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Financials - October 2020

















Restaurant Brands International Inc. Announces Preliminary Third Quarter 2020 Results



Oct 14, 2020, 07:55 ET



TORONTO, Oct. 14, 2020 /PRNewswire/ - Restaurant Brands International Inc. ("RBI") (TSX: QSR) (NYSE: QSR) (TSX: QSP), announced today preliminary selected third quarter 2020 financial results.

Preliminary Third Quarter 2020 Highlights:




Operational Metrics:

Three Months Ended September 30,

2020

2019

(Unaudited)

System-wide Sales Growth

Consolidated

(5.4)%

8.9%

Comparable Sales

    TH - Canada

(13.7)%

(1.2)%

    TH – Rest of World

(3.6)%

(2.7)%

    TH - Global

(12.5)%

(1.4)%

    BK – US

(3.2)%

5.0%

    BK – Rest of World

(10.3)%

4.7%

    BK - Global

(7.0)%

4.8%

    PLK- US

19.7%

10.2%

    PLK – Rest of World

(0.3)%

6.3%

    PLK – Global

17.4%

9.7%




Note: System-wide sales growth and comparable sales are calculated on a constant currency basis and include sales at franchise restaurants and company-owned restaurants. System-wide sales are driven by sales at franchise restaurants, as approximately 100% of current restaurants are franchised. We do not record franchise sales as revenues; however, our franchise revenues include royalties based on a percentage of franchise sales. Additionally, if a restaurant is closed for a significant portion of a month, the restaurant is excluded from the monthly comparable sales calculation.

Additionally, RBI expects to report (in millions except %):

  1. Revenues between $1,320 and $1,340, including approximately $10 million of unfavorable FX leading to organic growth over prior year of between negative 7% and 9%

  2. Adjusted EBITDA between $555 and $565, including approximately $5 million of unfavorable FX, leading to organic growth over prior year of between negative 5% and 7%

  3. 96% of system-wide restaurants open at the end of September

The preliminary financial information included in this release is subject to completion of RBI's quarter-end close procedures and further financial review. These estimates are preliminary, unaudited and are inherently uncertain. During the course of the preparation of our condensed consolidated financial statements and related notes, and completion of our financial close and review procedures for the three and nine months ended September 30, 2020, adjustments to the preliminary estimates may be identified, and such adjustments may be material. In addition, other developments may arise between now and the time the financial statements for the three and nine months ended September 30, 2020 are finalized. These preliminary estimates should not be viewed as a substitute for full interim financial statements prepared in accordance with GAAP, and they should not be viewed as indicative of our results for any future period. Actual results for the three and nine months ended September 30, 2020 and future periods could differ materially from the estimates, trends and expectations discussed above.

View full version at RBI


Tropical Smoothie Cafe® Continues Record-Setting Results throughout Q3

Leading Fast-Casual Concept Continues Industry-Leading Performance with Nationwide Expansion and Focus on Convenience



Oct 14, 2020, 18:25 ET



ATLANTA, Oct. 14, 2020 /PRNewswire/ -- Tropical Smoothie Cafe, LLC, the franchisor of a leading national fast-casual concept known for its better-for-you-smoothies and food with a tropical twist, today announced continued record-setting results for Q3 with same store sales of +19.5%, and year-to-date same store sales of +3.4%. This incredible success and industry-leading performance is due in part to consumers' appetite for convenient, healthier fast-casual options and the brand's menu innovation and nationwide expansion. Year-to-date, the company has opened 75 new cafes across the U.S. and is on track to open more than 85 new cafes total by the end of 2020. Additionally, the brand has strengthened its growth pipeline by signing 184 franchise agreements year-to-date.

"We are extremely proud of our franchisees who have kept up the momentum throughout Q3 by engaging with our guests and providing a seamless experience from start to finish," said Charles Watson, CEO of Tropical Smoothie Cafe, LLC. "As we head into the final quarter of 2020 on a high note, we will continue to elevate the consumer experience by providing more ways to access our innovative menu offerings, whether it is ordering ahead, scheduling delivery, or arranging for curbside pickup."

As a category leader in the industry, Tropical Smoothie Cafe attributes its accelerated growth to the unrivaled commitment of the brand's franchisees who continue to engage with the communities they serve. As consumers strive for new ways to eat healthier, the company is dedicated to consistently introducing new menu options and promotions, satisfying the desire from guests across the country for made-to-order real-fruit smoothies, toasted sandwiches, flatbreads, wraps and more.

"I am confident we will close out the year on a positive note, positioning us for a record-setting 2021," Watson continued.

For more information on Tropical Smoothie Cafe, visit www.TropicalSmoothieCafe.com.

About Tropical Smoothie Cafe® Tropical Smoothie Cafe is a national fast-casual cafe concept inspiring a healthier lifestyle with more than 885 locations nationwide. Serving better-for-you smoothies, wraps, sandwiches, and flatbreads, Tropical Smoothie Cafe also offers upgraded app technology and enhanced mobile ordering capabilities to further elevate the digital and dine-in cafe experience and emphasize the brand's focus on convenience. The rapidly growing franchise has received numerous accolades including rankings in QSR's 10 Best Franchise Deals, Entrepreneur's Franchise 500 and Forbes' Best Franchises, as well as Franchise Times' Top 200+. In 2020, the brand was recognized amongst NRN's 10 Fastest-Growing Restaurant Chains, Franchise Business Review's Top 50 Multi-Unit Franchises and Best Multi-Unit Franchises, and Tropical Smoothie Cafe CEO Charles Watson was recognized as one of NRN's Most Influential CEOs.

View source version at Tropical Smoothie Cafe




Walk-On's Sports Bistreaux Scores Investment from 10 Point Capital

Equity Investment Fuels Leading Restaurant Expansion Nationwide



Oct 13, 2020, 10:15 ET



BATON ROUGE, La., Oct. 13, 2020 /PRNewswire/ -- Walk-On's, a leading full-service family sports restaurant that provides gourmet takes on game day favorites, today announced a growth equity investment from 10 Point Capital. Walk-On's has more than 40 locations, spanning nine states, and has already opened 10 new locations in 2020, with five more anticipated by year-end. The investment will enable Walk-Ons to achieve its goal of opening 150 new locations over the next five years. Terms of the deal were not disclosed.

"We are excited to partner with 10 Point Capital to capitalize on our momentum and further accelerate the company's expansion," said Brandon Landry, Founder and CEO of Walk-On's. "Their proven track record of helping founders drive national expansion for their concepts is exactly what we were looking for."

Despite the challenges brought on by the global pandemic, Walk-On's is having a tremendously successful year. With a determined leadership team, committed group of franchise partners, and loyal fans, the brand remains steadfast and focused on growth. Recent agreements confirm rapid expansion plans as Walk-On's continues to target strategic franchise development in key markets throughout the Southeast and Midwest.

"Brandon has built an exceptional brand through amazing food, service and franchisee support" said Scott Pressly, Co-founder of 10 Point Capital. "Walk-On's has become the 'go-to' destination for sporting events, family celebrations and date night.  We are delighted to become part of the team and help them share the Walk-On's experience with more guests!"

The company's strong track record has also garnered national recognition earning the #1 spot in Entrepreneur's list of 2020 Top New Franchises.

ABOUT WALK-ON'S

Based in Baton Rouge, LA, Walk-On's Sports Bistreaux was founded in 2003 by Brandon Landry, a former walk-on basketball player at Louisiana State University. Leaning on the true spirit of a walk-on and building a winning culture, the brand is rapidly expanding across the United States with 42 locations currently open and operating, and over 90 in development. Its Louisiana-inspired menu combines food and drinks made from scratch, daily. Walk-On's team serves up a game day experience in a fun, welcoming, family-friendly atmosphere that ensures every guest is a winner. For more information, visit www.walkons.com. To inquire about franchise opportunities, please visit www.walkons.com/franchising or contact Kelly Parker, Director of Franchise Sales & Real Estate, at 225-330-4533.

ABOUT 10 POINT CAPITAL

10 Point Capital helps founders create dominant franchise brands. With deep roots in the franchise industry, 10 Point Capital helps emerging concepts accelerate their growth by providing investment capital and using a proven Franchise Acceleration Plan to help them evolve into mature, thriving brands. 10 Point Capital has been an integral part of the national expansion of Tropical Smoothie Café, Slim Chickens, and Phenix Salon Suites. For more information on 10 Point Capital, visit www.10pointcapital.com.

View source version at Walk-On's


Meritage Reports Third Quarter 2020 Results; Strong Sales and Earnings Growth


October 08, 2020 10:12 ET

GRAND RAPIDS, Mich., Oct. 08, 2020 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation’s premier franchise operator, today reported financial results for the third quarter and the nine months ended September 27, 2020.

2020 Third Quarter Highlights:

  1. Sales for the three months increased 15.9% to $136.6 million compared to $117.9 million for the same period last year.

  2. Earnings from Operations increased 40.0% to $8.2 million compared to $5.8 million for the same period last year.

  3. Net Earnings increased 74.0% to $4.6 million compared to $2.6 million for the same period last year.

  4. Consolidated EBITDA (a non-GAAP measure) increased 26.5% to $12.8 million compared to $10.1 million for the same period last year.

  5. Based on stabilized and improved performance, the Company reinstated payment on its preferred stock dividends effective October 1, 2020.

“Our continued strong sales and earnings performance in the third quarter reflect the underlying strength of our Wendy’s franchise and restaurant operating teams. We continue to stay focused on our strategic operating priorities, including employee and customer safety while delivering speed, convenience and affordability,” stated Meritage CEO, Robert E. Schermer, Jr.

“Newly built, reimaged and acquired Wendy’s restaurants continue to perform well and should provide a significant earnings catalyst for 2021, which will be further supported by the Wendy’s breakfast program and new product introductions. Our geographically diverse business structure and strategic operating platform investments have positioned us well for industry-leading returns and long-term value creation for our shareholders and employees,” added Schermer.

2020 Nine Months Highlights:

  1. Sales for the nine months increased 8.6% to $376.1 million compared to $346.4 million for the same period last year.

  2. Earnings from Operations increased 5.1% to $18.6 million compared to $17.6 million for the same period last year.

  3. Net Earnings were $7.0 million compared to $10.5 million for the same period last year. (Net Earnings includes a negative year over year GAAP charge of approximately $3.2 million resulting from expenses incurred with COVID-19).

  4. Consolidated EBITDA (a non-GAAP measure) was $33.2 million compared to $35.2 million for the same period last year.

  5. The Company added six new Wendy’s restaurants during the first nine months of the year, to finish the third quarter with 339 restaurants in operation.

2021 Outlook: Robust Growth Ahead

The Company has committed significant long-term capital resources to Wendy’s brand initiatives, including an agreement to build 40 new Wendy’s restaurants by the end of 2024 under the Groundbreaking Incentive Program.

Meritage is targeting robust sales growth in 2021, driven by new restaurant development, reimaged locations and restaurant acquisitions. As we navigate our way forward in the new restaurant industry normal, the Company’s goal continues to be rewarding shareholders with dividend growth commensurate with earnings growth.

Meritage continues to distinguish itself as a leader and innovator in the quick service and family restaurant segments, striving for best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.

Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 340 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 10,400 employees. The Company has approximately 9.4 million diluted weighted average common shares outstanding. The Company’s public filings can be viewed at www.otcmarkets.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.

View source version at Meritage Hospitality Group


McDonald's Reports Third Quarter 2020 Comparable Sales, Raises Quarterly Cash Dividend And Announces November Investor Update

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

- Quarterly cash dividend increases 3% to $1.29 per share - the equivalent of $5.16 annually

- McDonald's will host a virtual Investor Update on Monday, November 9, 2020



Oct 08, 2020, 07:58 ET



CHICAGO, Oct. 8, 2020 /PRNewswire/ -- "Our third quarter performance demonstrates the underlying resilience of the McDonald's brand. Our unique strengths, including our unrivaled drive-thru presence around the world, advanced delivery and digital capabilities, and marketing scale have become even more important during the pandemic. Our prior investments in these areas position us to further our competitive advantage and enable restaurant crew to continue to safely provide customers our great tasting food," said McDonald's President and Chief Executive Officer Chris Kempczinski. "Today's dividend increase reflects our strong financial position and represents continued confidence in our ability to drive profitable growth and long-term shareholder value while still investing in our people and the business."

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.

Quarterly Cash Dividend

On October 7, 2020, McDonald's Board of Directors declared a quarterly cash dividend of $1.29 per share of common stock payable on December 15, 2020 to shareholders of record at the close of business on December 1, 2020. This represents a 3% increase over the Company's previous quarterly dividend. While current year business results have been impacted by the COVID-19 pandemic, the pace of recovery paired with the Company's strong financial position support this increase to the dividend while still giving the Company the ability to invest in the business.

McDonald's has a strong history of returning capital to its shareholders and has raised its dividend for over 40 years consecutively since paying its first dividend in 1976. The new quarterly dividend of $1.29 per share is equivalent to $5.16 annually.

View full version at McDonald's


Domino's Pizza® Announces Third Quarter 2020 Financial Results

Global retail sales growth (excluding foreign currency impact) of 14.8%

U.S. same store sales growth of 17.5%

International same store sales growth of 6.2%

Global net store growth of 83

Diluted EPS up 21.5% to $2.49



Oct 08, 2020, 07:30 ET



ANN ARBOR, Mich., Oct. 8, 2020 /PRNewswire/ -- Domino's Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world based on global retail sales, announced results for the third quarter. Global retail sales increased 14.4% in the third quarter, or 14.8% excluding foreign currency impact. U.S. same store sales grew 17.5% during the quarter versus the year-ago period and were positively impacted by customer ordering behavior during the COVID-19 pandemic, continuing the positive sales momentum in the Company's U.S. stores business. The international business also posted positive same store sales results, with growth of 6.2% during the quarter. The third quarter marked the 107th consecutive quarter of international same store sales growth and the 38th consecutive quarter of U.S. same store sales growth.

During the quarter, the Company reported 209 gross new stores and 83 net new stores, comprised of 44 net new U.S. stores and 39 net new international stores. The Company's net store growth reflects the closure of 126 stores, primarily in India. The number of temporary store closures in certain of the Company's international markets declined during the third quarter of 2020. Based on information reported to the Company by its master franchisees, the Company estimates that as of October 5, 2020, there were fewer than 300 international stores temporarily closed.

Diluted EPS for the third quarter was $2.49, up 21.5% over the prior year quarter.

On October 6, 2020, the Company's Board of Directors declared a $0.78 per share quarterly dividend for shareholders of record as of December 15, 2020 to be paid on December 30, 2020.

"I am extremely proud of our global franchisees, operators and corporate teams for their relentless passion and energy as we continue to navigate through the pandemic," said Ritch Allison, Domino's Chief Executive Officer. "Our strong third quarter results once again demonstrated our focus on value, service, quality and innovation to meet customer needs."

View full version at Domino's


Ruby Tuesday Files for Chapter 11

October, 7 2020


Ruby Tuesday Files for Chapter 11


Ruby Tuesday announced today that it has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code. Prior to its filing, the Company reached an understanding with its secured lenders to support its restructuring through financing and an agreement regarding the terms of a plan that will provide a sustainable path forward for the restaurant chain. The casual dining favorite plans to use this filing to strengthen its business by reducing liabilities and emerge a stronger organization built for the future. The Company intends to move through the bankruptcy process as quickly as possible. Its restaurants will continue to operate “business as usual” throughout the reorganization process.

“This announcement does not mean ‘Goodbye, Ruby Tuesday’. Today’s actions will allow us an opportunity to reposition the company for long-term stability as we recover from the unprecedented impact of COVID-19,” said Shawn Lederman, Ruby Tuesday’s CEO. “Our restructuring demonstrates a commitment to Ruby Tuesday’s future viability as we work to preserve thousands of team member jobs. Our guests can be assured that during the Chapter 11 process, we will continue to deliver welcoming service and provide a safe environment for guests and team members, while serving fresh, signature products that only Ruby Tuesday can offer. With this critical step in our transformation for long-term financial health – this is ‘Hello’, to a stronger Ruby Tuesday.”

Ruby Tuesday is advised by Pachulski Stang Ziehl & Jones LLP as legal counsel, CR3 Partners, LLC, as financial advisor, FocalPoint Securities, LLC, as investment banker, and Hilco Real Estate, LLC, as lease restructuring advisor.

Additional information about the Company’s reorganization can be found at here.

View source version at Ruby Tuesday


Wingstop Inc. Releases Preliminary Fiscal Third Quarter 2020 Sales Results



Oct 06, 2020, 07:30 ET



DALLAS, Oct. 6, 2020 /PRNewswire/ -- Wingstop Inc. ("Wingstop" or the "Company") (NASDAQ: WING) today released preliminary unaudited sales and unit development results for the fiscal third quarter 2020. The Company also announced that it will host a conference call and webcast to discuss its fiscal third quarter 2020 financial results on Monday,  November 2, 2020 at 10:00 AM EST.

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

  1. 43 net new openings in fiscal third quarter 2020

  2. Domestic same store sales increased 25.4%

  3. Company-owned restaurant same store sales increased 15.2%

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

  5. Digital sales increased to 62.0%

As of September 26, 2020, there were 1,479 Wingstop restaurants system-wide consisting of 1,308 restaurants in the United States, of which 1,277 were franchised and 31 were company-owned, and 171 international franchised restaurants across nine countries.

"The results during the third quarter continue to highlight the strength of our growth strategy. We continued to benefit from strong topline momentum with same-store sales of 25.4% during the quarter and 22.5% for 2020 year-to-date putting us well on our way to our 17th consecutive year of positive same store sales growth. Despite the challenging industry backdrop, we achieved 43 global net new openings during the quarter," stated Charlie Morrison, Chairman and Chief Executive Officer of Wingstop. "I am thankful for the support of our team members and brand partners in achieving these extraordinary results during these difficult times. We remain focused on executing against our growth strategies and our vision of becoming a top 10 global restaurant brand."

View full version at Wingstop


Fiesta Restaurant Group, Inc. Reports Third Quarter 2020 Comparable Restaurant Sales


Improvement in Comparable Restaurant Sales Trend Extended Through the Third Quarter

Pollo Tropical and Taco Cabana Adjusted EBITDA Margins for Third Quarter Expected to be Above Same Period Last Year

Total Debt Reduced from $56 Million on July 31 to $42 million on September 27


October 05, 2020 07:49 PM Eastern Daylight Time


DALLAS--(BUSINESS WIRE)--Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ: FRGI), parent company of the Pollo Tropical® and Taco Cabana® restaurant brands, today reported comparable restaurant sales for the 13-week third quarter 2020, which ended on September 27, 2020. The Company also provided a liquidity update.

Fiesta President and Chief Executive Officer Richard Stockinger said, “We are very encouraged by the continued improvement in comparable restaurant sales at both brands during the third quarter. Pollo Tropical’s comp sales acceleration was the most significant, improving from -31.6% in the second quarter to -11.1% in the third quarter, including sequential monthly comp momentum within the third quarter to -8.7% in September. Taco Cabana’s comp sales increased 500 basis points from the second quarter to -14.2% in the third quarter. The sales acceleration at both brands was realized despite our dining rooms being closed across most units for the majority of the quarter along with continued challenges in terms of COVID and economic conditions in Florida and Texas. In addition, we expect Pollo Tropical and Taco Cabana Adjusted EBITDA margins(1) for the third quarter will be above the second quarter and year-ago period.”

Mr. Stockinger continued, “We have been taking ongoing steps to ensure a safe operating environment throughout this crisis. Effective July 12, we made the decision to close all of our dining rooms to ensure team member and guest safety, and recently began to evaluate re-opening dining rooms in select markets and locations. We continue to operate all of our restaurants for drive-thru, delivery and pickup, and we are accelerating efforts to better enable our customers to enjoy our brands safely and conveniently across all channels. We made very good progress during the third quarter on off-premise initiatives including the launch of curbside pickup capability at all units, the release of a greatly-enhanced online experience for each brand including easier to use apps, and expanded delivery options.”

Mr. Stockinger concluded, “Regarding liquidity, since July 31, 2020 we reduced our total debt by $14 million to $42 million and our net revolver debt(2) by $21 million to $27 million as of September 27, 2020. The net revolver debt reduction was funded by cash flow from operations and the sale or sale-leaseback of four Company owned properties. We currently have offers or contracts in place for the sale or sale-leaseback of all 12 remaining Company owned properties being marketed, with additional transactions expected to close in the fourth quarter to enable further debt paydown, although there can be no assurance that such transactions will be completed during the fourth quarter or at all. We are also exploring the potential refinancing of our current credit agreement, although we cannot make any assurance of the timing or certainty of completing any refinancing transactions at this time.”

________(1)Adjusted EBITDA as a percentage of total revenue for each brand. Adjusted EBITDA for each of our segments is the primary measure of segment profit or loss used by our chief operating decision maker for purposes of allocating resources to our segments and assessing their performance.(2)Total debt is comprised of finance lease obligations of $2.0 million and $1.9 million as of July 31, 2020 and September 27, 2020, respectively, and outstanding revolving credit facility borrowings. We define net revolver debt as outstanding revolving credit facility borrowings plus outstanding letters of credit less unrestricted cash balance as defined in our credit agreement (generally cash in bank less outstanding payments), which were $54.0 million, $3.5 million and $9.1 million, respectively, as of July 31, 2020 and $39.9 million, $3.5 million and $16.0 million, respectively, as of September 27, 2020. Net revolver debt is a non-GAAP measure which we believe assists investors in understanding of our management of our overall liquidity and financial flexibility.

Comparable Restaurant Sales Summary

The Company indicated that it is releasing comparable sales and liquidity status commentary on a more frequent basis as a result of the rapidly changing economic environment and conditions related to the COVID-19 pandemic, consistent with many other peer companies in the restaurant segment. The Company will continue to evaluate the benefits of this temporary change in disclosure practices as the economic and COVID-19 pandemic conditions evolve.

View full version at Fiesta Restaurant Group


Noodles & Company Releases Preliminary Unaudited Fiscal Third Quarter 2020 Sales Results


October 01, 2020 09:00 ET

Company-Owned Comparable Year-Over-Year Restaurant Sales Increase 1.1% During 5-Week Fiscal Period Ended September 29th;

Balance Sheet Strengthened to Support Accelerated Unit Growth

BROOMFIELD, Colo., Oct. 01, 2020 (GLOBE NEWSWIRE) -- Noodles & Company (Nasdaq: NDLS) today released preliminary unaudited sales results for the third fiscal quarter ended September 29, 2020.

“I continue to be proud of the outstanding efforts of our teams and the resiliency of the Noodles & Company brand that has been demonstrated during the past several months,” said Dave Boennighausen, Chief Executive Officer. “Our return to positive comparable sales, aided by impressive digital growth, is evidence of our strong brand positioning to meet the needs of today's consumer for great tasting healthy food served conveniently where and when guests want it. We also took steps during the third quarter to further strengthen our balance sheet during the quarter and have set our business up for accelerated new unit growth.”

Boennighausen concluded "I am particularly proud of our sales performance in this environment given that only in the past few days have many of our restaurants re-opened for in-restaurant dining to complement our off-premise and patio dining efforts. As of September 30th, over 90% of our restaurants have opened their dining rooms."

The cadence of comparable restaurant sales and average unit volumes during the third quarter are as set forth below. Company-owned restaurants were closed July 4 and 5, 2020 in appreciation of our teams’ efforts during the pandemic. All restaurants were open during that time frame in 2019, negatively impacting comparable restaurant sales during the same period in 2020:Comparable Restaurant Sales4 Weeks Ended July 28, 2020 (1)4 Weeks Ended August 25, 2020 5 Weeks Ended September 29, 2020Company-owned(8.4)%(4.6)%1.1%Franchise(7.2)%(5.1)%(3.2)%System-wide(8.2)%(4.7)%0.4%

_____________________

(1) Company-owned restaurants were closed July 4 and July 5, 2020.

Expected Fiscal Third Quarter 2020 Sales Highlights

  1. Full third quarter system-wide comparable sales decreased 3.8%, comprised of a 3.6% decrease at company-owned restaurants and a 5.0% decrease at franchise restaurants.

  2. Full third quarter company-owned average unit volumes were flat versus prior year at $1.2 million.

  3. Company-owned comparable sales increased 1.1% during the five week fiscal period ending September 29, 2020 compared to the prior year.

  4. Company-owned average unit volumes in the five week fiscal period ending September 29, 2020 increased 2.4% versus prior year to $1.2 million.

  5. Digital sales during the fiscal September period increased 146% year over year.

  6. Preliminary total revenue of approximately $106.3 million, representing a $12.0 million decrease vs. prior year due to fewer company operating weeks from prior refranchising activities as well as temporary closures during the COVID-19 pandemic.

These expected sales results are preliminary and unaudited, have not been reviewed by the Company’s independent registered public accountants, and remain subject to the completion of normal quarter-end accounting procedures and adjustments and are subject to change.

Liquidity

During the fiscal third quarter, the Company paid down a substantial portion of its outstanding revolving credit facility. As of September 29, 2020, the Company held $7.6 million of cash on hand and had borrowings of $44.0 million. The Company currently has $52.3 million available for borrowing under its revolving credit facility as of September 29, 2020.

Investor Conference Participation

As a reminder, Dave Boennighausen, Chief Executive Officer, will present at the October 2020 Lytham Partners Virtual Investor Growth Conference. Noodles’ discussion will start at 1:00 pm Eastern Time on Tuesday, October 6, 2020.

This discussion will be webcast live and archived on the Noodles & Company website. To access the webcast, please visit www.noodles.com under the “Investor Relations” tab.

About Noodles & Company

Since 1995, Noodles & Company has been serving noodles your way, with noodles and flavors that you know and love as well as new ones you're about to discover. From indulgent Wisconsin Mac & Cheese to better-for-you Zoodles and Other Noodles, the company serves a world of flavor in every bowl. Made up of more than 450 restaurants and thousands of passionate team members, Noodles was named one of the Best Places to Work by the Denver Business Journal for its unique culture built on the value of "Loving Life," which begins by nourishing and inspiring every team member and guest who walks through the door. To learn more or find the location nearest you, visit www.noodles.com.

View source version at Noodles & Company


RAVE Restaurant Group, Inc. Reports Fourth Quarter and Fiscal Year 2020 Financial Results



Sep 30, 2020, 17:00 ET



DALLAS, Sept. 30, 2020 /PRNewswire/ -- RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the fourth quarter and fiscal year ended June 28, 2020.

Fourth Quarter Highlights:

  1. Pizza Inn domestic comparable store retail sales decreased 39% in the fourth quarter of fiscal 2020 compared to the same period of the prior year.

  2. Pie Five comparable store retail sales decreased 37.9% in the fourth quarter of fiscal 2020 compared to the same period of the prior year.

  3. Total revenue decreased by $1.5 million to $1.6 million for the fourth quarter of fiscal 2020 compared to the same period of the prior year.

  4. Income before taxes was $32 thousand for the fourth quarter of fiscal 2020 compared to a loss before taxes of $1.1 million for the same period of the prior year.

  5. The Company recorded net income of $31 thousand for the fourth quarter of fiscal 2020 compared to net loss of $0.8 million for the same period of the prior year.

  6. On a fully diluted basis, net income increased $0.05 per share to $0.00 per share for the fourth quarter of fiscal 2020 compared to net loss of $0.05 per share for the same period of the prior year.

  7. Cash and cash equivalents increased $1.4 million during the fourth quarter of fiscal 2020 to $3.0 million at June 28, 2020.

  8. Pizza Inn domestic unit count finished at 151.

  9. Pizza Inn international unit count finished at 38.

  10. Pie Five domestic unit count finished at 42.

Annual Highlights:

  1. Fiscal 2020 contained 52 weeks compared to 53 weeks in fiscal 2019.

  2. RAVE total domestic comparable store retail sales decreased 10.5% for the 53 weeks ended June 28, 2020 compared to the 53 weeks ended June 30, 2019.

  3. Pizza Inn domestic comparable store retail sales for the 53 weeks ended June 28, 2020 decreased 8.8% compared to the same period of the prior year, while total domestic retail sales decreased 13.7%.

  4. Pie Five comparable store retail sales for the 53 weeks ended June 28, 2020 decreased 15.7% compared to the same period of the prior year, while total systemwide retail sales decreased 37.4%.

  5. Total consolidated revenue decreased 18.6% in fiscal 2020 to $10.0 million.

  6. Net income before tax improved by $0.6 million to a loss of $0.2 million in fiscal 2020 compared to a loss of $0.8 million in fiscal 2019.

  7. Net income decreased by $3.5 million to a net loss of $4.2 million for fiscal 2020 compared to net loss of $0.7 million in the prior year.

  8. On a fully diluted basis, the Company reported a net loss of $0.28 per share in fiscal 2020 compared to net loss of $0.05 per share in the prior year.

  9. Adjusted EBITDA of $0.6 million for fiscal 2020 was a $0.2 million increase from the prior year.

  10. Domestic Pizza Inn units decreased by four during the year bringing domestic total units open at the end of the 2020 fiscal year to 151.

  11. International Pizza Inn units decreased by ten during the year bringing the total international units open at the end of the 2020 fiscal year to 38.

  12. Pie Five units decreased by sixteen during the year bringing total units open at the end of the 2020 fiscal year to 42.

"The COVID-19 pandemic has presented unprecedented challenges to both of our brands but, as our recovery efforts progress, it is encouraging to see our focus on safety, convenience, quality and value resonating with our customers," said Brandon Solano, Chief Executive Officer of Rave Restaurant Group, Inc. "I continue to be inspired by the coordinated response from our franchisees and restaurant support team to drive traffic and incremental sales through new channels and operations."

View full version at RAVE Restaurant Group


Papa John’s Sustains Strong North America and International Comparable Sales in September


September 29, 2020 07:00 AM Eastern Daylight Time


LOUISVILLE, Ky.--(BUSINESS WIRE)--Papa John’s International, Inc. (NASDAQ: PZZA) today provided preliminary estimated comparable sales information for the month of September and the third quarter fiscal period. In light of the uncertainty related to the pandemic, the company has continued to provide this information on a monthly basis.

President & CEO Rob Lynch said, “Six consecutive months of double-digit comparable sales growth were made possible by the hard work of Papa John’s team members and franchisees during the global pandemic. We remain confident that our innovation pipeline, marketing and technology platforms, and strong operations will continue to support strong results during, and after, the pandemic.”

Preliminary Estimated Comparable Sales for September 2020 Fiscal Period and Third Quarter

Preliminary estimated comparable sales information for the five weeks and the fiscal quarter ended September 27, 2020, relative to the same periods in the prior year are as follows:



Period 9

Third Quarter


August 24, 2020 to September 27, 2020

Three months ended September 27, 2020

Comparable sales growth (a)



Domestic company-owned restaurants

14.3%

18.2%

North America franchised restaurants

19.7%

25.5%

System-wide North America restaurants

18.4%

23.8%




System-wide international restaurants (b)

23.3%

20.6%


(a)

Represents the change in year-over-year sales for the same base of restaurants for the same fiscal period. 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.



(b)

Includes the impact of approximately 90 temporarily closed stores as of September 27, 2020, principally in Latin America and Europe.  Excluding those stores, comparable sales growth for system-wide international restaurants would have been approximately 25% in Period 9 and 23% in the third quarter.

Update on Temporary Restaurant Closures as a Result of COVID-19

Of the company’s approximately 2,100 international franchised stores, approximately 90 are temporarily closed, primarily in Latin America and Europe, in accordance with government policies. In North America, almost all traditional restaurants remain open and fully operational. A number of non-traditional restaurants located in universities and stadiums are temporarily closed; these non-traditional locations are not material to the company’s revenues and operating results.

About Comparable Sales

The Company believes North America and international comparable sales growth information, as defined in the table above, is useful in analyzing its results since franchisees pay royalties and marketing fund contributions that are based on a percentage of franchise sales. Franchise sales also generate commissary revenue in the United States and in certain international markets. Franchise restaurant and comparable sales growth information is also useful for comparison to industry trends and evaluating the strength of our brand. Management believes the presentation of franchise restaurant sales growth, excluding the impact of foreign currency, provides investors with useful information regarding underlying sales trends and the impact of new unit growth without being impacted by swings in the external factor of foreign currency. Franchise restaurant sales are not included in the company’s revenues.



View source version at Papa John's


FAT Brands Completes Acquisition of Johnny Rockets, Increases Securitization Facility to $80 Million


September 22, 2020 06:00 AM Eastern Daylight Time


LOS ANGELES--(BUSINESS WIRE)--FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) announced today that it has completed the acquisition of Johnny Rockets from an affiliate of private equity firm Sun Capital Partners, Inc. for a purchase price of approximately $25 million. The transaction was funded with proceeds from an increase in the Company’s securitization facility. With the acquisition of Johnny Rockets, FAT Brands now franchises more than 700 restaurants around the globe in more than 30 countries with annual system-wide sales exceeding $700 million.

"We are thrilled to successfully complete the acquisition of Johnny Rockets, a transformative event for FAT Brands, and are eager to drive further growth for the brand," said Andy Wiederhorn, President and CEO of FAT Brands. "The expansion of our whole business securitization facility further enhances our liquidity and financial flexibility and demonstrates the confidence that institutional investors have in our platform. We continue to scale our business through strategic acquisitions that complement our current brands and are pursuing other attractive opportunities in this environment.”

$40 Million Increase in Whole Business Securitization Facility

On September 21, 2020, the Company completed the sale of $40 million of Series 2020-2 Fixed Rate Asset-Backed Notes (the “Notes”), increasing the Company’s securitization facility to $80 million. The Notes were issued through the Company’s whole business securitization affiliate, FAT Brands Royalty I, LLC.

Cadence Group, Inc., a leading fintech securitization platform, acted as the sole structuring agent for the offering of Notes. Legal advisors for the financing transaction were Loeb & Loeb LLP and Foley & Lardner LLP for FAT Brands, and Manatt, Phelps & Phillips, LLP for Cadence Group, Inc.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security. The Notes have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.

About FAT (Fresh. Authentic. Tasty.) Brands

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets and develops fast casual and casual dining restaurant concepts around the world. The Company currently owns nine restaurant brands: Fatburger, Johnny Rockets, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises over 700 units worldwide. For more information, please visit www.fatbrands.com.

About Johnny Rockets

Founded in 1986 on iconic Melrose Avenue in Los Angeles, Johnny Rockets is a world-renowned, international restaurant franchise that offers high quality, innovative menu items including items including Certified Angus Beef® cooked-to-order hamburgers, Boca Burger®, chicken sandwiches, crispy fries and rich, delicious hand-spun shakes and malts. With nearly 325 franchise and corporate locations in over 25 countries around the globe, this dynamic lifestyle brand offers friendly service and upbeat music contributing to the chain’s signature atmosphere of relaxed, casual fun. To learn more about the Johnny Rockets brand, please visit the brand website at www.johnnyrockets.com, or follow us on FacebookTwitter and Instagram.

About Sun Capital Partners, Inc.

In 2020, Sun Capital Partners, Inc. celebrates 25 years of investing; identifying companies’ untapped potential, and accelerating value through operational excellence. Since 1995, Sun Capital has invested in more than 375 companies worldwide with revenues in excess of $50 billion across a broad range of industries and transaction structures. Over the quarter century, the Firm has built a reputation as a trusted partner recognized for its investment and operational experience, including particular expertise in Business and Consumer Services, Healthcare, Industrial and Consumer sectors. Sun Capital has offices in Boca Raton, Los Angeles and New York, and an affiliate with offices in London. To learn more about Sun Capital Partners, Inc., please visit our website at www.suncappart.com.

View source version at FAT Brands


Sizzler USA Declares Bankruptcy

The company blamed coronavirus for the filing and said it needs to renegotiate leases and cut back on debt

By Jonathan Maze on Sep. 21, 2020

Sizzler USA declared bankruptcy on Monday, blaming the coronavirus for hurting sales at the 62-year-old chain and saying it needed to take the step to renegotiate its leases and cut back on its debt.

The Mission Viejo, Calif.-based chain, which operates 107 locations, said it has between $1 million and $10 million in liabilities and the same amount of assets. The company said it expects to emerge from the Chapter 11 bankruptcy process within 120 days.

“The filing is a direct result of the financial impact the COVID-19 pandemic has had on the casual dining sector, particularly long-term indoor dining closures and landlords’ refusal to provide necessary rent abatement,” Sizzler USA said in a statement. The company said the filing would allow the company “to do everything we can to support our employees and franchisees” and also “build a stronger future.”

Sizzler USA has been in decline in recent years. Its unit count declined 6.9% last year, according to data from Restaurant Business sister company Technomic, and the number of locations it operates now is 15 fewer than it operated at the end of 2019.

System sales have averaged a 2.5% decline the past five years, including a 3.8% decline in 2019, according to Technomic. Franchisees operate all but 14 of the company’s locations.

Sizzler says that it needs to renegotiate leases with the landlords for the 14 company-operated restaurants.

“Today’s filing represents a new chapter for Sizzler and it’s an option we’ve undertaken based on the underlying strength of our 62-year-old legacy brand,” Chris Perkins, president of Sizzler USA, said in a statement. “Many restaurant brands across the country have suffered because of COVID-19, and Sizzler USA is no exception.”

View source version at Sizzler

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