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Sep 16, 201937 min read

Financials - September 2019












FAT Brands Launches Preferred Stock Offering


Order up! FAT Brands is now accepting investments


September 16, 2019 08:00 AM Eastern Daylight Time


LOS ANGELES--(BUSINESS WIRE)--FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”), a leading global restaurant franchising company, today announced its offering of up to $30,000,000 of non-convertible 8.25% Series B Cumulative Preferred Stock and common stock purchase warrants. The Company’s Offering Statement filed with the Securities and Exchange Commission (SEC) has been qualified and investors may now invest at www.banq.co/fat. The Offering is being conducted on a “best efforts” basis pursuant to Regulation A of Section 3(6) of the Securities Act of 1933, as amended for Tier 2 Offerings, and available to retail and institutional investors. The Company intends to use the net proceeds of the Offering to refinance existing indebtedness, as well as for general working capital and future acquisitions.

“We are pleased that FAT Brands is one of the first companies to execute a follow-on offering using the Regulation A process,” said Andy Wiederhorn, CEO and Founder of FAT Brands. “This preferred stock offering brings new, long-term, lower cost capital to the Company while providing an 8.25% dividend to investors. Eliminating existing debt and using additional proceeds for our next acquisition will further the execution of our business plan and growth strategy.”

The Company will offer up to 1,200,000 shares of 8.25% Series B Cumulative Preferred Stock (the “Series B Preferred Stock”) and warrants (the “Warrants”) initially exercisable to purchase an aggregate of up to 720,000 shares of Common Stock (NASDAQ: FAT). Each share of Series B Preferred Stock will be accompanied by a Warrant to purchase 0.60 shares of Common Stock at an exercise price of $8.50 per share. The shares of Series B Preferred Stock and accompanying Warrants are being offered at $25.00, for an aggregate offering amount of up to $30,000,000. Each Warrant will be immediately exercisable, and will expire on the five-year anniversary of the date of issuance. The Offering will close on a rolling basis, subject to customary closing conditions.

Investors in the Series B Preferred Stock will be entitled to receive cash dividends of $2.0625 per share each year, which is equivalent to 8.25% of the $25.00 purchase price per share. Dividends on the Series B Preferred Stock will be payable quarterly in arrears based on the Company’s fiscal quarters. The Series B Preferred Stock may not be redeemed by the Company prior to the first anniversary of the initial issuance date. After the first anniversary of the initial issuance date, the Company may redeem the Series B Preferred Stock at 110% of liquidation preference plus accrued dividends prior to the second anniversary, at 105% prior to the third anniversary, and at 100% thereafter. The Series B Preferred Stock will mature on the five-year anniversary of the initial issuance date.

TriPoint Global Equities, LLC (“TriPoint”), working with its online division BANQ® (www.banq.co), and Digital Offering, LLC (“Digital Offering”) will act as the lead managing selling agents for the Offering. TriPoint will act as the book-running manager, and Digital Offering the co-manager.

Individuals interested in learning more about the FAT Brands Regulation A+ investment opportunity can invest now at www.banq.co/fat. For additional information on FAT Brands Inc., the offering and any other related topics, please review the Form 1-A Offering Circular that can be found at the SEC’s website at the following address: https://www.sec.gov/cgi-bin/browse-edgar?company=fat+brands&owner=exclude&action=getcompany.

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 eight restaurant brands: Fatburger, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises over 380 units worldwide.

View source version at FAT Brands


HUDDLE HOUSE AGREES TO BUY PERKINS FOR $51.5M

The purchase will create a family restaurant empire extending to 700 locations and $800 million in annual sales.

By Peter Romeo on Sep. 12, 2019

Huddle House has agreed to buy the rights to Perkins Restaurant & Bakery with the intention of operating the family chains as distinct but sister family restaurant brands.Bankruptcy court documents reveal that Huddle House has agreed to pay $51.5 million for Perkins.Perkins has been operating under court supervision since its parent, Perkins & Marie Callender’s, filed for Chapter 11 protection in early August.The combination of the brands will result in a 700-restaurant operation with collective sales of about $800 million, Huddle House said in announcing the deal. About 220 of Perkins' units and roughly 315 of Huddle House's 351 units are franchised.Perkins will be run by Huddle House’s leadership team out of the buyer’s Atlanta headquarters, the announcement indicated. It specified that Huddle House has no plans to turn any Perkins units into Huddle Houses, nor vice versa, and indicated that both brands would be expanded.“Strategically, this is a very good fit,” said Huddle House CEO Michael Abt. “The current leadership team at Perkins has done a tremendous job revitalizing the Perkins concept over the past year, and we believe that we can further utilize Huddle House’s existing platforms and financial backing to strengthen the growth of the Perkins brand.”He added, “This acquisition is by careful design and calculation, as the brands fit well together serving complementary markets but supported by similar resources.”

Court documents show that Perkins's much smaller sister brand, Marie Callender's, will be broken up for sale. The baked-goods company that owns David's Cookies has agreed to buy Callender's bakery operations for $18.5 million, and what remains of the Callender's restaurant chains—fewer than 30 stores and franchise rights to about 20 more—will be sold for $1.5 million to a newly formed company called Marie Callender's Inc.

View source version at Huddle House


Brinker International Acquires 116 Franchised Chili’s Restaurants

September 5, 2019


Dallas, TX  (RestaurantNews.com)  Today, Brinker International, Inc. (NYSE: EAT), a leader in the casual dining industry, completed the acquisition of 116 Chili’s® Grill & Bar restaurants from its 14-year franchisee, ERJ Dining. This follows the announcement of the letter of intent made on July 10, 2019. The restaurants, primarily located in the Midwest, generate approximately $300 million of annualized revenue. The transaction was funded with availability under Brinker’s existing credit facility and is expected to be EPS and cash flow accretive in fiscal year 2020.

“This acquisition reinforces our strategy to invest in our brand while generating additional earnings and cash flow for shareholders,” said Joe Taylor, chief financial officer and executive vice president of Brinker. “Our strong operational infrastructure brings additional support and investment for the solid group of operators joining the Chili’s corporate family as part of this transaction.”

About Brinker

Brinker International, Inc. is one of the world’s leading casual dining restaurant companies. Based in Dallas, Texas, as of June 26, 2019, Brinker owned, operated, or franchised 1,665 restaurants under the names Chili’s Grill & Bar (1,612 restaurants) and Maggiano’s Little Italy (53 restaurants).

View source version at Brinker


The ONE Group Hospitality Signs Asset Purchase Agreement for Kona Grill


  1. Agrees to acquire certain assets in Kona Grill’s Chapter 11 Bankruptcy for $25 million

  2. Acquisition expected to add approximately $100 million in annual revenue and to be accretive to earnings post integration


September 03, 2019 09:00 AM Eastern Daylight Time


DENVER--(BUSINESS WIRE)--The ONE Group Hospitality, Inc. (Nasdaq: STKS) and Kona Grill Acquisition, LLC (“KGA”), its wholly owned subsidiary (collectively, “The ONE Group” or the “Company”), today announced KGA has entered into an Asset Purchase Agreement (the “APA”) with Kona Grill, Inc. and affiliated entities (collectively, “Kona”) to purchase substantially all of Kona’s restaurants for approximately $25 million. The final purchase price will be determined at the closing of the transaction based on the completion of due diligence, subject to certain agreed upon adjustments. The Company expects to finance the acquisition with a new financing facility and cash on hand.

Under the terms of the APA, subject to certain conditions, the Company has agreed to purchase the remaining 24 of Kona’s domestic restaurants and assume certain contracts, including two international franchise licenses, for approximately $25 million in cash plus the assumption of working capital liabilities of approximately $11 million. If completed, the Company expects the integration to take approximately 12 months. Once fully integrated, the acquisition is expected to add approximately $100 million in annualized revenue and to be accretive to earnings per diluted share and Adjusted EBITDA.

“Kona Grill is an excellent brand that has maintained a strong position in the remaining 24 restaurants where it operates due to its elevated dining experience, contemporary, freshly prepared food, award-wining sushi, and specialty cocktails. Through this transaction, we believe we can leverage our corporate infrastructure and operating expertise, particularly our bar-business know-how and VIBE dining, to drive improved performance in many of the same ways we have substantially improved comparable store sales and overall profitability at STK,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.

“The acquisition of Kona Grill also provides us with a complementary concept to STK, potentially creating another long-term growth vehicle once we fully integrate the restaurants into The ONE Group. The remaining 24 domestic restaurants, down from 40 at year-end 2018, reflect a strong base of high performing restaurants in attractive markets. We look forward to maximizing the multiple opportunities that this acquisition will provide to create long-term shareholder value,” concluded Mr. Hilario.

The Kona assets include the worldwide rights to the name “Kona Grill” and other intellectual property, including trademarks, domain names, menu recipes, and customer databases. The acquisition is subject to financing conditions, the approval of the United States Bankruptcy Court for the District of Delaware, and other customary closing conditions.

About The ONE Group

The ONE Group (NASDAQ: STKS) is a global hospitality company that develops and operates upscale, high-energy restaurants and lounges and provides hospitality management services for hotels, casinos and other high-end venues both nationally and internationally. The ONE Group’s focus is to be the global leader in Vibe Dining, and its primary restaurant brand is STK, a modern twist on the American steakhouse concept with locations in major metropolitan cities in the U.S., Europe and the Middle East. ONE Hospitality, The ONE Group’s food and beverage hospitality services business, develops, manages and operates premier restaurants and turn-key food and beverage services within high-end hotels and casinos. Additional information about The ONE Group can be found at www.togrp.com

About Kona Grill

Kona Grill features contemporary American favorites, award-winning sushi, and specialty cocktails in an upscale casual atmosphere. Kona Grill owns and operates 24 restaurants guided by a passion for quality food and exceptional service. Additionally, Kona Grill has two restaurants that operate under a franchise agreement in Dubai, United Arab Emirates, and Vaughan, Canada. Additional information about Kona Grill can be found at www.konagrill.com.

View full version at The ONE Group


Red Robin Gourmet Burgers Reports Results for the Fiscal Second Quarter Ended July 14, 2019


August 23, 2019 07:00 AM Eastern Daylight 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 July 14, 2019.

Second Quarter 2019 Financial Highlights Compared to Second Quarter 2018

  1. GAAP earnings per diluted share were $0.08 compared to a $0.14 loss per diluted share;

  2. Adjusted earnings per diluted share were $1.03 compared to $0.46 (see Schedule I);

  3. Net Income was $1.0 million compared to a net loss of $1.9 million;

  4. Adjusted EBITDA was $25.5 million compared to $28.8 million (see Schedule III);

  5. Total revenues were $308.0 million, a decrease of 2.3%;

  6. Off-premise sales increased 25.7% and comprised 12.5% of total food and beverage sales, including catering;

  7. Comparable restaurant revenue decreased 1.5% (using constant currency rates); and

  8. Comparable restaurant guest counts decreased 6.4%.

Pattye Moore, board chair and interim chief executive officer of Red Robin, said, “We are making important progress on the execution of the five pillars in our strategic plan, designed to restore Red Robin’s growth and improve profitability, and believe we have reached an inflection point in our transformation. This was underscored during the second quarter by achieving our strongest comparable restaurant revenue result in five quarters, including a sequential improvement from the first quarter. Importantly, we are encouraged to see early signs of our recent sales momentum continuing, which reflect our ongoing improvements in operating and guest satisfaction metrics, as well as the new omni-channel advertising campaign that launched July 15th.”

Ms. Moore continued, “While there is still considerable work to do, our improving metrics, growing off-premise and catering channels, and traction in implementing technology solutions highlight what we have already accomplished in stabilizing the business and laying the foundation for long-term success. Additionally, the entire Red Robin Board, including our three new independent Directors announced earlier this month, remains committed to creating value for our shareholders.”

Fiscal Period Eight Comparable Restaurant Revenue

For the four-week period ended August 11, 2019, representing the Company’s fiscal period eight, comparable restaurant revenue improved to (0.1%), reflecting the continued momentum in the business.

Second Quarter 2019 Operating Results

Total revenues, which primarily include Company-owned restaurant revenue and franchise royalties, decreased 2.3% to $308.0 million in the second quarter of 2019, from $315.4 million in the second quarter of 2018. Restaurant revenue decreased $8.0 million due to a $4.4 million, or 1.5%, decrease in comparable restaurant revenue, and a $4.2 million decrease from closed restaurants, partially offset by a $0.6 million increase in revenue from late 2018 new restaurant openings.

System-wide restaurant revenue (which includes franchised units) for the second quarter of 2019 totaled $366.4 million, compared to $374.7 million for the second quarter of 2018.

Comparable restaurant revenue(1) decreased 1.5% in the second quarter of 2019 compared to the same period a year ago, driven by a 6.4% decrease in guest counts and offset by a 4.9% increase in average guest check. The increase in average guest check comprised a 2.3% increase in menu mix and a 2.6% increase in pricing. The increase in menu mix was primarily driven by the Company’s current menu and promotional strategy, resulting in lower Tavern burger sales and higher Finest burger and entrée sales.

Net income was $1.0 million for the second quarter of 2019 compared to a net loss of $1.9 million for the same period a year ago. Adjusted net income was $13.4 million for the second quarter of 2019 compared to $6.0 million for the same period a year ago (see Schedule I).

Restaurant-level operating profit margin (a non-GAAP financial measure) was 18.2% in the second quarter of 2019 compared to 19.3% in the same period a year ago. Cost of sales as a percentage of restaurant revenue decreased 20 basis points primarily due to a reduction in waste and lower Tavern mix. Restaurant labor costs as a percentage of restaurant revenue increased 90 basis points due to higher average wage rates and sales deleverage. Other restaurant operating costs increased 50 basis points primarily due to a 60 basis point increase in third-party delivery fees, offset by a 10 basis point decrease in supplies. Occupancy costs decreased 10 basis points due to restaurant closures. Schedule II of this earnings release defines restaurant-level operating profit, discusses why it is a useful metric for investors, and reconciles this metric to income from operations and net income, in each case under GAAP.

View full version at Red Robin


Diversified Restaurant Holdings Reports 5.8% Increase in Same-Store Sales for Second Quarter 2019


August 14, 2019 04:15 PM Eastern Daylight Time


TROY, Mich.--(BUSINESS WIRE)--Diversified Restaurant Holdings, Inc. (Nasdaq: SAUC) ("DRH" or the "Company"), one of the largest franchisees for Buffalo Wild Wings® ("BWW") with 64 stores across five states, today announced results for its second quarter ended June 30, 2019.

Second Quarter and Year to Date Information (compared with prior-year period unless otherwise noted)

  1. Revenue totaled $38.9 million, up 5.1% despite one fewer restaurant

  2. Same-store sales increased 5.8% with both traffic and average ticket up

  3. Net loss significantly reduced to $0.5 million

  4. Restaurant-level EBITDA(1) was $5.7 million or 14.6% of sales

  5. Adjusted EBITDA(1) was $3.9 million or 9.9% of sales

  6. Total debt of $96.6 million was down $5.9 million for the year-to-date period

“We achieved same-store sales growth for the third consecutive quarter, driven by our continued focus on the delivery channel, a favorable sports impact in our core markets and the improvements being made to the brand," commented Michael Ansley, Executive Chairman of the Board, President and Interim CEO. “While we continue to face headwinds around chicken wing prices, labor costs and delivery fees, we have rationalized our operations and overhead and, as a result, expect to better leverage our sales growth with improved earnings as we move forward. We removed $1.5 million in annualized costs and have identified another $0.5 million in additional savings as we have optimized our local marketing spend to more efficiently leverage our franchisor’s national advertising campaigns.”

“Buffalo Wild Wings is getting back to its roots with the fall advertising push and brand relaunch that are underway. There will be increased national advertising focused on football and the introduction this month of significant elements in support of the brand relaunch with the rollout of enhanced chicken products. The new hand-breaded chicken tenders, two new hand-breaded chicken sandwiches and new improved boneless wings are truly a step-change in quality and product offering, and we believe will drive additional traffic. We are also excited about the relaunch of BOGO Wing Tuesday, a long-time staple of BWW customers and an important component of our value proposition. By continuing to focus on delivering quality and value to our customers, we believe we are positioning BWW and DRH for long-term success.”

Mr. Ansley added, “We continue to work with our advisors on our previously disclosed evaluation of strategic alternatives for the business and to restructure our debt.” DRH does not intend to discuss or disclose developments with respect to this process until the Board has approved a definitive course of action.

View full version at Diversified Restaurant Holdings


Freshii Inc. Announces Second Quarter 2019 Results


August 14, 2019 07:00 ET

TORONTO, Aug. 14, 2019 (GLOBE NEWSWIRE) -- Fast-growing, health and wellness brand Freshii Inc. (TSX: FRII) (the “Company”) today announced financial results for the second quarter ended June 30, 2019 (“Q2 2019”).

Highlights for the Second Quarter Fiscal 2019:

  1. System-wide sales grew to $49.6 million in Q2 2019, compared to $46.3 million in the 13 weeks ended July 1, 2018 (“Q2 2018”), an increase of 7%;

  2. The Company opened 8 net new stores in Q2 2019, comprised of 13 openings and 5 closures. During the 52 weeks ended June 30, 2019, the Company opened 33 net new stores, resulting in year-over-year net new store growth of 8%;

  3. Royalty revenue and coordination fees, the Company’s most predictable and stable recurring revenue streams, totaled $4.8 million for Q2 2019, an increase of $0.6 million, or 14%, over Q2 2018;

  4. Same-store sales growth for Q2 2019 was (4.0%), compared to same-store sales growth of 0.9% for Q2 2018;

  5. Net income was $0.4 million for Q2 2019, compared to $0.3 million in Q2 2018, an increase of 33%;

  6. Adjusted EBITDA was $1.7 million for Q2 2019, compared to $1.5 million in Q2 2018, an increase of 13%;

  7. The Company adopted IFRS 16 on December 31, 2018, which includes a new standard on leases that affects the manner in which the Company records the expense of lease obligations.  See note 3 in the Company’s interim financial statements for Q2 2019 (available at www.sedar.com) for further details and a summary of these changes;

  8. The Company appointed Daniel Haroun as Freshii’s Chief Financial Officer, effective August 26, 2019. Dan is a CPA and has over a decade of senior financial leadership experience between Restaurant Brands International (which owns and operates the Tim Hortons, Burger King and Popeye’s brands) and, most recently, Walmart Canada; and,

  9. In addition to the arrival of Mr. Haroun, the Company also welcomes Oliver Rodbard as VP, Operations and William (Bill) Schultz to the Board of Directors. Mr. Rodbard comes to Freshii with over 20 years of experience in restaurant and retail operations management, most recently spending 12 years with Yum! Brands.  Mr. Schultz is the former President of Coca-Cola Refreshments Canada.

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

“In Q2 2019, we added strong and experienced leaders to both our board of directors and senior management team. We remained disciplined in operating cost management at both the store level and at HQ, which resulted in strong profitability this quarter in terms of Net Income and free cash flow generation, even as we invest in the people and strategic planning initiatives required to drive same store sales and net opening cadence.

Our omni-channel mission continues to grow: we now sell Freshii in 454 restaurants, 278 retail partner locations and on hundreds of Air Canada flights per day.  Notable new retail partnerships include Shoppers Drug Mart and Gateway Newsstands.  We will continue to invest in our CPG division in order to fully realize the opportunity we have in front of us.”

View full version at freshii


Chanticleer Holdings Reports Operating Results for the Quarter Ended June 30, 2019 and the First Half 2019 Operating Results


August 14, 2019 16:00 ET

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

Financial Highlights for the Quarter Ended June 30, 2019 and for the First Half of 2019

  1. Revenue was $10.7 million in the second quarter of 2019 compared with $10.4 million in the second quarter of 2018. Revenue was $20.9 million in the first six months of 2019 compared with $20.4 million in the second half of 2018.

  2. Cost of sales as a percentage of restaurant sales increased to 33.9% in the second quarter of 2019 compared to 33.2% in the second quarter of 2018. Cost of sales as a percentage of restaurant sales was 33.5% in the first half of 2019 compared with 33.3% in the first half of 2018.

  3. Operating loss was $3.0 million in the second quarter of 2019 compared to $420,000 in the second quarter of 2018. Operating loss was $4.7 million in the first half of 2019 compared to $2.8 million in the first half of 2018. These operating losses are primarily driven by non-cash impairment charges related to closing underperforming units in sub premium locations, eliminating deep discounting across all brands, streamlining delivery processes while greatly reducing delivery costs, improving employee benefits for all team members, partnering with legal and other consulting costs to win a hard fought union campaign and ramping up marketing spend around our new loyalty platforms. The Company expects its investment in these initiatives to drive significant operational improvements in the second half of 2019.

  4. Net loss attributable to Common Shareholders was $3.2 million ($0.83 per share) in the second quarter of 2019, compared to net loss of $788,000 ($0.23 per share) in the second quarter of 2018. For the first half of 2019, net loss attributable to Common Shareholders was $5.1 million ($1.34 per share) compared to $3.4 million ($1.02 per share) in the first half of 2018.

  5. Non-GAAP Restaurant EBITDA was $757,000 in the second quarter of 2018 compared to $1.2 million in the second quarter of 2018. Non-GAAP Restaurant EBITDA was $1.4 million in the first half of 2019 compared to $2.2 million in the first half of 2018.

  6. During the first half of 2019, the Company opened two new Little Big Burger locations along with the opening of a Little Big Burger in the concession area of the Charlotte Motor Speedway. The Company opened another new Little Big Burger location in July 2019. The Company plans on opening another Little Big Burger location in 2019 as well.

  7. The Company closed two underperforming company-owned locations in the first half of 2019 and closed an additional two underperforming company-owned locations in July 2019 which resulted in non-cash impairment charges. These closures are expected to contribute to improved operating performance in future periods.

  8. The Company completed a $6.1 million equity rights offering, including the settlement of $3.1 million outstanding debt which was converted to equity. This financing significantly improves the Company’s balance sheet and provides additional working capital.

Mike Pruitt, Chairman and CEO of Chanticleer commented, “With the recent successful strengthening of our balance sheets including a $3.1 million reduction in debt while adding nearly $3 million of cash in July, we are positioned well for the balance of the year. Successfully winning the recent union vote in Oregon took considerable time and resources. With that now behind us and numerous initiatives taken earlier this year focused on delivery, technology, loyalty and our employees, we are starting to see early return on investment. We were particularly pleased to report that Little Big Burgers July same store sales were up 3%.

With Fred, Patrick and Troy, I continue to believe we have put together an outstanding executive team capable of stewarding the Company’s future growth both operationally and financially. We expect to report meaningful increases in both revenues and EBITDA throughout the balance of 2019 and look forward to providing an update on the ongoing discussions around the acquisition of the previously disclosed acquisition.”

View full version at Chanticleer Holdings




CEC Entertainment, Inc. Reports Fifth Consecutive Quarter Of Comparable Venue Sales Growth



Aug 14, 2019, 07:00 ET



IRVING, Texas, Aug. 14, 2019 /PRNewswire/ -- CEC Entertainment, Inc. ("CEC" or the "Company"), a nationally recognized leader in family entertainment and dining, today announced financial results for its second quarter ended June 30, 2019.

First Half and Second Quarter Results (1)

For the six-month period ended June 30, 2019, comparable venue sales increased 4.5% over the prior year period. Total revenues for the six-month period ended June 30, 2019 increased from $472.3 million to $488.5 million. Our second quarter 2019 results were negatively impacted by the shift of the Easter holiday and several spring breaks into the second quarter in 2019 instead of the first quarter in 2018. Comparable venue sales increased 0.5% in the second quarter of 2019 compared to the second quarter of 2018.  For the second quarter of 2019 total revenues decreased $2.2 million, or 1.0%, to $215.2 million, compared to $217.4 million in the second quarter of 2018. The decrease in revenues for the second quarter was primarily attributable to net breakage related to PlayPass of $1.3 million for the second quarter of 2019 compared to $5.2 million for the second quarter of 2018, declining as a result of the third quarter 2018 introduction of All You Can Play, our time-based play offering.

The Company reported a net loss of $8.7 million for the second quarter of 2019, compared to a net loss of $9.0 million for the second quarter of 2018. The net loss for the current quarter was positively impacted by the increase in Company-operated venue sales and lower food and beverage costs, driven by favorability in commodity prices and volume. These favorable impacts were partially offset by an increase in interest expense, driven by the increase in LIBOR rates on our variable rate debt.

"We posted our fifth consecutive quarter of comparable venue sales growth in the second quarter of 2019, driven by the positive impact of the All You Can Play and More Tickets initiatives," said Tom Leverton, Chief Executive Officer. "We are pleased with our results for the first half of 2019 and our flow through to earnings despite continued pressures from wage growth. We remain optimistic about the growth prospects in the business going forward."

Adjusted EBITDA (1) for the six-month period ended June 30, 2019 increased $8.8 million, or 8.4%, to $114.5 million from $105.7 million for the six-month period ended July 1, 2018. For the second quarter of 2019, Adjusted EBITDA decreased $1.0 million, or 2.5%, to $38.4 million from $39.4 million for the second quarter of 2018.

View full version at CEC Entertainment



Fat Brands Inc. Reports Fiscal Second Quarter 2019 Financial Results


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


August 13, 2019 04:05 PM Eastern Daylight Time


LOS ANGELES--(BUSINESS WIRE)--FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ:FAT) (“FAT Brands” or the “Company”) today reported fiscal second quarter 2019 financial results for the 13-week period ending June 30, 2019.

Andy Wiederhorn, President and CEO of FAT Brands, commented, “We are pleased to report that the considerable growth in revenues was matched by an equally robust increase in adjusted EBTDA and that we leveraged our G&A expenses on our expanded top-line.”

Wiederhorn continued, “We are also excited to have closed on our acquisition of Elevation Burger in June. The brand is well-aligned with our own commitment to fresh, authentic, tasty food and we are confident that it has considerable opportunity to expand domestically and internationally with its organic, free-range, grass-fed offerings. Elevation Burger reflects another synergistic opportunity for our unique FAT platform, which is designed to drive efficiencies and growth, and we look forward to pursuing additional transactions over time.”

Fiscal Second Quarter 2019 Highlights

  1. Total revenues of $5.9 million, up 50.8% from $3.9 million in the second quarter of 2018. Excluding advertising revenues, revenues grew 48.4% to $4.9 million from $3.3 million in the second quarter of 2018.

  2. System-wide sales growth of 26.3% y/y and 26.8% year-to-date

  3. United States sales growth of 37.4% y/y and 38.8% year-to-date

  4. Canada sales growth of 1.9% y/y and 4.9% year-to-date

  5. Other International(1) sales growth of 2.4% y/y and (1.1%) year-to-date

  6. System-wide same-store sales growth of (0.9%) y/y and (0.9)% year-to-date

  7. Fatburger worldwide same-store sales growth of (1.7%) y/y, and (0.6%) y/y in North America

  8. Fatburger worldwide same-store sales growth of 0.4% year-to-date, and 1.5% year-to-date in North America

  9. Buffalo’s Cafe worldwide same-store sales growth of 0.8% y/y and 1.8% year-to-date

  10. Hurricane Grill & Wings same-store sales growth of 4.9% y/y and 4.8% year-to-date

  11. Ponderosa/Bonanza worldwide same-store sales growth of (2.7%) y/y and (4.5%) year-to-date

  12. United States same-store sales growth of 0.7% y/y and 0.4% year-to-date

  13. Canada same-store sales growth of (0.0%) y/y and 2.4% year-to-date

  14. Other International(1) sales growth of (9.0%) y/y and (9.1%) year-to-date

  15. Eight new franchised store openings

  16. Ending store count: 386 stores system-wide

  17. Net loss of $508,000 or $0.04 per share on a basic and fully diluted basis, as compared to net income of $373,000 or $0.04 per share on a basic and fully diluted basis in the second quarter of 2018

  18. EBITDA(2) of $2.2 million as compared to $825,000 in the second quarter of 2018

  19. Adjusted EBITDA(2) of $2.0 million as compared to $945,000 in the second quarter of 2018. The reconciliation of EBITDA to Adjusted EBITDA can be found in the accompanying financial tables.


(1)

Excludes Canada includes Puerto Rico. Puerto Rico is negatively impacted due to Hurricane Maria.

(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.

Recent Events

On June 3, 2019, the Company announced an offering of up to $30,000,000 of non-convertible preferred stock and common stock purchase warrants (the “Offering”). The Offering is being conducted on a “best efforts” basis pursuant to Regulation A of Section 3(6) of the Securities Act of 1933, as amended for Tier 2 Offerings and available to retail and institutional investors. The Company will offer up to 1,200,000 shares of 8.25% Series B Cumulative Preferred Stock (the “Series B Preferred Stock”) and warrants (the “Warrants”) initially exercisable to purchase an aggregate of 720,000 shares of Common Stock (NASDAQ: FAT). Each share of Series B Preferred Stock will be accompanied by a Warrant to purchase 0.60 shares of Common Stock at an exercise price of $8.50 per share. The shares of Series B Preferred Stock and accompanying Warrants are being offered at $25.00, for an aggregate offering amount of up to $30,000,000. Each Warrant will be immediately exercisable, and will expire on the five year anniversary of the date of issuance. The Offering will close on a rolling basis, subject to customary closing conditions, commencing upon qualification from the SEC.

On June 19, 2019 the Company successfully completed the acquisition of Elevation Burger for $10 million which was funded through a combination of sellers’ notes and cash. Delivering authentic, sustainably prepared food, Elevation Burger offers grass-fed, free-range options that are better for consumers and for the environment.

View full version at FAT Brands


Brinker International Reports Fourth Quarter And Fiscal Year 2019 Results

August, 13 2019


Brinker International, Inc. (NYSE: EAT) today announced results for the fiscal fourth quarter and year ended June 26, 2019.

Highlights include the following:

  1. Earnings per diluted share, on a GAAP basis, in the fourth quarter of fiscal 2019 increased 20.8% to $1.22 compared to $1.01 in the fourth quarter of fiscal 2018. Earnings per diluted share, on a GAAP basis, in fiscal 2019 increased 45.6% to $3.96 compared to $2.72 in fiscal 2018

  2. Earnings per diluted share, excluding special items, in the fourth quarter of fiscal 2019 increased 14.3% to $1.36 compared to $1.19 in the fourth quarter of fiscal 2018. Earnings per diluted share, excluding special items, in fiscal 2019 increased 12.3% to $3.93 compared to $3.50 in fiscal 2018 (see non-GAAP reconciliation below)

  3. Brinker International's Company sales in the fourth quarter of fiscal 2019 increased 1.7% to $804.8 million compared to the fourth quarter of fiscal 2018. Total revenues in the fourth quarter of fiscal 2019 increased 2.1% to $834.1 million compared to the fourth quarter of fiscal 2018

  4. Chili's company-owned comparable restaurant sales increased 1.5% in the fourth quarter of fiscal 2019 compared to the fourth quarter of fiscal 2018. Chili's company-owned comparable restaurant sales increased 2.3% in fiscal 2019 compared to fiscal 2018. Chili's U.S. franchise comparable restaurant sales increased 0.9% in the fourth quarter of fiscal 2019 compared to the fourth quarter of fiscal 2018

  5. Maggiano's company-owned comparable restaurant sales decreased 0.2% in the fourth quarter of fiscal 2019 compared to the fourth quarter of fiscal 2018. Maggiano's company-owned comparable restaurant sales increased 0.6% in fiscal 2019 compared to fiscal 2018

  6. Chili's international franchise comparable restaurant sales decreased 0.5% in the fourth quarter of fiscal 2019 compared to the fourth quarter of fiscal 2018

  7. Operating income, as a percentage of Total revenues, was 7.7% in the fourth quarter of fiscal 2019 compared to 8.6% in the fourth quarter of fiscal 2018 representing a decrease of approximately 90 basis points

  8. Restaurant operating margin, as a percentage of Company sales, was 14.9% in the fourth quarter of fiscal 2019 which included the impact of the sale leaseback transactions and adopting the new revenue accounting standard ("ASC 606"), compared to 15.9% in the fourth quarter of fiscal 2018 (see non-GAAP reconciliation below). Excluding the impact of the sale leaseback transactions and ASC 606, Restaurant operating margin in the fourth quarter of fiscal 2019 would have increased to 16.5% (see non-GAAP reconciliation below)

  9. Cash flows provided by operating activities in the fifty-two week period ended June 26, 2019 was $212.7 million and capital expenditures totaled $167.6 million resulting in free cash flow of $45.1 million(see non-GAAP reconciliation below) which was reduced by $78.6 million in cash tax payments related to the gain on the sale leaseback transactions. Proceeds from sale leaseback transactions of $485.9 millionare included in Cash flows provided by investing activities

  10. The Company's Board of Directors approved a quarterly dividend of $0.38 per share on the common stock of the Company. The dividend will be payable September 26, 2019 to shareholders of record as of September 6, 2019

"The fourth quarter marked our 5th consecutive quarter of positive same store sales and our sixth consecutive quarter to out-perform the category in traffic", said Wyman Roberts, CEO and President. "Our continued focus on improving the guest experience and providing everyday value is a long term strategy that continues to deliver solid results."

View full version at Brinker


Ark Restaurants Announces Financial Results for the Third Quarter of 2019

August, 13 2019


Ark Restaurants Corp. (NASDAQ: ARKR) yesterday reported financial results for the third quarter ended June 29, 2019.

Total revenues for the 13 weeks ended June 29, 2019 were $44,807,000 versus $44,800,000 for the 13 weeks ended June 30, 2018. The 13 weeks ended June 29, 2019 includes revenues of $1,239,000, which represents six and half weeks of sales related to JB’s on the Beach in Deerfield Beach, FL which was acquired on May 15, 2019. The 13 weeks ended June 30, 2018 includes revenues of $725,000 related to Durgin-Park which was closed January 12, 2019.

Total revenues for the 39 weeks ended June 29, 2019 were $120,667,000 versus $119,428,000 for the 39 weeks ended June 30, 2018. The 39 weeks ended June 29, 2019 and June 30, 2018 include revenues of $1,040,000 and $1,933,000, respectively, related to Durgin-Park which was closed January 12, 2019. In addition, the 39 weeks ended June 29, 2019 includes revenues of $1,239,000, which represents six and half weeks of sales related to JB’s on the Beach in Deerfield Beach, FL which was acquired on May 15, 2019.

Company-wide same store sales decreased 1.5% for the 13 weeks ended June 29, 2019 compared to the same period in the prior year.

The Company’s EBITDA, adjusted for non-controlling interests and non-cash stock option expense for the 13 weeks ended June 29, 2019 was $5,838,000 versus $4,773,000 during the same period in the prior year. Net income for the 13 weeks ended June 29, 2019 was $3,962,000, or $1.14 per basic share ($1.12 per diluted share) compared to net income of $2,657,000, or $0.77 per basic share ($0.75 per diluted share) for the same period last year.

The Company’s EBITDA, adjusted for non-controlling interests, non-cash stock option expense and losses incurred on the closure of Durgin-Park discussed below, for the 39 weeks ended June 29, 2019 was $9,705,000 versus $7,615,000 during the same period in the prior year. Net income for the 39 weeks ended June 29, 2019, which includes non-cash write-offs on the closure of Durgin-Park in the amount of $1,106,000, was $3,231,000, or $0.93 per basic share ($0.92 per diluted share) compared to net income of $3,648,000, or $1.06 per basic share ($1.03 per diluted share), for the same period last year. Net income for the 39 weeks ended June 30, 2018 includes a discrete income tax benefit of $1.2 million related to changes in the tax law.

As of December 29, 2018, the Company determined that it would not be able to operate Durgin-Parkprofitably due to decreased traffic at the Faneuil Hall Marketplace in Boston, MA, where it is located, and rising labor costs. As a result, included in the Consolidated Statements of Income for the 39 weeks ended June 29, 2019 are losses on closure in the amount of $1,106,000 consisting of: (i) impairment of trademarks of $721,000, (ii) accelerated depreciation of fixed assets of $333,000, and (iii) write-offs of prepaid and other expenses of $52,000. The restaurant was closed on January 12, 2019.

On May 15, 2019, the Company, through a newly formed, wholly-owned subsidiary, acquired the assets of JB's on the Beach, a restaurant and bar located in Deerfield Beach, Florida. The total purchase price was for $7,000,000 plus inventory. The acquisition is accounted for as a business combination and was financed with a bank loan from the Company’s existing lender in the amount of $7,000,000.

Ark Restaurants owns and operates 20 restaurants and bars, 19 fast food concepts and catering operations primarily in New York City, Florida, Washington, D.C, Las Vegas, NV and the gulf coast of Alabama. Five restaurants are located in New York City, two are located in Washington, D.C., five are located in Las Vegas, Nevada, three are located in Atlantic City, New Jersey, three are located on the east coast of Florida and two are located on the Gulf Coast of Alabama. The Las Vegas operations include four restaurants within the New York-New York Hotel & Casino Resort and operation of the hotel's room service, banquet facilities, employee dining room and six food court concepts; and one restaurant within the Planet Hollywood Resort and Casino. In Atlantic City, New Jersey, the Company operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino and a restaurant in the Tropicana Hotel and Casino. The operations at the Foxwoods Resort Casino in Ledyard, CT consist of one fast food concept. The Florida operations include the Rustic Inn in Dania Beach, Shuckers, located in Jensen Beach, the newly acquired JB’s on the Beach in Deerfield Beach and the operation of five fast food facilities in Tampa, Florida and seven fast food facilities in Hollywood, Florida, each at a Hard Rock Hotel and Casino operated by the Seminole Indian Tribe at these locations. In Alabama, the Company operates two Original Oyster Houses, one in Gulf Shores, Alabama and one in Spanish Fort, Alabama.

View full version at Ark Restaurants


Famous Dave’s of America, Inc. Reports Results for Second Quarter of Fiscal 2019


August 12, 2019 16:01 ET

MINNEAPOLIS, Aug. 12, 2019 (GLOBE NEWSWIRE) -- Famous Dave's of America, Inc. (NASDAQ: DAVE), an innovating owner and operator of barbeque restaurants, globally, today reported financial results for the second fiscal quarter ended June 30, 2019.

Second Quarter 2019 Highlights:

  1. Company-owned same store net sales decreased 0.8%, driven by traffic decreases in Dine-In, partially offset by a 6.8% increase in To-Go same store net sales.

  2. Domestic franchise-operated same store net sales increased 0.7% year-over-year. Franchise-operated system, including international units, increased by 0.5%.

  3. Reacquired eight Famous Dave’s franchise stores at attractive valuations, which are slated for upgrades and relaunches.

  4. Generated over $800,000 in operating cash flow.

  5. Launched 2,300 square foot small-footprint restaurant in Tucson, Arizona through a Famous Dave’s franchisee.

  6. Approximately 102,000 downloads of loyalty app since it was launched in December 2018.

Highlights Subsequent to the Second Quarter 2019:

  1. Reacquired five restaurants in Arizona and Kentucky from franchisees.

  2. Announced agreement with Beyond Meat to add innovative and delicious non-meat items to the Famous Dave’s menu.

Executive Comments

Jeff Crivello, CEO, commented, “For the second time since 2011, our franchise community posted positive same store net sales, driven by a 0.7% increase from domestic franchisees, partially offset by a 5.8% decline from our international community.  During the first half of fiscal 2019, we have reinvested approximately $5.7 million into our system, including repurchasing franchise restaurants, and refreshes of company owned restaurants.  In addition, we refinanced our credit facility in preparation of our growth initiatives.  We have also begun the process to open new, small footprint restaurants in select markets.”

View full version at Famous Dave's


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

August, 12 2019


Chuy’s Holdings, Inc. (NASDAQ:CHUY) today announced financial results for the second quarter ended June 30, 2019.

Highlights for the second quarter ended June 30, 2019 were as follows:

  1. Revenue increased 6.4% to $113.1 million from $106.3 million in the second quarter of 2018.

  2. Comparable restaurant sales increased 1.9%.

  3. Net income was $6.2 million, or $0.37 per diluted share, compared to net income of $6.5 million, or $0.38 per diluted share, in the second quarter of 2018. Net income in the second quarter of 2019 included closures costs of $0.2 million ($0.2 million, net of tax or $0.01 per diluted share) and a legal settlement of $0.8 million ($0.6 million, net of tax or $0.04 per diluted share).

  4. Adjusted net income(1) was $7.1 million, or $0.42 per diluted share compared to net income of $6.5 million, or $0.38 per diluted share, in the second quarter of 2018.

  5. Restaurant-level operating profit(1) was $19.5 million compared to $18.6 million in the second quarter of 2018.

  6. Three restaurants opened during the second quarter of 2019.(1)Adjusted net income and restaurant-level operating profit are non-GAAP measures. For reconciliations of adjusted net income and restaurant-level operating profit to the most directly comparable GAAP measures see the accompanying financial tables. For a discussion of why we consider adjusted net income and restaurant-level operating profit useful, see “Non-GAAP Measures” below.

Steve Hislop, President and Chief Executive Officer of Chuy’s Holdings, Inc. stated, “Through our focus on improving brand awareness and driving frequency in both newer and existing markets, we delivered solid top line growth and positive comparable restaurant sales during the second quarter. We also improved our adjusted net income by almost 10% despite continued hourly labor rate inflation and higher beef costs. Overall, we are pleased with the trajectory of our sales trends and are confident that the initiatives we’ve put in place related to targeted marketing, technology, off-premise sales and labor, coupled with a disciplined development strategy, will give us the foundation to expand and further improve our profitability in the years to come.”

Hislop added, “We opened three new restaurants during the second quarter and have subsequently opened one additional restaurant in the third quarter, bringing our total openings to-date to five new restaurants. All of these new openings are performing well and demonstrate our operators and development team’s ability to instill the Chuy’s culture in such a short time. Looking ahead, we have one additional planned opening to complete our 2019 development schedule.”

View full version at Chuy's


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

August, 12 2019

Domestic Same Store Sales Increases 6.4% - Increases 2019 Revenue Targets


The ONE Group Hospitality, Inc. (Nasdaq: STKS) today reported its financial results for the second quarter ended June 30, 2019 and increased its 2019 revenue targets.

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

  1. Total GAAP revenues increased 16.2% to $23.6 million from $20.3 million;

  2. Domestic same store sales* for STK restaurants rose 6.4%;

  3. GAAP net loss attributable to The ONE Group was $(322,000) or $(0.01) net loss per share which includes $589,000 of costs associated with the closing of the Company’s new credit facility and registration of shares issuable under the Company’s 2019 Equity Incentive Plan, compared to GAAP net income of $181,000 million or $0.01 net income per share. Eliminating those costs, net income would have been $207,000, or $0.01 net income per share; and

  4. GAAP income from operations was $477,000 compared to $773,000;

  5. Adjusted EBITDA** was $2.1 million compared to $2.5 million in the prior year.

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

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

Emanuel “Manny” Hilario, President and CEO of The ONE Group stated, "We were pleased to have delivered strong +6.4% growth in same store sales during the second quarter 2019 despite a robust year-ago comparison of +7.5%. This achievement is a testament to our unique ability to deliver VIBE dining into the entire STK restaurant experience and grow our market share within the upscale dining segment. From a profitability standpoint, we had anticipated headwinds to Adjusted EBITDA during the second quarter of 2019 as we were lapping a strong 70% growth in Adjusted EBITDA in the prior year. Additionally we experienced normal operational inefficiencies at our new restaurants despite strong initial sales for Nashville, lower incremental flow through at STK Midtown due to nearby construction, which caused the closure of our patio in June, and higher food costs, specifically large shrimp, versus the prior year. Still, as our performance to date has largely met our internal projections, we remain confident that we can achieve our 2019 financial targets.”

Mr. Hilario continued, “On the top-line, we continue to drive sales through our elevated food program, national happy hour program, event business, and social-media driven marketing, but we are also managing profitability by controlling our restaurant level operating and corporate expenses and gaining efficiencies at newer restaurants as they mature. From a development standpoint, we have prioritized capital-light development and are on track to open two to four additional STK restaurants and one to two additional Food and Beverage venues this year. These projects should enable us to generate strong free cash flow over time.”

Second Quarter 2019 Financial Results

Total GAAP Revenues increased 16.2% to $23.6 million in the second quarter of 2019 from $20.3 million in the same period last year. The increase was primarily driven by growth in comparable store sales coupled with new store openings in San Diego and Nashville. Domestic comparable sales at STK restaurants increased 6.4% lapping the 7.5% increase from the prior year, which is indicative of the continued strong performance of the STK brand.

Total owned restaurant net revenues increased 21.2% to $18.8 million in the second quarter of 2019 compared to $15.5 million in the second quarter of 2018. The increase was due to the growth in comparable store sales coupled with the opening of STK San Diego in July 2018 and STK Nashville in March 2019.

Management, license and incentive fee revenues were essentially flat at $2.7 million in the second quarter of 2019 and 2018. There was an increase in revenue as a result of the launch of the licensed STK Dubai Downtown in July 2018, STK Mexico City in August 2018, and STK Doha in January 2019, offset by negative currency effects of a weaker British Pound and Euro related to our managed and license locations in the United Kingdom and Italy.

GAAP net loss attributable to The ONE Group Hospitality, Inc. in the second quarter of 2019 was $(322,000) or $(0.01) loss per share compared to GAAP net income of $181,000 or $0.01 net income per share in the second quarter of 2018.

Adjusted EBITDA** was $2.1 million in the second quarter of 2019 compared to $2.5 million in the second quarter of 2018.

View full version at The ONE Group


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

August, 8 2019

Restaurant sales increased 21.6% to $368.6 million (including $50.7 million in restaurant sales from Cambridge) from $303.0 million in the prior year quarter;


Carrols Restaurant Group, Inc. Nasdaq: TAST) today reported financial results for the second quarter ended June 30, 2019. Carrols also announced that its Board of Directors has authorized a stock repurchase program under which the Company may repurchase up to $25 million of its outstanding common stock and that it has revised its annual guidance.

Carrols owned and operated 1,023 Burger King® restaurants and 58 Popeyes® restaurants in 23 states on June 30, 2019. On April 30, 2019, the Company completed its merger with Cambridge Franchise Holdings, LLC (“Cambridge”) which resulted in Carrols acquiring 165 additional Burger King® and 55 Popeyes® restaurants in 10 Southeastern states. On June 11, 2019, the Company completed the acquisition of 13 Burger King® restaurants in the Baltimore, Maryland market.

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

  1. Restaurant sales increased 21.6% to $368.6 million (including $50.7 million in restaurant sales from Cambridge) from $303.0 million in the prior year quarter;

  2. Comparable restaurant sales increased 0.1% compared to a 5.0% increase in the prior year quarter;

  3. Adjusted EBITDA(1) was $23.8 million compared to $32.8 million in the prior year quarter;

  4. Net loss was $3.7 million, or $0.09 per diluted share (which included a $7.4 million loss on extinguishment of debt), compared to net income of $7.8 million, or $0.17 per diluted share, in the prior year quarter; and

  5. Adjusted net income(1) was $4.3 million, or $0.07 per diluted share, compared to adjusted net income of $10.0 million, or $0.22 per diluted share, in the prior year quarter.

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

Daniel T. Accordino, Chairman and Chief Executive Officer of Carrols, commented, “Comparable restaurant sales during the second quarter of 2019 rose 0.1% as we lapped a very strong 5.0% increase during the prior year period. Looking ahead, we are confident that the Burger King marketing calendar, including the Impossible™ Whopper® launch this week and more effective promotions, can generate stronger sales performance and better restaurant-level margins through the remainder of the year.”

Accordino continued, “Restaurant-level profitability and Adjusted EBITDA during the second quarter were challenged by a number of factors, specifically higher commodity costs, labor cost pressures, and less effective promotions compared to the year-ago period. In addition, as we are early in our integration of the Cambridge merger, our results do not yet reflect any of the gains in sales and efficiencies that we expect to achieve once the integration is complete. Based on our experience and track record, we are confident that we can improve the sales and overall financial performance of the Cambridge restaurants over time as we assimilate them into our platform and implement our financial and operating systems.”

Accordino added, “While we are disappointed with our 2019 first half performance, we do not believe that these short-term results reflect a shift in the fundamentals of our business model. With two world-class brands, a supportive franchisor partner, an experienced management team, and growth opportunities across multiple attractive markets, we believe we are positioned to deliver strong growth and value creation to our investors for years to come. Also, given the flexibility provided by our recently reset capital structure, we believe this is an opportune time to pursue additional acquisitions within both the Burger King® and Popeyes® systems, and build an even stronger foundation to drive our growth going forward.”

Accordino concluded, “Our capital allocation strategy will continue to favor investments that enhance our EBITDA and earnings growth, particularly acquisitions and new restaurant development, which we believe will generate attractive long-term returns for our investors. Today’s announcement of our $25 million share repurchase program reflects the Board’s continued confidence in our strategy and value creation potential, and provides us with the flexibility to opportunistically reinvest in ourselves at attractive rates of return.”

View full version at Carrols Restaurant Group


Jack in the Box Inc. Reports Third Quarter FY 2019 Earnings

August, 8 2019

Jack in the Box system same-store sales increased 2.7 percent for the quarter. Company same-store sales increased 2.8 percent in the third quarter driven by average check growth as transactions improved to flat for the quarter.


Jack in the Box Inc. (NASDAQ: JACK) today reported financial results for the third quarter ended July 7, 2019.

Increase in same-store sales:12 Weeks Ended40 Weeks EndedJuly 7, 2019July 8, 2018July 7, 2019July 8, 2018Company2.8%0.6%1.2%0.5%Franchise2.7%0.5%0.8%0.0%System2.7%0.5%0.8%0.0%

Jack in the Box system same-store sales increased 2.7 percent for the quarter. Company same-store sales increased 2.8 percent in the third quarter driven by average check growth as transactions improved to flat for the quarter.

Lenny Comma, chairman and chief executive officer, said, "Our greater emphasis on bundled value in the third quarter resulted in a substantial improvement in both traffic and sales trends while also driving check and maintaining strong restaurant margins. Our guests have responded favorably to the breadth of our promotions, which leverage our strategy around compelling value bundles, including both new product innovation as well as guest favorites, without devaluing our core menu items. This momentum has accelerated thus far into our fourth quarter.

"With our recent refinancing completed, we've achieved our target leverage ratio of approximately 5.0 times EBITDA. We remain firmly committed to returning cash to shareholders and now have $301 million available for share repurchases.

"Our long-term goals continue to center around meeting evolving consumer needs, with emphasis on improving operations consistency and targeted investments designed to maximize our returns. We remain focused on balancing the interests of all our stakeholders, including our franchisees, customers, employees and shareholders."

Earnings from continuing operations were $13.5 million, or $0.51 per diluted share, for the third quarter of fiscal 2019 compared with $48.1 million, or $1.70 per diluted share, for the third quarter of fiscal 2018. In connection with the refinancing of the company's senior credit facility, the company terminated its existing interest rate swaps. This resulted in a pre-tax charge of $23.6 million, which is reflected in interest expense, net, in the third quarter of fiscal 2019, or $0.56 per diluted share after the associated tax benefit of approximately $9.0 million.

Operating Earnings Per Share(1), a non-GAAP measure, were $1.07 in the third quarter of fiscal 2019 compared with $1.00 in the prior year quarter. A reconciliation of non-GAAP Operating Earnings Per Share to GAAP results is provided below, with additional information included in the attachment to this release.12 Weeks Ended40 Weeks Ended

July 7,

2019

July 8,

2018

July 7,

2019

July 8,

2018Diluted earnings per share from continuing operations - GAAP$0.51$1.70$2.67$2.94Loss on early termination of interest rate swaps0.56—0.56—Gains on the sale of company-operated restaurants—(0.74)(0.01)(1.05)Restructuring charges—0.050.190.12Non-cash impact of the Tax Cuts and Jobs Act—0.03—1.10Excess tax benefits from share-based compensation arrangements—(0.04)—(0.07)Operating Earnings Per Share – non-GAAP$1.07$1.00$3.41$3.02

In the first quarter of fiscal 2018, the company entered into a definitive agreement to sell Qdoba Restaurant Corporation ("Qdoba"), a wholly owned subsidiary of the company, to certain funds managed by affiliates of Apollo Global Management, LLC. The transaction closed on March 21, 2018, and operating results for Qdoba are included in discontinued operations for all periods presented. However, the company did not allocate any general and administrative shared services expenses to discontinued operations prior to the sale.

View full version at Jack in the Box



Fiesta Restaurant Group, Inc. Reports Second Quarter 2019 Results

August, 8 2019

Total revenues decreased 3.1% to $171.4 million in the second quarter of 2019 from $176.8 million in the second quarter of 2018


Fiesta Restaurant Group, Inc. (NASDAQ: FRGI), parent company of the Pollo Tropical® and Taco Cabana® restaurant brands, today reported results for the 13-week second quarter 2019, which ended on June 30, 2019.

Fiesta President and Chief Executive Officer Richard Stockinger said, “Comparable restaurant sales for the second quarter mirrored the decline of the benchmark index in our Florida and Texas markets. Comparable restaurant transactions, however, exceeded the benchmark index in Florida due in part to the popularity of our everyday value platform 'Pollo Time'. Pollo Tropical comparable restaurant sales were negatively impacted by roughly 120 basis points due to cannibalization of existing restaurants by new restaurants in our core markets. In these markets, we have opened new restaurants in the proximity of existing units with high sales in order to improve the customer experience and increase overall sales. In essence, sales have been transferred from one Pollo restaurant to another, causing comparable restaurant sales to decline, but as a company we increase our penetration and share. As a whole, we believe this is another sign that our actions to date are positively impacting our guest experience.”

Mr. Stockinger continued, “We are positioning ourselves for sales growth at our existing restaurants through strategic initiatives related to menu innovation and simplification, everyday value platforms, the 'My Pollo' and 'My TC' loyalty and e-club programs, refined catering menus, and our DoorDash partnership. These initiatives are in turn supported by digital, social media, traditional TV, and local marketing which we are utilizing to accentuate our freshness attributes. Our intention for the balance of this year is to generate higher profitability and margins on a consolidated basis, excluding the recent lease accounting changes and non-cash write-off, as we leverage expected favorable commodity costs and prior-year investments. In addition, we are pleased to have reduced outstanding borrowings under our revolving credit facility by $21 million this quarter due primarily to a tax refund. As a result, our outstanding revolving credit facility balance as of June 30, 2019 was $17 million lower than at the end of 2018.”

Mr. Stockinger concluded, “We determined that the sustained decline in our stock price was a triggering event requiring an interim impairment test of goodwill as of June 30, 2019. Based on this interim impairment test, we recorded a non-cash impairment charge to write down the value of goodwill for the Taco Cabana reporting unit. This impairment charge had an unfavorable impact on net income (loss) of $46.5 million or $1.73 per diluted share.”

The Company today announced an increase to its share repurchase program of an additional 500,000 shares of common stock. The Company previously announced plans on February 26, 2018 to repurchase up to 1,500,000 shares of common stock. The Company has purchased a total of 270,627 shares of common stock under its share repurchase program and, following the increase, 1,729,373 shares of common stock remain available for purchase by the Company.

Under the share repurchase program, shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The number of shares repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, stock price, trading volume, general market and economic conditions, and other corporate considerations. The share repurchase program has no time limit and may be modified, suspended, superseded or terminated at any time by the board of directors.

View full version at Fiesta Restaurant Group

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