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Financials - September 2020













Del Taco Restaurants, Inc. Reports Preliminary Unaudited Fiscal Third Quarter 2020 Sales Results


System-Wide Comparable Restaurant Sales Grew 4.1%; Positive Trends at Both Company-operated and Franchised Restaurants

Reduced Outstanding Revolver Balance by $21 Million

Presenting at CL King & Associates’ 18th Annual Best Ideas Conference Tomorrow


September 15, 2020 05:15 PM Eastern Daylight Time


LAKE FOREST, Calif.--(BUSINESS WIRE)--Del Taco Restaurants, Inc. (“Del Taco” or the “Company”), (NASDAQ: TACO), the second largest Mexican-American quick service restaurant chain by units in the United States, today reported preliminary unaudited sales results for the 12-week period ending September 8, 2020 and provided a liquidity update.

John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “Our unique value-oriented QSR+ positioning combined with our expanding off-premise convenience is proving resilient and resonating with guests through our contactless or limited contact channels. I am pleased our nimble and focused approach resulted in comparable restaurant sales that sequentially improved from the fiscal second quarter and turned positive at both company-operated and franchised restaurants during the fiscal third quarter. This momentum enabled us to reduce our outstanding revolver balance by $21 million during the fiscal third quarter.”

Cappasola continued, “We are thankful for our restaurant teams, franchisees and support center employees who are continuing to excel in this challenging environment while delivering a great guest experience. We recently became the first national Mexican QSR to launch a new Crispy Chicken menu featuring unique flavors and products across our barbell menu for an unbeatable value. Outstanding training and consistent execution are driving high overall guest satisfaction scores for Crispy Chicken and helping to accelerate comparable restaurant sales trends.”

Fiscal Third Quarter 2020 Sales Highlights

  1. System-wide comparable restaurant sales increased 4.1%;

  2. Company-operated comparable restaurant sales increased 2.0%;

  3. Franchised comparable restaurant sales increased 6.5%;

  4. Total revenue of $120.7 million, representing a 0.4% increase from the fiscal third quarter 2019;

  5. Company-operated restaurant sales of $109.5 million, representing a 1.4% decrease from the fiscal third quarter 2019 primarily due to fewer company-operated restaurants open during 2020 compared to 2019 due to our refranchising activity; and

  6. One company-operated and four franchise restaurants opened and two franchise restaurants closed.

The 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 reduced its outstanding revolving credit facility borrowing by $21 million to $124 million from $145 million at the end of both the fiscal second quarter and last year’s fiscal fourth quarter. The Company currently has $108.7 million available under its revolving credit facility.

Investor Conference Participation

As a reminder, John D. Cappasola, Jr., President and Chief Executive Officer, and Steven L. Brake, Executive Vice President and Chief Financial Officer, will present at CL King & Associates’ 18th Annual Best Ideas Conference tomorrow at 3:30 PM ET and hold investor meetings throughout the day.

The presentation will be webcast live and later archived at www.deltaco.com under the investors section. The Company has posted an investor deck to its investors website that will accompany the presentation.

Key Financial Definitions

Comparable restaurant sales growth reflects the change in year-over-year sales for the comparable company, franchise and total system restaurant base. Restaurants are included in the comparable store base in the accounting period following its 18th full month of operations and excludes restaurant closures.

About Del Taco Restaurants, Inc.

Del Taco (NASDAQ: TACO) offers a unique variety of both Mexican and American favorites such as burritos and fries, prepared fresh in every restaurant's working kitchen with the value and convenience of a drive-thru. Del Taco's menu items taste better because they are made with quality ingredients like fresh grilled chicken and carne asada steak, hand-sliced avocado, hand-grated cheddar cheese, slow-cooked beans made from scratch, and creamy Queso Blanco. The brand's campaign further communicates Del Taco's commitment to providing guests with the best quality and value for their money through cooking, chopping, shredding and grilling menu items from scratch. Founded in 1964, today Del Taco serves more than three million guests each week at its approximately 600 restaurants across 15 states. For more information, visit www.deltaco.com.

View source version at Del Taco


Cracker Barrel Reports Fourth Quarter And Full Year Fiscal 2020 Results



Sep 15, 2020, 08:00 ET



LEBANON, Tenn., Sept. 15, 2020 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the fourth quarter of fiscal 2020 ended July 31, 2020 and provided an update regarding the impact of the COVID-19 pandemic on the Company's business.

Fourth Quarter Fiscal 2020 Highlights

  1. Dining room service gradually returned during the first two months of the quarter, and by the end of June, substantially all dining rooms were open at varying levels of reduced capacity.

  2. Comparable store restaurant and retail sales both improved sequentially each month during the quarter. Comparable store restaurant sales decreased 39.2% and comparable store retail sales decreased 32.3% for the full quarter compared to the prior year quarter.

  3. Off-premise sales grew approximately 145% over the prior year quarter and represented approximately 35% of restaurant sales.

  4. GAAP earnings per diluted share were $1.05 compared to prior year quarter GAAP earnings per diluted share of $2.70. Adjusted earnings (loss) per diluted share were ($0.85). (See non-GAAP reconciliation below.)

Commenting on the fourth quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "Throughout the quarter, we continued to take decisive actions to ensure the health and safety of our guests and employees, strengthen our business model, and bolster liquidity. I am encouraged by our sales recovery, and I am pleased with both the progress we have made on key initiatives and with how well our teams have continued to manage our business under changing and challenging circumstances. Our actions have put us in a position of financial strength which will allow us to invest in initiatives that we believe will drive long-term value creation for our shareholders. Cracker Barrel remains a trusted and highly differentiated brand with loyal guests, and our management team is confident our fiscal 2021 business priorities and plans will help us successfully navigate this environment while further strengthening our leadership position in casual dining."

Fourth Quarter Fiscal 2020 Results Revenue The Company reported total revenue of $495.1 million for the fourth quarter of fiscal 2020, representing a decrease of 37.1% compared to the fourth quarter of the prior year. Cracker Barrel fourth quarter comparable store restaurant sales decreased 39.2% compared to the prior year quarter, as a 40.7% decrease in comparable store restaurant traffic was partially offset by a 1.5% increase in average check. Comparable store retail sales decreased 32.3% compared to the prior year quarter.

View full version at Cracker Barrel



Maison Kayser Declares Bankruptcy



By French Morning Staff

Monday, September 14, 2020


It’s a decision as sad as it is surprising. Maison Kayser declared bankruptcy in the United States on September 10, the bakery chain said in a press release.

After rumors of a possible closure at the end of July, the company had nevertheless announced its intention to reopen in September, in a press release it sent us on August 3. But “the obstacles, including the indefinite timetable for the full reopening of indoor dining in New York, proved too great to overcome,” explains Maison Kayser USA managing director, Jose Alcalay, in this press release. “We evaluated many options and determined that bankruptcy proceedings and the sale of our assets is the best course of action for all stakeholders of the company.”

However, this is not the end of Maison Kayser in New York, or in the United States, since the company has completed what is called a “Chapter 11 Petition,” a procedure allowing the sale of the company’s assets as well as a reorganization of its debt. Maison Kayser adds in their press release that, “among the documents filed on September 10th during the bankruptcy proceedings is an agreement for the purchase of assets by MK USA, LLC, a subsidiary of the hotel group Aurify Brands.” Aurify Brands operates the Five Guys Burger restaurants in New York. It also acquired the Le Pain Quotidien brand in the United States, also as a result of bankruptcy, last June.

Other companies may also apply to acquire the assets of Maison Kayser. The first hearing before the New York court is scheduled for Monday, September 14.

Founded in 2012 in New York, Maison Kayser USA, a franchise of the French baker Eric Kayser, rapidly grew to include around twenty stores, mainly in Manhattan. Created by two entrepreneurs, Louis-Jean Egasse and Lou Ramirez – the latter having left several years ago – the American company was financed in particular by the investment fund of Charles Heilbronn, a member of the Wertheimer family, historical shareholders of Chanel. Opened in prime locations, the restaurants quickly became favorites with New Yorkers and tourists alike. The prolonged closure due to the pandemic is the reason for this foray of French craftsmen  away from the Big Apple.

View source version at Maison Kayser


TooJay’s Deli Successfully Emerges from Chapter 11

September 10, 2020


West Palm Beach, FL  (RestaurantNews.com)  TooJay’s Deli, (“the Company”), today announced that it has emerged from Chapter 11 bankruptcy protection, successfully completing its debt restructuring process and implementing its Chapter 11 reorganization plan.

The restructuring process allowed the Company to emerge debt free, which it believes will provide significant financial flexibility to support its operations. The Company’s new owner, Monroe Capital, is providing capital to support growth in the business going forward.

“For 39 years, TooJay’s has been an iconic, well-recognized brand serving many Florida communities. Prior to COVID-19, the Company’s revenue was ahead of last year, but the pandemic’s impact created difficulty for many industries. We want to thank our team members and guests for their support during this time.  Our locations are open and continue to serve our communities, and we look forward to the future,” said TooJay’s CEO Maxwell Piet.

TooJay’s has an iconic brand supported by a loyal customer base and maintains a solid foundation of core locations with a proven track record of success. In addition to offering multi-daypart in-restaurant dining, TooJay’s is a leader in off-premise channel offerings including curbside takeout, delivery, and a strong catering program. While the COVID-19 pandemic presented many challenges for the restaurant industry, TooJay’s locations have safely remained open in accordance with CDC, federal, state and local guidelines. TooJay’s has a history of operational excellence bolstered by a compelling store footprint, which has positioned the Company exceptionally well to pursue a path of long-term profitability and growth in a post-COVID world.

About Monroe Capital

Monroe Capital LLC (“Monroe”) is an asset management firm specializing in direct lending, equity co-investments and opportunistic private credit investing. Since 2004, the firm has provided private credit and equity co-investment solutions to borrowers in the U.S. and Canada. Investment types include cash flow, enterprise value and asset-based loans; unitranche financings; and equity co-investments. Monroe is committed to being a value-added and user-friendly partner to business owners, senior management, and private equity and independent sponsors. The firm is headquartered in Chicago and maintains offices in Atlanta, Boston, Los Angeles, New York, and San Francisco.

Monroe has been recognized by Creditflux as the 2020 Best US Direct Lending Fund; Global M&A Network as the 2020 Small Middle Markets Lender of the Year; Private Debt Investor as the 2018 Lower Mid-Market Lender of the Year; M&A Advisor as the 2016 Lender Firm of the Year; and the U.S. Small Business Administration as the 2015 Small Business Investment Company (SBIC) of the Year. For more information, please visit www.monroecap.com.

About TooJays

Founded in 1981, TooJay’s now serves guests in Palm Beach and Broward counties, the Treasure Coast, the Orlando area and The Villages.  Famous for piled high sandwiches, homemade comfort food and made-from-scratch soups, salads and baked goods, TooJay’s remains true to the passion of creating authentic deli fare served with amazing hospitality.

TooJay’s received three Palm Beach Post 2020 Best of Palm Beach County Awards for Best Sandwich, Best Dessert and Best Caterer; 2020 Best of Orlando Award for Deli; 2020 South Florida Family Favorites Award for Favorite Family Restaurant and the 2019 Restaurant Neighbor Award as a State Winner from the National Restaurant Association Educational Foundation for its work with Feeding Florida.

View source version at TooJay's


Levine Leichtman Capital Partners and Management Acquire Tropical Smoothie Cafe



Sep 08, 2020, 07:45 ET



LOS ANGELES, Sept. 8, 2020 /PRNewswire/ -- Levine Leichtman Capital Partners ("LLCP"), a Los Angeles-based private equity firm, announced that it has partnered with management to acquire Tropical Smoothie Cafe, LLC ("Tropical Smoothie Cafe" or the "Company"). Tropical Smoothie Cafe is a leading franchisor of fast casual cafes with over 870 units across 44 states. The Company inspires a healthier lifestyle by serving better-for-you smoothies, wraps, sandwiches, and flatbreads across multiple dayparts. Tropical Smoothie Cafe was founded in 1997 and is headquartered in Atlanta, GA.

The Company will continue to be run by the existing executive team led by CEO Charles Watson. According to Matthew Frankel, Managing Partner of LLCP, "We are excited to partner with Charles and the rest of the management team who have led the tremendous growth of Tropical Smoothie Cafe. We look forward to working with them as they continue to increase system-wide sales, improve franchisee unit economics and expand unit count in the significant remaining whitespace."

Mr. Watson commented, "My team and I are very excited to partner with LLCP as Tropical Smoothie Cafe seeks to enhance its market-leading position. Having the opportunity to leverage LLCP's extensive franchise expertise will be pivotal in driving further growth and supporting franchisees in inspiring better in our guests."

Tropical Smoothie Cafe will be the fifth investment from Levine Leichtman Capital Partners VI, L.P.

LLCP was advised by Kirkland & Ellis LLP. Debt financing was provided by Golub Capital.

Management was advised by Jamieson and Peter Klein, P.A. Tropical Smoothie Cafe was advised by Robert W. Baird & Co. and Alston & Bird LLP.

About Levine Leichtman Capital Partners

Levine Leichtman Capital Partners, LLC is a middle-market private equity firm with a 37-year track record of successfully investing across various targeted sectors, including franchising, professional services, education and engineered products. LLCP utilizes a differentiated Structured Private Equity investment strategy, combining debt and equity capital investments in portfolio companies. This unique structure provides a less dilutive solution for management teams and entrepreneurs, while delivering growth and income with a significantly lower risk profile.

LLCP's global team of dedicated investment professionals is led by seven partners who have worked together for an average of 21 years. Since inception, LLCP has managed approximately $11 billion of institutional capital across 14 investment funds and has invested in over 85 portfolio companies. LLCP currently manages approximately $7 billion of assets – including its most recent flagship fund, Levine Leichtman Capital Partners VI, L.P., which closed in 2018 with $2.5 billion of committed capital – and has offices in Los Angeles, New York, Chicago, Charlotte, Miami, London, Stockholm and The Hague.

View source version at Tropical Smoothie Cafe

FAST Acquisition Corp. Announces Pricing of $200 Million Initial Public Offering


August 20, 2020 06:20 PM Eastern Daylight Time


NEW YORK--(BUSINESS WIRE)--FAST Acquisition Corp. (the "Company") today announced the pricing of its initial public offering of 20,000,000 units at a price of $10.00 per unit. The units will be listed on the New York Stock Exchange (the "NYSE") and trade under the ticker symbol "FST.U" beginning on August 21, 2020. Each unit consists of one share of Class A common stock and one-half of one redeemable warrant, with each whole warrant exercisable to purchase one share of Class A common stock at a price of $11.50 per share. After the securities comprising the units begin separate trading, the shares of Class A common stock and warrants are expected to be listed on the NYSE under the symbols "FST" and "FST WS," respectively. The offering is expected to close on August 25, 2020, subject to customary closing conditions.

FAST Acquisition Corp. is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an initial business combination target in any industry or geographic region, the Company intends to focus its search for an initial business combination on businesses in the restaurant, hospitality, and related sectors in North America with a $600 million or greater enterprise value.

Citigroup Global Markets Inc. and UBS Securities LLC are acting as joint bookrunning managers for the offering and Odeon Capital Group, LLC is acting as co-manager of the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 3,000,000 units at the initial public offering price to cover over-allotments, if any.

A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission (the "SEC") on August 20, 2020. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering is being made only by means of a prospectus. When available, copies of the prospectus relating to the offering may be obtained from Citigroup Global Markets Inc., LLC, Attention: Prospectus Department, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (800) 831-9146; and UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019, by telephone at (888) 827-7275 or by email at ol-prospectusrequest@ubs.com.

View source version at FAST Acquisition Corp.



Garbanzo Mediterranean Grill files for bankruptcy as nontraditional locations remain closed





Alicia Kelso


Aug. 17, 2020




Dive Brief:

  1. Garbanzo Mediterranean Grill, parent company of Denver-based fast casual concept Garbanzo Mediterranean Fresh, and affiliated companies filed for Chapter 11 bankruptcy protection on Aug. 12. It joins a growing number of chains, including Chuck E. Cheese, California Pizza Kitchen and Pizza Hut’s biggest franchisee NPC International, that have filed in the past few months.

  2. CEO James Park told the Denver Business Journal that nearly half of the chain’s 25 locations are in nontraditional trade areas like college campuses and airports, and have remained closed since March. Park expects them to reopen this month.

  3. The other 13 Garbanzo locations have continued operations and have improved year-over-year sales. The company still plans to open six new stores through early 2021, including a Denver airport location.


Dive Insight:

About half of Garbanzo’s nontraditional landlords were unwilling to renegotiate rent contracts, according to the Denver Business Journal, a challenge faced by many restaurant companies and one that is expected to worsen. In New York City alone, for example, 83% of restaurant owners were unable to pay their July rent. According to the filing, Garbanzo’s liabilities are estimated to be between $10 million and $50 million, including property-rent contracts that the company can’t uphold.

And while the company was approved for a Paycheck Protection Program loan, the federal government’s funding programs have largely covered payroll, and about 25% of funding can be used on fixed costs like rent.

While Garbanzo is expected to continue on its growth path, it will also contend with a number of continued challenges, including its heavy non-traditional and urban-store locations that are predicted to have a slow comeback. Catering also generates almost one-third of revenue at many stores and will likely take a while to recover as many office workers remain home. Working from home has increased to about 50% during the pandemic versus 15% before, according to the U.S. Bureau of Labor Statistics.

Garbanzo is also a part of the fast casual segment, which has been hit relatively hard compared to its quick-service peers. According to Technomic data reported by Restaurant Business, the overall fast casual segment is down by 12% compared to 6% for the QSR segment.

Interestingly, however, while the COVID-19 crisis has caused a few restaurant chains like Shake Shack to reconsider their real estate portfolios to meet higher demand for drive-thrus, Park told the Denver Business Journal that he would continue to bet on non-traditional locations and that they will “bounce back.” Plenty of colleges are returning to on-campus classes this fall, which could help. Airports, however, aren’t expected to recover until 2024.

Perhaps the biggest cause for optimism for a post-bankruptcy revival from Garbanzo is the shift in consumer behavior during the pandemic. Mediterranean cuisine was growing in popularity prior to the crisis, and that may be accelerated as six out of 10 consumers say they’re placing more emphasis on their overall health now, including what they eat.

View source version at Garbanzo



NPC International Reaches Agreement with Pizza Hut on Optimization of Restaurant Portfolio and Launches Sale Process for Pizza Hut Business


Agreement Is Expected to Maximize Potential Value of the Pizza Hut Segment and Facilitate a Comprehensive Financial Restructuring


August 17, 2020 10:36 AM Eastern Daylight Time


LEAWOOD, Kan.--(BUSINESS WIRE)--NPC International, Inc. (“NPC” or the “Company”) today announced that it has reached an agreement with Pizza Hut, whose parent company is Yum! Brands, Inc., on the optimization of its restaurant portfolio and that it will launch a sale process for its Pizza Hut restaurants.

The agreement with Pizza Hut follows an extensive analysis that the parties conducted of its entire Pizza Hut portfolio to best position NPC’s Pizza Hut business for long-term success, and has the support of the ad hoc group of NPC’s first lien lenders. The agreement allows NPC to close up to 300 of its Pizza Hut restaurants, a substantial majority of which are dine-in, among other terms. In conjunction with the sale process, this key agreement provides NPC with flexibility to explore options for achieving a value maximizing outcome as it seeks to finalize the terms of a comprehensive financial restructuring and emerge from Chapter 11.

The optimization of NPC’s Pizza Hut restaurant footprint is expected to increase the potential value that could be generated from the Pizza Hut business, either through the sale path, or if value is not maximized through such effort, through a standalone plan of reorganization, and possibly through a hybrid of the two options. This deal provides tremendous benefits to NPC and its stakeholders by positioning the NPC Pizza Hut business to drive operational excellence through a streamlined portfolio and allowing for new development to rebuild and modernize Pizza Hut assets in viable trade areas, which will strengthen and benefit the broader Pizza Hut system and its loyal customers. Existing Pizza Hut customers will continue to be served through alternative, nearby locations throughout Pizza Hut’s 6,700 restaurants nationwide.

No final determinations have been made regarding which restaurants will ultimately be closed, nor on the timing for any closures. NPC and Pizza Hut will endeavor to reallocate employee resources to thriving locations at NPC and other Yum! brands locations, wherever possible.

NPC International, Inc. is Pizza Hut’s largest franchisee in the U.S., and its portfolio of 1,227 locations represents 20% of the Pizza Hut system’s restaurant base in the U.S. Each year, NPC’s 23,000 plus team members proudly serve over 68 million pizzas to Americans in 27 states. NPC has been a leading franchisee for almost six decades, and over that time has invested hundreds of millions of dollars in building and acquiring its restaurants.

Interested parties should reach out to the Company’s financial advisors, Greenhill & Co., to receive initial information. Greenhill may be reached by sending an email to Neil Augustine (neil.augustine@greenhill.com),Thomas McCarthy (thomas.mccarthy@greenhill.com) or Nick Drayson (nick.drayson@greenhill.com).

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

About NPC International

NPC International, Inc. is the largest franchisee of any restaurant concept in the U.S., based on unit count, and the fifth largest restaurant unit operator, based on unit count, in the U.S. The Company, which is headquartered in Leawood, Kansas and has a shared services center located in Pittsburg, Kansas, has a total of approximately 7,500 full time employees and approximately 28,500 part time employees at both Pizza Hut and Wendy’s, and operates in 30 states and District of Columbia.

View source version at NPC International



Impossible Foods Closes $200 Million in New Funding to Accelerate Growth


  1. Total funding for the leading food tech startup nears $1.5 billion, including the most recent Series G equity round of $200M

  2. Company is setting new sales and production records month over month following the 60X expansion of its retail footprint and nationwide rollout of Impossible™ Sausage Made From Plants

  3. Impossible Foods will use the latest investment round to continue the expansion of R&D, product development, international operations and other core functions


August 13, 2020 03:00 PM Eastern Daylight Time


REDWOOD CITY, Calif.--(BUSINESS WIRE)--Impossible Foods Inc. announced today that it has secured $200 million in its latest funding round, led by new investor Coatue.

The industry-leading food-tech startup has raised about $1.5 billion since its founding in 2011. Existing investors including Mirae Asset Global Investments and Temasek as well as new investor XN also contributed to the “Series G” round.

Impossible Foods will use the funds in part to expand its research and development programs; accelerate its manufacturing scaleup; increase its retail presence and its availability in key international markets; and accelerate commercialization and development of next-generation, plant-based products, such as Impossible™ Pork Made From Plants, milk, steak and other foods.

“The use of animals to make food is the most destructive technology on Earth, a leading driver of climate change and the primary cause of a catastrophic global collapse of wildlife populations and biodiversity,” said Dr. Patrick O. Brown, M.D., Ph.D., CEO and Founder of Impossible Foods. “Impossible Foods’ mission is to replace that archaic system by making the most delicious, nutritious and sustainable meats in the world, directly from plants. To do that, Impossible Foods needs to sustain our exponential growth in production and sales, and invest significantly in R&D. Our investors believe in our mission to transform the global food system -- and they recognize an extraordinary economic opportunity.”

Hypergrowth Starts Now

The company’s previous investment round -- a $500 million “Series F” announced mid-March, was one of the largest investment rounds for a food tech startup and was oversubscribed due to excess demand from investors.

In addition to blue-chip institutional investors, Impossible Foods’ existing individual investors include Jay Brown, Common, Kirk Cousins, Paul George, Peter Jackson, Jay-Z, Mindy Kaling, Trevor Noah, Alexis Ohanian, Kal Penn, Katy Perry, Questlove, Ruby Rose, Phil Rosenthal, Jaden Smith, Serena Williams, will.i.am and Zedd.

Series G closely follows the launch of Impossible Sausage, the first all-new product from Impossible Foods since the 2016 launch of Impossible™ Burger. After debuting at the 2020 Consumer Electronics Show in January, Impossible Sausage became available in more than 22,000 restaurants in just six months.

Burger King became the first restaurant to roll out Impossible Sausage in June when it launched the Impossible™ Croissan’wich® in all 7,500 locations in the United States. A week later, Starbucks launched the Impossible™ Breakfast Sandwich in all 15,000 Starbucks nationwide. Impossible Sausage also went on sale to all restaurants in the United States via major foodservice distributors, beginning with 30 of the top-rated diners in the country.

The latest investment round also comes amid blistering demand for the company’s flagship product, the award-winning Impossible Burger, particularly in grocery stores. Impossible Foods accelerated its retail rollout in response to tremendous demand from consumers and grocery stores, as Americans radically shifted their food-purchasing behavior due to COVID-19.

View full version at Impossible Foods


FAT Brands Announces Planned Acquisition of Johnny Rockets


August 13, 2020 06:45 ET

Global Franchisor To Beef Up Burger Portfolio with World-Wide All-American Restaurant Chain

LOS ANGELES, Aug. 13, 2020 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) announced today that it has agreed to acquire the Johnny Rockets restaurant chain from an affiliate of private equity firm Sun Capital Partners, Inc. for approximately $25 million. The deal will be funded through cash on hand and proceeds generated from the Company’s securitization facility. The purchase is expected to be completed in September 2020. With the acquisition of Johnny Rockets, FAT Brands will have more than 700 franchised and company owned restaurants around the globe with annual system-wide sales exceeding $700 million.

Johnny Rockets was founded in 1986 with its first location on the iconic Melrose Avenue in Los Angeles, California. Known for its 1950s diner style décor, the chain serves up freshly-made, classic burgers and indulgent, hand-spun real ice cream shakes. Johnny Rockets currently has over 325 locations across the U.S. and internationally, including 9 company owned locations.

FAT Brands is delighted to carry the torch from the affiliate of Sun Capital Partners, Inc., a global private equity leader with deep investment and operational experience, and run hard,” said Andy Wiederhorn, President and CEO of FAT Brands. “Similar to Fatburger, Johnny Rockets got its start in Los Angeles, and we couldn’t be more pleased to add another true staple in our home city to our portfolio. This acquisition is a transformative event for FAT Brands in terms of scale and brand awareness. We see a lot of synergy with Johnny Rockets and our current restaurant concepts and we are eager to take the brand to new heights.”

Duff & Phelps served as financial advisor to Sun Capital Partners, Inc. and Morgan, Lewis & Bockius LLP acted as legal counsel to Sun Capital Partners, Inc., Loeb & Loeb LLP acted as legal counsel to FAT Brands and Andersen Tax LLC served as tax advisor to FAT Brands Inc.

For more information, please visit www.fatbrands.com.

Management’s Prepared Remarks

FAT Brands will host management’s prepared remarks at 9:00 AM ET today, Thursday, August 13th, accessible via webcast at www.fatbrands.com under the “invest” section or via phone by dialing 1-877-705-6003. A replay will be available after the call until August 20th, 2020, and can be accessed by dialing 1-844-512-2921. The passcode is 13708482.

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 375 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.

View full version at FAT Brands


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


August 12, 2020 16:17 ET

MINNEAPOLIS, Aug. 12, 2020 (GLOBE NEWSWIRE) -- BBQ Holdings, Inc. (NASDAQ: BBQ) (the “Company”), an innovating global owner and operator of restaurants, today reported financial results for the second fiscal quarter ended June 28, 2020.  Note: The second quarter results were affected by the COVID-19 pandemic as well as federal and state level mandates requiring restaurants to limit or eliminate in-store dining.

Second Quarter 2020 Highlights:

  1. Company-owned Famous Dave’s second quarter same store net sales decreased 22.9% compared to second quarter 2019.

  2. Franchise-operated same store net sales decreased 31.5%.

  3. Same store to-go sales increased 106.0% at Company-owned Famous Dave’s restaurants.

  4. Granite City second quarter same store net sales decreased 65.5% compared to second quarter 2019, however, Granite City same store sales grew from $0.9 million in the month of April 2020 to $3.4 million in the month of June 2020 as dine-in restrictions have eased.

  5. Net loss of $6.3 million, driven by reduced sales due to COVID-related restrictions and a one-time impairment charge of $4.8 million.

  6. Adjusted EBITDA, a non-GAAP measure was ($1.1) million.

  7. Same store sales at our Famous Dave’s restaurants decreased 7.4% while same store sales at our Granite City restaurants decreased 33% during the four weeks ended July 26, 2020 compared to the same four week period in 2019.

  8. Entered into two franchise agreements with existing franchisee, PDX Partners, to offer Famous Dave’s food via delivery service providers and take-out in their Johnny Carino’s locations in Downey, CA and Modesto, CA.

  9. Entered into a franchising agreement with a new franchisee, DCI Colorado Springs #2, Inc. to co-brand their Texas T-Bone Steakhouse in Colorado Springs, CO with Famous Dave’s.

Executive Comments

Jeff Crivello, CEO, commented, “The quarter has been challenging with the continual changes in state and local dining restrictions.  I am proud of how our team has worked to navigate these changes in a quick and responsible manner for our guests and our shareholders.  Famous Dave’s stores have been performing well through the numerous changes and have continued to increase our to-go business through strong social media marketing as well as the use of our delivery service providers.  We are hopeful that dine-in sales at the Famous Dave’s stores will provide incremental sales as restrictions are lifted and override catering sales which are slowly coming back.  Granite City Food & Brewery is a concept that relies much more heavily on dine-in sales and the initial to-go-only restrictions severely hampered sales at these locations.  The Granite City brand has seen a significant increase in sales as dine-in restrictions have lifted and we believe that the uptick in sales will continue so long as restrictions continue to ease.  In most of the locations in which we operate, we are able to operate at 50% legal capacity.  While we have been prudent in managing our cash as the stores reopen, we continue to be concerned about the future direction of the Covid-19 pandemic and will, therefore, continue to manage our cash appropriately.  We are very pleased to see the resiliency of Famous Dave’s during this pandemic and that other restaurant groups are looking to team with us based on our recently executed franchise agreements.”

View full version at BBQ Holdings


The ONE Group Reports Second Quarter 2020 Results


Provides Update on Impact of COVID-19 34 of 36 Domestic Restaurants Have Resumed In-Person Dining; 6 of 8 International STKs Have Resumed In-Person Dining


August 12, 2020 04:05 PM Eastern Daylight Time


DENVER--(BUSINESS WIRE)--The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the second quarter ended June 30, 2020 and provided an update related to COVID-19.

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

  1. Total GAAP revenues decreased 29.4% to $16.7 million from $23.6 million;

  2. Consolidated comparable sales* decreased 66.7% but improved sequentially through the quarter

  3. Comparable sales decreased 40.1% in June, 70.2% in May, and 90.2% in April

  4. Comparable sales* for STK decreased 81.4% but improved sequentially through the quarter

  5. Comparable sales decreased 59.9% in June, 88.1% in May, and 95.6% in April

  6. Comparable sales* for Kona Grill decreased 52.8% but improved sequentially through the quarter

  7. Comparable sales decreased 21.9% in June, 52.5% in May, and 85.2% in April

  8. GAAP net loss attributable to The ONE Group was $2.9 million, or $0.10 net loss per share, compared to GAAP net loss of $0.3 million, or $0.01 net loss per share. GAAP net loss attributable to The ONE Group during the second quarter 2020 includes $0.7 million of incremental costs related to COVID-19;

  9. Adjusted EBITDA** decreased to ($0.8) million compared to $2.1 million.

For July 2020, consolidated comparable sales* decreased 25%. STK comparable sales* decreased 36% and for Kona Grill comparable sales* decreased 16%. Take-out and delivery sales were 13.7% of total company-owned revenues for the month.

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

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

“The health, safety and well-being of our employees and guests is critically important to us as we have welcomed guests back for in-person dining at 94% of our domestic STK and Kona Grill restaurants, providing them with the unique dining experiences they have been patiently waiting for. We are very pleased and most proud of having returned almost 3,000 teammates to the workforce in this very unique and challenging economic environment,” said Emanuel “Manny” Hilario, President and CEO of The ONE Group.

“We are encouraged by the continued sequential improvement in our comparable sales results, which includes our curbside and delivery business, as trends have strengthened month over month through July. Kona Grill has rebounded extremely well from the effects of COVID-19 shutdowns, driven by strong operations and marketing and aided by its suburban footprint; July comparable sales decreased 16% year over year and are tracking closer to normal levels as we quickly approach the holiday season. Excluding New York, Miami, and Las Vegas, our mainland domestic STK locations July’s comparable sales decreased 17%. Las Vegas, our STK brand flagship, July’s comparable sales decreased 34%, only limited by 50% occupancy leaving much unfulfilled customer demand. New York and Miami are our most challenged STK markets where July comparable sales decreased 54% because we currently do not have access to approximately 80% of our seating capacity in those markets. However, thanks to the relentless work and commitment of our team members, we were still able to achieve positive restaurant-level margins during the second quarter despite the challenges brought on by the pandemic,” continued Hilario.

“We continue to be encouraged by consumer interest in STK Meat Market, an e-commerce platform we launched in April that allows guests to purchase a wide array of signature Choice, Prime, and Waygu steak cuts for home delivery nationwide. It represents an additive layer to our business that we will leverage even after the pandemic subsides,” concluded Hilario.

View full version at The ONE Group


Brinker International Provides First Quarter Of Fiscal 2021 Outlook And Reports Fourth Quarter Of Fiscal 2020 Results

August, 12 2020


Brinker International, Inc. (NYSE: EAT) today provided a business update related to the first quarter of fiscal 2021 and announced results for the fourth quarter and fiscal year 2020 ended June 24, 2020.

"Our continued strategic focus on value, off-premise, digital and scale is allowing us to successfully navigate through the pandemic," said Wyman Roberts, Chief Executive Officer and President of Brinker International. "Leaning into these existing strategies with a clear focus and continually prioritizing the safety of our Team Members and Guests has allowed us to accelerate our performance and deliver industry leading results."

Fiscal 2021 First Quarter-to-Date Highlights

During the first quarter of fiscal 2021 Chili's and Maggiano's continue to operate with reduced dining room capacities due to state and local mandates related to COVID-19. The following represents a business update from our first period of fiscal 2021 ended July 29, 2020, related to Company-owned restaurants:

  1. As of July 29, 2020, there were 885 Chili's and 52 Maggiano's Company-owned restaurants with dining rooms or patios open, representing 84.0% of total Company-owned restaurants. Capacities are limited in accordance with state and local mandates

  2. Comparable restaurant sales for the first period of fiscal 2021, ended July 29, 2020, compared to the prior year are as follows:Comparable Restaurant Sales

Opened Dining

RoomsOff-Premise Only

Total Comparable

Restaurant SalesChili's(3.8)%(46.3)%(10.9)%Maggiano's(44.6)%N/A(44.6)%

  1. It's Just Wings™, a virtual brand offering through our partnership with Doordash, launched nationally in 1,050 of our Company-owned restaurants on June 23, 2020. It's Just Wings sales are included in comparable restaurant sales for restaurants operating the virtual brand

  2. Brinker had total liquidity of $576.2 million as of July 29, 2020

Fiscal 2021 Outlook

We are providing a financial outlook for the first quarter of fiscal 2021 quarter instead of our usual practice of providing an annual outlook. Forecasting longer term business performance is not reliable given the uncertainties created by the ongoing COVID-19 pandemic. We plan to update our financial outlook on a quarterly basis until such time we can reliably forecast on a longer term basis.

First Quarter of Fiscal 2021 Guidance

  1. Adjusted net loss per diluted share is expected to be in the range of $0.40 to $0.25

  2. Comparable restaurant sales are expected to be down low to mid-teens

  3. Operating cash flow is expected to be positive

  4. Weighted average diluted shares is expected to be 45.0 million to 46.0 million

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

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

View full version at Brinker


Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal Second Quarter Ended July 12, 2020

August, 12 2020


Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) yesterday reported financial results for the quarter ended July 12, 2020.

Second Quarter 2020 Financial Summary Compared to Second Quarter 2019

  1. Total revenues were $161.1 million, a decrease of 47.7%, primarily resulting from our operational shift in response to COVID-19, including limited occupant capacity as we reopen dining rooms, operating an off-premise only model at our restaurants with closed dining rooms, and closed restaurants;

  2. Comparable restaurant revenue decreased 41.4%;

  3. Comparable average Guest check decreased 2.9%, resulting from a 5.7% decrease from menu mix, partially offset by a 2.2% increase in pricing and a 0.6% increase from lower discounting;

  4. Comparable restaurant Guest counts decreased 38.5%;

  5. Off-premise sales increased 208.7% and comprised 63.8% of total food and beverage sales;

  6. GAAP loss per diluted share was $4.09 compared to GAAP earnings per diluted share of $0.08;

  7. Adjusted loss per diluted share was $3.31 compared to adjusted earnings per diluted share of $1.03 (see Schedule I);

  8. Net loss was $56.3 million compared to net income of $1.0 million; and

  9. Adjusted EBITDA was a loss of $15.3 million compared to adjusted EBITDA of $25.5 million (see Schedule III).

Paul J.B. Murphy III, Red Robin's President and Chief Executive Officer, said, “We are accelerating the transformation of our business through exceptional hospitality and uncompromising health and safety standards, despite the challenges created by the recent surge in COVID-19 cases and localized, renewed mandates to re-close dining rooms. In addition to generating sequential improvement in average weekly net sales per restaurant over the last five weeks, our record-high dine-in and off-premise satisfaction scores validate our consistent, quality execution as we build trust and affinity within our communities.”

Murphy continued, “Having strengthened our liquidity through our recent equity raise of almost $30 million, we are managing our business prudently while continuing to progress the foundational pillars in our previously articulated strategic plan to create long-term value for our shareholders. This plan includes executing our TGX hospitality model, implementing Donatos® Pizza in our restaurants, and improving our digital experience to drive increased Guest engagement and frequency.”

View full version at Red Robin


Ark Restaurants Announces Financial Results for the Third Quarter of 2020

August, 11 2020


Ark Restaurants Corp. (Nasdaq:ARKR) yesterday reported financial results for the third quarter ended June 27, 2020.

Third Quarter 2020 Financial Results

Total revenues for the 13 weeks ended June 27, 2020 were $7,199,000 versus $44,807,000 for the 13 weeks ended June 29, 2019.

Total revenues for the 39 weeks ended June 27, 2020 were $84,716,000 versus $120,667,000 for the 39 weeks ended June 29, 2019. The 39 weeks ended June 29, 2019 includes revenues of $1,040,000 related to Durgin-Park which was closed January 12, 2019.

Company-wide same store sales are not meaningful as a result of the temporary closure of all of our restaurants in March 2020.

The Company’s EBITDA for the 13 weeks ended June 27, 2020, adjusted for non-controlling interests and non-cash stock option expense was ($4,351,000) versus EBITDA adjusted for non-controlling interests, non-cash stock option expense and losses incurred on the closure of Durgin-Park (discussed below) of $5,838,000 during the same 13-week period of last year. Net loss for the 13 weeks ended June 27, 2020 was ($2,526,000) or ($0.72) per basic and diluted share, compared to a net income of $3,962,000 or $1.14 per basic and $1.12 per diluted share for the same 13-week period in the prior year.

The Company’s EBITDA for the 39 weeks ended June 27, 2020, adjusted for non-controlling interests, non-cash stock option expense and loss on lease termination was ($1,397,000) versus EBITDA adjusted for non-controlling interests, non-cash stock option expense and losses incurred on the closure of Durgin-Park (discussed below) of $9,705,000 during the same 39-week period of last year. Net loss for the 39 weeks ended June 27, 2020 was ($2,791,000) or ($0.80) per basic and diluted share, compared to net income of $3,231,000 or $0.93 per basic and $0.92 per diluted share, for the same 39-week period in the prior year.

View full version at Ark Restaurants


FAT Brands Inc. Reports Second Quarter 2020 Financial Results

August, 10 2020


FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ:FAT) last week reported fiscal second quarter 2020 financial results for the 13-week period ending June 28, 2020.

Andy Wiederhorn, President and CEO of FAT Brands, commented, “Thank you to our employees and franchisees, who have shown dedication and resolve to persevere through the challenges presented by the pandemic, and to return to a consistent growth mode as soon as possible.”

“In the second quarter, even while navigating the rapidly evolving state by state regulatory landscape, and while supporting and empowering our franchisees, the FAT Brands team executed on our strategic goals. This included anticipating and capitalizing on the rapid shift to delivery and to go, with the successful implementation of third-party delivery through enterprise partnerships with the big four delivery platforms. We also made progress on our cross-selling and co-branding programs, with four new co-branded Fatburger / Buffalo’s locations during the quarter and one multi-concept virtual restaurant, and we have a strong development pipeline for the second half of the year. Lastly, in July, we completed the public offering of our Series B Preferred Stock, which, on the heels of our whole business securitization in March, simplified our capital structure and lowered our cost of capital.”

Wiederhorn continued, “Toward the end of the second quarter and through July, local restrictions eased and dining rooms began to re-open. Same-store sales steadily improved, increasing 44% from $3.3 million the week ending May 17th to $4.7 million the week ending July 26th. We are optimizing operations wherever possible, and continuing the expansion of the FAT Brands asset light model. Through the end of July, there have been 15 new store openings, and we have plans to open 18 additional stores by the end of the year.”

Fiscal Second Quarter 2020 Highlights

  1. Total revenues of $3.1 million compared to $5.9 million in the second quarter of 2019. Excluding advertising revenues, revenues were $2.5 million, down from $4.8 million in the second quarter of 2019.

  2. System-wide sales were down 51.1% y/y and 31.1% YTD

  3. System-wide sales (excluding Ponderosa & Bonanza) declined 29.1% y/y and 15.4% YTD

  4. United States sales decline of 49.7% y/y and 32.0% YTD

  5. Canada sales decline of 17.7% y/y and 8.8% YTD

  6. Other International(1) sales were down 79.0% y/y and 40.8% YTD

  7. System-wide same-store sales decline of 23.1% y/y and 19.3% YTD

  8. System-wide same-store sales decline (excluding Ponderosa & Bonanza) of 22.0% y/y and 18.2% YTD

  9. United States same-store sales decline of 24.6% y/y and 19.5% YTD

  10. Canada same-store sales decline of 16.6% y/y and 19.3% YTD

  11. Other International(1) sales decline of 18.5% y/y and 18.0% YTD

  12. Five new franchised store openings during the second quarter 2020

  13. Store count as of June 28, 2020: 366 stores system-wide

  14. Net loss of $4.25 million or $0.36 per share on a basic and fully diluted basis inclusive of a non-cash asset impairment charge of $3.2 million, as compared to net loss of $508,000 or $0.04 per share on a basic and fully diluted basis in the second quarter of 2019

  15. EBITDA(2) of ($4.3 million) inclusive of a non-cash asset impairment charge of $3.2 million as compared to $2.2 million in the second quarter of 2019

  16. Adjusted EBITDA(2) of ($361,000) as compared to $2.0 million in the second quarter of 2019. The reconciliation of EBITDA to Adjusted EBITDA can be found in the accompanying financial tables.

Summary of Second Quarter 2020 Financial Results

Total revenues were $3.1 million in the second quarter of 2020 and as compared to $5.9 million in the second quarter of 2019. The revenue performance overwhelmingly reflects a decline in royalty revenue related to the impact of COVID-19, as well as lower franchise fees in 2020 compared to the prior year period and decreases in store opening fees related to the preferred application of ASC 606, which the Company adopted in the fourth quarter of 2019.

Costs and expenses increased to $8.9 million in the second quarter of 2020 compared to $3.7 million in the second quarter of 2019. This increase reflects a $3.2 million goodwill and tradename impairment charge related to Ponderosa and Bonanza, as well as refranchising losses of $1.0 million and increased G&A primarily reflecting a $907,000 increase in provisions for bad debts related to the effects of COVID-19 and a full quarter of depreciation and amortization expense related to the acquisition of Elevation in June 2019.

Other income was $450,000 in the second quarter of 2020, compared to other expense of $1.4 million in the prior year, and consisted primarily of income of $1,264,000 from the change in fair value of the derivative liability relating to the conversion feature of the Series A Preferred Stock, which was partially offset by net interest expense of $765,000. In the second quarter of 2019, other expense of $1.4 million consisted primarily of net interest expense of $1.3 million.

The combination of the aforementioned revenue and expenses resulted in a net loss of $4.2 million in the second quarter of 2020, compared to a net loss of $508,000 in the second quarter of 2019.

View full version at FAT Brands

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