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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:
Net income of $328,000, driven in part by a gain on a renegotiated leased asset of $630,000.
Adjusted EBITDA, a non-GAAP measure was $2.0 million which includes a $1.1 million COVID-related expense addback.
Company-owned Famous Dave’s third quarter same store net sales decreased 4.6% compared to third quarter 2019.
Franchise-operated same store net sales decreased 10.0%.
Granite City third quarter same store net sales decreased 25.9% compared to third quarter 2019.
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.
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.”
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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
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%.
System-wide sales growth of 52.8% q/q
United States sales growth of 53.2% q/q
Canada sales growth of 21.7% q/q
Other International(1) sales growth of 123.0% q/q
System-wide same-store sales growth of 63.2% q/q
United States same-store sales growth of 64.2% q/q
Canada same-store sales growth of 18.2% q/q
Other International(1) sales growth of 213.6% q/q
12 new franchised store openings during the third quarter 2020
Store count as of September 27, 2020: 678 stores system-wide
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
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
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.
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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:
Global comparable sales declined 2.2%. Monthly comparable sales results improved sequentially for all segments throughout the third quarter.
Consolidated revenues decreased 2% (2% in constant currencies).
Systemwide sales were flat with the prior year (decreased 1% in constant currencies).
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).
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).
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%
Comparable Sales: Monthly comparable sales results improved sequentially for all segments throughout the third quarter of 2020.
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.
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.
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.
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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:
Revenues were $21,839,000 as compared to $29,726,000 during the thirteen weeks ended September 29, 2019;
Income from operations was $7,584,000 as compared to $7,366,000 during the thirteen weeks ended September 29, 2019;
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;
Income before provision for income taxes was $5,058,000 as compared to $5,103,000 for the thirteen weeks ended September 29, 2019;
Net income was $3,655,000 as compared to $3,658,000 for the thirteen weeks ended September 29, 2019; and
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:
Revenues were $39,525,000, as compared to $60,244,000 during the twenty-six weeks ended September 29, 2019;
Income from operations was $15,678,000, as compared to $16,814,000 during the twenty-six weeks ended September 29, 2019;
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;
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;
Net income was $7,655,000, as compared to $9,027,000 for the twenty-six weeks ended September 29, 2019; and
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:
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.
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.
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.
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.
During the fiscal 2021 period, we recorded Advertising Fund revenue and expense in the amount of $692,000.
During the fiscal 2021 period, the Board of Directors declared two quarterly cash dividends of $0.35 per share totaling $2,880,000.
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.
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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.
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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:
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;
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
Direct ship customers represented 16.2 million, or 77.2%, of total green coffee pounds processed and sold
Net sales were $97.3 million, a decrease of $41.3 million, or 29.8%, from the prior year period;
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;
Gross margin decreased to 23.0% from 29.3% in the prior year period;
Operating expenses as percentage of sales increased to 34.8% from 24.3% in the prior year period;
Net loss was $6.3 million compared to net loss of $4.7 million in the prior year period; and
Adjusted EBITDA was $5.7 million compared to $4.0 million in the prior year period.*
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.”
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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
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;
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;
Off-premise sales increased 127.2% and comprised 40.7% of total food and beverage sales;
Net loss was $6.2 million compared to net loss of $1.8 million;
GAAP loss per diluted share was $0.40 compared to GAAP loss per diluted share of $0.14;
Adjusted loss per diluted share was $0.19 compared to adjusted loss per diluted share of $0.24 (see Schedule I);
Adjusted EBITDA was a loss of $0.7 million compared to adjusted EBITDA of $14.7 million (see Schedule III); and
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."
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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:
Total GAAP revenues increased 79.0% to $39.6 million from $22.1 million;
Consolidated comparable sales* decreased 15.6% but improved sequentially through the quarter
Comparable sales decreased 24.8% for July, 17.2% for August, and 4.3% for September;
Comparable sales* for STK decreased 24.2% but improved sequentially through the quarter
Comparable sales decreased 34.9% for July, 28.2% for August, and 10.4% for September;
Comparable sales* for Kona Grill decreased 7.3% but improved sequentially through the quarter
Comparable sales decreased 16.2% for July and 6.7% for August, and increased 2.3% for September;
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,
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:
An approximately $218 million non-cash gain on sale of assets from the previously disclosed sale-leaseback transaction that closed in August
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
Company revenues increased 17.1% compared to third quarter of 2019
Comparable sales increased 23.8% in North America and 20.7% Internationally in the third quarter
Earnings per diluted share increased to $0.35 compared to third quarter 2019 loss per diluted share of ($0.10)
Cash flow from operations of $168.5 million and free cash flow of $134.0 million for the first nine months of 2020
Previously announced temporary franchise support program ended in the third quarter, concluding a $55 million investment in the system over the past four quarters
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
Total restaurant sales increased 2.2% to $407.0 million compared to $398.4 million in the prior year quarter;
Comparable restaurant sales for the Company's Burger King® restaurants increased 0.8%;
Comparable restaurant sales for the Company’s Popeyes® restaurants increased 5.5%;
Adjusted EBITDA(1) increased to $34.1 million from $25.7 million in the prior year quarter;
Adjusted Restaurant-Level EBITDA(1) increased to $52.8 million from $43.0 million in the prior year quarter;
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;
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
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
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.
Net sales for the third quarter of 2020 were $46,230,000, down from $56,867,000 reported in the third quarter of 2019.
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.
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.
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.
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.
Adjusted EBITDA (2) was $2,517,000 in the third quarter of 2020 compared to $4,375,000 in the third quarter of 2019.
Restaurant Operating Profit Margin (3) was 5.8% in the most recent quarter compared to 8.9% for the third quarter of 2019.
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:
System-wide sales increased 32.8% to $509.2 million
43 net new openings in the fiscal third quarter 2020
Domestic same store sales increased 25.4%
Digital sales increased to 62.0%
Total revenue increased 28.3% to $64.0 million
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
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.
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.
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.
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.
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Inspire Brands to Acquire Dunkin’ Brands in $11.3 Billion Transaction
November 2, 2020
Transaction furthers Inspire’s goal of bringing together a family of complementary, highly differentiated brands
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
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.