are tremendously proud of the commitment our employees have shown during this challenging year as we navigate the effects of the COVID-19 pandemic.”

“We are very excited about the possibility of acquiring NPC’s portfolio of Pizza Hut and Wendy’s restaurants, as well as its Shared Services division,” said Greg Flynn, Founder, Chairman and Chief Executive officer of Flynn Restaurant Group. “These are great assets and iconic restaurant brands, and we are confident we can maximize the long-term value of the business as we continue to pursue our goal of being the premier franchise group in the restaurant industry.”

A court hearing to approve Flynn as the stalking horse bidder will take place on November 13, 2020. NPC intends to continue to solicit bids from other interested parties for some or all of its assets in accordance with the Court-approved bidding procedures and expects to hold a sale hearing on December 4. Interested bidders are encouraged to contact the Company’s financial advisors, Greenhill & Co., which may be reached by contacting Neil Augustine (neil.augustine@greenhill.com), Thomas McCarthy (thomas.mccarthy@greenhill.com) or Nick Drayson (nick.drayson@greenhill.com).

Additional Information

As previously announced, on July 1, 2020, NPC and certain of its affiliates and subsidiaries filed voluntary petitions to restructure under Chapter 11. The APA and all relevant court filings and other documents related to the restructuring process are available at http://dm.epiq11.com/NPC; or by calling NPC’s restructuring information line at (855) 917-3563 (Toll free U.S.) or +1 (503) 502-4403 for (Non-U.S. Parties) or sending an email to NPCInquiries@epiqglobal.com.

Weil, Gotshal & Manges LLP is acting as NPC’s legal counsel, Greenhill & Co., LLC is acting as financial advisor, AlixPartners LLP is serving as restructuring advisor, and A&G Realty is acting as real estate advisor to the Company.

Davis Wright Tremaine LLP and Kirkland & Ellis LLP are serving as legal counsel to Flynn Restaurant Group LP.

About NPC International

NPC International, Inc. is the largest franchisee of any restaurant concept in the U.S., based on unit count, and the fifth largest restaurant unit operator, based on unit count, in the U.S. The Company, which is headquartered in Leawood, Kansas and has a shared services center located in Pittsburg, Kansas, has more than 30,000 full and part time employees at both Pizza Hut and Wendy’s, and operates in 30 states and District of Columbia.

View source version at NPC International


Farmer Bros. Co. Reports First Quarter Fiscal 2021 Financial Results


November 05, 2020 16:05 ET

NORTHLAKE, Texas, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (NASDAQ: FARM) (the "Company") today reported financial results for its first fiscal quarter ended September 30, 2020.

First Quarter Fiscal 2021 Highlights:

  1. Volume of green coffee processed and sold decreased by 5.0 million to 20.9 million pounds, a 19.4% decrease compared to the prior year period primarily due to the impact of the COVID-19 pandemic discussed below;

  2. Green coffee pounds processed and sold through our DSD network were 4.8 million, or 22.8% of total green coffee pounds processed and sold; and

  3. Direct ship customers represented 16.2 million, or 77.2%, of total green coffee pounds processed and sold

  4. Net sales were $97.3 million, a decrease of $41.3 million, or 29.8%, from the prior year period;

  5. Net sales declined at the height of the COVID-19 in April 2020 by approximately between 65% to 70% compared to a decline of  approximately 45% of pre COVID-19 weekly sales at the end of the fourth quarter of fiscal 2020, and improved to an approximate decline of 33% from the pre COVID-19 weekly average at the end of the first quarter ended September 30, 2020;

  6. Gross margin decreased to 23.0% from 29.3% in the prior year period;

  7. Operating expenses as percentage of sales increased to 34.8% from 24.3% in the prior year period;

  8. Net loss was $6.3 million compared to net loss of $4.7 million in the prior year period; and

  9. Adjusted EBITDA was $5.7 million compared to $4.0 million in the prior year period.*

  10. As of September 30, 2020, total debt outstanding was $69.8 million and cash and cash equivalents was $11.0 million compared to $122.0 million and $60.0 million, respectively, as of June 30, 2020.

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

Deverl Maserang, President and CEO said, “I’m proud of our team and the focus we have had on execution this quarter.  We are seeing measurable progress on the rollout of the new handheld technology that allows for greater efficiencies in order and inventory management in real time and our team members are excited about this tool. Also, during this quarter, we selected Rialto, California as the location for our new West Coast distribution center, which we expect to begin operating in the third quarter. While we continue to face challenges from the impact of COVID-19, we remain focused on maintaining cost savings and we’re seeing promising trends as our customers’ businesses are showing signs of recovery. As a result, we have been able to bring back some of our team members to support these customers. Due to COVID-19, many challenges remain, but we are cautiously optimistic given these promising developments.”

>View full version at Farmer Brothers



Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal Third Quarter Ended October 4, 2020


November 05, 2020 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 4, 2020.

Third Quarter 2020 Financial Summary Compared to Third Quarter 2019

  1. Total revenues were $200.5 million, a decrease of 31.9%, primarily resulting from our operational shift in response to COVID-19, including limited occupant capacity as we reopen dining rooms, operating an off-premise only model at our restaurants with closed dining rooms, and closed restaurants;

  2. Comparable restaurant revenue decreased 25.1% with sequential improvement through the quarter; comparable restaurant revenues for the fiscal periods ended August 9, September 6, and October 4, 2020 decreased 34.2%, 24.9% and 14.9%, respectively;

  3. Off-premise sales increased 127.2% and comprised 40.7% of total food and beverage sales;

  4. Net loss was $6.2 million compared to net loss of $1.8 million;

  5. GAAP loss per diluted share was $0.40 compared to GAAP loss per diluted share of $0.14;

  6. Adjusted loss per diluted share was $0.19 compared to adjusted loss per diluted share of $0.24 (see Schedule I);

  7. Adjusted EBITDA was a loss of $0.7 million compared to adjusted EBITDA of $14.7 million (see Schedule III); and

  8. The Company received $49.4 million in cash tax refunds, including interest, subsequent to our third quarter balance sheet date and expects to generate between $12 million to $15 million of additional cash tax refunds within the next 12 months.

Paul J. B. Murphy III, Red Robin’s President and Chief Executive Officer, said, "The third quarter was an inflection point for the brand with robust sequential sales improvement throughout the quarter, closing the traffic gap to our casual dining peers. This, in conjunction with prudent restaurant and overhead cost structure enhancements in place, drove better-than-expected cash flow performance. These enhancements were achieved through actions such as a new restaurant management structure, significant menu rationalization, portfolio optimization, and streamlining of corporate overhead, and we believe will deliver at least a full percentage point of enterprise margin improvement versus 2019, once sales normalize, with an ongoing focus to drive even more margin improvement in the future."

Murphy continued, "Additionally, the recent receipt of a $49 million IRS tax refund, positive cash flow projections as we enter 2021, and our improved business model, solidifies our liquidity as we resume the implementation of Donatos®, a proven growth catalyst. Restaurants with Donatos® are currently delivering comparable restaurant revenue growth that is 600 to 700 basis points higher than the balance of the system. Having recently added Donatos® to 31 restaurants in the Seattle market, we are now in the process of preparing to deploy Donatos® to approximately 120 restaurants in 2021."

Murphy concluded, "With Red Robin’s liquidity concerns put to rest, the core business strengthening, the implementation of Donatos® across the balance of our system that will drive performance over the next two to three years, and a stronger economic model, the future of Red Robin is both secure and bright."

View full version at Red Robin



The ONE Group Reports Third Quarter 2020 Results


Sequential Improvement in Comparable Sales Trends in the Second Quarter Continue Through the Third Quarter

Company Reports Positive Operating Income for the Third Quarter and Positive Comparable Sales for October


November 05, 2020 04:11 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, 2020 and provided an update related to COVID-19.

Highlights for the third quarter ended September 30, 2020 compared to the same period last year are as follows:

  1. Total GAAP revenues increased 79.0% to $39.6 million from $22.1 million;

  2. Consolidated comparable sales* decreased 15.6% but improved sequentially through the quarter

  3. Comparable sales decreased 24.8% for July, 17.2% for August, and 4.3% for September;

  4. Comparable sales* for STK decreased 24.2% but improved sequentially through the quarter

  5. Comparable sales decreased 34.9% for July, 28.2% for August, and 10.4% for September;

  6. Comparable sales* for Kona Grill decreased 7.3% but improved sequentially through the quarter

  7. Comparable sales decreased 16.2% for July and 6.7% for August, and increased 2.3% for September;

  8. GAAP net loss attributable to The ONE Group was $0.9 million, or $0.03 net loss per share, compared to GAAP net income of $0.5 million, or $0.02 net income per share. GAAP net loss attributable to The ONE Group during the third quarter 2020 included $1.7 million of incremental costs related to COVID-19; and,

  9. Adjusted EBITDA** increased 76.9% to $4.7 million compared to $2.6 million in the prior year.

For October 2020, consolidated comparable sales* increased 4.2%. For Kona Grill comparable sales* increased 8.6% and for STK comparable sales* increased 0.3%.

*Comparable sales represent total U.S. food and beverage sales at owned and managed units opened for at least a full 18-month period. This measure includes total revenue from our owned and managed locations. Revenues from locations where we do not directly control the event sales force (The W Hotel Westwood, CA) are excluded from this measure.

** Adjusted EBITDA. We define Adjusted EBITDA as net income 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 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 in this release.

“We are very encouraged by the continued sequential improvement in our comparable sales, and particularly by positive consolidated comparable sales in October. This marks six consecutive months of building performance as we welcome guests back to our STK and Kona Grill restaurants for unique in-person and outdoor dining experiences. Kona Grill, aided by its suburban footprint and coupled with the execution of our brand strategies, continues to rebound extremely well, as demonstrated by its positive comparable sales performance in both September and October. Although STK continues to experience major capacity limitations in key markets like New York and Las Vegas, our comparable STK units delivered positive comparable sales in October and an impressive average weekly volume greater than $215,000 per restaurant,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.

“Importantly, the normalization in our sales performance has been complemented by actively managing operating costs and implementing cost-saving measures that have resulted in higher restaurant-level margins and lower G&A as a percentage of revenues as well as positive operating income during the third quarter. Our immense progress these past few months in restoring our business has been made possible through the dedication of our teammates, who are making incredible efforts strengthening operations, focusing on health and safety protocols, and bringing VIBE dining to life with our guests,” concluded Hilario.

View full version at The ONE Group


Cracker Barrel Announces Preliminary First Quarter Fiscal 2021 Results

Company continues positive momentum



Nov 05, 2020, 08:00 ET



LEBANON, Tenn., Nov. 5, 2020 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today announced preliminary selected results for the first quarter of fiscal 2021 ended October 30, 2020.

Commenting on the first quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "I'm pleased with our start to the fiscal year and with our continued sales recovery, as we saw significant improvements in comparable store restaurant and retail sales trends. These results reflect the strength of our brand, our everyday value, and the trust our guests have in us to deliver a safe experience and the hospitality for which we're known. I am especially proud of our retail performance and the efforts of our retail teams, as well as our operators' disciplined approach to cost management and their continued ability to navigate through the ongoing challenged environment.  I believe all of these contributed meaningfully to our strong results in the first quarter."

Cracker Barrel comparable store restaurant and retail sales for the third and fourth quarter of fiscal 2020 and the first quarter of fiscal 2021 were as follows when compared to the prior year comparable periods:




Third Quarter Ended 5/1

Fourth Quarter Ended 7/31

First Quarter Ended 10/301

Comparable store restaurant sales

(41.7%)

(39.2%)

(16.4%)

Comparable store retail sales

(45.5%)

(32.3%)

(8.1%)

1 Preliminary Results (Unaudited)

For the first quarter of fiscal 2021, the Company expects to report net income of approximately $167 million to $172 million and adjusted EBITDA of approximately $50 million to $55 million, which is adjusted to exclude the following:

  1. An approximately $218 million non-cash gain on sale of assets from the previously disclosed sale-leaseback transaction that closed in August

  2. Approximately $5 million in expenses incurred to-date related to the Company's contested proxy

(See the non-GAAP reconciliation below.)

This press release contains estimates for the Company's preliminary financial results for the three months ended October 30, 2020 and may contain other forward-looking statements (i.e., statements that are not historical facts). These estimates are preliminary, unaudited, and inherently uncertain and remain subject to the completion of the Company's financial procedures for the three months ended October 30, 2020, and further financial review. During the course of the preparation of our condensed consolidated financial statements and related notes and the completion of our financial close and review procedures for the three months ended October 30, 2020, adjustments to the preliminary estimates may be identified, and such adjustments may be material. Additionally, other developments may arise between now and the time the financial statements for the three months ended October 30, 2020 are finalized, as well as other risks and uncertainties.  Readers are cautioned not to place undue reliance on these preliminary estimates or any other forward-looking statements, which speak only as of the date on which they are made and which reflect management's current estimates, projections, expectations or beliefs.  Risks and uncertainties that may affect the future results of the Company include, but are not limited to, the COVID-19 pandemic and its impact on the Company's business, changes in levels of consumer confidence, political instability, general or regional economic conditions and conditions in financial markets, and other factors that are described from time to time in our filings with the Securities and Exchange Commission, press releases, and other communications. As a result, these preliminary estimates should not be viewed as a substitute for full interim financial statements prepared in accordance with GAAP. Actual results for the three months ended October 30, 2020 may differ materially from the estimates, trends, and expectations discussed above, and we expressly disclaim any intent, obligation or undertaking to update or revise any information contained in this release.

Non-GAAP Measures The preliminary results in this press release include adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA is defined as earnings (net income or loss) before interest expense, income tax expense, and depreciation and amortization excluding i) the non-cash gain on sale of assets from the Company's previously disclosed sale-leaseback transaction and ii) expenses related to the proxy contest associated with the Company's 2020 annual meeting of shareholders. Adjusted EBITDA is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items that management believes are not relevant to management's assessment of our operating performance. The table at the end of this press release provides a reconciliation of estimated net income to adjusted EBITDA.

About Cracker Barrel Old Country Store® Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) shares warm welcomes and friendly service while offering guests high-quality homestyle food and unique shopping — all at a fair price. By creating a world filled with hospitality through an experience that combines dining and shopping, guests are cared for like family. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate more than 660 company-owned Cracker Barrel Old Country Store® locations in 45 states and own the fast-casual Maple Street Biscuit Company. For more information about the company, visit crackerbarrel.com.

View full version at Cracker Barrel


Papa John’s Announces Third Quarter 2020 Financial Results and New $75 Million Share Repurchase Program


November 05, 2020 06:30 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 27, 2020.

Highlights

  1. Company revenues increased 17.1% compared to third quarter of 2019

  2. Comparable sales increased 23.8% in North America and 20.7% Internationally in the third quarter

  3. Earnings per diluted share increased to $0.35 compared to third quarter 2019 loss per diluted share of ($0.10)

  4. Cash flow from operations of $168.5 million and free cash flow of $134.0 million for the first nine months of 2020

  5. Previously announced temporary franchise support program ended in the third quarter, concluding a $55 million investment in the system over the past four quarters

  6. New $75 million share repurchase program authorized

“Thanks to our focus on our strategic priorities, our commitment to an innovation mindset, and our dedication to supporting our team members and franchisees, Papa John’s delivered another quarter of outstanding results,” said President & CEO Rob Lynch. “Double-digit comparable sales growth, dramatically higher earnings and robust free cash flow all reflect a winning strategy and execution that have helped us outperform our competition and deliver five straight quarters of same store sales growth.”

Mr. Lynch continued, “The new share repurchase program demonstrates our commitment to value creation in the near and long term, as well as our confidence in Papa John’s future. The tremendous progress we have made this year – a fast-growing customer base, a truly differentiated brand, a robust innovation pipeline and a vast global development opportunity – positions us to continue expanding our slice of the pizza and food delivery market, which itself has a promising future. Looking ahead, we are excited to continue taking care of our team members and customers, delivering great pizza, and realizing our tremendous potential.”

Global Restaurant and Comparable Sales Information

Global restaurant and comparable sales information for the three and nine months ended September 27, 2020, compared to the three and nine months ended September 29, 2019 are as follows:


Three Months Ended

Nine Months Ended

Sept. 27, 2020

Sept. 29, 2019

Sept. 27, 2020

Sept. 29, 2019Global restaurant sales growth / (decline) (a)

21.6%

2.3%

14.9%

(2.5%)Global restaurant sales growth / (decline), excluding the impact of foreign currency (a)

22.1%

3.3%

16.0%

(1.2%)Comparable sales growth / (decline) (b)Domestic company-owned restaurants

18.2%

2.2%

15.6%

(4.8%)North America franchised restaurants

25.6%

0.6%

20.0%

(3.7%)System-wide North America restaurants

23.8%

1.0%

19.0%

(4.0%)System-wide international restaurants (c)

20.7%

1.6%

9.4%

0.6%


(a)

Includes both company-owned and franchised restaurant sales.

(b)

Represents the change in year-over-year sales for the same base of restaurants for the same fiscal periods. Comparable sales results for restaurants operating outside of the United States are reported on a constant dollar basis, which excludes the impact of foreign currency translation. See “Supplemental Information and Financial Statements” below for a discussion of comparable sales, a key operating metric.

(c)

Includes the impact of temporarily closed stores. Excluding those stores, comparable sales growth for system-wide international restaurants would have been approximately 22.8% and 13.4% for the three and nine months ended September 27, 2020.

Financial Highlights


Three Months EndedIn thousands, except per share amounts

Sept. 27, 2020

Sept. 29, 2019

IncreaseTotal revenue

$

472,941

$

403,706

$

69,235Income before income taxes

20,913

678

20,235Net income

15,708

385

15,323Diluted earnings (loss) per share

0.35

(0.10

)

0.45Adjusted diluted earnings (loss) per share (a)

0.35

(0.07

)

0.42


(a)

Adjusted diluted earnings (loss) per share is a Non-GAAP measure we used in 2019 which excludes “Special items,” which impact comparability. The reconciliation of GAAP to non-GAAP financial results is included in “Reconciliation of Non-GAAP Financial Measures” below.

Revenues

Consolidated revenues of $472.9 million increased $69.2 million, or 17.1%, in the third quarter of 2020 compared to the third quarter of 2019. Excluding the impact of refranchising 46 domestic restaurants in 2019, consolidated revenues increased approximately $77.2 million, or 19.6%, primarily due to strong comparable sales results for North America restaurants, including 18.2% for company-owned restaurants and 25.6% for franchised restaurants, resulting in higher company-owned restaurant revenues, franchise royalties and commissary sales. International revenues also increased primarily due to higher Papa John’s United Kingdom (“PJUK”) commissary revenues and higher royalties from increased equivalent units and strong comparable sales results.

View full version at Papa John's


Carrols Restaurant Group, Inc. Reports Financial Results for the Third Quarter 2020


Burger King Comparable Restaurant Sales Increase 0.8%, up 720 Basis Points Compared to the Second Quarter

Reaffirms Expectation of $40 million to $50 million Per Year in Capital Expenditures for the Next Three Years

Announces Participation in Three Upcoming Investor Conferences


November 05, 2020 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 27, 2020.

Highlights for the Third Quarter of 2020 versus the Third Quarter of 2019

  1. Total restaurant sales increased 2.2% to $407.0 million compared to $398.4 million in the prior year quarter;

  2. Comparable restaurant sales for the Company's Burger King® restaurants increased 0.8%;

  3. Comparable restaurant sales for the Company’s Popeyes® restaurants increased 5.5%;

  4. Adjusted EBITDA(1) increased to $34.1 million from $25.7 million in the prior year quarter;

  5. Adjusted Restaurant-Level EBITDA(1) increased to $52.8 million from $43.0 million in the prior year quarter;

  6. Net income was $3.5 million, or $0.06 per diluted share, compared to net loss of $(6.8) million, or $(0.15) per diluted share, in the prior year quarter;

  7. Adjusted Net Income(1) was $5.7 million, or $0.09 per diluted share, compared to adjusted net loss of $(3.9) million, or $(0.08) per diluted share, in the prior year quarter; and

  8. The Company generated $23.3 million of Free Cash Flow(2) during the third quarter of 2020 and $46.7 million on a year-to-date basis.


 (1)

Adjusted EBITDA, Adjusted Restaurant-Level EBITDA and Adjusted Net Income/(Loss) are non-GAAP financial measures. Refer to the definitions and reconciliation of these measures to net income (loss) or to income (loss) from operations in the tables at the end of this release.

(2)

Free Cash Flow is a non-GAAP financial measure and is defined as Net cash provided by operating activities less Net cash used for investing activities adjusted to add back cash paid for acquisitions. Refer to the definition and reconciliation of this measure in the tables at the end of this release.

Recent Monthly Comparable Restaurant Sales Trends

Monthly comparable restaurant sales increases / (decreases) for the month ending July 26, 2020 through the month ending November 1, 2020 are as follows:


Third Quarter 2020

Fiscal Month

July 2020

August 2020

September 2020

October 2020

Burger King

2.1%

1.2%

(0.8) %

(3.2) %

Popeyes

13.9 %

(4.0) %

11.2 %

1.9 %

Management Commentary

Daniel T. Accordino, Chairman and Chief Executive Officer of Carrols, commented, “The sequential quarterly improvement in comparable restaurant sales of 720 basis points at our Burger King restaurants is demonstrative of Carrols’ resiliency in the face of the unprecedented current environment. We believe our business model is well-suited to meet the needs of customers seeking great value and convenience and we have been able to serve them effectively and efficiently through our drive-thru, at-the-counter for take-out, and delivery channels. Over the past two months, we have seen modest softening in comparable sales at our Burger King restaurants driven primarily, we believe, by a strain on consumer spending due to a weakening ‘Main Street’ economy. Despite this year’s challenges, we have been extremely adept in managing food costs, optimizing labor hours despite higher wage rates, and controlling other restaurant-level and corporate overhead expenses. Third quarter results reflect the strength of our positioning and operational acuity as we once again delivered improved restaurant-level profitability and increased Adjusted EBITDA compared to the prior year period.”

View full version at Carrols Restaurant Group


J. Alexander’s Holdings, Inc. Reports Results for Third Quarter Ended September 27, 2020 and Provides Business Update for October; Sales in Recent Months Reach Almost 90% of Prior Year Levels


November 05, 2020 08:32 AM 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 other restaurants, today provided a business update and reported results for the third quarter ended September 27, 2020.

Mark A. Parkey, Chief Executive Officer of J. Alexander’s Holdings, Inc., stated, “I’m beyond pleased at the significant recovery that we’ve been able to achieve in recent months. In September and October 2020, our sales averaged nearly 90% of sales experienced in the same periods of 2019 – all while continuing to operate at limited capacities for dine-in service at most of our locations. I would note that none of our accomplishments during the most recent quarter would have been possible without the valiant efforts, and incredible creativity, of our talented teams at each of our 46 restaurants as well as the leadership of industry veterans that are based out of our headquarters in Nashville.”

Third Quarter 2020 Highlights Compared To The Third Quarter Of 2019

  1. Average weekly same store sales per restaurant (1) for the third quarter of 2020 were down 18.1% to $86,700 for the J. Alexander’s/Grill restaurants and down 18.2% to $58,800 for the Stoney River Steakhouse and Grill restaurants compared to the third quarter of 2019.

  2. Net sales for the third quarter of 2020 were $46,230,000, down from $56,867,000 reported in the third quarter of 2019.

  3. Loss from continuing operations before income taxes totaled $1,643,000 for the third quarter of 2020. This compares to income from continuing operations before income taxes of $342,000 in the third quarter of 2019.

  4. Results for the third quarter of 2020 included income tax expense of $64,000 compared to an income tax benefit of $495,000 in the third quarter of 2019.

  5. Net loss for the third quarter of 2020 totaled $1,760,000 compared to net income of $771,000 in the third quarter of 2019.

  6. Basic and diluted loss per share were $0.12 for the third quarter of 2020 compared to basic and diluted earnings per share of $0.05 for the third quarter of 2019.

  7. Adjusted EBITDA (2) was $2,517,000 in the third quarter of 2020 compared to $4,375,000 in the third quarter of 2019.

  8. Restaurant Operating Profit Margin (3) was 5.8% in the most recent quarter compared to 8.9% for the third quarter of 2019.

  9. Food and beverage costs as a percentage of net sales in the third quarter of 2020 were 30.8% compared to 31.8% in the third quarter of 2019.

During the third quarter of 2020, the Company continued to reopen dining rooms and increase capacity as permitted under each local jurisdiction’s restrictions, including the installation of booth and pub dividers in certain markets. The Company took a price increase in August 2020 of approximately 4.1%, which included non-alcoholic beverages, certain wines by the glass and craft cocktails, as well as certain entrées and other menu items. Additionally, in September 2020 the Company successfully closed on the sale of its Cleveland property.

Chief Executive Officer’s Comments

“The third quarter of fiscal 2020 was a challenging period in many ways,” stated Parkey. “As we reopened our dining rooms beginning in June, we did so in an environment where seating was limited, safety measures for both our employees and our guests were vital and various products associated with our historical menu offerings were in short supply, if available at all. In addition, we had successfully built up a steady volume of carry out business and wanted to continue to meet the needs of our off-premise guests. As such, during the quarter we implemented a number of initiatives designed to respond to these challenges, including the addition of partitions in both our dining rooms as well as at our pub tops in many of our restaurants, the streamlining of our menus to make them more efficient for both guests as well as our employees, the addition of new and attractive ‘Family Pack’ offerings at all of our locations and the introduction of a number of new entrees within the reopened dining rooms.”

“As a result,” Parkey continued, “we were able to steadily build revenue over the course of the 13-week quarter, from approximately $2.8 million in the first week of the quarter to approximately $3.9 million during the last week of the period and, in the process, maintain a consistent range of approximately $600,000 - $700,000 in carry out business each week. As we enter the fourth quarter, we estimate that approximately 60% of our seats are available for dining room guests and are cautiously optimistic that this figure will continue to increase as select additional states and municipalities relax existing restrictions. In addition, we anticipate that selected restaurants will benefit, particularly with respect to lunch volumes, from certain corporate neighbors returning to an office setting instead of mandating their employees work offsite. While the timing of such events is still fluid we believe that the demand for on-site dining is high and that, as restrictions are lifted, we will continue to see strong demand for on-site dining from our guest base. In addition, we are confident in our ability to grow same store sales once an effective vaccine is made available to the population and the current government imposed operating restrictions are removed from our restaurants.”

Parkey noted that procurement in general has become much more dependable than it was during the second quarter of 2020, and management anticipates that there will be adequate product available for the upcoming holiday season.

Parkey continued, “Against a backdrop characterized by uncertainty at almost every turn, our folks have displayed an amazing resolve to meet the needs of our guests and to do so in a hospitable manner consistent with the experience that we’ve cultivated since the original J. Alexander’s restaurant opened for business in May of 1991. While our balance sheet appropriately quantifies our various assets as a company, I believe that our greatest assets are the people that walk through our doors every day of the week and endeavor to make each guest’s visit a memorable experience.”

View full version at J. Alexander's




The Wendy's Company Reports Third Quarter 2020 Results



Nov 04, 2020, 07:00 ET



DUBLIN, Ohio, Nov. 4, 2020 /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) today reported unaudited results for the third quarter ended September 27, 2020.

"In the third quarter we posted our highest Global same-restaurant sales growth performance in over 15 years on top of outsized growth in the prior year." President and Chief Executive Officer Todd Penegor said.  "In addition to these very strong sales, our restaurant economic model continues to strengthen, with Company-operated restaurant margin expansion compared to the prior year, despite significant commodity headwinds.  We remain focused on our goal of delivering efficient, accelerated growth behind our three major long-term growth pillars: building our breakfast daypart, growing our digital business, and expanding our International footprint. With the momentum we have in our business, I am more confident than ever that we will achieve our vision of becoming the world's most thriving and beloved restaurant brand."

Third Quarter 2020 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

2020

2019

2020

2019

Systemwide Sales Growth(1)

U.S.

7.9%

5.8%

1.6%

3.6%

International(2)

(3.5)%

4.6%

(9.3)%

8.3%

Global

6.7%

5.7%

0.5%

4.1%

Same-Restaurant Sales Growth(1)

U.S.

7.0%

4.5%

0.9%

2.4%

International(2)

(2.1)%

3.3%

(7.3)%

3.3%

Global

6.1%

4.4%

—%

2.5%

Restaurant Openings

U.S. - Total / Net

27 / 12

24 / 12

73 / 22

68 / 15

International - Total / Net

6 / (4)

16 / 12

23 / 4

43 / 17

Global - Total / Net

33 / 8

40 / 24

96 / 26

111 / 32

Systemwide Sales (In US$ Millions)(3)

U.S.

$2,692

$2,495

$7,436

$7,316

International(2)

$291

$303

$784

$877

Global

$2,983

$2,798

$8,220

$8,193

Global Reimaging Completion Percentage

62%

56%

(1) Systemwide sales growth and same-restaurant sales growth are calculated on a constant currency basis and include sales by both Company-operated and franchise restaurants.

(2) Excludes Venezuela and Argentina.

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




Financial Highlights

Third Quarter

Year-to-Date

2020

2019

B / (W)

2020

2019

B / (W)

(In Millions Except Per Share Amounts)

(Unaudited)

(Unaudited)

Total Revenues

$

452.2

$

437.9

3.3

%

$

1,259.5

$

1,281.8

(1.7)

%

Adjusted Revenues(1)

$

367.5

$

351.1

4.7

%

$

1,018.0

$

1,027.9

(1.0)

%

Company-Operated Restaurant Margin

16.9

%

16.2

%

0.7

%

13.9

%

15.9

%

(2.0)

%

General and Administrative Expense

$

47.3

$

46.2

(2.4)

%

$

147.6

$

146.3

(0.9)

%

Operating Profit

$

81.3

$

79.0

2.9

%

$

190.7

$

225.9

(15.6)

%

Net Income

$

39.8

$

46.1

(13.7)

%

$

79.1

$

110.4

(28.4)

%

Adjusted EBITDA

$

118.8

$

109.9

8.1

%

$

305.6

$

329.4

(7.2)

%

Reported Diluted Earnings Per Share

$

0.17

$

0.20

(15.0)

%

$

0.35

$

0.47

(25.5)

%

Adjusted Earnings Per Share

$

0.19

$

0.19

%

$

0.40

$

0.51

(21.6)

%

Cash Flows from Operations

$

205.8

$

237.5

(13.3)

%

Capital Expenditures

$

(44.9)

$

(41.0)

(9.5)

%

Free Cash Flow(2)

$

133.6

$

192.3

(30.5)

%

(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 by an increase in franchisee royalty revenue and fees.  These were driven by an increase in same-restaurant sales which benefited from the positive impact of the Company's new breakfast daypart in the U.S.

Company-Operated Restaurant Margin

The increase in Company-operated restaurant margin was primarily the result of a higher average check and lower than expected local advertising spend. The increase was partially offset by customer count declines as a result of the COVID-19 pandemic, higher commodity costs, and labor rate increases.

View full version at Wendy's


Wingstop Inc. Reports Fiscal Third Quarter 2020 Financial Results; Completes $480 Million Recapitalization and Declares Special Dividend of $5.00 Per Share



Nov 02, 2020, 07:32 ET



DALLAS, Nov. 2, 2020 /PRNewswire/ -- Wingstop Inc. ("Wingstop" or the "Company") (NASDAQ: WING) today announced financial results for the fiscal third quarter ended September 26, 2020 and announced that its Board of Directors has approved a special cash dividend of $5.00 per share, payable on December 3, 2020 to stockholders of record as of November 20, 2020 in conjunction with the completion of its previously announced $480 million recapitalization.

Highlights for the fiscal third quarter 2020 compared to the fiscal third quarter 2019:

  1. System-wide sales increased 32.8% to $509.2 million

  2. 43 net new openings in the fiscal third quarter 2020

  3. Domestic same store sales increased 25.4%

  4. Digital sales increased to 62.0%

  5. Total revenue increased 28.3% to $64.0 million

  6. Net income increased 70.7% to $10.1 million, or $0.34 per diluted share, compared to $5.9 million, or $0.20 per diluted share, in the prior fiscal third quarter

  7. Adjusted EBITDA*, a non-GAAP measure, increased 19.5% to $18.4 million

* Adjusted EBITDA is a non-GAAP measure. A reconciliation of Adjusted EBITDA to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States ("GAAP") is set forth in the schedule accompanying this release. See "Non-GAAP Financial Measures."

"The third quarter saw continued topline momentum with domestic same-store sales growth of 25.4%, 37.7% on a two-year basis, resulting in our restaurant average unit volumes now exceeding $1.4 million, further enhancing our best in class unit economics, which led to 43 net new restaurants and the strengthening of our development pipeline," commented Charlie Morrison, Chairman and Chief Executive Officer of Wingstop. "The special dividend we announced today of $5.00 per share underscores the strength of our asset-lite, highly franchised model and our ability to return capital to stockholders. I would like to express my gratitude to our team members and brand partners for delivering these tremendous results."

Key operating metrics for the fiscal third quarter 2020 compared to the fiscal third quarter 2019




Thirteen Weeks Ended

September 26, 2020

September 28, 2019

Number of system-wide restaurants open at end of period

1,479

1,340

Number of domestic franchise restaurants open at end of period

1,277

1,169

Number of international franchise restaurants open at end of period

171

141

System-wide sales (in thousands)

$

509,155

$

383,469

Domestic restaurant AUV (in thousands)

$

1,435

$

1,219

Domestic same store sales growth

25.4

%

12.3

%

Net income (in thousands)

$

10,081

$

5,905

Adjusted EBITDA (in thousands) 

$

18,409

$

15,400

Fiscal third quarter 2020 financial results

Total revenue for the fiscal third quarter 2020 increased to $64.0 million from $49.9 million in the fiscal third quarter last year.

  1. Royalty revenue, franchise fees and other increased $6.9 million to $28.8 million from $21.9 million in the fiscal third quarter of the prior year. The increase was primarily due to domestic same store sales growth of 25.4% as well as 138 net franchise restaurant openings since September 28, 2019.

  2. Advertising fees and related income increased $5.6 million to $19.7 million from $14.1 million in the fiscal third quarter of the prior year. The increase was primarily due to system-wide sales growth of 32.8% in the fiscal quarter ended September 26, 2020 compared to the fiscal quarter ended September 28, 2019.

  3. Company-owned restaurant sales increased $1.6 million to $15.5 million from $13.9 million in the fiscal third quarter of the prior year. The increase was primarily due to company-owned same store sales growth of 15.2%, which was driven by both an increase in transactions and an increase in transaction size.

Cost of sales increased to $11.8 million from $10.3 million in the fiscal third quarter of the prior year. As a percentage of company-owned restaurant sales, cost of sales was 76.0% compared to 74.2% in the prior year comparable period. The increase was primarily due to additional incentive pay provided to restaurant team members during the COVID-19 pandemic. This increase was slightly offset by a 1.4% decrease in the cost of bone-in chicken wings as compared to the prior year period, as well as our ability to leverage costs due to the increase in company-owned same store sales.

View full version at Wingstop


Inspire Brands to Acquire Dunkin’ Brands in $11.3 Billion Transaction

November 2, 2020


  1. Transaction furthers Inspire’s goal of bringing together a family of complementary, highly differentiated brands

  2. Adds iconic Dunkin’ and Baskin-Robbins brands to Inspire’s portfolio, which includes Arby’s, Buffalo Wild Wings, SONIC Drive-In, and Jimmy John’s

  3. Combined portfolio will represent: $26 billion in systemwide sales; 31,600+ restaurants in 60+ countries; 600,000 company and franchise team members; 3,200+ franchisees; and more than 25 million loyalty members

Atlanta, GA & Canton, MA  (RestaurantNews.com)  Inspire Brands, Inc. (“Inspire”) and Dunkin’ Brands Group, Inc. (“Dunkin’ Brands”) (NASDAQ: DNKN), parent company of Dunkin’ and Baskin-Robbins, have entered into a definitive merger agreement under which Inspire will acquire Dunkin’ Brands for $106.50 per share in cash in a transaction valued at approximately $11.3 billion including the assumption of Dunkin’ Brands’ debt.

Inspire is a multi-brand restaurant company with a current portfolio that includes more than 11,000 Arby’s, Buffalo Wild Wings, SONIC Drive-In, and Jimmy John’s restaurants worldwide. The company’s vision of invigorating great brands and supercharging their long-term growth has made Inspire one of the largest restaurant companies globally, with $15 billion in annual systemwide sales.

Dunkin’ is famous for its combination of high-quality coffees, espresso beverages, baked goods, and breakfast sandwiches served all day with fast, friendly service. Baskin-Robbins, the world’s largest chain of ice cream specialty shops, is known for its variety of “31 flavors” of ice cream, along with their creative ice cream cakes, milkshakes, and ice cream sundaes. Currently there are more than 12,500 Dunkin’ and almost 8,000 Baskin-Robbins restaurants around the world. Following the completion of the transaction, Dunkin’ and Baskin-Robbins will be operated as distinct brands within Inspire.

Under the terms of the merger agreement announced today, which has been unanimously approved by the Boards of Directors of Inspire and Dunkin’ Brands, Inspire will commence a tender offer to acquire all outstanding shares of Dunkin’ Brands for $106.50 per share in cash. This represents a premium of approximately 30% to Dunkin’ Brands’ 30-day volume-weighted average price and a premium of approximately 20% per share to Dunkin’ Brands’ closing stock price on October 23, 2020.

“Dunkin’ and Baskin-Robbins are category leaders with more than 70 years of rich heritage, and together they are two of the most iconic restaurant brands in the world,” said Paul Brown, Co-founder and Chief Executive Officer of Inspire Brands. “By joining Inspire, these brands will add complementary guest experiences and occasions to our current portfolio.

Further, they will strengthen Inspire through their scaled international platform and robust consumer packaged goods licensing infrastructure, as well as add more than 15 million loyalty members. We are excited to welcome Dunkin’ and Baskin-Robbins’ employees, franchisees, and suppliers to the Inspire family.”

“Today’s announcement is a testament to our world-class group of franchisees, licensees, employees, and suppliers who have worked together to transform Dunkin’ and Baskin-Robbins into modern, relevant brands. This team’s grit and determination has enabled us to deliver outsized performance and made our brands among the most elite in the quick service industry. I am particularly proud of our actions since March of this year. During the global pandemic, we have stood tall. We’ve had each other’s backs and are now stronger than ever,” said Dave Hoffmann, Chief Executive Officer of Dunkin’ Brands. “We are excited to bring meaningful value to shareholders who have been with us on this journey and believe that Inspire Brands, a preeminent operator of franchised restaurant concepts, will continue to drive growth for our franchisees while remaining true to all that is unique and special about the Dunkin’ and Baskin-Robbins brands.”

Transaction Details

The closing of the tender offer will be subject to certain conditions, including the tender of shares representing at least a majority of the total number of Dunkin’ Brands’ outstanding shares, the expiration or termination of the antitrust waiting period, and other customary conditions. Following the successful completion of the tender offer, Inspire will acquire all remaining shares not tendered in the tender offer through a second-step merger at the same price. The transaction is expected to close by the end of 2020.

Advisors

Barclays is serving as financial advisor to Inspire and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as its legal counsel. BofA Securities, Inc. is serving as exclusive financial advisor to Dunkin’ Brands and Ropes & Gray LLP is serving as its legal counsel.

About Inspire Brands

Inspire Brands is a multi-brand restaurant company whose current portfolio includes more than 11,000 Arby’s, Buffalo Wild Wings, SONIC Drive-In, Rusty Taco, and Jimmy John’s restaurants worldwide. The company was founded in 2018 and is headquartered in Atlanta, Georgia. Inspire is majority-owned by affiliates of Roark Capital. For more information, visit InspireBrands.com.

About Dunkin’ Brands Group, Inc.

With more than 20,000 points of distribution in more than 60 countries worldwide, Dunkin’ Brands Group, Inc. (Nasdaq: DNKN) is one of the world’s leading franchisors of quick service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hard-serve ice cream. At the end of the third quarter of fiscal year 2020, Dunkin’ Brands’ 100 percent franchised business model included over 12,500 Dunkin’ restaurants and almost 8,000 Baskin-Robbins restaurants. Dunkin’ Brands Group, Inc. is headquartered in Canton, Mass.

View source version at Inspire Brands Acquires Dunkin'


Friendly’s Restaurants Enters Into Sale Agreement

November 2, 2020


Nearly all locations to remain open; thousands of restaurant team member and franchisee jobs expected to be preserved

Commences voluntary chapter 11 proceedings to facilitate transaction

Wilbraham, MA  (RestaurantNews.com)  FIC Restaurants, Inc., the restaurant company operating under the iconic brand name Friendly’s Restaurants (“Friendly’s” or the “Company”), announced an agreement to sell substantially all of its assets to Amici Partners Group, LLC (“Amici”), an entity comprised of experienced restaurant investors and operators who have been involved with some of the most well-known QSR and casual dining chains for more than 25 years. Amici is currently affiliated with BRIX Holdings, a multi-brand franchising company with national and international experience in the restaurant industry.

Nearly all of Friendly’s 130 corporate-owned and franchised restaurant locations are expected to remain open subject to COVID-19 limitations, and the transaction is expected to preserve thousands of corporate-owned restaurant team member and franchisee jobs.

To facilitate an efficient sale process, Friendly’s has filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code, as well as a motion seeking approval of the sale to Amici and a chapter 11 plan that contemplates payment of all allowed claims. Friendly’s has asked the Bankruptcy Court for a hearing in mid-December to approve the sale and confirm the chapter 11 plan, with the closing and plan taking effect concurrently as soon as possible thereafter.

Friendly’s has sufficient cash on-hand to continue operations, meet its obligations to employees, franchisees and vendors, and ensure a seamless transition. Upon the sale closing, Amici expects to retain substantially all employees at Friendly’s corporate-owned restaurant locations.

“Over the last two years, Friendly’s has made important strides toward reinvigorating our beloved brand in the face of shifting demographics, increased competition, and rising costs,” said George Michel, CEO of FIC Restaurants. “We achieved this by delivering menu innovation, re-energizing marketing, focusing on take-out, catering and third-party delivery, establishing a better overall experience for customers, and working closely with our franchisees and restaurant teams. Unfortunately, like many restaurant businesses, our progress was suddenly interrupted by the catastrophic impact of COVID-19, which caused a decline in revenue as dine-in operations ceased for months and re-opened with limited capacity.

“We believe the voluntary bankruptcy filing and planned sale to a new, deeply experienced restaurant group will enable Friendly’s to rebound from the pandemic as a stronger business, with the leadership and resources needed to continue to invest in the business and serve loyal patrons, as well as compete to win new customers over the long-term,” he added. “Importantly, it is also expected to preserve the jobs of Friendly’s restaurant team members, who are the heart and soul of our enterprise and have been critical to the progress we have made in transforming this iconic brand.”

Womble Bond Dickinson LLP is serving as Friendly’s legal counsel. Duff & Phelps is serving as investment banker, and Carl Marks Advisors as financial advisor.

Notice of all bankruptcy filings and rulings will be available on the docket of the United States Bankruptcy Court for the District of Delaware and on the website of the claims and noticing agent, Donlin Recano & Co., at: https://www.donlinrecano.com/friendlys. Additional information can be found by emailing friendlysinfo@donlinrecano.com or by calling 1-866-853-1834.

About FIC Restaurants, Inc.

FIC Restaurants, Inc. is a restaurant company that operates under the iconic brand name “Friendly’s Restaurants”, which, for more than 80 years have delighted generations of guests by serving signature sandwiches, burgers and ice cream desserts. For additional information please visit www.friendlysrestaurants.com.

About Amici Partners Group, LLC

Amici Partners Group, LLC is an experienced investor group with a national and international franchisor background specializing in the restaurant industry. Amici is an entity affiliated with BRIX Holdings, which focuses on brands that are both attractive to the single-unit and multi-unit owner/operator franchisee and have the potential to grow into national and international award-winning chains. The current BRIX Holdings franchise portfolio includes Red Mango® Yogurt Café Smoothie & Juice Bar, Smoothie Factory® Juice Bar, RedBrick Pizza® Kitchen Cafe and Souper Salad® chains.

View source version at Friendly's


Ruth’s Hospitality Group, Inc. Provides Business Update and Reports Third Quarter 2020 Financial Results


October 30, 2020 07:00 AM Eastern Daylight Time


WINTER PARK, Fla.--(BUSINESS WIRE)--Ruth’s Hospitality Group, Inc. (the “Company”) (NASDAQ: RUTH) today provided a business update on the impact of the COVID-19 pandemic and reported unaudited financial results for its third quarter ended September 27, 2020.

Business and Liquidity Update:

  1. By the end of the third quarter, the Company was able to re-open 94% (72 of 77) of its Company-owned and managed restaurants, which included 71 restaurants offering limited capacity dining service and one restaurant offering to-go and delivery service only.

  2. 99% (71 of 72) of the Company’s franchisee-owned restaurants were open with capacity restricted dining rooms as of the end of the third quarter.

  3. Third quarter comparable restaurant sales at Company-owned restaurants decreased 36.7% compared to the third quarter of 2019. As a result of the increased number of open restaurants, sales trends improved throughout the third quarter. Year over year monthly comparable sales at Company-owned restaurants improved to down 28% in September from down 38% in August and down 43% in July.

  4. Third quarter comparable sales for Company-owned and managed restaurants with open dining rooms decreased 21.6% compared to the third quarter of 2019.

  5. During August and September 2020, the Company’s cash balance increased by a total of $8.8 million primarily due to improved sales and operating margins. As of September 27, 2020, the Company’s cash balance was approximately $103.1 million, with $135.2 million of debt outstanding under its senior credit facility and outstanding letters of credit of $4.8 million.

  6. Subsequent to the end of the third quarter, the Company repaid $20.2 million in debt, and secured a term extension to February 2023 on its senior credit facility.

  7. During the quarter, the Company permanently closed four Company-owned restaurants, which brings the total number of Company-owned locations closed during the year to nine.

Highlights for the third quarter of 2020 were as follows:

  1. Total revenue in the third quarter of 2020 was $63.4 million, compared to $103.0 million in the third quarter of 2019.

  2. Net loss in the third quarter of 2020 was $5.3 million, or ($0.15) per diluted share, compared to net income of $4.5 million, or $0.16 per diluted share, in the third quarter of 2019.

  3. Net loss in the third quarter of 2020 included $1.2 million in severance costs and accelerated stock expense; $0.3 million in losses related to lease modifications; a $3.3 million impairment loss related to restaurant closures, long-lived assets and inventory; and a $0.2 million income tax expense related to the impact of discrete income tax items. 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.

  4. Excluding these items, non-GAAP diluted loss per common share was ($0.04) in the third quarter of 2020, compared to a non-GAAP diluted earnings per common share of $0.15 in the third quarter of 2019. 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.

Cheryl Henry, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “Our operations team has worked tirelessly to adapt to an ever changing regulatory environment and I’m thrilled with the continued sales trend improvement since the end of the second quarter that was the driver of our positive cash flow during the quarter. In addition to the sales improvement, we were also able to produce higher restaurant-level margin on lower sales compared to last year once our dining rooms have been reopened with capacity restrictions. As we look forward to the end of the year, we are cautiously optimistic about the health of our business and feel prepared with proven business models to operate in a variety of regulatory scenarios. All of these accomplishments would not have been possible without the tireless efforts from all of our Ruth’s Chris team members and our franchise partners.”

View full version at Ruth's Hospitality



Yum! Brands Reports Encouraging Third-Quarter Results; Strong Recovery Driven by Record Digital Sales, Off-Premise Growth and Restaurant Reopening


GAAP Operating Profit Decline of (2)%; Core Operating Profit Growth of 7%; System Sales Growth of 1% with 2% Net Unit Growth Offset by a Same-Store Sales Decline of (2)%







Yum! Brands Reports Encouraging Third-Quarter Results; Strong Recovery Driven by Record Digital Sales, Off-Premise Growth and Restaurant Reopening; GAAP Operating Profit Decline of (2)%; Core Operating Profit Growth of 7%; System Sales Growth of 1% with 2% Net Unit Growth Offset by a Same-Store Sales Decline of (2)%

October 29, 2020 07:00 AM Eastern Daylight Time


LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today reported results for the third-quarter ended September 30, 2020. Worldwide system sales excluding foreign currency translation grew 1%, with 2% net-new unit growth and a (2)% same-store sales decline. Third-quarter GAAP EPS was $0.92, an increase of 14% over the prior year quarter. Third-quarter EPS excluding Special Items was $1.01, an increase of 27% over the prior year quarter.

DAVID GIBBS COMMENTS

David Gibbs, CEO, said “Third-quarter results were encouraging, demonstrating the resilience of the Yum! portfolio as Yum! generated year-over-year core operating profit growth, continued to reopen temporarily closed restaurants and achieved global same-store sales growth of approximately flat, in aggregate, for our open store base. For the second consecutive quarter, digital sales increased by more than $1 billion over the prior year and set a single quarter record of $4 billion. These results are a testament to the hard work and collaboration across our four brands, and I want to thank our entire global system for exceptional execution of our Recipe for Growth and Good strategy this quarter. Our employees, franchisees and restaurant team members continued to adapt to this year's ever-changing environment while also accelerating progress on our digital and technology journey. Importantly, our balance sheet and liquidity position are strong and franchisee health improved. I’m confident that by continuing to leverage our unmatched scale and champion the technology-centric customer experience, we will drive global growth, enhance unit-level economics and maximize long-term value for all of our stakeholders.”

THIRD-QUARTER HIGHLIGHTS

  1. Worldwide system sales excluding foreign currency translation grew 1%, with Taco Bell at 5%, offset by KFC at (1)% and Pizza Hut at (4)%.

  2. We reported 2% net unit growth year-over-year and a unit decline of (267) during the quarter.

  3. We recorded $8 million of pre-tax investment income related to the change in fair value of our investment in Grubhub, which resulted in a $0.02 benefit to EPS on the third-quarter. Our Grubhub investment favorably impacted year-over-year EPS growth by $0.17, as we lapped a $60 million of pre-tax investment expense in the third-quarter of 2019 for a ($0.15) impact to EPS. We disposed our Grubhub investment during the third-quarter for $206 million.

  4. Foreign currency translation unfavorably impacted divisional operating profit by $2 million.


% Change

System Sales Ex F/X

Same-Store Sales

Net-New Units

GAAP Operating Profit

Core Operating Profit2

KFC Division

(1)

(4)

+5

+3

+4

Pizza Hut Division

(4)

(3)

(4)

+3

+3

Taco Bell Division

+5

+3

+3

+16

+16

Worldwide1

+1

(2)

+2

(2)

+7


Third-Quarter

Year-to-Date

2020

2019

% Change

2020

2019

% Change

GAAP EPS

$0.92

$0.81

+14

$1.86

$2.57

(27)

Special Items EPS2

$(0.09)

$0.01

NM

$(0.61)

$0.02

NM

EPS Excluding Special Items

$1.01

$0.80

+27

$2.47

$2.55

(3)


1 Worldwide system sales ex F/X and net-new units include the benefit of our acquisition of Habit Burger Grill on March 18, 2020. Same-store sales reflects the inclusion of Habit Burger Grill in the prior year base.

2 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit and Special Items.

All comparisons are versus the same period a year ago.

System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details.

Digital sales includes all transactions where consumers at system restaurants utilize ordering interaction that is primarily facilitated by automated technology.

View full version at Yum! Brands



The Cheesecake Factory Reports Results for Third Quarter of Fiscal 2020 and Provides Business Update


October 29, 2020 04:15 PM Eastern Daylight Time


CALABASAS HILLS, Calif.--(BUSINESS WIRE)--The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the third quarter of fiscal 2020, which ended on September 29, 2020.

Total revenues were $517.7 million in the third quarter of fiscal 2020 compared to $586.5 million in the third quarter of fiscal 2019. Net loss and diluted net loss per share were $28.3 million and $0.76, respectively, in the third quarter of fiscal 2020, reflecting the impact of COVID-19. The results in this press release include the acquisition of North Italia and the remaining business of Fox Restaurant Concepts LLC (“FRC”) on October 2, 2019.

During the third quarter of fiscal 2020, the Company recorded pre-tax impairment of assets and lease termination expense of $10.4 million, $5.4 million of which was cash lease termination expense associated with one Grand Lux Cafe location that discontinued operations during the third quarter and RockSugar Southeast Asian Kitchen, which is scheduled to discontinue operations at the end of the year. The remainder was primarily related to non-cash accelerated depreciation associated with the closed Grand Lux Cafe location and accrued lease termination expense associated with another Grand Lux Cafe location that the Company expects to close by the end of the year. The Company also recorded COVID-19 related charges of $2.6 million, for costs such as sick pay, additional sanitation and personal protective equipment.

Excluding the after-tax impact of these and certain other items, and reflecting the potential impact of the conversion of the Company’s convertible preferred stock into common stock, adjusted net loss and adjusted net loss per share for the third quarter of fiscal 2020 were $17.7 million and $0.33, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.

Comparable restaurant sales at The Cheesecake Factory restaurants decreased 23.3% in the third quarter of fiscal 2020, reflecting the impact of COVID-19.

Fiscal fourth quarter-to-date through October 27, 2020, The Cheesecake Factory restaurants with reopened indoor dining rooms have recaptured, on average, approximately 90% of prior year annualized sales volumes, supported by approximately 40% off-premise sales mix. In aggregate, including locations with only reopened patios and off-premise only operating models, fiscal fourth quarter to-date through October 27, 2020 comparable sales at The Cheesecake Factory restaurants are down approximately 7%.

As of today, approximately 90% of the Company’s restaurants across its concepts, including 187 Cheesecake Factory locations, are operating with reopened indoor dining rooms with limited capacity in accordance with local mandates and social distancing protocols. On average, Cheesecake Factory restaurants with reopened dining rooms are operating at 50% capacity. Approximately 7% of the Company’s restaurants across its concepts, including 17 Cheesecake Factory locations, are operating with reopened patios with social distancing in accordance with California and Toronto dining restrictions. Currently, two locations, including one Cheesecake Factory restaurant, are operating an off-premise only model and five locations across the Company’s concepts are currently closed.

“We have continued to drive sales at The Cheesecake Factory restaurants despite mandated capacity restrictions as many of our guests have been eager to return to our restaurants and we have continued to sustain strength in the off-premise channel. In fact, we were able to maintain the vast majority of off-premise sales from the second quarter, even with additional restaurants able to reopen indoor dining rooms during the third quarter,” said David Overton, Chairman and Chief Executive Officer. “We believe this underscores the broad consumer appeal and strong guest affinity for The Cheesecake Factory brand.”

Overton continued, “We have seen a continued sales recovery at North Italia and the FRC concepts, underscoring the strength of these brands as well. Operational execution was solid across our concepts, reinforcing our financial position. In turn, we believe we are poised to continue to manage through the COVID-19 environment and emerge in a competitively strong position.”

Development

During the third quarter of fiscal 2020, two Flower Child locations opened in Houston and Oklahoma City. Subsequent to quarter-end, Culinary Dropout opened in Scottsdale, Arizona. No new restaurants were opened by the Company’s international licensees during the third quarter of fiscal 2020.

Balance Sheet & Cash Flow

During the third quarter, the Company generated $3.0 million in cash flow from operating activities.

As of September 29, 2020, cash and cash equivalents totaled $243.8 million and total debt was $376.0 million. Subsequent to quarter-end, the Company repaid $96.0 million of its revolving credit facility, bringing its debt balance to $280.0 million.

A $4.8 million dividend for the third quarter of fiscal 2020 was paid in-kind to holders of the Company’s convertible preferred stock.

Conference Call and Webcast

The Company will hold a conference call to review its results for the third quarter of fiscal 2020 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com and a replay of the webcast will be available through November 28, 2020.

About The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. Delicious, memorable experiences created by passionate people – this defines who we are and where we are going. We currently own and operate 295 restaurants throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia® and a collection within the Fox Restaurant Concepts subsidiary. Internationally, 26 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. In 2020, we were named to the FORTUNE Magazine “100 Best Companies to Work For®” list for the seventh consecutive year. To learn more, visit www.thecheesecakefactory.comwww.northitalia.com and www.foxrc.com.

From FORTUNE. ©2020 Fortune Media IP Limited. FORTUNE 100 Best Companies to Work For is a trademark of Fortune Media IP Limited and is used under license. FORTUNE and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Licensee.

View source version at Cheesecake Factory


El Pollo Loco Holdings, Inc. Announces Third Quarter 2020 Financial Results


October 29, 2020 16:05 ET

COSTA MESA, Calif., Oct. 29, 2020 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced financial results for the 13‑week period ended September 23, 2020.

Highlights for the third quarter ended September 23, 2020, compared to the third quarter ended September 25, 2019 were as follows:

  1. Total revenue was $111.0 million compared to $112.1 million.

  2. System-wide comparable restaurant sales increased 1.8%, including a 0.2% increase for company-operated restaurants, and a 3.0% increase for franchised restaurants.

  3. Income from operations was $12.2 million, compared to income from operations of $10.1 million in the prior year period. Restaurant contribution was $21.8 million, or 22.4% of company-operated restaurant revenue, compared to $18.4 million, or 18.6% of company-operated restaurant revenue, in the prior year period. Included in income from operations and restaurant contribution margin were $2.0 million of insurance proceeds received by the Company primarily as a result of restaurant sales losses and expenses related to the COVID 19 pandemic and resulting dining room closures.

  4. Net income was $9.9 million, or $0.28 per diluted share, compared to net income of $6.4 million, or $0.18 per diluted share, in the prior year period. The third quarter of 2020 included a non-cash impairment expense of $1.5 million, primarily related to the long-lived assets of one restaurant in California.

  5. Pro forma net income(1) was $9.9 million, or $0.28 per diluted share, compared to $7.2 million, or $0.20 per diluted share.

  6. Adjusted EBITDA(1) was $19.3 million, compared to $15.9 million.(1) Pro forma net income and adjusted EBITDA are not presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") and are defined below under "Key Financial Definitions." A reconciliation of GAAP net income to pro forma net income and adjusted EBITDA is included in the accompanying financial data. See also “Non-GAAP Financial Measures.”

Bernard Acoca, President and Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “Our third quarter results included a return to positive system-wide comparable sales and a continuation of improved operational efficiencies resulting in a 40% increase in pro forma diluted EPS and the highest restaurant contribution margin in over two years.  I’d like to express how appreciative I am of the extraordinary efforts of our employees and franchisees, whose resilience and passion for our brand have been instrumental in navigating this unprecedented environment.”

Acoca continued, “While the COVID crisis will likely continue to present challenges, we remain excited about the progress we’ve made against our Transformation Agenda. Our culture and brand fundamentals are now well established and we are driving against our off-premise strategies. Our new product pipeline has never been stronger and our operations continue to improve as we institute systems and processes to ensure our guests have an exceptional experience at our restaurants.  Lastly, as we finalize and test our new “restaurant of the future” during the fourth quarter, we believe we are laying the foundation for future sales and unit growth in our existing and new markets as we seek to expand in the years ahead.”

Third Quarter 2020 Financial Results

As discussed previously, in March the Company fully drew down its $150.0 million revolving credit facility, adding $34.5 million of cash to its balance sheet. During the third quarter, the Company paid down $55.0 million of debt and as of September 23, 2020 had $83.8 million of debt outstanding and $29.5 million in cash and equivalents. Subsequent to the end of the third quarter, the Company paid down an additional $28.0 million of debt.

Company-operated restaurant revenue in the third quarter of 2020 was $97.3 million, compared to $99.1 million in the third quarter of 2019. The decline in company-operated restaurant sales was primarily due to a decrease of $1.9 million from the closure of two restaurants and the five company-operated restaurants sold by the Company to franchisees during or subsequent to the third quarter of 2019, a $0.6 million decrease due to temporary restaurant closures due to the COVID-19 pandemic and a $0.2 million decrease in revenue recognized for our loyalty points program. This company-operated restaurant sales decrease was partially offset by an increase in revenue generated from the three new restaurants opened during the same time period and a $0.2 million increase due to a 0.2% increase in company-operated comparable restaurant sales. The company-operated comparable restaurant sales increase consisted of an approximately 18.1% increase in average check size, partially offset by a decline in transactions of 15.2%. It is uncertain whether the increase in average check size will persist once the pandemic ends.

Franchise revenue in the third quarter of 2020 increased 7.0% to $7.8 million, compared to $7.3 million in the third quarter of 2019. This increase was primarily due to a franchise comparable restaurant sales increase of 3.0%, the opening of two new franchised restaurants and revenue generated from five company-operated restaurants sold by the Company to franchisees during or subsequent to the third quarter of 2019, and revenue recognized related to franchise development agreements. This franchise revenue increase was partially offset by the closure of nine franchise locations during the same period.

Income from operations in the third quarter of 2020 was $12.2 million, compared to $10.1 million in the third quarter of 2019. Restaurant contribution was $21.8 million, or 22.4% of company-operated restaurant revenue, compared to $18.4 million, or 18.6% of company-operated restaurant revenue, in the third quarter of 2019. The increase was largely due to higher prices, net insurance proceeds received related to the COVID pandemic, labor efficiencies and the sale of lower-performing company-owned restaurants to franchisees during 2019. The increase was partially offset by the impact of wage increases in California, labor costs associated with the COVID-19 pandemic, increased delivery fees and the decrease in revenue previously mentioned. Restaurant contribution is a non-GAAP measure defined below under "Key Financial Definitions." A reconciliation of GAAP income from operations to restaurant contribution is included in the accompanying financial data. See also “Non-GAAP Financial Measures.”

General and administrative expenses in the third quarter of 2020 were $9.8 million, compared to $9.5 million in the third quarter of 2019. The increase was due primarily to a $0.8 million increase in labor related costs, primarily related to an increase in management bonus expense, and a $0.4 million increase in stock compensation expenses. This increase was partially offset by a $0.4 million decrease in legal expenses, a $0.2 million decrease in restaurant pre-opening costs, a $0.2 million decrease in recruiting costs and a $0.1 million decrease in other general and administrative expenses.

During the third quarter of 2020, the Company received insurance proceeds of $2.0 million primarily related to restaurant sales losses and expenses related to the COVID-19 pandemic. Additionally, during the third quarter of 2020, the Company recognized a $1.5 million non-cash impairment expense, primarily related to the long-lived assets of one restaurant in California.

Net income for the third quarter of 2020 was $9.9 million, or $0.28 per diluted share, compared to net income of $6.4 million, or $0.18 per diluted share, in the third quarter of 2019. Pro forma net income was $9.9 million, or $0.28 per diluted share, during the third quarter of 2020, compared to $7.2 million, or $0.20 per diluted share, during the third quarter of 2019. A reconciliation between GAAP net income and pro forma net income is included in the accompanying financial data. See also “Non-GAAP Financial Measures.”

>View full version at El Pollo Loco




Dunkin' Brands Reports Third Quarter 2020 Results



Oct 29, 2020, 06:00 ET



CANTON, Mass., Oct. 29, 2020 /PRNewswire/ --

Third quarter highlights include:

  1. Dunkin' U.S. comparable store sales growth of 0.9%, which improved sequentially for each month of the quarter

  2. Baskin-Robbins U.S. comparable store sales growth of 6.5%, which improved sequentially for each month of the quarter

  3. Net closure of 466 Dunkin' U.S. locations, inclusive of the previously announced closure of 425 limited-menu Speedway locations; total net closure of 553 Dunkin' and Baskin-Robbins locations globally

  4. Revenues increased by 1.6%

  5. Diluted EPS increased by 3.5% to $0.89

  6. Diluted adjusted EPS increased by 3.3% to $0.93

  7. The Company ended the third quarter with $341 million of unrestricted cash held in the U.S., excluding cash reserved for gift cards and advertising funds

Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' and Baskin-Robbins (BR), today reported results for the third quarter ended September 26, 2020.

"Our strong third quarter results are a testament to our continued focus on the Dunkin' U.S. Blueprint for Growth and demonstrate that our high-frequency, low-touch, affordable-ticket business performs well in any environment. In response to changing consumer patterns, we moved quickly to adapt our menu, introducing new beverages and snacking items designed to appeal to both morning and afternoon traffic, as well as younger consumers. We also doubled down on digital, leveraging the strength of our assets to give customers an even faster, frictionless experience. All of which contributed to our Dunkin' U.S. comparable store sales growth of 0.9 percent," said Dave Hoffmann, Chief Executive Officer, Dunkin' Brands Group, Inc. "Among our achievements this quarter, we were most proud of the grit and determination displayed by our franchisees who, throughout the pandemic, kept their restaurants open, their crews employed, and their communities running on Dunkin'."

"We delivered solid growth in third quarter revenue, operating income, and earnings per share, as well as positive comparable store sales for both Dunkin' and Baskin-Robbins in the U.S., underscoring the strength of our franchised business model," said Kate Jaspon, Chief Financial Officer, Dunkin' Brands Group, Inc. "We are nearly complete with our initiative, as announced last quarter, to work with our franchisees to close low-volume, under-performing locations following our quality-over-quantity development philosophy. For many Dunkin' U.S. franchisees, closing these restaurants will enable them to do greater reinvestment into the brand whether through Next Generation remodels, building new restaurants, or relocating restaurants to higher-traffic areas."

View full version at Dunkin' Brands


Corner Bakery Partners With Pandya Restaurant Growth Brands To Support Next Chapter of Growth

October 29, 2020


Strategic and financial partnership brings an enthusiastic, experienced, and successful ownership group to Corner Bakery

Dallas, TX  (RestaurantNews.com)  Corner Bakery® is pleased to announce that it has been acquired by Pandya Restaurant Growth Brands, LLC (PRGB), one of the Rohan Group of Companies, owned by the real estate investor and restaurant operator, Jignesh (Jay) Pandya of Bucks County, Pennsylvania.  PRGB will now assume ownership of Corner Bakery, purchasing the brand from affiliates of Roark Capital Partners. Terms of the private transaction were not disclosed.

The Rohan Group of Companies is a well-established organization with ownership interests in a wide array of business enterprises, including operations with multiple franchised restaurant concepts. Rohan Group affiliate Engage Brands purchased the Boston Market chain of Restaurants in April and has been working to expand the Boston Market brand by opening restaurants and expanding its menu. Pandya sees opportunities for strategic alliances between Corner Bakery and Boston Market.

“Our acquisition of Corner Bakery aligns with what we believe families are seeking – high quality kitchen crafted food and good, consistent customer service,” stated Pandya.

“We are very pleased to partner with Pandya Restaurant Growth Brands as we seek to expand our brand,” said Frank Paci, Chief Executive Officer of Corner Bakery. “Pandya Restaurant Growth Brands brings an enthusiastic, experienced, and successful ownership group to Corner Bakery, as well as access to resources that we need to continue to operate our business in this challenging environment. With the strategic and financial backing Jay and his team bring, we will continue to focus on key operational initiatives to improve guest experience, menu development, and the growth of our brand. We are now well-positioned to achieve future success during a period of unprecedented disruption for our industry.”

“I am delighted to be a part of Corner Bakery, an outstanding restaurant chain with a superb, high quality menu. I look forward to working with and being a resource for the more than 3400 Corner Bakery team members, and expanding this genuinely great brand,” said Mr. Pandya.

About Corner Bakery Cafe

Corner Bakery Cafe is a fast-casual restaurant serving kitchen-crafted breakfast, lunch, dinner and catering to guests in 23 states and Washington, D.C. Its restaurants have been a neighborhood favorite since the brand was established in 1991. The original American Italian bakery cafe was founded on a philosophy of creating a warm and comfortable place for people to relax with friends, family and neighbors. The restaurant features artisan-inspired, seasonal menu options made with fresh ingredients, while delivering a premier bakery cafe experience in the heart of neighborhoods everywhere. Guest favorites include the crave-worthy Anaheim Scrambler for breakfast, the grilled-to-perfection Chicken Pomodori Panini for lunch, the kitchen-crafted Pesto Cavatappi pasta for dinner and a slice of rich, flavorful Cinnamon Creme Cake for a sweet treat. The catering menu includes freshly scrambled eggs and Berry & Almond Overnight Oats, baskets of assorted specialty sandwiches, hot signature pastas, homemade soups and perfect additions. Corner Bakery was recently recognized by TripAdvisor as a “Top U.S. Restaurant Chain” for 2019 and ranked one of Franchise Times’ “Top 200” brands in the franchise space. Corner Bakery restaurants are owned and operated by CBC Restaurant Corp. with nearly 200 company-owned and franchised locations around the country. For more information, visit cornerbakerycafe.com, or follow Corner Bakery on FacebookInstagram and Twitter.

View source version at Corner Bakery Cafe




Brinker International Reports First Quarter of Fiscal 2021 Results and Provides Second Quarter of Fiscal 2021 Outlook



Oct 28, 2020, 06:45 ET



DALLAS, Oct. 28, 2020 /PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) today announced results for the first quarter of fiscal 2021 ended September 23, 2020 and provided a business update related to the second quarter of fiscal 2021.

"We continue to deliver impressive results, returning to positive earnings in the first quarter," said Wyman Roberts, CEO and President. "The team has responded to this unprecedented environment by unlocking organic growth through the introduction of It's Just Wings, skillfully managing our P&L, and further reducing our debt levels, all resulting in a sustainable growth model that serves both our guests and our shareholders."

Fiscal 2021 Highlights - First Quarter

Financial metrics for the first quarter of fiscal 2021 compared to the first quarter of fiscal 2020 were negatively impacted by the ongoing COVID-19 pandemic. Total revenues declined due to capacity limitations and personal safety preferences, partially offset by increased off-premise sales and incremental capacity from the acquisition of 116 Chili's restaurants in the first quarter of fiscal 2020 on September 5, 2019. For non-GAAP information and related reconciliations, refer to the tables and information at the end of this earnings release.

  1. Net income per diluted share, on a GAAP basis, in the first quarter of fiscal 2021 decreased 41.0% to $0.23 compared to $0.39 in the first quarter of fiscal 2020

  2. Net income per diluted share, excluding special items, in the first quarter of fiscal 2021 decreased 31.7% to $0.28 compared to $0.41 in the first quarter of fiscal 2020

  3. Net cash provided by operating activities in the first quarter of fiscal 2021 was $82.8 million, and capital expenditures totaled $13.6 million resulting in free cash flow of $69.2 million

  4. Net repayments of $46.6 million were made on the revolving credit facility during the first quarter of fiscal 2021 resulting in total available liquidity of $632.5 million as of September 23, 2020




First Quarter

Financial Metrics

2021(2)

2020

% Change

Company sales

$

728.2

$

763.9

(4.7)

%

Total revenues

$

740.1

$

786.0

(5.8)

%

Operating income

$

24.4

$

31.2

(21.8)

%

Operating income as a percentage of Total revenues

3.3

%

4.0

%

(0.7)

%

Restaurant operating margin, non-GAAP(1)

$

84.2

$

84.3

(0.1)

%

Restaurant operating margin as a percentage of Company sales, non-GAAP

11.6

%

11.0

%

0.6

%

Net income per diluted share

$

0.23

$

0.39

(41.0)

%

Net income per diluted share, excluding special items, non-GAAP

$

0.28

$

0.41

(31.7)

%

Comparable Restaurant Sales - Company Owned

Q1:21 vs 20(2)

Q1:20 vs 19

Brinker

(10.9)

%

2.3

%

Chili's

(7.2)

%

2.9

%

Maggiano's

(38.6)

%

(1.8)

%




(1) 

Restaurant operating margin is defined as Company sales less Company restaurant expenses that includes Food and beverage costs, Restaurant labor and Restaurant expenses, and excludes Depreciation and amortization, General and administrative and Other (gains) and charges (see non-GAAP reconciliation below)

(2) 

Company sales and Comparable Restaurant Sales include the results of It's Just Wings™, a virtual brand launched nationally in June 2020

Second Quarter of Fiscal 2021 Guidance

We are providing a financial outlook for the second quarter of fiscal 2021. The uncertainties created by the ongoing COVID-19 pandemic, as well as other risks and uncertainties, could cause actual results to differ materially from those projected.

  1. Comparable restaurant sales are expected to be in the negative mid-single digit range

  2. Net income per diluted share, excluding special items, is expected to be in the range of $0.40 to $0.60

  3. Weighted average diluted shares is expected to be in the range of 45.0 million to 46.0 million

Fiscal 2021 is a 53-week year, and includes an extra operating week in the fourth quarter.

We are unable to reliably forecast special items such as restaurant impairments, restaurant closures, reorganization charges and legal settlements without unreasonable effort. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures. If special items are reported during fiscal 2021, reconciliations to the appropriate GAAP measures will be provided.

View full version at Brinker



Dine Brands Global, Inc. Reports Third Quarter 2020 Results


Improving Sales Trends and Off-Premise Growth Continue

Liquidity and Cash Position Remain Strong

97% of Domestic Restaurants Open


October 28, 2020 08:00 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 third quarter of 2020.

“We continue to execute on our strategy to stabilize our business and restore growth, which resulted in both brands delivering continued improvements during this challenging time for our industry. I want to thank our franchisees and team members who have been working tirelessly this year. They have adapted to the significant challenges of 2020 with remarkable agility, bringing our delicious, affordable food to guests in a low-contact and safe manner,” said Steve Joyce, Chief Executive Officer of Dine Brands Global, Inc.

Mr. Joyce added, “We believe that both Applebee’s and IHOP are well-positioned to build on the impressive expansion of our off-premise growth, return restaurant sales to pre-pandemic levels and resume our solid history of growth. As state and local governments began to ease restrictions on dining room service, our off-premise business at each brand still drove robust sales. While consumer behavior has shifted due to the pandemic, we are committed to providing our guests with a safe environment to dine and look forward to welcoming them back.”

Domestic System-Wide Comparable Same-Restaurant Sales Performance

Domestic Same-Restaurant SalesPreliminary SalesQ3 2020Q4 QTD through WE 10/25Applebee's

(13.3%)

(1.9%)IHOP

(30.2%)