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Sep 1714 min read

Financials - September 2024




Hawkers Asian Street Food Declares Bankruptcy



The chain claims a lender is trying to take over the business.

Fifteen-unit Hawkers Asian Street Food announced Monday that it declared bankruptcy to keep operational control and protect itself from an “overreaching lender,” the company said.

In early 2023, the chain entered a debt capital agreement to grow its presence across the country. Hawkers alleges that over the past 60 days, the lender has tried to take over the company even though the brand never missed a payment. The bankruptcy filing allows the chain to maintain normal operations and vendor payments at all 15 locations and re-stabilize the company “in a way that secures a thriving and successful future for Hawkers and its dedicated team.”

Last year, companywide sales grew 18.5 percent and same-store sales lifted 26 percent.

“Hawkers Asian Street Food’s goals remain clear and steady—protect the guest experience at every turn, prioritize the safety and well-being of its team members and stakeholders, and continue growing the brand in a sustainable and upstanding manner,” the company said in a statement. “While Hawkers hopes to negotiate a favorable outcome with said lender, the future of the company remains bright, and the team looks forward to welcoming guests for their Hawkers favorites for decades to come.”

Hawkers was founded in 2011 by four friends Kaleb Harrell, Allen Lo, Wayne Yung, and Kin Ho. The first unit opened in Orlando, and the chain has since expanded in Florida, as well as Georgia, North Carolina, Tennessee, Maryland, Virginia, and Texas. The chain recently earned a Michelin Guide Recommendation for its authentic Asian street and experiential dining room.

The chain owes its name to the many vendors in Singapore, Thailand, Malaysia, and other countries that hawk their food in open-air markets. Lo says the brand’s opening coincided with a rise in popularity of travel TV stars like Andrew Zimmern, Anthony Bourdain, and Samantha Brown who visited these places and highlighted family recipes.


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Farmer Brothers reports fourth quarter and full year fiscal 2024 financial results


September 12, 2024 16:05 ET


Fiscal year 2024 gross margin increase of 560 basis points year-over-year to 39.3%Reported full year net loss of $3.9 million, increased full year adjusted EBITDA1 to $558,000Fiscal 2024 net sales of $341.1 million

FORT WORTH, Texas, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (NASDAQ: FARM) today reported its fourth quarter and full year fiscal 2024 financial results for the period ended June 30, 2024. The company filed its Form 10-K, which can be found on the Investor Relations section of the company’s website.

“This past year was a transformative one for Farmer Brothers,” said President and Chief Executive Officer John Moore. “The decision to sell our direct ship business and focus on our more profitable DSD business helped significantly improve our gross margins and drive adjusted EBITDA profitability and overall operational efficiency. While we are proud of the significant progress we have made to date, there is still much more to be done as we complete our SKU rationalization and brand pyramid efforts, further streamline our operations and focus on driving customer growth and retention. We remain confident we are building a foundation which will generate long-term, sustainable growth and value creation for our shareholders.”

Fiscal 2024 business highlights

  • Strengthened executive team with appointments of President and Chief Executive Officer John Moore and Chief Financial Officer Vance Fisher.

  • Concluded its co-manufacturing agreement with TreeHouse Foods as part of the sale of its direct ship business and made significant progress on transition to focus on direct store delivery (DSD) business.

  • Streamlined operations by restructuring sales organization, reducing SKU redundancies and centralizing production in Portland, Oregon.

  • Upgraded technology infrastructure to enhance customer service, pricing approach and inventory management capabilities.

Fourth quarter fiscal 2024 financial results

  • Net sales were $84.4 million for the fourth quarter of fiscal 2024, a decrease of $1.1 million, or 1%, compared to the fourth quarter of fiscal 2023.

  • Gross profit for the fourth quarter of fiscal 2024 was $32.8 million, or 38.8%, compared to gross profit of $27.8 million, or 32.5%, for the fourth quarter of fiscal 2023.

  • Net loss for the fourth quarter of fiscal 2024 was $4.6 million, compared to a net loss of $16.9 million for the fourth quarter of fiscal 2023. The $4.6 million net loss for the fourth quarter of fiscal 2024 included a $1.1 million of gain from the sale of assets and $400,000 of non-cash stock compensation. The $16.9 million net loss for the fourth quarter of fiscal 2023 included a $2.5 million loss from the sale of assets and $2.1 million of non-cash stock compensation.

  • Adjusted EBITDA was a loss of $1.6 million for the fourth quarter of fiscal 2024, an increase of $5.6 million, compared to the fourth quarter of fiscal 2023.

1 This is a non-GAAP financial measure. See “non-GAAP financial measures” and “reconciliation of net loss to non-GAAP adjusted EBITDA loss” below.


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BurgerFi International Files for Protection Under Chapter 11



All 144 locations remain open and continue normal operations

FORT LAUDERDALE, Fla., Sept. 11, 2024 /PRNewswire/ -- BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) ("BurgerFi" or the "Company"), owner of the high-quality, casual dining chain Anthony's Coal Fired Pizza & Wings ("Anthony's") and one of the nation's leading fast-casual "better burger" dining concepts, BurgerFi, announced today that it has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to preserve the value of its brands for all stakeholders.   

All 144 locations of the Company's two brands throughout the United States, including in Puerto Rico, and in Saudi Arabia, (both corporate-owned and franchised) will continue normal, uninterrupted operations. The Chapter 11 filing by the Company includes only the 67 corporate-owned locations of both brands. Franchisee-owned locations of BurgerFi and Anthony's Coal Fired Pizza & Wings are excluded from the bankruptcy proceedings.

"BurgerFi and Anthony's Coal Fired Pizza & Wings are dynamic and beloved brands, and in the face of a drastic decline in post-pandemic consumer spending amidst sustained inflation and increasing food and labor costs, we need to stabilize the business in a structured process," said Jeremy Rosenthal, Chief Restructuring Officer of BurgerFi International, Inc. "We are confident that this process will allow us to protect and grow our brands and to continue the operational turnaround started less than 12 months ago and secure additional capital."

The Board brought in Carl Bachmann as chief executive officer and Christopher E. Jones, chief financial officer in July 2023 to turnaround and strengthen the brands and operations. Faced with legacy operational challenges, they quickly developed and implemented a strategic plan to address foundational issues including declining same store sales, high employee turnover and a stale menu. As part of the turnaround efforts, the Company initiated a top-to-bottom evaluation of its operations, which is continuing.

As a result, the Company has aligned its footprint with current business standards through the closure of 19 underperforming corporate-owned stores and reduced related operating costs. The Company's current platform is primed for success. 

"Despite the early positive indicators of the turnaround plan initiated less than a year ago, the legacy challenges facing the business necessitated today's filing," said Carl Bachmann. "We are grateful for the continued support of our loyal customers, vendors, business partners and our dedicated team members, who are the heart of the company."

The Company will be filing customary "first day" motions in the Chapter 11 cases, to ensure normal operations. These motions, subject to court approval, will enable the timely payment of employee wages and benefits, the continuation of customer programs and other relief.  The expedited relief being sought by the Company includes permitting guests to continue to use rewards and gift cards at participating locations to enjoy the exceptional food and service we are proud to provide through BurgerFi and Anthony's Coal Fired Pizza & Wings.

Court filings and other documents related to the restructuring are available on a separate website administered by the Company's claims agent, Stretto, Inc. at cases.stretto.com/BFI.  Stakeholders with questions can call (855) 492-7450 or (714) 881-5915 or email BurgerFiInquiries@stretto.com.

Proposed advisors to the Company are Raines Feldman Littrell LLP, Force Ten Partners, with Jeremy Rosenthal as the Company's Chief Restructuring Officer, and Sitrick And Company as strategic communications advisor to the Company.

About BurgerFi International (Nasdaq: BFI, BFIIW)

BurgerFi International, Inc. is a leading multi-brand restaurant company that develops, markets, and acquires fast-casual and premium-casual dining restaurant concepts around the world, including corporate-owned stores and franchises. BurgerFi International, Inc. is the owner and franchisor of the two following brands with a combined 144 locations.

Anthony's. Anthony's is a premium pizza and wing brand with 51 restaurants (50 corporate-owned casual restaurant locations and one dual brand franchise location), as of September 10, 2024. Known for serving fresh, never frozen and quality ingredients, Anthony's is centered around a 900-degree coal-fired oven with menu offerings including "well-done" pizza, coal-fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads. Anthony's was named "The Best Pizza Chain in America" by USA Today's Great American Bites, "Top 3 Best Major Pizza Chain" by Mashed in 2021, "The Absolute Best Wings in the U.S." by Mashed in 2022, and named in "America's Favorite Restaurant Chains of 2022" by Newsweek.

BurgerFi. BurgerFi is among the nation's fast-casual better burger concepts with 93 BurgerFi restaurants (76 franchised and 17 corporate-owned) as of September 10, 2024. BurgerFi is chef-founded and committed to serving fresh, all-natural and quality food at all locations, online and via first-party and third-party deliveries. BurgerFi uses 100% American Angus Beef with no steroids, antibiotics, growth hormones, chemicals or additives. BurgerFi's menu also includes high-quality Wagyu Beef Blend Burgers, All-Natural Chicken offerings, Hand-Cut Sides, and Frozen Custard Shakes. BurgerFi was named "The Very Best Burger" at the 2023 edition of the nationally acclaimed SOBE Wine and Food Festival and "Best Fast Food Burger" in USA Today's 10Best 2023 Readers' Choice Awards for its BBQ Rodeo Burger, "Best Fast Casual Restaurant" in USA Today's 10Best 2023 Readers' Choice Awards for the third consecutive year, QSR Magazine's Breakout Brand of 2020 and Fast Casual's 2021 #1 Brand of the Year. In 2021, Consumer Reports awarded BurgerFi an "A Grade Angus Beef" rating for the third consecutive year. To learn more about BurgerFi or to find a full list of locations, please visit www.burgerfi.com. BurgerFi® is a Registered Trademark of BurgerFi IP, LLC, a wholly-owned subsidiary of BurgerFi.


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Red Lobster Receives Court Approval of Chapter 11 Plan; Nears Exit of Bankruptcy



Under Chapter 11 plan, Red Lobster will be acquired by RL Investor Holdings LLC, an entity backed by Fortress Investment Group

Orlando, FL  (RestaurantNews.com)  Red Lobster Management LLC, along with its direct and indirect operating subsidiaries (“Red Lobster” or “the Company”), owner and operator of the Red Lobster® restaurant chain, today announced that the Company has received court approval of its Chapter 11 plan.

As part of the Chapter 11 plan, RL Investor Holdings LLC will acquire the Red Lobster® restaurant chain from the Company. RL Investor Holdings LLC is an entity created by funds managed by affiliates of Fortress Investment Group LLC (“Fortress”), alongside co-investors TCW Private Credit and Blue Torch. The acquisition is anticipated to close before the end of September.

On completion of the acquisition, Damola Adamolekun will become the CEO of the Red Lobster restaurant chain, and Jonathan Tibus, who has served as the Company’s CEO during the reorganization, will step down from the role and leave the Company.

“This is a great day for Red Lobster,” said Mr. Adamolekun. “With our new backers, we have a comprehensive and long-term investment plan – including a commitment of more than $60 million in new funding – that will help to reinvigorate the iconic brand while keeping the best of its history. Red Lobster has a tremendous future, and I cannot wait to get started on our plan with the Company’s more than 30,000 team members across the USA and Canada. I want to thank Jonathan Tibus and his team for their stewardship, and look forward to welcoming them as frequent Red Lobster guests.”

Red Lobster will continue to operate as an independent company, with 544 locations across 44 U.S. states and four Canadian Provinces.

Jonathan Tibus added, “I’m proud of what Red Lobster has achieved during this restructuring – the Company will emerge from Chapter 11 stronger financially and operationally, and with new backers who are resolutely focused on investment and growth. I’m incredibly grateful for the support we’ve received from our team members and diners, and from so many of our landlords and vendors throughout this process. I’m looking forward to cheering on Red Lobster as an ardent fan in the years ahead.”

About Red Lobster restaurant chain

Red Lobster is the world’s largest and most-loved seafood restaurant company, headquartered in Orlando, Fla. With a proud heritage, Red Lobster is focused on serving the highest quality, freshly prepared seafood that is traceable, sustainable, and responsibly sourced. To learn more about Red Lobster, including locations and menu options, please visit RedLobster.com or find us on Facebook, X, Instagram, Threads, or TikTok.


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KBP Brands purchases 85 SONIC restaurants; Adds fourth brand to restaurant portfolio



LEAWOOD, Kan., Sept. 4, 2024 /PRNewswire/ -- KBP Brands, one of the largest and fastest-growing franchise operators in the United States, has acquired 85 SONIC restaurants across six states – Delaware, Georgia, Kentucky, North Carolina, South Carolina and Virginia. This purchase brings KBP's total restaurant portfolio, which also includes KFC, Taco Bell, and Arby's, to more than 1,000 restaurants in 32 states.

"Our SONIC partnership diversifies KBP's portfolio with another time-tested, beloved restaurant brand, bolsters our geographic density in the southeastern U.S., and expands our relationship and growth with Inspire Brands. We're thrilled to add SONIC to the KBP family," said Mike Kulp, CEO of KBP Brands.

Owned by Inspire Brands, which also owns KBP-partner Arby's, SONIC is the nation's largest drive-in restaurant brand. SONIC's distinctive menu of made-to-order American classics, drinks, and ice cream offerings complement KBP's portfolio of iconic restaurants.

This 85-unit acquisition is among KBP's largest and is expected to increase annual company revenue to more than $1.5 billion. KBP employs more than 21,000 people in its restaurants and Kansas City-area headquarters. Mark Everett, Executive Vice President of KBP, will lead operations and growth for KBP's SONIC locations.

About KBP BrandsKBP Brands owns and operates more than 1,000 KFC, Taco Bell, Arby's, and SONIC restaurants across 32 states. Based in Leawood, Kansas, the company's geographic reach and expertise running multi-unit businesses has resulted in customer satisfaction and growth for 25 years. KBP Brands is one of the largest and fastest-growing restaurant ownership groups in the U.S. For more information, visit kbpbrands.com. 


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CAVA Group Reports Second Quarter 2024 Results


Year Over Year CAVA Revenue Growth of 35.2% Including CAVA Same Restaurant Sales Growth of 14.4%

18 Net New CAVA Restaurant Openings During Quarter

Second Quarter 2024 CAVA Restaurant-Level Profit Margin of 26.5%



WASHINGTON--(BUSINESS WIRE)--CAVA Group, Inc. (NYSE: CAVA) (“CAVA Group” or the “Company”), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced financial results for its fiscal second quarter ended July 14, 2024.

"Our results in the second quarter continued to demonstrate the strength of our category-defining brand and our unique and compelling value proposition,” said Brett Schulman, Co-Founder and CEO. “During the quarter, traffic grew 9.5%, we opened 18 net new restaurants and, driven by the power of our unit economic engine, generated average unit volume of $2.7 million. In addition, we launched our new grilled steak main, once again exhibiting our excellence in culinary innovation. Grilled steak is significantly outperforming our expectations and giving guests another reason to visit CAVA and come back more often.”

Fiscal Second Quarter 2024 Highlights:

  • CAVA Revenue grew 35.2% to $231.4 million as compared to $171.1 million in the prior year quarter.

  • Net New CAVA Restaurant Openings of 18, bringing total CAVA Restaurants to 341, a 22.2% increase in total CAVA Restaurants year over year.

  • CAVA Same Restaurant Sales Growth of 14.4%, including traffic growth of 9.5%.

  • CAVA AUV of $2.7 million as compared to $2.6 million in the prior year quarter.

  • CAVA Restaurant-Level Profit of $61.3 million or growth of 37.3% over the prior year quarter, with CAVA Restaurant-Level Profit Margin of 26.5%.

  • CAVA Digital Revenue Mix was 35.8%.

  • CAVA Group Net Income of $19.7 million compared to net income of $6.5 million in the prior year quarter.

  • CAVA Group Adjusted EBITDA(1) of $34.3 million compared to $21.6 million in the prior year quarter.

  • Net cash provided by operating activities of $48.9 million with Free Cash Flow(1) of $22.7 million.

CAVA Fiscal Second Quarter 2024 Review:

CAVA Revenue was $231.4 million, an increase of 35.2% compared with the second quarter of fiscal 2023. The increase was primarily driven by 78 Net New CAVA Restaurant Openings during or subsequent to the second quarter of fiscal 2023, which are exceeding our performance expectations, and CAVA Same Restaurant Sales Growth of 14.4%. CAVA Same Restaurant Sales Growth consists of a 9.5% increase from guest traffic and a 4.9% increase from menu price and product mix.

CAVA Restaurant-Level Profit Margin was 26.5% compared with 26.1% in the second quarter of fiscal 2023. The increase was due to leverage from higher sales, partially offset by incremental wage investments and input costs associated with the June 3rd launch of grilled steak.

CAVA Group Fiscal Second Quarter 2024 Review:

General and administrative expenses were $28.3 million, or 12.1% of revenue, as compared to $23.3 million, or 13.5% of revenue, in the second quarter of fiscal 2023. General and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs in the prior year quarter(1), were $24.7 million, or 10.6% of revenue, as compared to $20.4 million, or 11.8% of revenue, in the second quarter of fiscal 2023. The decrease of 120 basis points was primarily due to leverage from higher sales, partially offset by investments to support future growth and increased recurring public company costs.

Net income was $19.7 million, or 8.5% of revenue, an increase of $13.2 million as compared to $6.5 million in the second quarter of fiscal 2023.

Adjusted EBITDA(1) was $34.3 million, or 14.7% of revenue, an increase of $12.7 million, or 59.0%, compared to the second quarter of fiscal 2023. The increase was primarily driven by the number and strength of performance of Net New CAVA Restaurant Openings during or subsequent to the second quarter of fiscal 2023, 14.4% CAVA Same Restaurant Sales Growth, and leverage in general and administrative expenses.


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



Announces Credit Agreement AmendmentUpdates Full Year Guidance

ENGLEWOOD, Colo., Aug. 22, 2024 /PRNewswire/ -- 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 fiscal second quarter ended July 14, 2024.

Highlights for the Second Quarter of Fiscal 2024, Compared to the Second Quarter of Fiscal 2023:

  • Total revenues are $300.2 million, an increase of $1.5 million.

  • Comparable restaurant revenue(1) declined 0.8% excluding a deferred revenue benefit led by the change in the Company's loyalty program. Including this benefit, Comparable restaurant revenue(1) increased 1.4%.

  • Net loss is $9.5 million, compared to net income of $3.9 million last year.

  • Adjusted EBITDA(2) is $11.8 million compared to $15.5 million last year.

  • Subsequent to the close of the second quarter, executed an amendment to the credit agreement that revises financial covenants and expands revolver capacity.

Highlights for the Year to Date Period of Fiscal 2024, Compared to the Year to Date Period of Fiscal 2023:

  • Total revenues are $688.7 million, a decrease of $27.8 million.

  • Comparable restaurant revenue(1) declined 4.0% excluding a deferred revenue benefit led by the change in the Company's loyalty program. Including this benefit, Comparable restaurant revenue(1) declined 3.2%.

  • Net loss is $18.9 million, compared to net income of $0.7 million last year.

  • Adjusted EBITDA(2) is $24.0 million compared to $51.9 million last year.

  • Completed a sale-leaseback transaction for ten restaurants in the first quarter of fiscal 2024, generating net proceeds of approximately $23.3 million and a gain, net of expenses of $7.4 million.

(1)

Comparable restaurant revenue represents revenue from Company-owned restaurants that have operated 18 months as of the beginning of the period presented.

(2)

See "Reconciliation of Non-GAAP Results to GAAP Results" below for more details.

G.J. Hart, Red Robin's President and Chief Executive Officer said, "Our results for the second quarter and our reduced guidance for the year are not what we expected when we last communicated in May, with the slowdown experienced in the broader restaurant industry masking the substantial progress we continue to make against our North Star plan."

Hart continued, "That said, we have seen multiple proof points that indicate the initiatives we implemented over the past 20 months have elevated the guest experience. This is showcased best by guest satisfaction scores increasing to levels Red Robin has not achieved since 2016; comparable restaurant revenue exceeding the industry average during the past 3 months, as measured by Black Box; and traffic growth in line with the industry. In each of the trailing 3 weeks, despite the challenging environment, comparable restaurant revenue has returned to marginally positive. With this progress, we continue to expect to meet or exceed the industry average on traffic through the remainder of the year."

Hart concluded, "Collectively, the actions we are taking and the great feedback we continue to receive from guests and team members, give us confidence we are on the path to long-term success for this beloved brand."


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