- Aug 6, 2020
- 66 min read

Financials - August 2020

Restaurant Brands International Inc. Reports Second Quarter 2020 Results

Aug 06, 2020, 06:30 ET

Drive thru and digital channels drive 30-point recovery in comparable sales across brands from end of March to June

Reopened over 4,500 restaurants in the quarter, now 93% open globally

Strong and flexible financial position with $2.5 billion of available liquidity at quarter end

Building pipeline for return to strong net restaurant growth in 2021

TORONTO, Aug. 6, 2020 /PRNewswire/ - Restaurant Brands International Inc. (TSX: QSR) (NYSE: QSR) (TSX: QSP) today reported financial results for the second quarter ended June 30, 2020.

Jose Cil, Chief Executive Officer of Restaurant Brands International Inc. ("RBI") commented, "The COVID-19 pandemic has introduced a host of unprecedented challenges, but our proactive and coordinated response across the globe has helped drive a significant recovery in performance since March. I am so proud of our restaurant owners, our restaurant team members, and our entire team at RBI for their incredible work and dedication in confronting this crisis. By the end of the quarter, we were back to 90% of our prior year system-wide sales with 93% of our restaurants open worldwide, which speaks to the strength and resilience of our three amazing brands and business model."

Cil continued, "During this crisis, the strength of our drive thru, digital and delivery channels has been a particularly important differentiator as guests have looked to us for a combination of safety, convenience, quality and great value that few can match. It was encouraging to see our investments in digital channels drive meaningful incremental sales in the quarter and we're excited that in our home markets, digital sales across brands grew over 120% year-over-year and more than 30% quarter-over-quarter."

"We are a growth company at our core and we are continuing to make progress behind important initiatives to invest in our product quality, service, brand marketing and digital platforms. We are also working closely with our restaurant owners around the world to build strong pipelines and restart our global development engine. We have a very healthy balance sheet and three exceptional brands with well-capitalized systems. This combination positions us very well to navigate through this crisis and continue on our path to deliver industry-leading system-wide sales growth and build the most loved restaurants brands in the world," added Cil.

"And, while we have been laser-focused on the recovery of our business this past quarter, we made sure that important long-term priorities didn't get lost. We launched our Restaurant Brands for Good framework and identified major projects under the pillars of food, planet and people that we believe are foundational to building globally loved restaurant brands," concluded Cil.

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Papa John’s Announces Second Quarter 2020 Results and Provides Preliminary Estimated Comparable Sales for July

August 06, 2020 06:30 AM Eastern Daylight Time

LOUISVILLE, Ky.--(BUSINESS WIRE)--Papa John’s International, Inc. (NASDAQ: PZZA) today announced financial results for the three and six months ended June 28, 2020. The company also provided an update on the business impact of the global coronavirus (COVID-19) pandemic.

Highlights

Second quarter 2020 earnings per diluted share of $0.48 compared to second quarter 2019 earnings per diluted share of $0.15
Second quarter system-wide North America comparable sales increase of 28.0%
Second quarter international comparable sales increase of 5.3%; Excluding temporary closures related to COVID-19, international comparable sales increase of 13.3%
Cash flow from operations of $87.7 million and free cash flow of $67.0 million for the first six months of 2020
Preliminary estimated July fiscal period comparable sales increases of 30.3% for North America and 13.9% for international

“Faced with an unprecedented global challenge but guided by our values and purpose, Papa John’s achieved record sales in the second quarter,” said Rob Lynch, President & CEO. “Across the U.S. and those international markets where delivery-based businesses have remained open, we have safely and successfully met the needs of millions of new and returning customers who have relied on us for high-quality, delicious pizza, Papadias, and other food during the pandemic. This was possible because of the dedication and hard work of our team members and local franchisees, as well as our work to create a more diverse, inclusive and innovative culture.”

Mr. Lynch continued, “Helping drive growth, our innovation pipeline continues firing on all cylinders with the launch of our hugely popular new Shaq-a-Roni pizza, which has generated over $2 million in charitable contributions that will go toward building the communities we serve. Our strong momentum has also enabled us to hire over 20,000 new restaurant team members during the second quarter and target hiring another 10,000 positions in the third, helping support those impacted by unprecedented levels of unemployment. These efforts position Papa John’s solidly to continue meeting the needs of our customers who face continued challenges from COVID-19, and to drive long-term sustainable loyalty to our brand long after the current pandemic.”

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Jack in the Box Inc. Reports Third Quarter FY 2020 Earnings; Reinstates Quarterly Cash Dividend

August 05, 2020 04:05 PM Eastern Daylight Time

SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) today reported financial results for the third quarter ended July 5, 2020.

Increase in same-store sales:

12 Weeks Ended

40 Weeks Ended

July 5, 2020

July 7, 2019

July 5, 2020

July 7, 2019

Company

4.1%

2.8%

1.2%

Franchise

6.9%

2.7%

1.5%

0.8%

System

6.6%

2.7%

1.5%

0.8%

Jack in the Box® system same-store sales increased 6.6 percent for the quarter. Company same-store sales increased 4.1 percent in the third quarter driven by average check growth of 20.2 percent while transactions decreased 16.1 percent.

Darin Harris, chief executive officer, said, "In my first six weeks as CEO, I have witnessed the nimbleness and passion within this brand. I am proud of the way our franchisees, the teams in our restaurants, our employees, and our partners have responded swiftly to the changing occasions of our consumers amidst the pandemic. Our strong performance in the third quarter is a testament to this agile approach. Our focus on value combined with indulgent and flavorful products continues to drive overall performance for the brand.

This strong performance accelerated throughout the third quarter, and has continued thus far into the fourth quarter. I am excited about taking the learnings from this uncertain time and using them to fuel the remaining part of 2020 as well as our strategy into 2021."

Earnings from continuing operations were $32.2 million, or $1.40 per diluted share, for the third quarter of fiscal 2020 compared with $13.5 million, or $0.51 per diluted share, for the third quarter of fiscal 2019.

Operating Earnings Per Share(1), a non-GAAP measure, were $1.37 in the third quarter of fiscal 2020 compared with $1.07 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.

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Fiesta Restaurant Group, Inc. Reports Second Quarter 2020 Results

Both Brands Generated Positive Adjusted EBITDA during Quarter

Company Generated Net Cash Provided by Operations of $24.5 Million during Quarter

Sequential Improvement in Comparable Restaurant Sales Trend Extended through July

August 05, 2020 04:05 PM Eastern Daylight Time

Fiesta President and Chief Executive Officer Richard Stockinger said, "We are pleased with our sequential improvement in comparable restaurant sales at both brands, which continued into July. Comp sales run rates at both brands improved from June to July by 350 basis points or more. These encouraging trends have been achieved despite the fact that we operate in Florida and Texas, two of the more challenged states in terms of COVID outbreaks, which drove our decision to again close our dining rooms as of July 12, 2020. As we continue to prioritize the well-being of our team members and guests during this pandemic, we believe we are also evolving to a better business model that is easier and safer for our consumers including expanded delivery options, new curbside and pick-up capabilities, and a much-enhanced online ordering experience. Our new app, developed by BottleRocket, went live for Pollo Tropical in late July and will go live for Taco Cabana in September."

"We also continued to make progress on improving our financial position and liquidity during the quarter. In addition to securing an amendment to our senior credit facility that we believe provides us adequate covenant cushion and liquidity, we generated positive Adjusted EBITDA at both brands for the quarter and also generated net cash provided by operating activities of $24.5 million through better working capital management and positive Adjusted EBITDA from both brands. Since the beginning of the COVID crisis, we have significantly reduced our revolving credit facility(1) and net revolver debt balances(2). At current sales trends, we believe we will continue to improve liquidity."

Mr. Stockinger concluded, "We are proud of our operations team that has continued to keep our restaurants operating safely during this crisis while improving operations efficiency. In the second half of the year, we expect to see the accelerating effects of our off-premise initiatives as they gain traction, including curbside capabilities and our new apps at both brands. We are optimistic about our future and our ability to continue evolving our business model to meet changing market conditions and consumer needs in order to allow our customers to enjoy our brands safely and conveniently across all channels—however the guest chooses."

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The Wendy's Company Reports Second Quarter 2020 Results

Aug 05, 2020, 07:00 ET

DUBLIN, Ohio, Aug. 5, 2020 /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) today reported unaudited results for the second quarter ended June 28, 2020 and provided an update on the impact of the COVID-19 pandemic on the Company's business.

"I continue to be extremely proud of, and humbled by, the tireless efforts and dedication from our employees, franchisees and supplier partners across the globe as we successfully manage through COVID-19," President and Chief Executive Officer Todd Penegor said. "Our business and restaurant economic model continue to show incredible resilience as we build momentum with U.S. same-restaurant sales accelerating to high-single digit growth in July, driven by the continued strength of our breakfast and digital businesses. We remain focused on our goal of delivering efficient, accelerated growth behind our three major long-term growth pillars: building our breakfast daypart, growing our digital business, and expanding our International footprint. We have positioned ourselves to manage through future challenges and ultimately emerge as a stronger Wendy's® brand. I'm more confident than ever that we will achieve our vision of becoming the world's most thriving and beloved restaurant brand."

Second Quarter 2020 Summary See "Disclosure Regarding Non-GAAP Financial Measures" and the reconciliation tables that accompany this release for a discussion and reconciliation of certain non-GAAP financial measures included in this release.

Operational Highlights

Second Quarter

Year-to-Date

2020

2019

2020

2019

Systemwide Sales Growth(1)

U.S.

(4.0)%

2.5%

(1.6)%

2.5%

International(2)

(24.5)%

10.4%

(12.4)%

10.3%

Global

(6.2)%

3.3%

(2.7)%

3.3%

Same-Restaurant Sales Growth(1)

U.S.

(4.4)%

1.3%

(2.3)%

1.3%

International(2)

(18.4)%

3.9%

(10.1)%

3.3%

Global

(5.8)%

1.6%

(3.1)%

1.5%

Restaurant Openings

U.S. - Total / Net

19 / 1

19 / 2

46 / 10

44 / 3

International - Total / Net

3 / 0

9 / 7

17 / 8

27 / 5

Global - Total / Net

22 / 1

28 / 9

63 / 18

71 / 8

Systemwide Sales (In US$ Millions)(3)

U.S.

$2,403

$2,503

$4,744

$4,821

International(2)

$220

$301

$493

$574

Global

$2,624

$2,804

$5,237

$5,395

Global Reimaging Completion Percentage

61%

53%

(1) Systemwide sales growth and same-restaurant sales growth are calculated on a constant currency basis and include sales by both Company-operated and franchise restaurants.

(2) Excludes Venezuela and Argentina.

(3) Systemwide sales include sales at both Company-operated and franchise restaurants.

Financial Highlights

Second Quarter

Year-to-Date

2020

2019

B / (W)

2020

2019

B / (W)

(In Millions Except Per Share Amounts)

(Unaudited)

Total Revenues

402.3

435.3

(7.6)

807.3

843.9

(4.3)

Adjusted Revenues(1)

324.2

348.7

(7.0)

650.6

676.8

(3.9)

Company-Operated Restaurant Margin

14.4

16.5

(2.1)

12.2

15.8

(3.6)

General and Administrative Expense

48.6

50.8

4.3

100.2

100.1

(0.1)

Operating Profit

60.7

80.6

(24.7)

109.4

146.8

(25.5)

Net Income

24.9

32.4

(23.1)

39.3

64.3

(38.9)

Adjusted EBITDA

97.4

117.8

(17.3)

186.8

219.5

(14.9)

Reported Diluted Earnings Per Share

0.11

0.14

(21.4)

0.17

0.27

(37.0)

Adjusted Earnings Per Share

0.12

0.18

(33.3)

0.21

0.32

(34.4)

Cash Flows from Operations

30.6

154.1

(80.1)

Capital Expenditures

(29.4)

(25.5)

(15.3)

Free Cash Flow(2)

12.7

125.3

(89.9)

(1) Total revenues less advertising funds revenue.

(2) Cash flows from operations minus capital expenditures and the impact of our advertising funds.

Second Quarter Financial Highlights

Revenues and Adjusted Revenues

The decrease in revenues and adjusted revenues was primarily driven by lower sales at Company-operated restaurants and a decrease in franchisee royalty revenue. These declines were driven by lower same-restaurant sales as a result of the COVID-19 pandemic, partially offset by the positive impact of the Company's new breakfast daypart in the U.S.

Company-Operated Restaurant Margin

The decrease in Company-operated restaurant margin was primarily the result of customer count declines as a result of the COVID-19 pandemic and labor rate increases, which included the previously disclosed recognition pay where the Company increased pay to all restaurant level employees by 10% during April and May. This was partially offset by a higher average check, labor efficiencies, and other dining room closure related efficiencies.

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Ruth’s Hospitality Group, Inc. Provides Business Update Related to COVID-19 and Reports Second Quarter 2020 Financial Results

July 31, 2020 07:00 AM Eastern Daylight Time

WINTER PARK, Fla.--(BUSINESS WIRE)--Ruth’s Hospitality Group, Inc. (the “Company”) (NASDAQ: RUTH) today provided a business update on the impact of the COVID-19 pandemic and reported unaudited financial results for its second quarter ended June 28, 2020.

COVID-19 Business Update:

During the second quarter of 2020, the COVID-19 pandemic continued to impact overall sales and traffic. As previously reported, Company-operated Ruth’s Chris dining rooms were closed in all domestic U.S. locations during April, and the Company transitioned its services to take-out and delivery operations in 69% of its restaurants (56 of 81 locations). By the end of June, the Company was able to re-open 88% (71 of 81) of its restaurants, which included opening dining rooms in 59 capacity restricted locations. The re-opening of the Company’s dining rooms was the primary contributor to the rapid sales acceleration in June.
The 24 Company restaurants that operated with open dining rooms for the full month of June experienced sales at 81% of 2019 levels. Additionally, all 24 restaurants had positive cash flows, as well as strong restaurant operating margins consistent with the margin levels in June 2019 due to operating and labor initiatives that the Company has implemented.

($ in thousands)AprilMayJuneQ2Comparable Sales for All Restaurants (Open and Closed)

(87%)

(80%)

(54%)

(74%)Average Weekly Sales per Open Restaurant (All Formats)

$19,200

$30,500

$60,000

$36,300Average Number of Restaurants with Open Dining Rooms

Average Weekly Sales for Restaurants with Open Dining Rooms

$70,750

$84,000

$81,900Comparable Sales for Restaurants with Open Dining Rooms

(23%)

(19%)

Over the past several weeks, while some states have begun to re-tighten their dining room restrictions, the Company’s sales performance has continued to improve. Through July 28th, month-to-date comparable sales at Company-owned restaurants (open and closed) are down 47% year over year, with average weekly sales of $53,700 per open restaurant.

As of July 28th, the Company’s restaurants are operating in several different modes. Currently, 88% (71 of 81) of Company-owned and managed restaurants are open and 10 remain closed. Of the 71 Company-owned restaurants that are open, 52 are operating with open dining rooms that have capacity restrictions, 15 are operating with outdoor seating only, and four are operating with only take-out and delivery.

Currently, 93% (68 of 72) of the Company’s franchisee-owned restaurants are open and four remain closed. Of the 68 franchisee-owned restaurants that are open, 66 have open dining rooms with capacity restrictions, one restaurant is operating with outdoor seating only, and one restaurant is operating with only take-out and delivery.

Cheryl Henry, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “While the past several months have been a test of resiliency, the tireless efforts of our Ruth’s Chris team have transformed our business. Demonstrated by significant improvements in our sales trends, I’m pleased to say that we have been encouraged by the strong consumer demand, despite capacity restrictions. Our team continues to provide the renowned service Ruth’s Chris is known for, all while keeping the health and safety of our guests paramount.”

Henry concluded, “While there is continued uncertainty surrounding COVID-19, it is clear to me that there is solid consumer demand for eating in our dining rooms when we are able to re-open. We believe that our cash position, expense reductions and operational changes provide the financial resources to withstand continued market volatility. I’m incredibly grateful for the privilege of serving with both our Ruth Chris’ team members and franchise partners.”

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El Pollo Loco Holdings, Inc. Announces Second Quarter 2020 Financial Results

July 30, 2020 16:05 ET

COSTA MESA, Calif., July 30, 2020 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced financial results for the 13‑week period ended June 24, 2020 and provided a business update on the impact of the COVID‑19 pandemic.

Highlights for the second quarter ended June 24, 2020, compared to the second quarter ended June 26, 2019 were as follows:

Total revenue was $99.6 million compared to $113.7 million.
System-wide comparable restaurant sales decreased 9.7%, including an 8.5% decrease for company-operated restaurants, and a 10.6% decrease for franchised restaurants.
Net income was $5.5 million, or $0.16 per diluted share, compared to net income of $14.1 million, or $0.37 per diluted share in the prior year period. During the second quarter of 2020, the Company recognized a $2.5 million expense related to an agreement in principle to resolve the longstanding lawsuit involving a contract dispute with one of the Company’s franchisees concerning asserted territory rights. During the second quarter of 2019 the Company received insurance proceeds of $10.0 million related to the settlement of a previously disclosed securities class action lawsuit and recorded a loss on sale of restaurants of $0.9 million.
Pro forma net income(1) was $6.9 million, or $0.20 per diluted share, compared to $8.7 million, or $0.23 per diluted share.
Adjusted EBITDA(1) was $15.3 million, compared to $17.9 million.

(1) Pro forma net income and adjusted EBITDA are not presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") and are defined below under "Key Financial Definitions." A reconciliation of GAAP net income to pro forma net income and adjusted EBITDA is included in the accompanying financial data. See also “Non-GAAP Financial Measures.”

Bernard Acoca, President and Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “Despite the quarter’s challenging start with the onset of COVID-19, we made tremendous progress transforming our business and optimizing our off-premise capabilities, which is reflected by the consistent improvement in our sales during the second quarter, including positive comps in June. I’d add that positive sales have continued into the third quarter with comparable restaurant system sales having increased 2.8% to date. Our teams have also done a fantastic job delivering operational efficiency throughout the pandemic, as we have actively made adjustments to our labor deployment, managed our food costs with greater precision, and are more efficiently servicing our customers both on and off-premise. These efficiencies helped us achieve a 19.6% restaurant contribution margin for the quarter.”

Acoca concluded, “I’m proud that our actions have supported our communities during these trying times while also delivering solid financial results. It is a testament to the resilience and dedication of our restaurant teams, who are on the front lines every day executing our business during these trying times and I am convinced that our actions over the last few months will serve our business well over the longer term.”

COVID‑19 Impact

The COVID-19 pandemic has continued to disrupt the Company’s operations. Except for nine restaurants in Houston and one in Utah, all of the Company’s restaurants are operating on a take-away, mobile pick-up and delivery basis, as well as maintaining drive-thru operations where available, in order to protect its employees and customers from the spread of the COVID‑19 pandemic and to comply with the government mandates. Currently, 192 out of 196 company-operated El Pollo Loco restaurants are in operation, while 279 of 283 franchised El Pollo Loco restaurants are in operation.

Below is a summary of other actions we have taken to enhance financial and operating flexibility for the Company and for our franchisees, and to protect our employees and customers:

As a precautionary measure, the Company bolstered its existing cash position in the first quarter of 2020 by fully drawing down its $150 million 2018 Revolver, adding $34.5 million of cash to the balance sheet. At current sales levels, the Company expects to be cash flow positive.
The Company has temporarily suspended all share repurchase activity, significantly reduced capital spending, reevaluated essential support center general and administrative expenses, and fine-tuned its restaurant labor model based on indoor dining room restrictions, limited dining room capacity in restaurants located in geographies where indoor dining is permitted, dining room closures and fluctuating sales volumes.
For El Pollo Loco franchisees, the Company deferred 50% of April royalties until July 1, 2020, which will be repaid evenly over the remainder of fiscal 2020, and also deferred 100% of franchisee 2020 remodel and new build requirements until 2021. The Company has also established a support team to assist franchisees in accessing funds and benefits provided by the CARES Act legislation.
The Company continues to implement actions to help protect its employees from COVID‑19 while working in El Pollo Loco restaurants, including enhanced cleaning procedures in all restaurants, providing gloves and masks to all system restaurant employees, installing plexiglass shields at company restaurant cashier stations and initiating other social distancing measures. Additionally, the Company is providing extended sick leave benefits to employees impacted by COVID‑19.
The Company has shifted its marketing to highlight a new free delivery program; Family Meals as a healthier and affordable option; and a meaningful value platform.

Second Quarter 2020 Financial Results

Company-operated restaurant revenue in the second quarter of 2020 was $87.7 million, compared to $100.1 million in the second quarter of 2019. The decline in company-operated restaurant sales was primarily due to a decrease in company-operated restaurant revenue of $8.1 million due to an 8.5% decrease in company-operated comparable restaurant sales, which we believe was primarily related to the impact of the COVID‑19 pandemic. Additionally, there was a $4.2 million decrease in revenue from the closure of two restaurants and the sale of 16 company-operated restaurants to franchisees during or subsequent to the second quarter of 2019, and a $0.7 million decrease due to temporary closures, primarily related to the COVID-19 pandemic. This was partially offset by an increase in revenue generated from t,he three new restaurants opened during the same time period.

Franchise revenue in the second quarter of 2020 decreased 8.6% to $6.7 million, compared to $7.9 million in the second quarter of 2019. This decrease was primarily due to a franchise comparable restaurant sales decrease of 10.6%, which we believe was primarily due to the COVID‑19 pandemic, the closure of eight franchise locations during or subsequent to the second quarter of 2019 and a decrease in fees received from franchised restaurants related to their use of our point-of-sales system. This franchise revenue decrease was partially offset by the opening of two new franchised restaurants and revenue generated from 16 company-operated restaurants sold by the Company to franchisees during the same time period.

Income from continuing operations in the second quarter of 2020 was $7.5 million, compared to $20.6 million in the second quarter of 2019. Restaurant contribution was $17.2 million, or 19.6% of company-operated restaurant revenue, compared to $19.9 million, or 19.9% of company-operated restaurant revenue, in the second quarter of 2019. The decrease was largely due to the impact of wage increases in California, increased delivery fees and the decrease in revenue previously mentioned. The decrease was partially offset by higher prices and the sale of lower-performing company-owned restaurants to franchisees during 2019. Restaurant contribution is a non-GAAP measure defined below under "Key Financial Definitions." A reconciliation of GAAP income from operations to restaurant contribution is included in the accompanying financial data. See also “Non-GAAP Financial Measures.”

General and administrative expenses in the second quarter of 2020 were $10.5 million, compared to $9.3 million in the second quarter of 2019. The increase was due primarily to a $1.9 million increase in legal expenses, primarily related to a $2.5 million settlement accrual, described below, partially offset by a $0.7 million decrease in labor related costs related to a decrease in management bonus expense and a $0.1 million decrease in other general and administrative expenses.

During the second quarter of 2020, the Company recognized a $2.5 million expense related to an agreement in principle to resolve the longstanding lawsuit involving a contract dispute with one of the Company’s franchisees concerning asserted territory rights.

During the second quarter of 2019, the Company completed the sale of four company-operated restaurants within the San Francisco, CA area to an existing franchisee and seven company-operated restaurants in the Phoenix, AZ area to another existing franchisee. This resulted in a net loss on sale of restaurants of $0.9 million for the quarter, and a total net loss on sale of restaurants of $5.1 million, including the $4.2 million loss on held for sale assets recognized in the first quarter. Additionally, the Company received insurance proceeds of $10.0 million related to the settlement of a previously disclosed securities class action lawsuit.

Net income for the second quarter of 2020 was $5.5 million, or $0.16 per diluted share, compared to net income of $14.1 million, or $0.37 per diluted share, in the second quarter of 2019. Pro forma net income was $6.9 million, or $0.20 per diluted share, during the second quarter of 2020, compared to $8.7 million, or $0.23 per diluted share, during the second quarter of 2019. A reconciliation between GAAP net income and pro forma net income is included in the accompanying financial data. See also “Non-GAAP Financial Measures.”

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Dunkin' Brands Reports Second Quarter 2020 Results

Jul 30, 2020, 06:00 ET

CANTON, Mass., July 30, 2020 /PRNewswire/ --

Second quarter highlights include:

Dunkin' U.S. comparable store sales decline of 18.7%, which improved sequentially in each month of the quarter
Baskin-Robbins U.S. comparable store sales decline of 6.0%, which improved sequentially in each month of the quarter
Net closure of 229 Dunkin' and Baskin-Robbins locations globally, inclusive of 180 Baskin-Robbins International locations; net closure of 40 Dunkin' U.S. locations, inclusive of the closure of 10 Speedway locations
Revenues decreased by 20.0%
Diluted EPS decreased by 38.0% to $0.44
Diluted adjusted EPS decreased by 43.0% to $0.49
The Company's Board of Directors announced the reinstatement of its dividend program
The Company ended the second quarter with $291 million of unrestricted cash held in the U.S., excluding cash reserved for gift cards and advertising funds

Dunkin' Brands Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' and Baskin-Robbins (BR), today reported results for the second quarter ended June 27, 2020.

"For Dunkin' U.S., same store sales improved sequentially throughout the quarter, largely as a result of our ability to pivot quickly and introduce new menu items designed to appeal to customers who are now visiting us later in the day. Our digital platform -- a cornerstone of our Dunkin' Blueprint for Growth -- drove significant customer engagement and rapid recovery during the quarter, and last week we announced the hiring of a Chief Digital & Strategy Officer to accelerate our digital future," said Dave Hoffmann, Chief Executive Officer, Dunkin' Brands Group, Inc. "We are extremely proud of our great franchisees who kept the vast majority of our restaurants open during the quarter and really stepped up with a sense of urgency and grit to keep their team members employed, our guests served, and their communities running."

"This morning we announced that our Board of Directors has reinstated our dividend program, and authorized and declared a quarterly dividend for the third quarter. The reinstatement of our dividend reflects the overall financial health of Dunkin' Brands and our commitment to shareholders," said Kate Jaspon, Chief Financial Officer, Dunkin' Brands Group, Inc. "In addition, the Company repaid all of its borrowings under its variable funding notes during the second quarter and ended the quarter with a strong cash balance to provide ongoing financial flexibility. Given the strength and stability of our franchised model, coupled with our franchisees' ongoing business recovery, we remain confident in our ability to maintain appropriate liquidity through the current crisis."

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Yum! Brands Reports Second-Quarter Results; Significant Improvement from Early Quarter Lows with Strong Digital and Delivery Momentum; System Sales Decline of (12)% with a Same-Store Sales Decline of (15)% Offset by 3% Net Unit Growth

July 30, 2020 07:00 AM Eastern Daylight Time

LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands, Inc. (NYSE: YUM) today reported results for the second-quarter ended June 30, 2020. Worldwide system sales excluding foreign currency translation declined (12)%, with a (15)% same-store sales decline and 3% net-new unit growth. Second-quarter GAAP EPS was $0.67, a decrease of (27)% over the prior year quarter. Second-quarter EPS excluding Special Items was $0.82, a decrease of (12)% over the prior year quarter.

DAVID GIBBS COMMENTS

David Gibbs, CEO, said “While second-quarter results were meaningfully impacted by COVID-19, I couldn’t be prouder of how our brands adapted with remarkable agility, leveraging consumer insights and digitally enabled off-premise capabilities to adjust operations, menu options and marketing across the globe. Digital sales were a big driver of the dramatic improvement in sales from the initial impact of COVID-19, reaching an all-time high of $3.5 billion for the quarter, an increase of more than $1 billion over the prior year. World-class operations, including rapid implementation of contactless options, supported a steady pace of store reopening through the quarter, with approximately 95% of our global system restaurants now at least partially open. Same-store sales trends for open stores stabilized in June just a few points short of flat, despite the majority of our dining rooms still remaining closed, and these trends have continued into July.

As we continue to reopen our restaurants across the globe, we remain focused on our Recipe for Growth and Good strategy and on ensuring customers can access our delicious food in a safe, low-contact manner with outstanding value. Leveraging our scale and capabilities as the world’s largest restaurant company, our four iconic brands are optimally positioned to drive profitable system sales growth in the new customer environment. While COVID-19 has presented incredible challenges for the entire restaurant industry, I remain confident in the power and resiliency of our unique and highly diversified global business model and that we will emerge an even stronger growth company for all our stakeholders.”

SECOND-QUARTER HIGHLIGHTS

Worldwide system sales excluding foreign currency translation declined (12)%, with KFC at (18)%, Pizza Hut at (10)% and Taco Bell at (6)%.
We reported 3% year-over-year net unit growth and net units declined (118) during the quarter.
We recorded $84 million of pre-tax investment income related to the change in fair value of our investment in Grubhub, which resulted in a $0.21 benefit to EPS on the second-quarter. As we recorded $24 million of pre-tax investment income in the second-quarter of 2019 for a $0.06 benefit to EPS, our Grubhub investment favorably impacted year-over-year EPS growth by $0.15.
Foreign currency translation unfavorably impacted divisional operating profit by $6 million.

% Change

System Sales Ex F/X

Same-Store Sales

Net-New Units

GAAP Operating Profit

Core

Operating Profit2

KFC Division

(18)

(21)

(41)

(40)

Pizza Hut Division

(10)

(9)

(1)

(9)

(8)

Taco Bell Division

(6)

(8)

(3)

Worldwide1

(12)

(15)

(36)

(25)

Second-Quarter

Year-to-Date

2020

2019

% Change

2020

2019

% Change

GAAP EPS

$0.67

$0.92

(27)

$0.94

$1.75

(46)

Special Items EPS2

$(0.15)

$(0.01)

$(0.52)

$(0.01)

EPS Excluding Special Items

$0.82

$0.93

(12)

$1.46

$1.76

(17)

1 Worldwide system sales ex F/X and net-new units include the benefit of our acquisition of Habit Burger Grill on March 18, 2020. Same-store sales reflects the inclusion of Habit Burger Grill in the prior year base.

2 See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further detail of Core Operating Profit and Special Items.

All comparisons are versus the same period a year ago.

System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results within this release for further details.

View full version at Yum! Brands

California Pizza Kitchen Files for Voluntary Chapter 11 Restructuring

Will Continue to Operate in the Ordinary Course throughout Restructuring Process
Comprehensive Financial Restructuring and Committed Financing will Position CPK for Long-Term Success

July 30, 2020 09:00 AM Eastern Daylight Time

LOS ANGELES--(BUSINESS WIRE)--California Pizza Kitchen (“CPK”) today announced that it has entered into a restructuring support agreement with its first lien lenders (the “Agreement”) that will equitize the vast majority of CPK’s long term debt. In order to implement this agreement, CPK has filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas today. This pre-negotiated filing represents a deal with CPK’s lenders and will allow the California-based restaurant the ability to close unprofitable locations, reduce its long-term debt load, and quickly emerge from bankruptcy as a much stronger company.

Additionally, this Agreement contemplates approximately $46.8 million in new money debtor-in-possession financing, which will enable ongoing operation of CPK restaurants, continued payments to CPK’s vendors and employees, and provide for ongoing commitments to stakeholders while in Chapter 11. In addition, the Agreement provides financial commitments to allow CPK to quickly exit Chapter 11. CPK aims to complete the Chapter 11 process in under three months.

“Today’s announcement is a step towards a stronger future for California Pizza Kitchen,” said Jim Hyatt, CEO of CPK. “The unprecedented impact of COVID-19 on our operations certainly created additional challenges, but this agreement from our lenders demonstrates their commitment to CPK’s viability as an ongoing business. Throughout this process we will continue to deliver the same innovative, California-inspired cuisine that we have been serving for over 35 years.”

Kirkland & Ellis is serving as legal counsel to CPK, Guggenheim Securities, LLC is serving as its financial advisor and investment banker, and Alvarez & Marsal, Inc. as restructuring advisor.

Gibson, Dunn & Crutcher LLP is acting as legal counsel for the group of first lien lenders and FTI Consulting, Inc. is acting as its financial advisor.

Additional information about the Chapter 11 case can be found at https://cases.primeclerk.com/CPK.

About California Pizza Kitchen

In 1985, California Pizza Kitchen (CPK) opened its first restaurant in Beverly Hills and introduced diners to innovative California-style pizza. With a passion for combining fresh, seasonal ingredients with flavor inspirations from around the world, today CPK is a global brand serving creative California cuisine in over 200 restaurants in 8 countries and U.S. territories. From signature, hand-tossed pizzas and high-quality main plates to inventive better-for-you options, Lunch Duos, premium wines and handcrafted beverages, CPK adds an imaginative twist to create a memorable dining experience. For more information, visit cpk.com. Connect with CPK on Twitter at @calpizzakitchen, Instagram at @cpk, and Facebook at facebook.com/californiapizzakitchen. Download the CPK Rewards™ app for iOS and Android to earn rewards for dining creatively, pay by mobile, order online and more.

View source version at California Pizza Kitchen

The Cheesecake Factory Reports Results for Second Quarter of Fiscal 2020 and Provides Business Update

July 29, 2020 04:15 PM Eastern Daylight Time

CALABASAS HILLS, Calif.--(BUSINESS WIRE)--The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the second quarter of fiscal 2020, which ended on June 30, 2020.

Total revenues were $295.9 million in the second quarter of fiscal 2020 compared to $602.6 million in the second quarter of fiscal 2019. Net loss and diluted net loss per share were $56.5 million and $1.61, respectively, in the second quarter of fiscal 2020 reflecting the impact of COVID-19. The results in this press release include the acquisition of North Italia and the remaining business of Fox Restaurant Concepts LLC (“FRC”) on October 2, 2019.

The Company recorded pre-tax COVID-19 related charges of $11.7 million, including healthcare benefits and other expenses associated with the Company’s furloughed staff members. Excluding the after-tax impact of this and certain other items, and reflecting the potential impact of the conversion of the Company’s convertible preferred stock into common stock, adjusted net loss and adjusted if-converted net loss per share for the second quarter of fiscal 2020 were $46.0 million and $0.87, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.

Comparable restaurant sales at The Cheesecake Factory restaurants decreased 56.9% in the second quarter of fiscal 2020, reflecting the impact of COVID-19.

The Company began to reopen dining rooms across its concepts the second week of May. As of today, approximately 71% of the Company’s restaurants across its concepts, including 146 Cheesecake Factory locations, are operating with reopened indoor dining rooms with limited capacity in accordance with local mandates. Approximately 16% of the Company’s restaurants across its concepts, including 36 Cheesecake Factory locations, are operating with reopened patios with social distancing in accordance with California, Florida and New Mexico dining restrictions. Currently, 22 Cheesecake Factory locations are operating an off-premise only model and 16 locations across the Company’s concepts, including one Cheesecake Factory restaurant, are currently closed.

The Cheesecake Factory restaurants with reopened indoor dining rooms have recaptured, on average quarter-to-date, nearly 80% of prior year sales levels, reflecting continued strength in off-premise sales. For The Cheesecake Factory restaurants that are continuing to operate an off-premise only model at present, current weekly off-premise sales would equate to approximately $4.2 million per unit on an annualized basis, on average. In aggregate, across restaurant operating models, fiscal third quarter to-date through July 26, 2020 comparable sales at The Cheesecake Factory restaurants are down approximately 32%.

“Our operators have done an extraordinary job navigating the myriad of evolving regulations to provide our guests delicious, memorable experiences whether in our restaurants or the comfort of their own homes,” said David Overton, Chairman and Chief Executive Officer. “With the reopening of many of our dining rooms, we have also importantly been able to bring a number of our staff members back to work. We have taken a deliberate approach in our reopening strategy as the health and safety of our team and guests remain our top priority.”

Overton continued, “We have seen very strong pent-up demand when Cheesecake Factory locations reopen on-premise dining. Our large restaurant footprints and flexible seating layouts are enabling us to capture meaningful sales levels despite capacity restrictions. At the same time, we continue to see strength in the off-premise channel at both reopened restaurants and those continuing to operate an off-premise only model. We have managed the business well in this dynamic environment, with strength across our restaurant-level key performance indicators, including food efficiency, labor productivity and controllable profit. This enabled us to exit the second quarter in a solid financial position, with a strong cash balance. Looking ahead, we believe we will continue to be able to effectively manage through and ultimately emerge from this crisis in a strong position as we have proven in prior cycles.”

Development

No new restaurants were opened by the Company or its international licensee partners during the second quarter of fiscal 2020. The Company currently has eight locations under development across its concepts and is monitoring operating conditions in their respective markets to determine when to move forward with these new unit openings.

Balance Sheet

As of June 30, 2020, cash and cash equivalents totaled $250.2 million and total debt was $376 million.

The Company has paid a substantial majority of its rent payments through July after giving effect to various abatement and deferral structures in place for certain lease agreements.

During the second quarter of fiscal 2020, the Company issued 3,694 shares of Preferred Stock to satisfy a payment-in-kind dividend of $18.47 per share.

Conference Call and Webcast

The Company will hold a conference call to review its results for the second quarter of fiscal 2020 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com and a replay of the webcast will be available through August 28, 2020.

About The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. Delicious, memorable experiences created by passionate people – this defines who we are and where we are going. We currently own and operate 293 restaurants throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia® and a collection within the Fox Restaurant Concepts subsidiary. Internationally, 26 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. In 2020, we were named to the FORTUNE Magazine “100 Best Companies to Work For®” list for the seventh consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com and www.foxrc.com.

View source version at The Cheesecake Factory

Wingstop Inc. Reports Fiscal Second Quarter 2020 Financial Results

July, 29 2020

Domestic same store sales growth of 31.9% - Digital sales increased to 63.7% of domestic system-wide sales

Wingstop Inc.(NASDAQ: WING) today announced financial results for the fiscal second quarter ended June 27, 2020.

Highlights for the fiscal second quarter 2020 compared to the fiscal second quarter 2019:

System-wide sales increased 37.0% to $509.0 million
23 net openings in the fiscal second quarter 2020
Domestic same store sales increased 31.9%
Total revenue increased 36.1% to $66.1 million
Net income increased 134.6% to $11.5 million, or $0.39 per diluted share, compared to $4.9 million, or $0.17 per diluted share, in the prior fiscal second quarter
Adjusted EBITDA, a non-GAAP measure, increased 54.2% to $20.9 million

"I am very proud of our team members and brand partners and the extraordinary results we achieved against a challenging backdrop. We benefited from a steadfast focus on expanding our digital business and leveraging delivery to make it seamless for fans to access the craveable flavors of our fresh, cook-to-order wings, fries and sides," commented Charlie Morrison, Chairman and Chief Executive Officer of Wingstop. "Despite the unprecedented circumstances, we opened 23 net new restaurants which highlights the excitement of our brand partners to grow with Wingstop and the strength of the unit level economics. We believe we are well positioned to continue making progress towards our vision of becoming a top 10 global restaurant brand."

Key operating metrics for the fiscal second quarter 2020 compared to the fiscal second quarter 2019Thirteen Weeks EndedJune 27, 2020June 29, 2019Number of system-wide restaurants open at end of period1,4361,303Number of domestic franchise restaurants open at end of period1,2441,139Number of international franchise restaurants open at end of period162135System-wide sales (in thousands)$509,045$371,505Domestic restaurant AUV$1,366$1,189Domestic same store sales growth31.9%12.8%Net income (in thousands)$11,539$4,918Adjusted EBITDA (in thousands)$20,888$13,549

Fiscal second quarter 2020 financial results

Total revenue for the fiscal second quarter 2020 increased to $66.1 million from $48.6 million in the fiscal second quarter last year.

Royalty revenue, franchise fees and other increased $6.7 million to $27.9 million from $21.2 million in the fiscal second quarter of the prior year. The increase was primarily due to domestic same store sales growth of 31.9% as well as 132 net franchise restaurant openings since June 29, 2019.
Advertising fees and related income increased $6.4 million to $19.9 million from $13.5 million in the fiscal second quarter of the prior year. The increase was primarily due to the 37.0% increase in system-wide sales in the fiscal quarter ended June 27, 2020 compared to the fiscal quarter ended June 29, 2019.
Company-owned restaurant sales increased $4.4 million to $18.3 million from $13.9 million in the fiscal second quarter of the prior year. The increase was primarily due to company-owned same store sales growth of 24.7%, which was driven by both an increase in transactions and transaction size. Also contributing to the increase was the acquisition of one franchised restaurant and the opening of two company-owned restaurants since the prior year comparable period, resulting in additional sales of $1.1 million.

Cost of sales increased to $13.4 million from $10.6 million in the fiscal second quarter of the prior year. As a percentage of company-owned restaurant sales, cost of sales decreased to 73.1% from 76.1%. The decrease was primarily due to a 22.7% decrease in the cost of bone-in chicken wings as compared to the prior year period, as well as our ability to leverage costs due to the increase in company-owned same store sales. These decreases were slightly offset by increased labor costs due to incentive pay associated with COVID-19.

Advertising expenses were $18.6 million compared to $13.0 million in the fiscal second quarter of the prior year. Advertising expenses are recognized at the same time the related revenue is recognized, which does not necessarily correlate to the actual timing of the related advertising spend.

Selling, general & administrative expense ("SG&A") decreased to $13.2 million compared to $13.4 million in the fiscal second quarter of the prior year. The decrease in SG&A expense was primarily due to a gain of $2.0 million recognized as a result of the re-franchising of two company-owned restaurants, which was largely offset by a one-time donation to the National Restaurant Employee Relief Fund of $1.0 million to support restaurant workers in times of need, $0.6 million in COVID-19 related expenses, and $0.3 million associated with additional expenses to support our national advertising campaign, which has an equal and offsetting contribution in revenue.

Net income was $11.5 million, or $0.39 per diluted share, compared to net income of $4.9 million, or $0.17 per diluted share, in the fiscal second quarter of the prior year.

View full version at Wingstop

Dine Brands Global, Inc. Reports Second Quarter 2020 Results

July, 29 2020

Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill + Bar and IHOP restaurants, today announced financial results for the second quarter of 2020.

“As we continue to navigate through the challenges currently facing our industry, we have remained resolute in our focus to return to growth. Throughout the second quarter, weekly comparable sales and traffic at both Applebee’s and IHOP improved as state and local governments began to ease restrictions on dining room operations. This, coupled with the significant growth of our brands’ off-premise business, contributed to the progress made during the quarter,” said Steve Joyce, chief executive officer of Dine Brands Global, Inc.

Mr. Joyce added, “I’m confident in our long-term strategy and ability to quickly adapt to the ever-changing industry landscape. We have strong liquidity with approximately $342 million of cash, of which $279 million is unrestricted cash. We’ve been through challenging times before, and I believe we are well-positioned to emerge from the pandemic and restore our momentum.”

Domestic System-Wide Comparable Same-Restaurant Sales PerformanceDomestic Same-Restaurant SalesPreliminaryQ2 2020Q3 QTD through WE 7/26Applebee's(49.4%)(18.4%)IHOP(59.1%)(37.6%)Domestic Same-Restaurant Sales (Week Ending)WE 4/5WE 4/12WE 4/19WE 4/26WE 5/3WE 5/10WE 5/17WE 5/24WE 5/31WE 6/7WE 6/14WE 6/21WE 6/28Applebee's(77.0%)(77.3%)(64.2%)(64.4%)(60.8%)(54.3%)(52.8%)(49.5%)(42.7%)(37.0%)(30.3%)(18.4%)(17.8%)IHOP(81.5%)(79.4%)(76.3%)(75.4%)(72.6%)(65.4%)(61.5%)(58.3%)(52.1%)(46.2%)(42.9%)(33.3%)(34.4%)Domestic Same-Restaurant Sales (Week Ending)July Sales Are PreliminaryWE 7/5WE 7/12WE 7/19WE 7/26Applebee's(22.3%)(17.0%)(18.8%)(15.6%)IHOP(40.4%)(35.7%)(39.1%)(35.0%)

Second Quarter of 2020

Applebee’s comparable same-restaurant sales improved 11 out of 13 weeks through the week ended June 28, 2020 from a decrease of 77.0% to a decrease of 17.8%, representing an increase of 59.2 percentage points during this period.
IHOP’s comparable same-restaurant sales improved sequentially for 12 consecutive weeks out of 13 through the week ended June 28, 2020 from a decrease of 81.5% to a decrease of 34.4%, representing an increase of 47.1 percentage points during this period.
Comparable same-restaurant sales for the second quarter of 2020 declined at both Applebee’s and IHOP primarily due to the impact of COVID-19 and related governmental restrictions on restaurant operations at the federal, state and local levels, which resulted in a meaningful decline in traffic for the second quarter of 2020.
As of June 30, 2020, 3,154 of our domestic restaurants, or 95%, were open for either dine-in service or off-premise service comprised of take-out and delivery.

Off-Premise Sales Growth Comparison

Off-premise sales at both Applebee’s and IHOP increased significantly primarily as a result of governmental mandates, which placed restrictions on dine-in service as well as the favorable impact of the Company’s digital initiatives.
Applebee’s off-premise sales accounted for 60.5% of sales mix for the second quarter of 2020, as compared to 16.3% of sales mix for the first quarter of 2020 and 13.0% of sales mix for the fourth quarter of 2019.
Applebee’s delivery sales accounted for 16.8% of sales mix and take-out sales accounted for 43.8% of sales mix for the second quarter of 2020.
Applebee’s online sales as a percentage of total sales increased by 17.8 percentage points in the second quarter of 2020 to 22.9%. This compares to 5.1% of total sales for the first quarter of 2020.
IHOP’s off-premise sales accounted for 53.6% of sales mix for the second quarter of 2020, as compared to 12.8% of sales mix for the first quarter of 2020 and 10.1% of sales mix for the fourth quarter of 2019.
IHOP’s delivery sales accounted for 23.4% of sales mix and take-out sales accounted for 33.5% of sales mix for the second quarter of 2020.
IHOP’s online sales as a percentage of total sales increased by 27.8 percentage points in the second quarter of 2020 to 34.7%. This compares to 6.9% of total sales for the first quarter of 2020.

Second Quarter of 2020 Summary

GAAP net loss per diluted share of $8.04 for the second quarter of 2020 compared to earnings per diluted share of $1.18 for the second quarter of 2019.This variance was primarily due to non-cash impairment charges totaling $106.5 million related to the write-downs of Applebee’s goodwill and other intangible assets as a result of the impact of COVID-19 on the Company’s operations. These items were partially offset by a deferred tax benefit of $3.4 million attributable to the other intangible assets charge.Additionally, gross profit decreased primarily due to a significant decline in customer traffic as a result of governmental measures to stem the spread of the coronavirus and related changes in consumer behavior.
Adjusted net loss per diluted share of $0.87 for the second quarter of 2020 compared to adjusted earnings per diluted share of $1.71 for the second quarter of 2019. (See “Non-GAAP Financial Measures” and reconciliation of GAAP earnings per diluted share to adjusted earnings per diluted share.)
General and administrative expenses for the second quarter of 2020 declined 21.6% year-over-year to $30.9 million. The improvement was mainly due to lower compensation expenses.
Net loss of $134.8 million for the second quarter of 2020 compared to net income of $21.4 million the second quarter of 2019.
Consolidated adjusted EBITDA for the second quarter of 2020 was $12.1 million. This compares to $68.0 million for the second quarter of 2019. (See “Non-GAAP Financial Measures” and reconciliation of GAAP net income to consolidated adjusted EBITDA.)
Cash used in operating activities for the first six months of 2020 was $10.5 million. This compares to cash flows from operating activities of $69.3 million for the first six months of 2019. The decrease mainly was due a significant decline in customer traffic at our restaurants that adversely impacted our segment operations as well as payment deferrals we offered to our franchisees primarily for the months of March 2020 and April 2020.
The Company had negative adjusted free cash flow of $12.4 million for the first six months of 2020. This compares to adjusted free cash flow of $66.0 million for the first six months of 2019. (See “Non-GAAP Financial Measures” and reconciliation of the Company’s cash provided by operating activities to adjusted free cash flow.)
GAAP net loss available to common stockholders was $130.0 million, or net loss per diluted share of $8.04, for the second quarter of 2020. This compares to net income available to common stockholders of $20.7 million, or earnings per diluted share of $1.18, for the second quarter of 2019. The decrease in net income was primarily due to the impairment charges and decline in gross profit discussed above. These items were partially offset by a decline in general and administrative expenses.
Adjusted net loss available to common stockholders was $14.0 million, or adjusted net loss per diluted share of $0.87, for the second quarter of 2020. This compares to adjusted net income available to common stockholders of $30.0 million, or adjusted earnings per diluted share of $1.71, for the second quarter of 2019. The decrease in adjusted net income was primarily due to lower gross profit for the reasons described above. This item was partially offset by fewer weighted average diluted shares outstanding and lower general and administrative expenses. (See “Non-GAAP Financial Measures” below.)

Cash Position

Dine Brands has taken precautionary measures to increase the Company’s financial flexibility due to the conditions caused by COVID-19. As previously disclosed on March 19, 2020, the Company borrowed $220 million from its revolving financing facility, all of which remains drawn as of June 30, 2020. As of June 30, 2020, $2.8 million was pledged against the revolving financing facility for outstanding letters of credit.

As of June 30, 2020, the Company had $342.5 million of total cash, including restricted cash of $64.0 million. The Company believes that its asset-light business model and cash position will continue to provide strong liquidity during the pandemic.

The Company makes $16.4 million of quarterly interest payments on its Series 2019-1 Class A-2-I, Fixed Rate Senior Secured Notes and Series 2019-1 Class A-2-II, Fixed Rate Senior Secured Notes (the “Class A-2-I Notes”, together with the “Class A-2-II Notes”, the “Class A-2 Notes”). In addition, the Company anticipates making a principal payment of $3.25 million in the fourth quarter of 2020. The quarterly principal payments under the Class A-2 Notes may be voluntarily suspended when the leverage ratio for the Company and its subsidiaries is less than or equal to 5.25x. As of June 30, 2020, the Company’s leverage ratio was 6.30x.

The Company voluntarily doubled its interest reserve on its Class A-2 Notes during the second quarter of 2020 to $32.8 million to enhance its securitization structure. This increased restricted cash by $16.4 million.

View full version at Dine Brands

McDonald's Reports Second Quarter 2020 Results

Jul 28, 2020, 06:58 ET

CHICAGO, July 28, 2020 /PRNewswire/ -- McDonald's Corporation today announced results for the second quarter ended June 30, 2020.

"Throughout our history, McDonald's has demonstrated the strategic foresight necessary to position our business for the future. Our strong drive-thru presence and the investments we've made in delivery and digital over the past few years have served us well through these uncertain times. We saw continued improvement in our results throughout the second quarter as markets reopened around the world," said McDonald's President and Chief Executive Officer Chris Kempczinski. "I'm especially proud of the way the McDonald's System continues to provide a safe environment for both customers and crew, building on our 65 year legacy as a responsible and reliable choice for safe food. We're confident that the strong foundation we've built, combined with the unique advantages of our System, position us well to continue operating successfully during this pandemic and emerge even stronger."

Second quarter operational update and financial performance:

As of June 30, 2020, nearly all McDonald's restaurants around the world were open to serve customers.
Global comparable sales declined 23.9%. The U.S., International Operated Markets segment and global monthly comparable sales sequentially improved throughout the second quarter.
Consolidated revenues decreased 30% (29% in constant currencies).
Systemwide sales decreased 24% (23% in constant currencies).
Diluted earnings per share was $0.65.

COMPARABLE SALES*

Increase/(Decrease)

Month Ended

Quarters Ended June 30,

April 30, 2020

May 31, 2020

June 30, 2020

2020

2019

U.S.

(19.2)%

(5.1)%

(2.3)%

(8.7)%

5.7%

International Operated Markets

(66.7)

(40.5)

(18.4)

(41.4)

6.6

International Developmental Licensed Markets & Corporate

(32.3)

(20.0)

(20.3)

(24.2)

7.9

Total

(39.0)%

(20.9)%

(12.3)%

(23.9)%

6.5%

Comparable sales are compared to the same period in the prior year and represent sales at all restaurants, whether operated by the Company or by franchisees, in operation at least thirteen months, including those temporarily closed.

Comparable Sales: Global comparable sales results sequentially improved throughout the second quarter of 2020 as markets reopened restaurants and governments eased restrictions.
U.S.: Comparable sales results sequentially improved throughout the second quarter of 2020 and continued to benefit from strong average check growth. Comparable sales and guest counts remained negative, particularly at the breakfast daypart.
International Operated Markets: Comparable sales results were heavily impacted by temporary restaurant closures and limited operations, particularly in the U.K. and France. While comparable sales remained negative in nearly all markets, comparable sales results sequentially improved throughout the quarter for all markets. Comparable sales were positive in Australia in May and June driven by strong drive-thru performance.
International Developmental Licensed Markets: Comparable sales results were impacted by temporary restaurant closures across nearly all geographies, most notably in Latin America. Results also reflected continued negative comparable sales in China and positive comparable sales in Japan for the quarter.

KEY FINANCIAL METRICS - CONSOLIDATED

Dollars in millions, except per share data

Quarters Ended June 30,

Six Months Ended June 30,

2020

2019

Inc/ (Dec)

Excluding

Currency

Translation

2020

2019

Inc/ (Dec)

Excluding

Currency

Translation

Revenues

3,761.5

5,409.8

(30)%

(29)%

8,475.9

10,433.9

(19)%

(17)%

Operating income

961.1

2,273.9

(58)

(57)

2,654.7

4,367.9

(39)

(38)

Net income

483.8

1,516.9

(68)

(67)

1,590.7

2,845.3

(44)

(43)

Earnings per share-diluted

0.65

1.97

(67)%

(66)%

2.12

3.69

(43)%

(42)%

Results for the quarter and six months reflected sales performance declines due to temporary restaurant closures, limited operations and dramatic changes in consumer behavior as a result of COVID-19.

View full version at McDonald's

Denny’s Corporation Reports Results For Second Quarter 2020

July 28, 2020 16:05 ET

SPARTANBURG, S.C., July 28, 2020 (GLOBE NEWSWIRE) -- Denny’s Corporation (NASDAQ: DENN), franchisor and operator of one of America's largest franchised full-service restaurant chains, today reported results for its second quarter ended June 24, 2020 and provided a business update on the impact of the COVID-19 pandemic on the Company’s operations.

John Miller, Chief Executive Officer, stated, "Through enhanced health and safety training and protocols, Denny's team members continue to work together to protect our guests, employees, and suppliers to serve our communities. I am especially encouraged by their willingness to pivot to new operational standards with respect to our off-premise, curbside, outdoor dining, or dine-in channels, proving that 'We Love to Feed People' during both good and challenging times. These actions, coupled with easing dine-in restrictions, resulted in a sequential increase in sales over the course of the second quarter. Although many states have since reinstated dine-in restrictions due to an increase in COVID-19 cases, we have not experienced a significant drop in sales. We attribute our stabilization to our dedicated Denny's team members who are innovative and eager to adapt to their environment."

Miller continued, "During the second quarter, we provided additional financial relief to franchisees, while remaining focused on cost savings. Subsequent to the quarter, we closed on an opportunistic capital raise to further fortify what I believe is one of the strongest balance sheets in the industry. As we look ahead, we believe we are well-positioned to effectively navigate further impacts of the pandemic while preparing for eventual and future growth."

Second Quarter 2020 Highlights

Total Operating Revenue was $40.2 million.
Domestic system-wide same-store sales** decreased 56.9%.
Completed 3 remodels, including 2 at franchised restaurants.
Operating Loss was $13.5 million.
Franchise Operating Margin* was $9.8 million, or 39.1% of franchise and license revenue, and Company Restaurant Operating Margin* was ($4.5) million, or (29.6%) of company restaurant sales.
Net Loss was $23.0 million, or $0.41 per diluted share.
Adjusted Net Loss* was $13.7 million, or $0.25 per diluted share.
Adjusted EBITDA* was ($5.1) million.
Adjusted Free Cash Flow* was ($11.5) million.

Current Trends

Domestic system-wide same-store sales** sequentially improved on a weekly basis during the second quarter ended June 24, 2020, as compared to the equivalent weeks of 2019. During the second quarter, dine-in restrictions continued to ease with most restaurants operating with streamlined menus and reduced operating hours. Due to the recent significant increase in COVID-19 cases, various states reinstated dining room closures, and the Company experienced a slight decline in domestic system-wide same-store sales** in fiscal July.

View full version at Denny's

Bloomin’ Brands Provides Interim Business Update Related to COVID-19

July, 27 2020

Reports Strengthening Sales Trends and Cash Flow - Announces 2020 Q2 Financial Results

Bloomin’ Brands, Inc. (Nasdaq: BLMN) announced a business update related to COVID-19 as well as second quarter 2020 financial results.

Statement from David Deno, Chief Executive Officer

Our priorities remain unchanged as we continue to address these challenging times. We are focused on taking care of our people and serving food in a safe environment that protects both our Team Members and customers.

The investments made over the past several years to enhance the customer experience and rapidly pursue the emerging delivery opportunity have been critical to our success in navigating this pandemic. At the onset of this pandemic in March, we were able to quickly pivot to an off-premises only business model as dining rooms were forced to close. The rapid growth we experienced in off-premises sales allowed us to keep substantially all of our locations open during this time.

Starting in May, states began the process of partially re-opening their economies. Our decision to not furlough any employees during this pandemic has allowed us to quickly prepare our restaurants to re-open dining rooms in a safe and efficient manner. As of July 19, 2020, 928 company-operated restaurants (approximately 92% of U.S. restaurants) have reopened with limited in-restaurant dining capacity. At Outback Steakhouse, we had 527 restaurants open for dine-in service at limited capacity during the full week ended July 19, 2020. Comparable restaurant sales at these locations were down 10.7% from the prior year. Across our U.S. portfolio, we experienced consistent weekly sales momentum throughout the second quarter as we adapted to this evolving environment. This improved sales recovery, coupled with disciplined cost management, enabled us to generate positive cash flow for the month of June.

Recently, there has been a significant increase in reported COVID cases in certain states, including Florida and Texas, where we have a total of 286 company-owned locations. This has resulted in some local governments responding by taking additional measures, including implementing a further reduction of in-restaurant capacity in certain locations. Although this is a developing situation, to this point these capacity reductions have had a minimal impact on our overall sales trends. We continue to monitor and adhere to local restrictions and are maintaining elevated safety measures, including additional sanitation and disinfecting practices, use of gloves and facial protection for our employees, as well as contactless payment options for our consumers.

Despite these recent developments and the challenging environment that remains, we are looking forward to emerging as a better, stronger, operations-focused company. I am more convinced than ever of the important role that full-service restaurants will continue to play in the lives of our customers and our communities.

View full version at Bloomin' Brands

Del Taco Restaurants, Inc. Reports Fiscal Second Quarter 2020 Financial Results

July, 27 2020

System-wide Comparable Restaurant Sales Turn Positive in the Fiscal Third Quarter to Date

Del Taco Restaurants, Inc, (NASDAQ: TACO), the second largest Mexican-American quick service restaurant chain by units in the United States, today reported fiscal second quarter 2020 financial results for the 12-week period ending June 16, 2020 and provided a business update related to the impact of COVID-19.

Management Commentary

John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “Our restaurant teams, franchise partners and support staff are doing exceptional work supporting our people, serving our guests and strengthening our brand as we successfully navigate the business recovery phase of our strategy while preparing for brand acceleration. Despite the pandemic-induced headwind affecting our industry, our system-wide comparable restaurant sales continue to improve sequentially and are slightly positive thus far in the fiscal third quarter, led by our franchise base who is sustaining positive comparable restaurant sales across a broad 14 state geographic footprint.”

Cappasola continued, “Importantly, the sequential company comparable restaurant sales improvement paired with strong cost controls helped optimize restaurant contribution and Adjusted EBITDA performance during the second quarter. This performance, coupled with the deferral of certain non-essential capital expenditures, enabled us to reduce our outstanding debt, net of cash, at the end of the second quarter by over $9 million and maintain a relatively stable net debt to Adjusted EBITDA leverage ratio compared to the end of fiscal 2019. Our financial stability and profitability improvements have allowed us to reinforce our people-centric culture by paying company General Managers healthy second quarter bonuses and introducing an enhanced employee meal program to reward our restaurant teams for their leadership and dedication to serving their communities.”

Cappasola concluded, “As 2020 progresses we will further optimize performance while laying the groundwork for brand acceleration. We plan to leverage our QSR+ strengths with innovation across our powerful barbell menu, expand our engagement in social and digital channels, and further our strategy to be a trusted and safe brand for our guests and employees. Next week, we will launch New Crispy Chicken, a unique protein within the Mexican QSR category, which will debut on the Del’s Dollar Deals menu as a new $1 Crispy Chicken Taco and in a New $5 Epic Burrito with Fresh Guacamole. We are excited to bring this new protein to market on the heels of a recent successful launch of Fresh Guacamole.”

Fiscal Second Quarter 2020 Comparable Restaurant Sales

Twelve weeks

ended

Four weeks

ended

Four weeks

ended

Four weeks

endedJune 16, 2020April 21, 2020May 19, 2020June 16, 2020Company-operated-12.6%-23.9%-10.4%-3.7%Franchised-7.2%-22.7%-2.9%3.5%System-wide-10.1%-23.4%-6.9%-0.3%

The results in the table above are compared to the comparable prior year period.

Fiscal Second Quarter 2020 Highlights

System-wide comparable restaurant sales decreased 10.1%;
Company-operated comparable restaurant sales decreased 12.6%;
Franchised comparable restaurant sales decreased 7.2%;
Total revenue of $104.6 million, representing a 13.9% decline from the fiscal second quarter 2019;
Company-operated restaurant sales of $95.3 million, representing a 15.1% decline from the fiscal second quarter 2019;
Net loss of $0.6 million, or $0.02 per diluted share, compared to net income of $2.1 million, or $0.06 per diluted share, in the fiscal second quarter 2019;
Adjusted net loss* of $0.1 million, or $0.00 per diluted share, compared to adjusted net income* of $5.4 million, or $0.15 per diluted share, in the fiscal second quarter 2019;
Restaurant contribution* margin of 16.4% compared to 19.0% in the fiscal second quarter 2019;
Adjusted EBITDA* of $12.1 million compared to $16.7 million in the fiscal second quarter 2019; and
One company-operated and two franchise restaurant closures. Del Taco also refranchised one restaurant to an existing franchisee.

* Adjusted net income/loss, restaurant contribution, and adjusted EBITDA are non-GAAP measures and defined below under “Key Financial Definitions”. Please see the reconciliation of non-GAAP measures accompanying this release.

Cash and Liquidity

During the fiscal second quarter 2020, Del Taco reduced its outstanding borrowing on its revolving credit facility to $145 million, consistent with its revolving credit facility balance at the end of fiscal year 2019. At the end of the second fiscal quarter the Company’s debt, net of cash, totaled $133.8 million compared to $143.4 million at the end of fiscal year 2019, representing a reduction of approximately $9.6 million and a relatively stable net debt to Adjusted EBITDA* leverage ratio. This performance has allowed us to maintain meaningful financial cushion with respect to our lease adjusted leverage and fixed charge coverage covenants which the Company currently expects to maintain.

As of July 23, Del Taco had over $12 million in cash on hand and $87.7 million of remaining availability under its revolving credit facility.

View full version at Del Taco

Chipotle Announces Second Quarter 2020 Results

July, 23 2020

Q2 Digital Sales Grew 216.3% Year-over-year and Accounted for 60.7% of Sales

Chipotle Mexican Grill, Inc. (NYSE: CMG) yesterday reported financial results for its second quarter ended June 30, 2020.

Second quarter highlights, which incorporate the impact of COVID-19, year over year:

Revenue decreased 4.8% to $1.4 billion
Comparable restaurant sales declined 9.8%
Digital sales grew 216.3% and accounted for 60.7% of sales for the quarter
Restaurant level operating margin was 12.2%, a decrease of 8.7%
Diluted earnings per share was $0.29, net of a $0.11 after-tax impact from expenses related to restaurant asset impairment and closure costs, as well as corporate restructuring, a 91.0% decrease from $3.22. Adjusted diluted earnings per share excluding these charges was $0.40, a 90.0% decrease from $3.99.1
Opened 37 new restaurants including three relocations and closed three restaurants during the quarter; and about 30 restaurants remain temporarily closed because of COVID-19, mainly inside malls and shopping centers

1 Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.

"I want to thank all of our employees for delivering excellent guest experiences, supporting our restaurants, and supporting each other during these challenging times," said Brian Niccol, Chairman and CEO, Chipotle. "Our investment in digital over the past few years has provided our customers with convenient access to Chipotle how and where they want it. We'll continue to invest in elevating the digital experience, including opening more Chipotlanes, while innovating with new culinary offerings such as cauliflower rice, organic beverages and quesadillas. I'm confident we will finish 2020 with good momentum and be well positioned for the long run."

COVID-19 and Liquidity Update:

Chipotle remains steadfast in our commitment to the health and well-being of our guests and employees while providing our safe, delicious, high-quality food made from real ingredients. Our top priorities for the rest of the year include safely running our restaurants and reopening dining rooms, using best practices to support alternate restaurant support center working arrangements, ensuring supply chain consistency, and strengthening our digital ecosystem. Within our restaurants, we have taken a number of steps to enhance our robust food safety protocols including the creation of the steward role which is focused on sanitization in high-touch and high-traffic areas, providing masks for all employees, and having a tamper evident packaging seal for all digital orders.

As of June 30, 2020, Chipotle continues to maintain a strong financial position with $934.6 million in cash, short-term investments and restricted cash, and no debt, along with a $600 million untapped credit facility with which to continue to navigate this crisis. This financial position improved sequentially from $909.2 million in cash, short-term investments and restricted cash, as of March 31, 2020. Furthermore, assuming the comparable restaurant sales improvement we are seeing continues, that gives us greater confidence in our potential to generate positive cash flow for the rest of this year, which will help support on-going strategic investments. That being said, our team remains focused on reducing non-essential controllable costs and judiciously spending on return generating projects to preserve liquidity.

Results for the three months ended June 30, 2020:

Revenue in the second quarter was $1.4 billion, a decrease of 4.8% compared to the second quarter of 2019 and includes a decline of 9.8% in comparable restaurant sales. Cadence of monthly comparable restaurant sales during the quarter was:

April -24.4%
May -7.0%
June +2.0%

Comparable restaurant sales in July have continued to improve and are up 6.4% month to date including about a 1.4% positive impact from the July 4th weekend and about a 2.7% negative impact due to under-performing restaurants in the Northeast and international markets, as well as restaurant closures due to COVID-19.

Digital sales grew 216.3% year over year to $829.3 million, the Company's highest ever quarterly level, and represented 60.7% of sales. Driving increased digital awareness via advertising, new delivery partnerships with Uber Eats and Grubhub, as well as expanding our digital capabilities into Canada are attracting new customers and helping reduce friction while increasing convenient access. Notably, partnering with all the major third-party delivery aggregators has led to an increase in orders, a reduction in delivery time and cancellations, and an improvement in overall customer ratings. Even with in-restaurant dining opening back up, our digital sales momentum remains strong in July with a mix of nearly 50%.

We opened 37 new restaurants including three relocations during the quarter and closed three restaurants, bringing the total restaurant count to 2,669. 21 of the 37 new restaurants included a Chipotlane and we recently announced a milestone with the opening of our 100th Chipotlane. These formats continue to perform very well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins, and returns. We remain confident in the long-term opportunity to more than double the number of Chipotle restaurants in the US. In fact, our strong financial position, along with less competition for high quality sites as other businesses pull back, is allowing us to build a robust new unit development pipeline. As a result, we expect to see an acceleration in the number of units opened in 2021.

Food, beverage and packaging costs in the second quarter were 33.3% of revenue, a decrease of 40 basis points compared to the second quarter of 2019. The decrease was primarily due to lower avocado costs, the benefit of menu price increases in late 2019, and to a lesser extent, lower waste, freight, and paper costs. These decreases were partially offset by elevated beef prices, and increased incidence of steak, bottled beverages and burritos.

Restaurant level operating margin was 12.2%, a decrease from 20.9% in the second quarter of 2019 driven primarily by higher delivery expense associated with increased delivery sales, sales deleverage, as well as several temporary investments in our business as a result of COVID-19 including assistance pay and wage inflation, partially offset by lower avocado expense and benefits from menu price increases in late 2019. In addition, we offered free or discounted delivery throughout the quarter, which also increased restaurant operating costs.

General and administrative expenses for the second quarter were $102.6 million on a GAAP basis or $101.1 million on a non-GAAP basis, excluding $1.5 million related to transformation expenses. GAAP and non-GAAP general and administrative expenses for the second quarter of 2020 also include underlying general and administrative expenses totaling $75.6 million, $23.0 million related to non-cash stock compensation, $2.0 million related to payroll taxes on stock option exercises, and $0.5 million related to our All Manager Conference that was postponed due to COVID-19.

The effective income tax rate for the three months ended June 30, 2020, was a benefit of 289.4%, a change from an effective income tax rate provision of 26.6% for the three months ended June 30, 2019, primarily due to excess tax benefits related to option exercises in the quarter, along with a decrease in income before tax.

Net income was $8.2 million, or $0.29 per diluted share, a decrease from $91.0 million, or $3.22 per diluted share, in the second quarter of 2019. Excluding the impact of restaurant asset impairment and closure costs, as well as corporate restructuring, adjusted net income was $11.4 million and adjusted diluted earnings per share was $0.40.

More information will be available in our Quarterly Report on Form 10-Q, which will be filed with the SEC by the end of July.

Outlook

Given on-going uncertainty surrounding the future impact of COVID-19 on the broader US economy and any specific impact to our company, we are not providing fiscal 2020 guidance related to comparable restaurant sales growth, new restaurant openings, and effective full year tax rate.

About Chipotle

Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. Chipotle had over 2,650 restaurants as of June 30, 2020, in the United States, Canada, the United Kingdom, France and Germany and is the only restaurant company of its size that owns and operates all its restaurants. With more than 91,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. Steve Ells, founder and former executive chairman, first opened Chipotle with a single restaurant in Denver, Colorado in 1993.

View full version at Chipotle

BJ’s Restaurants, Inc. Reports Fiscal 2020 Second Quarter Results and Provides Business Update

July 23, 2020 16:03 ET

HUNTINGTON BEACH, Calif., July 23, 2020 (GLOBE NEWSWIRE) -- BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for its 2020 second quarter ended June 30, 2020 and provided a business update given the continued impact of the COVID-19 pandemic.

Second Quarter 2020 Highlights Compared to Second Quarter 2019

Total revenues decreased 57.5% to $128.0 million
Total restaurant operating weeks increased approximately 1.3%
Comparable restaurant sales declined 57.2%
Net loss of $29.0 million compared to net income of $14.2 million
Second quarter 2020 was impacted by a pretax impairment charge of $9.7 million for three restaurants, and a pretax charge of $1.2 million to reserve for beer spoilage due to the sudden decrease in draft beer sales caused by the pandemic.
Diluted net loss per share of $1.38 compared to diluted net income per share of $0.68
Second quarter 2020 was impacted by a $0.35 per share impairment charge for three restaurants, and a $0.05 per share charge to reserve for beer spoilage due to the sudden decrease in draft beer sales caused by the pandemic.

“The character and talent of our restaurant teams continue to amaze me as our team members remain flexible and committed to building sales and taking care of our guests throughout this unprecedented time,” commented Greg Trojan, BJ’s Chief Executive Officer. “Since the COVID-19 outbreak began in March, we have taken active measures to ensure the safety of our guests and team members. Beginning in late March and in April, we closed our dining rooms and transitioned to a take-out and delivery only operating model. During that period, we expanded our average weekly off-premise sales per restaurant to more than $30,000 a week by late April, a threefold increase from pre-COVID levels. Throughout May and June, we reopened the majority of our dining rooms with capacity limitations for social distancing. By late June, our weekly sales average per restaurant improved to approximately $75,000, and we generated restaurant level cash flow margin percentages in the mid-teens range. Though below historical levels, these sales volumes and margins demonstrate the strength of the BJ’s brand and operating model, including our ability to drive efficiencies in our restaurants.”

Beginning the first week in July, certain counties throughout California and elsewhere ordered rollbacks of their dine-in re-opening plans. As a result, approximately 70% of our restaurant dining rooms are open today, in a limited capacity, compared to 95% in late June. “The entrepreneurial spirit of our restaurant operators was on full display as teams acted swiftly to create welcoming and comfortable outdoor seating areas around the perimeter of our restaurants as well as under large and lighted tents in our parking lots. These efforts have allowed us to continue to serve our guests in locations where indoor dining is not currently permitted and to expand our seating where dine-in capacity is limited. As a result, our restaurants are currently maintaining approximately 60% of historical business volumes compared to June when our restaurants recaptured more than 70% of historical business volumes,” added Trojan.

Trojan further noted, “We have recalled approximately 10,000 of our team members as we welcomed our guests back to our dining rooms and patios. We look forward to welcoming more team members back as we are solidly positioned to recapture our historical sales, margins and cash flow as the nation overcomes the pandemic and our restaurants return to more normal operations.”

The Company expects to open one more restaurant, in Orange Village, Ohio during the fourth quarter of this year. “While we have canceled or delayed all but one of our remaining new restaurant openings for fiscal 2020 due to the effects of the COVID-19 pandemic, we remain confident in the long-term opportunity to expand the BJ’s concept to at least 425 restaurants nationally. Our balanced approach between new restaurant growth and overall quality and hospitality, coupled with the strength of our balance sheet, positions us to resume our restaurant expansion program at the appropriate time,” concluded Trojan.

View full version at BJ's Restaurants

Luby's Reports Third Quarter Fiscal 2020 Results

Jul 20, 2020, 16:59 ET

HOUSTON, July 20, 2020 /PRNewswire/ -- Luby's, Inc. (NYSE: LUB) ("Luby's") today announced unaudited financial results for its twelve-week third quarter fiscal 2020 ended June 3, 2020, referred to as "third quarter." Comparisons in this earnings release are for the third quarter compared to the twelve-week third quarter fiscal 2019.

Third Quarter Restaurant Sales: ($ thousands)

Restaurant Brand

2020

2019

Change

($)

Change

(%)

Luby's Cafeterias

11,857

44,930

(33,073)

(73.6)

Combo locations

540

4,591

(4,051)

(88.2)

Luby's cafeteria segment

12,397

49,521

(37,124)

(75.0)

Fuddruckers restaurants segment

1,405

15,312

(13,907)

(90.8)

Cheeseburger in Paradise segment

778

(748)

(96.1)

Total Restaurant Sales

13,832

65,611

(51,779)

(78.9)

Luby's restaurant sales were significantly impacted (like all restaurant operators) by the unprecedented nature of the COVID-19 pandemic and sate and local governments' responses, which resulted in temporary store closures and limited service at operating stores.

Restaurant Counts:

August 28, 2019

FY20 YTDQ3

Openings

FY20 YTDQ3

Closings

June 3,

2020

Luby's Cafeterias(1)

—

(3)

Fuddruckers Restaurants(1)

—

(13)

Cheeseburger in Paradise

—

Total

124

—

(16)

108

(1) Includes 6 restaurants that are part of Combo locations

As of the date of this release, Luby's is operating 43 stand-alone Luby's Cafeterias, 3 Combo locations, and 17 Fuddruckers Restaurants. The remaining locations (included in the restaurant counts as of June 3, 2020 above) were classified as temporarily closed.

Previously announced results of strategic review process conducted by Luby's Board of Directors

On June 3, 2020, we announced that our Board of Directors approved a course of action whereby we will immediately pursue the sale of our operating divisions and assets, including real estate assets, or the sale of the Company in its entirety, and distribute the net proceeds to our stockholders after payment of debt and other obligations. During the sale process, many of our restaurants will remain open.

View full version at Luby's

Domino's Pizza® Announces Second Quarter 2020 Financial Results

Global retail sales growth (excluding foreign currency impact) of 8.1%

U.S. same store sales growth of 16.1%

International same store sales growth of 1.3%

Global net store growth of 84

Diluted EPS up 36.5% to $2.99

Jul 16, 2020, 07:30 ET

ANN ARBOR, Mich., July 16, 2020 /PRNewswire/ -- Domino's Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world based on global retail sales, announced results for the second quarter. Global retail sales increased 5.7% in the second quarter, or 8.1% excluding foreign currency impact. Global retail sales in the second quarter were positively impacted by U.S. same store sales, but were negatively impacted by temporary store closures in certain international markets. U.S. same store sales grew 16.1% during the quarter versus the year-ago period and were positively impacted by customer ordering behavior during the COVID-19 pandemic, continuing the positive sales momentum in the Company's U.S. stores business. The international business also posted positive same store sales results, with growth of 1.3% during the quarter. The second quarter marked the 106th consecutive quarter of international same store sales growth and the 37th consecutive quarter of U.S. same store sales growth.

The Company had second quarter net store growth of 84 stores, comprised of 39 net new U.S. stores and 45 net new international stores. The number of temporary store closures in certain of the Company's international markets has declined from its peak of approximately 2,400 temporary closures. Based on information reported to the Company by its master franchisees, the Company estimates that as of July 8, 2020, there were fewer than 600 international stores temporarily closed.

Diluted EPS for the second quarter was $2.99, up 36.5% over the prior year quarter.

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

"Our focus as a global brand and the commitment of our local operators remains steadfast on serving our customers and our communities with a convenient, affordable and safe food and service experience," said Ritch Allison, Domino's Chief Executive Officer. "I have never been more proud of our system of franchisees, operators and corporate team members for their continued passion and innovative spirit, which was evident during the second quarter."

View full version at Domino's

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

Significant Sequential Improvement in Comparable Restaurant Sales Trend Extended Through the First Two Weeks of July

Cash Balance Increases $26.5 Million during the Second Quarter 2020 to $101.6 Million

Completes Amendment to Revolving Credit Facility

July 16, 2020 04:09 PM Eastern Daylight Time

DALLAS--(BUSINESS WIRE)--Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ: FRGI), parent company of the Pollo Tropical® and Taco Cabana® restaurant brands, today reported comparable restaurant sales for the 13-week second quarter 2020, which ended on June 28, 2020, and for the subsequent two-week period, which ended on July 12, 2020. The Company also provided a liquidity update and announced the completion of an amendment to its revolving credit facility.

Fiesta President and Chief Executive Officer Richard Stockinger said, “We are very encouraged by the significant sequential improvement in comparable restaurant sales at both brands in the second quarter, which has continued into the third quarter. These improving trends have come despite the fact that we are operating in two of the most challenged states in terms of COVID and economic conditions, Florida and Texas. Pollo Tropical comp sales acceleration was the most significant, improving from ‑49.2% in April to ‑12.2% in the first half of July. As we continue to prioritize the well-being of our team members and guests during this pandemic, we are also creating a better business model that is easier and safer for our consumers including expanded delivery options, new curbside and pick-up capabilities, and a much-enhanced online ordering experience.”

Mr. Stockinger continued, “We have been taking ongoing steps to ensure a safe operating environment throughout this crisis. Effective July 12, we made the decision to close all of our dining rooms until further notice to ensure team member and guest safety. We will continue to operate our restaurants for drive thru, delivery and pick up, and we are accelerating efforts to better enable our customers to enjoy our brands safely and conveniently across all channels - wherever and whenever they choose.”

Mr. Stockinger concluded, “We have also finalized an amendment to our credit agreement that includes adjustments to our covenants that are more reflective of current sales and profit trends. We believe the amendment allows us adequate covenant and liquidity cushion to comfortably operate the business in this challenging environment. For the remainder of 2020, the only applicable financial covenant that requires compliance will be a minimum liquidity target. As a result of our rising sales trends and improved cash flow management, our cash balance increased $26.5 million over the second quarter from $75.1 million as of April 3 to $101.6 million on June 28(1). Our outstanding revolver balance was $150.0 million and our net revolver debt at the end of Q2 was $48.4 million(2). At current sales trends we believe we will continue to improve liquidity, despite the challenging environment.”

The Company executed an amendment to its credit agreement on July 10, 2020 as summarized in and included as an exhibit to the Company's Form 8-K filed with the Securities and Exchange Commission today. Pursuant to the amendment, the available borrowings under the revolving credit facility will be reduced from $150 million to $95 million in a phased reduction beginning with a $30 million permanent reduction at the closing of the amendment on July 10, 2020, a $15 million reduction in the fourth quarter of 2020 and a $10 million reduction in the first quarter of 2021. After giving effect to the Company's $30 million repayment of revolving credit borrowings in accordance with the amendment, the Company had a cash balance of $69.8 million(3) and net revolver debt of $50.2 million as of July 10, 2020(4). Please reference such Form 8-K filing for additional details regarding the amendment to the Company’s credit agreement.

Comparable Restaurant Sales Summary

Second Quarter 2020

Fiscal April

Fiscal May

Fiscal June

Two Weeks Ended July 12

Pollo Tropical

-31.6%

-49.2%

-27.9%

-17.8%

-12.2%

Taco Cabana

-19.2%

-26.2%

-14.5%

-18.0%

-13.4%

Second Quarter 2020 Conference Call

Fiesta also announced that it will host a conference call to review second quarter 2020 results on Wednesday, August 5, 2020 at 4:30 P.M. ET. A press release containing second quarter 2020 results will be issued after market close that same day.

The conference call can be accessed live over the phone by dialing 631-891-4304. A replay will be available after the call until Wednesday, August 12, 2020 and can be accessed by dialing 412-317-6671. The passcode is 10010440. The conference call will also be webcast live and archived on the corporate website at www.frgi.com, under the “Investor Relations” section.

About Fiesta Restaurant Group, Inc.

Fiesta Restaurant Group, Inc., owns, operates and franchises the Pollo Tropical® and Taco Cabana® restaurant brands. The brands specialize in the operation of fast casual/quick service restaurants that offer distinct and unique flavors with broad appeal at a compelling value. The brands feature fresh-made cooking, drive-thru service and catering. For more information about Fiesta Restaurant Group, Inc., visit the corporate website at www.frgi.com.

View source version at Fiesta Restaurant Group

FAT Brands Inc. Announces Closing of Public Offering of Series B Preferred Stock and Warrants

July 16, 2020 05:12 PM Eastern Daylight Time

BEVERLY HILLS, Calif.--(BUSINESS WIRE)--FAT Brands Inc. (Nasdaq: FAT, FATBP, FATBW), today announced the closing of its previously announced underwritten public offering (the “Offering”) of 360,000 shares of 8.25% Series B Cumulative Preferred Stock (“Series B Preferred Stock”) and 1,899,000 warrant (the “Warrants”) to each purchase one share of Common Stock at an exercise price of $5.00 per share, including 99,000 Warrants as a result of a partial exercise of the over-allotment option granted to the underwriter.

The gross proceeds to the Company were approximately $9,000,990 prior to deducting underwriting discounts and offering expenses.

The shares of Series B Preferred Stock and Warrants began trading on the Nasdaq Capital Market on July 14, 2020 under the symbols FATBP and FATBW, respectively.

FAT Brands Inc. intends to use the net proceeds of the offering for general corporate purposes, possible future acquisitions and growth opportunities, the redemption of a portion of the outstanding Series A Preferred Stock and payment of a portion of accrued dividends on the outstanding Series A-1 Preferred Stock.

ThinkEquity, a division of Fordham Financial Management, Inc., acted as sole book-running manager for the offering. Digital Offering, LLC acted as financial advisor for the offering.

This offering is being made pursuant to a registration statement on Form S-1 (No. 333-239032) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and subsequently declared effective on July 13, 2020. A final prospectus related to the offering was filed and made available on the SEC’s website. Electronic copies of the final prospectus may be obtained, when available, from ThinkEquity, a division of Fordham Financial Management, Inc., 17 State Street, 22nd Floor, New York, New York 10004, Telephone: (877) 436-3673, Email: prospectus@think-equity.com.

About FAT Brands Inc.

FAT Brands (NASDAQ: FAT, FATBP, FATBW) 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 360 units worldwide.

View source version at FAT Brands

Good Times Restaurants Provides Business Update and Reports Third Quarter Same Store Sales

July 07, 2020 08:00 AM Eastern Daylight Time

DENVER--(BUSINESS WIRE)--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard, today announced that year-over-year same store sales for its Good Times brand increased 11.9%. Year-over-year same store sales at its Bad Daddy’s concept decreased 36.7% during the quarter compared to its fiscal 2019 third quarter, driven by the impact of the COVID-19 pandemic and associated government restrictions related to restaurant dining rooms. Bad Daddy’s same store sales improved throughout the quarter as jurisdictions eased dining room restrictions and we expanded our carry-out and delivery business. Same store sales and average weekly sales at Bad Daddy’s and Good Times for each month of the quarter are as follows:

Good Times Burgers & Frozen Custard

Bad Daddy’s Burger Bar

Fiscal Period

Same Store Sales1

Average Weekly Sales2

Same Store Sales1

Average Weekly Sales2

April (4 weeks)

-4.8%

23,296

-56.1%

20,988

May (4 weeks)

19.7%

30,905

-42.4%

29,029

June (5 weeks)

18.1%

30,837

-17.8%

40,611

Full Quarter

11.9%

28,537

-36.7%

31,009

1Same store sales include all restaurants open at least 18 full fiscal months. Good Times same store sales have been adjusted by excluding one restaurant which was temporarily closed during 2019 for remodel work.

2Average weekly sales include all company-owned restaurants.

As highlighted in the Company’s second quarter earnings release, the Company took extraordinary measures to preserve liquidity at the end of March and beginning of April, including pay reductions, staffing reductions, and applying for loans made available under the CARES Act. The Company received PPP loans of approximately $11.6 million and as a result has been able to restore pay to employees and to increase staffing in connection with the opening of dining rooms at Bad Daddy’s. As of the end of the quarter, the Company was current on payables balances with its routine vendors but had approximately $0.6 million of rent either deferred under agreements with landlords or unpaid pending further negotiations for rent relief. The Company ended the quarter with a balance of approximately $10 million drawn on its revolving credit facility with Cadence Bank, the full balances remaining on its outstanding PPP loans, and with approximately $12 million of cash and equivalents. The Company intends to seek forgiveness for the maximum portion of the PPP loans to which it is entitled under the CARES Act.

Ryan Zink, President & CEO, said, “During the third quarter, we took essential steps to preserve our business in the short term, while at the same time retaining the character and soul of each concept that is critical for our long-term success. Nearly all of our restaurants are currently company-owned and, pivoting away from a unit-growth strategy our focus has been to profitably operate great restaurants. Further, although we have always taken great care to protect the health of our employees and guests, we have implemented additional measures to ensure their health and safety given the increased risks associated with the current pandemic.”

Mr. Zink continued, “The full ramifications of COVID-19 on the restaurant industry remain to be seen, especially in light of recent increases in coronavirus case counts across the country. The actions we took during our third quarter have provided us increased financial and operating flexibility, which will be necessary as the pandemic and its effects on society and our business continue to evolve and be understood.”

About Good Times Restaurants Inc.: Good Times Restaurants Inc. (GTIM) owns, operates, franchises and licenses 35 Bad Daddy’s Burger Bar restaurants through its wholly-owned subsidiaries. Bad Daddy’s Burger Bar is a full-service, upscale, “small box” restaurant concept featuring a chef-driven menu of gourmet signature burgers, chopped salads, appetizers and sandwiches with a full bar and a focus on a selection of craft microbrew beers in a high energy atmosphere that appeals to a broad consumer base. Additionally, through its wholly-owned subsidiaries, Good Times Restaurants Inc. operates and franchises a regional quick service restaurant chain consisting of 34 Good Times Burgers & Frozen Custard restaurants, located primarily in Colorado.

View source version at Good Times Restaurants

Giant Pizza Hut Franchisee NPC International Declares Bankruptcy

The company, which is also Wendy’s largest operator, has been struggling with massive debt levels.

By Jonathan Maze on Jul. 01, 2020

NPC International, the largest franchisee of both Pizza Hut and Wendy’s, declared bankruptcy early on Wednesday, as years of weak sales and massive amounts of debt ultimately proved too much to bear despite sales improvements during the pandemic.

The Leawood, Kan.-based company is one of the largest restaurant operators of any kind in the U.S., operating more than 1,227 Pizza Hut units—about 16% of the U.S. system—to go along with 385 Wendy’s units. NPC has $903 million in debt.

NPC said it has reached deals with its lenders on the framework of a restructuring and plans to sell its Wendy’s business, which has performed better overall in recent years. The company has been holding negotiations with Pizza Hut for months and filed the day after a forbearance agreement with its franchisor expired.

“While NPC’s Chapter 11 filing was expected, we view it as an opportunity to create a better future for NPC’s Pizza Hut restaurants,” Pizza Hut said in an emailed statement. “As NPC works through this process, we support an outcome resulting in an organization with a. lower, more sustainable level of debt, ownership focus on operational excellence and a greater level of restaurant investment.

“These changes will help NPC’s Pizza Hut restaurants generate the same momentum we are seeing throughout the Pizza Hut U.S. business and strengthen the overall health and performance of the entire system for the long term.”

In a statement on Wednesday, NPC said the Chapter 11 bankruptcy process would “substantially reduce” its debt and “strengthen its capital structure.” The company said it plans to use the process to hold more talks with its franchisors, landlords and other creditors.

“As our industry has been in the midst of dynamic changes due to shifting consumer preferences and dining behavior, we also have been facing increased labor and commodities costs and a higher level of financial leverage that presents obstacles to achieving our long-term business objectives,” Jon Weber, CEO of NPC’s Pizza Hut division, said in a statement.

“These challenges have been magnified recently by the impact and uncertainty of COVID-19, and we believe it’s necessary to take proactive steps to strengthen our capital structure, so we have the financial flexibility to continue to adapt to current industry trends.”

NPC’s filing had long been expected. The company had been struggling with the weight of years of weak sales at Pizza Hut and that debt burden. In January it missed an interest payment, leading to downgrades of its credit rating. The company also received emergency financing from its lenders in January, providing it with $35 million in liquidity.

In court documents, NPC largely blamed its problems on struggles at Pizza Hut, citing a “deteriorating brand image and lack of innovation.”

“The Pizza Hut brand continues year after year to lose market share to its national competitors,” the company said in a filing, noting that Domino’s and Papa John’s have evolved their delivery-focused businesses with “better technology or more compelling price and product offerings.”

NPC also operates many legacy “red roof” dine-in locations whose sales have been even weaker in recent years as consumers shifted their pizza spending toward delivery. About 40% of NPC’s locations are red-roof units.

The company said that weak sales and profits “prevented many franchisees, including the company, from transitioning the balance of its dine-in estate from standalone assets that cost more to maintain and are less profitable.”

NPC also said Pizza Hut relied on discounts to increase foot traffic, which had been falling in recent years. New leadership at the chain is focused on shifting away from that strategy, something that NPC says it supports.

The discounts came as NPC was faced with higher labor costs in recent years as intense competition for labor drove up wages and many states raised their minimum wage rates—higher minimum wages are expected to impact 30% of NPC’s Wendy’s units and 49% of its Pizza Hut units.

Competition for drivers from third-party providers also drove up wages for Pizza Hut’s delivery employees.

The pandemic only increased economic uncertainty. Sales at Pizza Hut initially spiked during the quarantine as consumers stayed home and ordered delivery, though NPC said in its filing that its sales have been slowing since. Wendy’s fell initially but has improved in recent weeks.

The coronavirus has also cost NPC money. The operator said that it spends about $750,000 per month on masks, gloves and plexiglass shields, a cost that is expected to last through the end of the year.

NPC said that the EBITDA, or earnings before interest, taxes, depreciation and amortization, was expected to be $5.6 million this year at its Pizza Hut units, down from $90 million in 2016. The pandemic has improved its outlook, with earnings projected to be $44.1 million.

NPC’s Wendy’s units, meanwhile, are expected to generate $48.8 million in EBITDA this year.

UPDATE: This story has been updated to include comment from NPC International.

View source version at NPC International

RAVE Restaurant Group, Inc. Reports Third Quarter 2020 Financial Results

Jun 29, 2020, 07:30 ET

DALLAS, June 29, 2020 /PRNewswire/ -- RAVE Restaurant Group, Inc. (NASDAQ: RAVE) today reported financial results for the third quarter of fiscal 2020 ended March 29, 2020.

Third Quarter Highlights:

Pizza Inn domestic comparable store retail sales decreased 7.8% in the third quarter of fiscal 2020 compared to the same period of the prior year.
Pie Five comparable store retail sales decreased 21.4% in the third quarter of fiscal 2020 compared to the same period of the prior year.
Total revenue decreased by $0.4 million to $2.7 million for the third quarter of fiscal 2020 compared to the same period of the prior year.
Loss before taxes was $0.5 million for the third quarter of fiscal 2020 compared to a $0.3 million loss for the same period of the prior year.
The Company recorded net loss of $4.5 million for the third quarter of fiscal 2020 compared to net loss of $0.3 million for the same period of the prior year primarily due to a $4.3 million increase in the reserve against net deferred tax assets;
On a fully diluted basis, net loss increased $0.28 per share to $0.30 per share for the third quarter of fiscal 2020 compared to $0.02 per share for the same period of the prior year.
Adjusted EBITDA for the third quarter of fiscal 2020 decreased $0.2 million from the same period of the prior year.
Cash and cash equivalents decreased $0.4 million during the third quarter of fiscal 2020 to $1.5 million at March 29, 2020.
Pizza Inn domestic unit count finished at 152.
Pizza Inn international unit count finished at 37.
Pie Five domestic unit count finished at 43.

"During this unprecedented time for the restaurant industry, I'm extremely proud of how our franchisees and team members have responded," said Brandon Solano, Chief Executive Officer of Rave Restaurant Group, Inc. "I've been inspired by our system's resilience and their tireless efforts to ensure that our restaurants remain a safe place to work and dine during the Coronavirus outbreak. Additionally, we have taken extensive measures to protect Rave's financial stability. We looked at all areas to reduce expenses, including furloughing two-thirds of our support staff and an across-the-board 20% pay reduction for all other employees and executive leadership late in the third quarter. I am grateful for our team's sacrifices and the continued support of our guests and communities."

View full version at RAVE Restaurant Group

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

June, 24 2020

Total revenue of $104.5 million, representing a 14.0% decline from the fiscal second quarter 2019

Del Taco Restaurants, Inc. (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 June 16, 2020 and provided a liquidity update.

John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “We are pleased that our system demonstrated sequential improvement in comparable restaurant sales trends throughout the second fiscal quarter, which we will look to build upon in the weeks and months ahead. This sales momentum helped enhance our liquidity as we recently reduced our outstanding revolving credit facility borrowing to $145 million, consistent with the balance at the end of fiscal year 2019. Notably, our franchised restaurants across a broad 14-state footprint achieved positive comparable restaurant sales growth during the last five weeks of the quarter, representing a more than 30% swing compared to the first three weeks of the fiscal quarter.”

Cappasola concluded, “We have leveraged our QSR+ strengths during the pandemic through our no contact or limited contact channels, lack of reliance upon dining rooms, and of course, Del Taco’s strong heritage of great value and variety. Our team members and franchise partners have done an incredible job rising to unique challenges and, looking ahead, we believe Del Taco is well positioned to accelerate performance.”

Fiscal Second Quarter 2020 Comparable Restaurant SalesTwelve weeksFour weeksFour weeksFour weeksendedendedendedendedJune 16, 2020April 21, 2020May 19, 2020June 16, 2020Company-operated-12.6%-23.9%-10.4%-3.7%Franchised-7.2%-22.7%-2.9%3.5%System-wide-10.1%-23.4%-6.9%-0.3%

The results in the table above are compared to the comparable prior year period.

Other Fiscal Second Quarter 2020 Sales Highlights

Total revenue of $104.5 million, representing a 14.0% decline from the fiscal second quarter 2019;
Company-operated restaurant sales of $95.2 million, representing a 15.2% decline from the fiscal second quarter 2019; and
At the end of the fiscal second quarter there was one franchise restaurant temporarily closed.

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

Cash and Liquidity

During the fiscal second quarter the Company reduced its outstanding revolving credit facility borrowing down to $145 million, consistent with the balance at the end of fiscal year 2019, and the Company currently has over $6 million in cash on hand. The remaining availability under the revolving credit facility is currently $87.7 million.

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.

View source version at Del Taco Restaurants

Darden Restaurants Reports Fiscal 2020 Fourth Quarter and Full Year Results

June, 25 2020

Provides Fiscal 2021 First Quarter Outlook

Darden Restaurants, Inc., (NYSE: DRI) today reported its financial results for the fourth quarter and fiscal year ended May 31, 2020, which included a 53rd week of operations compared to 52 weeks last year.

Statement from Gene Lee, CEO.

The strategy we put in place five years ago helped us successfully navigate one of the most challenging periods in our Company's history. When our dining rooms closed, our operators did an amazing job of reimagining the guest experience by staying true to our back-to-basics operating philosophy.

We benefited greatly from our competitive advantages that form the foundation of our strategy, especially our scale and our culture. Our scale allowed us to quickly react to constant change, while our team members displayed tremendous innovation, flexibility and passion as they continued to serve our guests. I'm incredibly proud of our teams and that our culture grew stronger during this time.

The full-service restaurant industry plays a vital role in our communities. As our industry continues to rebuild, there is significant opportunity to increase market share. Those executing at the highest level are going to win, and Darden is well positioned to take advantage of the opportunity.

Fourth Quarter 2020 Financial Highlights From Continuing Operations, Compared to Fourth Quarter Last Year

Total sales decreased 43.0% to $1.27 billion driven by negative blended same-restaurant sales of 47.7%, which was partially offset by an extra week of operations and the addition of 19 net new restaurants
Same-restaurant sales by segment and brand:(39.2)% for Olive Garden(63.1)% for the Fine Dining(65.4)% for the Other Business(45.3)% for LongHorn Steakhouse(62.5)% for The Capital Grille(58.5)% for Cheddar's Scratch Kitchen(65.2)% for Eddie V's(70.7)% for Yard House(69.9)% for Seasons 52(66.1)% for Bahama Breeze
Reported diluted net loss per share was $3.85 as compared to reported diluted net earnings per share of $1.67 last year
Adjusted diluted net loss per share was $1.24, after excluding approximately $2.61 primarily related to non-cash impairments on goodwill and trademark balances, restaurant-level and other assets, as compared to adjusted diluted net earnings per share of $1.76 last year* * See the "Non-GAAP Information" below for more details

Fiscal 2020 Financial Highlights From Continuing Operations, Compared to Fiscal 2019

Total sales decreased 8.3% to $7.81 billion driven by negative blended same-restaurant sales of 11.0%, which was partially offset by the addition of 19 net new restaurants
Same-restaurant sales by segment and brand:(8.6)% for Olive Garden(13.9)% for the Fine Dining(17.9)% for the Other Business(8.8)% for LongHorn Steakhouse(13.6)% for The Capital Grille(17.1)% for Cheddar's Scratch Kitchen(15.2)% for Eddie V's(17.3)% for Yard House(18.7)% for Seasons 52(20.1)% for Bahama Breeze
Reported diluted net loss per share was $0.40 as compared to reported diluted net earnings per share of $5.73 last year
Adjusted diluted net earnings per share was $3.13, after excluding approximately $3.53 primarily related to non-cash impairments on goodwill and trademark balances, restaurant-level and other assets as well as non-cash pension settlement charges, as compared to adjusted diluted net earnings per share of $5.82 last year* * See the "Non-GAAP Information" below for more details

Segment Performance

Segment profit represents sales, less costs for food and beverage, restaurant labor, restaurant expenses and marketing expenses. Beginning in fiscal 2020, our calculation of segment profit now excludes non-cash real estate related expenses. Fiscal 2019 segment profit has been restated to conform to the current year presentation.

View full version at Darden Restaurants

Ark Restaurants Announces Financial Results for the Second Quarter of 2020 and Suspension of Quarterly Dividend

June 22, 2020 04:05 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Ark Restaurants Corp. (Nasdaq:ARKR) today reported financial results for the second quarter ended March 28, 2020 and announced that the Company's Board of Directors has suspended the declaration and payment of the quarterly dividend until such time as it deems appropriate to reinstate.

COVID-19 Update

The Company’s 2020 fiscal year started strong with revenues and same store sales up 7.3% and 3.5%, respectively for the first quarter compared to the prior year and continuing through February. However, as the novel Coronavirus (“COVID-19”) rapidly spread throughout the world and to the United States we began to experience the impacts of COVID-19 during March 2020, resulting in a decline in traffic in early March and the government mandated temporary closures of all of our restaurants during the last two weeks of March 2020, with all locations closed as of March 28, 2020. In addition to the decrease in restaurant revenue from the closures, the Company estimates that it incurred approximately $700,000 of costs directly related to COVID-19 in the 13 weeks ended March 28, 2020 consisting primarily of payments to employees for paid-time off during restaurant closures, inventory waste, and rent and rent related costs for closed restaurants from the day that they closed.

In response to these business disruptions and liquidity concerns caused by the COVID-19 pandemic, the Company took the following actions:

Furloughed all hourly employees and approximately 95% of restaurant management personnel, while enacting temporary salary reductions for all remaining restaurant management personnel. In addition, the Company temporarily reduced the pay of all corporate and administrative staff by 50% to 75%, temporarily reduced senior management salaries by 75% to 95%, and temporarily suspended all board fees.
Subsequent to the second quarter of 2020, the Company entered into a Payment Suspension Agreement with its bank which deferred all monthly interest payments through June 1, 2020 and deferred aggregate principal payments of $675,000 due on June 1, 2020 to the respective loan maturity dates. In addition, our bank agreed to relaxed financial covenants through fiscal Q3 2021.
Indefinitely deferred the payment of the $0.25 dividend declared on March 2, 2020.
Suspended future dividend payments until such time as the Board deems appropriate to reinstate.
Canceled or delayed all non-essential capital expenditures.
Suspended the vast majority of lease payments for the months of April, May and June 2020 and is currently in negotiations for rent concessions, abatements and deferrals with its landlords to reduce these lease payments. While some landlords have agreed to certain concessions subsequent to quarter end, there can be no assurance that the Company will be successful in obtaining all, or any, of the relief it is continuing to seek.
Certain Company subsidiaries applied for and received an aggregate of approximately $14.9 million of loans under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which was enacted March 27, 2020 (see below).
Utilized additional provisions of the CARES Act to obtain tax savings as well as the deferral of our portion of social security taxes to future years.

The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Management is continually evaluating the impact of the global crisis on its financial condition, liquidity, operations, suppliers, industry, and workforce and will take additional actions as necessary. The disruption in operations has led the Company to consider the impact of the COVID-19 pandemic on its liquidity, debt covenant compliance, and recoverability of long-lived and ROU assets, goodwill and intangible assets, among others. If these disruptions continue, the Company expects a continued material negative impact on its consolidated financial condition, future results of operations and liquidity. The extent of such negative impact will be determined, in part, by the longevity and severity of the pandemic.

View full version at Ark Restaurants

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