Financials - August 2024

Performance Food Group Company Announces Agreement to Acquire Cheney Bros, Inc.

• High quality broadline foodservice distribution business in the attractive Southeastern U.S. with approximately $3.2 billion in annual net sales

• Acquisition would expand PFG’s penetration and reach from state-of-the-art facilities with excess capacity for further growth in the key states of Florida, Georgia, North Carolina and South Carolina

• Expected to generate approximately $50 million of net annual run-rate cost synergies by the third full fiscal year after close

• The purchase price represents an Adjusted EBITDA multiple of 9.9x, including $50 million of run-rate synergies

• Transaction is anticipated to be accretive to Adjusted Diluted EPS by the end of the first full fiscal year, including year 1 synergies

August 14, 2024 06:45 AM Eastern Daylight Time

RICHMOND, Va.--(BUSINESS WIRE)--Performance Food Group Company (PFG) (NYSE:PFGC) today announced that it has entered into a definitive agreement with Cheney Bros., Inc. (“Cheney Brothers”), a leading independent broadline foodservice distributor based in Riviera Beach, Florida and owned by the Cheney family and Clayton Dubilier & Rice (“CD&R”), pursuant to which PFG will acquire Cheney Brothers for $2.1 billion in cash. The acquisition will create a stronger presence in the Southeast region and provide additional distribution capacity. Cheney Brothers generates approximately $3.2 billion in annual revenue.

“Cheney Brothers will be an outstanding addition to our Foodservice segment, and we are excited to welcome their many talented associates to the PFG family of companies”, said George Holm, PFG Chairman & CEO. “This acquisition will expand and enhance our offerings to a high-quality and diverse customer base. We have long admired the success of Cheney Brothers in the Southeastern U.S. and believe that the combination of our organizations will push the business to new heights. We are excited for what the future holds for the newest addition to PFG.”

“On behalf of the 3,600 Cheney Brothers associates, allow me to express our excitement at the prospect of being part of PFG’s organization”, said Byron Russell, Cheney Brothers’ CEO. “I have watched PFG grow into one of the country’s largest foodservice distributors by fostering new business relationships and maintaining a strong company culture. I believe this transaction will bring together two winning organizations and create a significant platform for growth. Together, the companies will build upon each other’s strengths and achieve outstanding success in the years ahead.”

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Ark Restaurants Announces Financial Results for the Third Quarter of 2024

August 12, 2024 04:20 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the third quarter ended June 29, 2024.

Financial Results

Total revenues for the 13 weeks ended June 29, 2024 were $50,396,000 versus $51,051,000 for the 13 weeks ended July 1, 2023 and total revenues for the 39 weeks ended June 29, 2024 were $140,139,000 versus $140,393,000 for the 39 weeks ended July 1, 2023. As required by our lease, Gallagher's Steakhouse at the New York-New York Hotel and Casino in Las Vegas, NV was substantially closed for renovation in the prior period from February 5, 2023 through April 27, 2023 (the "Closure Period"). Revenues for the comparable current period to the Closure Period were $3,056,000 as compared to $1,068,000 for the Closure Period, of which $918,000 as compared to $354,000 related to the 13-week periods ended June 29, 2024 and July 1, 2023, respectively.

Excluding Gallagher's Steakhouse, Company-wide same store sales decreased 2.3% for the 13 weeks ended June 29, 2024 as compared to the same period of the prior year.

The Company's EBITDA, as adjusted, for the 13 weeks ended June 29, 2024 was $3,375,000 versus $4,663,000 for the 13 weeks ended July 1, 2023, and excludes non-cash impairment charges in the aggregate amount of $2,500,000 (as explained below) and other items as set out in the table below. Net income attributable to Ark Restaurants Corp. for the 13 weeks ended June 29, 2024, which includes the impairment charges, was $640,000, or $0.18 per basic and diluted share, compared to net income of $3,195,000, or $0.89 and $0.88 per basic and diluted share, respectively, for the 13 weeks ended July 1, 2023. EBITDA is a Non-GAAP Financial Measure. Please see "Non-GAAP Financial Information" at the end of this news release.

The Company's EBITDA, as adjusted, for the 39 weeks ended June 29, 2024 was $5,625,000 versus $8,682,000 for the 39 weeks ended July 1, 2023, and excludes non-cash impairment charges in the aggregate amount of $2,500,000, gains on the forgiveness of Paycheck Protection Program Loans (the "PPP Loan Forgiveness") and adjusted for the other items as set out in the table below. Net income attributable to Ark Restaurants Corp. for the 39 weeks ended June 29, 2024, which includes the impairment charges and PPP Loan Forgiveness, was $561,000, or $0.16 and $0.15 per basic and diluted share, respectively, compared to net income of $4,436,000 (which includes PPP Loan Forgiveness) or $1.23 and $1.22 per basic and diluted share, respectively, for the 39 weeks ended July 1, 2023. EBITDA is a Non-GAAP Financial Measure. Please see "Non-GAAP Financial Information" at the end of this news release.

As of June 29, 2024, the Company had a cash balance of $11,467,000 and total outstanding debt of $5,738,000.

View full version at Ark Restaurants

Restaurant Brands International Inc. Reports Second Quarter 2024 Results

Aug 08, 2024, 06:30 ET

Consolidated system-wide sales grow +5.0% year-over-yearGlobal comparable sales of +1.9% driven by +4.9% at TH Canada and +2.6% at INTL and stable results at BK USSystem-wide sales growth and cost discipline drive strong year-over-year growth in consolidated profitabilityFive franchisor segments deliver year-over-year growth in Adjusted Operating Income RBI closes strategic transactions during the quarter that strengthen long-term positioning in the US and China

TORONTO, Aug. 8, 2024 /PRNewswire/ - Restaurant Brands International Inc. ("RBI") (TSX: QSR) (NYSE: QSR) (TSX: QSP) today reported financial results for the second quarter ended June 30, 2024. Josh Kobza, Chief Executive Officer of RBI commented, "I am proud of our teams and franchisees who are delivering compelling value to guests every day through excellent food and beverages, outstanding service and improved convenience. Our priorities and balance of thoughtful investments with cost discipline allow us to navigate short-term consumer pressures and drive sustainable results for our business and our franchisees."

Second Quarter 2024 Highlights:

• Consolidated comparable sales increased 1.9% and net restaurants grew 4.0% versus the prior year

• System-wide sales increased 5.0% year-over-year

• Income from Operations of $663 million versus $554 million in the prior year

• Net Income of $399 million versus $351 million in prior year

• Diluted EPS was $0.88 versus $0.77 in prior year

• Adjusted Operating Income of $632 million increased 9.3% organically versus the prior year

• Adjusted Diluted EPS of $0.86 increased 3.1% organically versus the prior year

Items Effecting Comparability and Segment Update

On May 16, 2024, we completed the acquisition of Carrols Restaurant Group Inc. ("Carrols") ("the Carrols Acquisition"). Our consolidated results include Carrols revenues, expenses and segment income from the acquisition date of May 16, 2024 through June 30, 2024. On June 28, 2024, we also completed the acquisition of Popeyes China ("PLK China") ("the PLK China Acquisition"), which will be included in our consolidated results commencing in the third quarter of 2024.

Following the Carrols and PLK China Acquisitions, RBI established a new operating and reportable segment, Restaurant Holdings (RH), which includes results from the Carrols Burger King restaurants and the PLK China restaurants. As a result, RBI now reports results under six operating and reportable segments consisting of the following: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), Firehouse Subs (FHS), International (INTL) and RH. 

RBI plans to maintain the franchisor dynamics in its TH, INTL, BK, PLK and FHS segments ("five franchisor segments") to report results consistent with how the business will be managed long-term given RBI's plans to refranchise the vast majority of the Carrols Burger King restaurants and to find a new partner for PLK China in the future. RH results include Company restaurant sales and expenses, including expenses associated with royalties, rent, and advertising. These expenses are recognized, as applicable, as revenues in the respective franchisor segments (BK and INTL) and eliminated upon consolidation.

During 2023 and the first quarter of 2024, BK also acquired approximately 125 restaurants from non-Carrols franchisees ("non-Carrols acquired BK restaurants"). As a result, BK owned and operated 175 Company restaurants as of June 30, 2024 as compared to 60 as of June 30, 2023.  The results from these restaurants are included in BK Company restaurants sales and expenses.

Given the temporary nature of RBI owning and operating the RH restaurants, RBI updated its definition of organic growth to exclude the results of the RH segment and the impact of FX movements. RBI's organic growth includes results from the non-Carrols acquired BK restaurants and the Popeyes Carrols restaurants, which are managed and recognized as Company restaurants in the BK and PLK segments, respectively. Please refer to "Non-GAAP Financial Measures" for further detail.

Key performances indicators are shown for RBI's five franchisor segments. RH results for the Carrols BK restaurants and PLK China restaurants are included in the BK segment and INTL segment, respectively.

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Sweetgreen, Inc. Announces Second Quarter 2024 Financial Results

August 08, 2024 04:05 PM Eastern Daylight Time

LOS ANGELES--(BUSINESS WIRE)--Sweetgreen, Inc. (NYSE: SG) (the “Company”), the mission-driven, next generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for its second fiscal quarter ended June 30, 2024.

Second quarter 2024 financial highlights

For the second quarter of fiscal year 2024, compared to the second quarter of fiscal year 2023:

• Total revenue was $184.6 million, versus $152.5 million in the prior year period, an increase of 21%.

• Same-Store Sales Change of 9%, up from Same-Store Sales Change of 3% in the prior year period.

• AUV of $2.9 million was consistent with the prior year period.

• Total Digital Revenue Percentage of 56% and Owned Digital Revenue Percentage of 31%, versus Total Digital Revenue Percentage of 59% and Owned Digital Revenue Percentage of 37% in the prior year period.

• Loss from operations was $(16.2) million and loss from operations margin was (9)%, versus loss from operations of $(31.2) million and loss from operations margin of (20)% in the prior year period.

• Restaurant-Level Profit(1) was $41.5 million and Restaurant-Level Profit Margin was 22%, versus Restaurant-Level Profit of $31.1 million and Restaurant-Level Profit Margin of 20% in the prior year period.

• Net loss was $(14.5) million and net loss margin was (8)%, versus net loss of $(27.3) million and net loss margin of (18)% in the prior year period.

• Adjusted EBITDA(1) was $12.4 million, versus Adjusted EBITDA of $3.3 million in the prior year period; and Adjusted EBITDA Margin was 7%, versus 2% in the prior year period.

• 4 Net New Restaurant Openings, versus 10 Net New Restaurant Opening in the prior year period.

{1) Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin are financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Reconciliations of Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin to the most directly comparable financial measures presented in accordance with GAAP, are set forth in the schedules accompanying this release. See “Reconciliation of GAAP to Non-GAAP Measures.”

“I’m proud of the continued momentum we saw in the second quarter as we connected more communities to real food. Our commitment to innovation and operational execution delivered a strong quarter with same store sales growth of 9%, 22.5% restaurant-level margin and Adjusted EBITDA of $12.4 million,” said Jonathan Neman, Co-Founder and Chief Executive Officer. “We continue to open successful new restaurants across the country and our new Caramelized Garlic Steak has quickly become a customer favorite. Sweetgreen's expanding menu is hitting the mark with customers, delivering on craveability, quality and value. I'm incredibly grateful to our dedicated team for their hard work, which has driven these strong results in the second quarter.”

“We delivered strong topline sales with year-over-year revenue growing 21%. This was complemented by strong Adjusted EBITDA driven by margin flow through and G&A leverage. Despite a heightened uncertain economic backdrop for the consumer, we are raising our guidance for 2024 given our results during the first half of the year,” said Mitch Reback, Chief Financial Officer.

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Papa Johns Announces Second Quarter 2024 Financial Results

August 08, 2024 07:00 AM Eastern Daylight Time

LOUISVILLE, Ky.--(BUSINESS WIRE)--Papa John’s International, Inc. (Nasdaq: PZZA) (“Papa Johns®”) (the “Company”) today announced financial results for the second quarter ended June 30, 2024.

Highlights

• North America comparable sales(a) were down 4% from a year ago as Domestic Company-owned restaurants were down 4% and North America franchised restaurants were down 3%; International comparable sales(a) were flat compared with the prior year period.

• 31 net unit closures in the second quarter resulting from anticipated strategic International closures, including 43 Company-owned restaurants in the UK.

• Global system-wide restaurant sales were $1.20 billion, a 1%(b) decrease compared with the prior year second quarter, driven by lower North America comparable sales partially offset by trailing twelve month net unit growth.

• Total revenues of $508 million were down 1% compared with a year ago driven by lower revenues in our North America commissary segment primarily due to a combination of lower volume and commodity prices.

• Operating income of $28 million decreased 19% compared with the second quarter of 2023, while Adjusted operating income(c) of $38 million increased 4% on improved restaurant-level margins and continued focus on cost discipline.

• Diluted earnings per common share of $0.37 compared with $0.54 for the second quarter of 2023; Adjusted diluted earnings per common share(c) was $0.61 compared with $0.59 for the second quarter a year ago.

“I am honored and excited to join the Papa Johns team and look forward to building a strong and collaborative partnership with our franchisees,” said Todd Penegor, President and Chief Executive Officer. “As we move forward together, our number one priority will be to create great experiences for our customers and team members, while also ensuring the restaurant economic model is strong. We will move quickly to build on our strengths and execute today as we evolve to be even better tomorrow.”

Commenting on second quarter results, Ravi Thanawala, Chief Financial Officer, stated, “Papa Johns’ commitment to maintaining the quality of our product and brand as well as managing our costs drove continued improvement in restaurant-level margins and Adjusted operating income, helping to offset our softer sales in the second quarter. During the quarter, demand for our core product — pizza, remained solid despite facing a highly promotional QSR environment and a more value-conscious consumer.

“We recognize there is work to do to achieve our full potential. We are committed to doing what is necessary to become the pizza brand of choice for consumers and franchisees around the world,” continued Thanawala. “We are actively pursuing opportunities that sharpen our focus, improve unit economics, drive unit development and provide an excellent consumer experience. We are evolving our marketing to meet consumers’ value expectations, investing in our digital experience to streamline our ordering journey and enhancing our loyalty experience to drive consumer engagement.

“We are confident that our approach will drive long-term increased franchisee profitability and sustainable, profitable growth for all stakeholders,” concluded Thanawala.

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US Foods Reports Second Quarter Fiscal Year 2024 Earnings

Grew Net Sales 7.7% to $9.7 Billion and Gross Profit 7.2% to $1.7 Billion

Increased Net Income 8.8% to $198 Million

Delivered Record Adjusted EBITDA of $489 Million and Record Adjusted EBITDA Margin of 5.0%

Repurchased $41 Million of Shares and Reduced Net Leverage to 2.6x

August 08, 2024 06:45 AM Eastern Daylight Time

ROSEMONT, Ill.--(BUSINESS WIRE)--US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, today announced results for the second quarter fiscal year 2024.

Second Quarter Fiscal Year 2024 Highlights

• Net sales increased 7.7% to $9.7 billion

• Total case volume increased 5.2%; independent restaurant case volume increased 5.7%

• Gross profit increased 7.2% to $1.7 billion

• Net income was $198 million

• Adjusted EBITDA increased 13.2% to $489 million

• Diluted EPS increased 9.6% to $0.80; Adjusted Diluted EPS increased 17.7% to $0.93

“During the second quarter, we delivered record Adjusted EBITDA and EBITDA margin in a softer macro environment. Our team’s success further emphasizes the strength of our operating model and ability to control the controllables,” said Dave Flitman, CEO. “Our balanced approach to drive improved profitability through the execution of our strategic initiatives was evident again this quarter and we captured market share with independent restaurants for the 13th consecutive quarter.”

“We also held an exciting investor day on June 5 where we outlined our new long-range plan to accelerate growth, profitability and returns. We laid out our financial algorithm from 2025 through 2027 of growing sales at a 5% CAGR, increasing Adjusted EBITDA at a 10% CAGR, expanding EBITDA margin by at least 20 basis points per year and growing Adjusted Diluted EPS at a 20% CAGR. We are confident that we have the right strategy and the operational rigor in place to deliver on our 2027 financial targets, all underpinned by our 30,000 hardworking and dedicated associates.”

“We delivered record profitability in the second quarter through our balanced approach to drive top- and bottom-line gains despite the operating environment,” added Dirk Locascio, CFO. “Maintaining our disciplined approach to capital deployment and intense focus on driving long-term shareholder value creation, we closed on the IWC acquisition, repurchased $41 million of shares and further reduced our net leverage while continuing to invest in the business. Given our strong first half of the year and outlook for the remainder of 2024, we are reiterating our net sales, Adjusted EBITDA and Adjusted Diluted EPS guidance.”

View full version at US Foods

Dine Brands Global, Inc. Reports Second Quarter 2024 Results

August 07, 2024 07:00 AM Eastern Daylight Time

PASADENA, Calif.--(BUSINESS WIRE)--Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee’s Neighborhood Grill & Bar®, IHOP® and Fuzzy’s Taco Shop® restaurants, today announced financial results for the second quarter of fiscal year 2024.

“Our brands have a long history of weathering economic cycles and despite the consumer pullback the industry witnessed this quarter, we are confident that our strategies around profitable promotions, menu innovation and development will help us manage both short-term challenges while positioning us for the long term,” said John Peyton, chief executive officer, Dine Brands Global, Inc.

Vance Chang, chief financial officer, Dine Brands Global, Inc. added, “Our asset light model allows us to return capital to investors and maintain the strength of our balance sheet in all economic cycles. We are revising our financial guidance for the remainder of the fiscal year to reflect the current macro conditions and we are optimistic about the strategic advantage of Dine’s platform to create value for all stakeholders in the long term.”

Domestic Restaurant Sales for the Second Quarter of 2024

• Applebee’s year-over-year domestic comparable same-restaurant sales declined 1.8% for the second quarter of 2024. Off-premise sales mix accounted for 21.4% in the second quarter of 2024 compared to 22.6% in the second quarter of 2023.

• IHOP’s year-over-year domestic comparable same-restaurant sales declined 1.4% for the second quarter of 2024. Off-premise sales mix accounted for 19.8% in the second quarter of 2024 compared to 20.7% in the second quarter of 2023.

Second Quarter of 2024 Summary

• Total revenues for the second quarter of 2024 were $206.3 million compared to $208.4 million for the second quarter of 2023. The decrease was primarily due to the negative comparable same-restaurant sales growth at Applebee’s and IHOP, partially offset by increases in the number of effective franchise restaurants and proprietary product sales at IHOP.

• General and Administrative (“G&A”) expenses for the second quarter of 2024 were $46.9 million compared to $47.8 million for the second quarter of 2023. The variance was primarily attributable to the stopping of the IHOP Flip’d initiative in the prior year offset by an increase in compensation-related expenses and an increase in depreciation expense.

• GAAP net income available to common stockholders was $22.5 million, or earnings per diluted share of $1.50, for the second quarter of 2024 compared to net income available to common stockholders of $17.8 million, or earnings per diluted share of $1.16 for the second quarter of 2023. The increase was primarily due to an increase in segment profit, a prior year loss on disposition of assets, a prior year loss on debt extinguishment and a decrease in G&A expenses, partially offset by an increase in income taxes.

• Adjusted net income available to common stockholders was $25.6 million, or adjusted earnings per diluted share of $1.71, for the second quarter of 2024 compared to adjusted net income available to common stockholders of $27.8 million, or adjusted earnings per diluted share of $1.82, for the second quarter of 2023. The decline was primarily due to an increase in G&A expenses, partially offset by a decrease in the number of diluted shares. (See “Non-GAAP Financial Measures” for definition and reconciliation of GAAP net income available to common stockholders to adjusted net income available to common stockholders.)

• Consolidated adjusted EBITDA for the second quarter of 2024 was $67.0 million compared to $67.3 million for the second quarter of 2023. (See “Non-GAAP Financial Measures” for definition and reconciliation of GAAP net income to consolidated adjusted EBITDA.)

• Development activity by Applebee’s and IHOP franchisees for the second quarter of 2024 resulted in 16 new restaurant openings and 25 restaurant closures.

View full version at Dine Brands

Noodles & Company Announces Second Quarter 2024 Financial Results

August 07, 2024 16:05

BROOMFIELD, Colo., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Noodles & Company (Nasdaq: NDLS) today announced financial results for its second quarter ended July 2, 2024.

Key highlights for the second quarter of 2024 versus the second quarter of 2023 include:

• Total revenue increased 1.8% to $127.4 million from $125.2 million in the second quarter of 2023.

• Comparable restaurant sales increased 2.0% system-wide, comprised of a 1.3% increase at company-owned restaurants and a 4.7% increase at franchise restaurants.

• Net loss was $13.6 million, or $0.30 loss per diluted share, compared to net loss of $1.3 million, or $0.03 loss per diluted share, in the second quarter of 2023.

• Operating margin was (9.0)% compared to (0.2)% in the second quarter of 2023.

• Restaurant contribution margin(1) was 15.5% compared to 14.8% in the second quarter of 2023.

• Adjusted EBITDA(1) was $9.2 million compared to $8.5 million in the second quarter of 2023. Adjusted EBITDA in the second quarter of 2024 included a $10.9 million adjustment for a non-cash impairment charge.

• Five new company-owned restaurants opened in the second quarter of 2024.

• Refranchised six company-owned restaurants to a new franchise partner.

_____________________

(1)   Restaurant contribution margin and Adjusted EBITDA are non-GAAP measures. Reconciliations of operating income (loss) to restaurant contribution margin and net loss to Adjusted EBITDA are included in the accompanying financial data. See “Non-GAAP Financial Measures.”

Drew Madsen, Chief Executive Officer of Noodles & Company, remarked, “I am pleased that we delivered positive 2% system-wide same-store sales during the second quarter despite a challenging consumer environment, and that we equaled the fast casual benchmark on same-restaurant sales and traffic for the first time since 2022. We also improved our restaurant contribution margin by 70 basis points aided by strong cost management. Most importantly, we continued to make meaningful progress on all five of our strategic priorities for long-term profitable growth, including an improved foundation for operations excellence and encouraging early test market results for our menu transformation. Although the current consumer environment may cause variability in our near-term results, I am confident we are on the right path to capture the significant growth opportunity Noodles offers.”

View full version at Noodles & Company

The ONE Group Reports Second Quarter 2024 Financial Results

Completed Acquisition of Benihana and RA Sushi in May

Increased Revenue to $172.5 Million or 107%

August 06, 2024 04:15 PM Eastern Daylight Time

DENVER--(BUSINESS WIRE)--The ONE Group Hospitality, Inc. (“The ONE Group” or the “Company”) (Nasdaq: STKS) today reported its financial results for the second quarter ended June 30, 2024.

Highlights for the second quarter 2024 compared to the same quarter in 2023 are as follows (the prior year quarter excludes any contribution from the recent acquisition of Benihana, which closed in May 2024):

• Total GAAP revenues increased 106.8% to $172.5 million from $83.4 million;

• Comparable sales* decreased 7.0%;

• GAAP net loss available to common stockholders was $11.5 million, or $0.36 net loss per share ($0.08 adjusted net income per share) ****, compared to GAAP net income available to common stockholders of $0.6 million, or $0.02 net income per share ($0.06 adjusted net income per share) ****

• Restaurant Operating Profit*** increased 151.3% to $30.0 million from $11.9 million;

• Restaurant Operating Profit Margin*** increased 280 basis points to 17.7% from 14.9%; and

• Adjusted EBITDA** increased 180.6% to $23.9 million from $8.5 million.

"We are pleased to be building lasting relationships with our guests through unforgettable VIBE dining experiences while generating industry leading AUVs. Notably, the cost-saving initiatives we put in place last year coupled with our strong new restaurant performance drove restaurant level profit and restaurant level margin to increase at Kona Grill and stay relatively flat at STK, despite the challenging same store sales environment.”

“In May, we completed our acquisition of the Benihana and RA Sushi brands and welcomed nearly 6,500 new teammates. We have since begun integrating them into our Company and have already started realizing synergies in G&A, purchasing and operations. To date, we have realized approximately $9 million in G&A synergies since the closing and over the next two years, we expect to achieve another $11 million in G&A, supply chain and other operational synergies for a total of $20 million in annual synergies as we leverage our larger scale, combine our expertise, and enhance our capabilities to develop a best-in-class supply chain across our now-expanded portfolio.”

Hilario concluded, “We have a strong pipeline for unit growth in 2024 and beyond. We recently opened a RA Sushi in Plantation, Florida that is off to a strong start and there are another six to nine additional new venues that should open this year. Our expansion story points to significant opportunity ahead.”

View full version at The ONE Group

Jack in the Box Inc. Reports Third Quarter 2024 Earnings

Jack in the Box same-store sales of (2.2%)

Del Taco same-store sales of (3.9%)

Jack in the Box systemwide sales of (1.3%); Del Taco systemwide sales of (3.2%)

Diluted loss per share of ($6.26), including a $162.6 million non-cash goodwill impairment charge for Del Taco

Operating EPS of $1.65

Jack in the Box signed 3 development agreements with new franchisees for 28 new restaurants

Jack in the Box entering Chicago market with multiple company-owned openings in FY 2025

Jack in the Box progressing on tech and digital transformation with nearly 100 restaurants on our new POS system and our next generation app going live on September 1st

Del Taco's three most recent restaurant openings, in Florida and Virginia, all set new company records for first-week sales

August 06, 2024 04:00 PM Eastern Daylight Time

SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the Jack in the Box and Del Taco brands in the third quarter, ended July 7, 2024.

“I am proud of our teams and how they continue to enhance the guest experience and deliver operational improvements during a challenging sales environment for our entire industry,” said Darin Harris, Jack in the Box Chief Executive Officer. “We continue to focus on value and ways we can improve transactions with the low-income guest — while at the same time, doubling down on our strengths of innovation, variety and late night. We will strive to finish the year strong with positive momentum heading into 2025, while continuing to execute against our strategic initiatives to achieve our long-term growth and profitability ambitions.”

Jack in the Box Performance

Same-store sales decreased 2.2% in the third quarter, comprised of franchise same-store sales decline of 2.4% and company-owned same-store sales increase of 0.1%. Transactions were down from prior year although slightly improved from last quarter. Systemwide sales for the third quarter decreased 1.3%.

Restaurant-Level Margin(1), a non-GAAP measure, was $21.1 million, or 21.0%, down from $21.1 million, or 21.8%, a year ago driven primarily by higher costs for labor and other restaurant operating costs, partially offset by lower food and packaging costs. The increase in labor was driven in large part from implementing California's new minimum wage law.

Franchise-Level Margin(1), a non-GAAP measure, was $74.6 million, or 41.1%, a decrease from $75.3 million, or 41.1%, a year ago. The decrease was mainly driven by the decline in franchise sales for the quarter.

Jack in the Box net restaurant count remained flat in the third quarter, with three restaurant openings and three restaurant closures. Since the launch of the development program in mid-2021, the company has 96 signed agreements for a total of 437 restaurants, with 46 restaurants opened to date.

View full version at Jack in the Box

Yum! Brands Reports Second-Quarter Results

+6% GAAP Operating Profit Growth and +10% Core Operating Profit GrowthTaco Bell Same-Store Sales Growth +5%; KFC Unit Growth +8%

Yum! Brands Reports Second-Quarter Results

August 06, 2024 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, 2024. Worldwide system sales, excluding foreign currency translation, grew 3% including a 1% same-store sales decline. Second-quarter GAAP operating profit grew 6% and second-quarter core operating profit grew 10%. Second-quarter GAAP EPS was $1.28 and second-quarter EPS excluding Special Items was $1.35. Our year-over-year EPS excluding Special Items results reflect a $0.20 negative impact from a higher current year tax rate and lower investment income. Foreign currency translation also unfavorably impacted our EPS by $0.03.

DAVID GIBBS COMMENTS

David Gibbs, CEO, said “I’m incredibly pleased with how well our teams have managed through a challenging operating environment to deliver a 10% increase in Core Operating Profit. Our twin growth engines of Taco Bell U.S. and KFC International combined delivered 5% system sales growth led by 8% unit growth. Second-quarter results most clearly showcased the power of the Taco Bell brand thanks to unmatched, crave-worthy innovation and a successful menu expansion to a new platform offering, Cantina Chicken. Based on our first half results, we continue to expect to deliver at least 8% Core Operating Profit growth this year. Meanwhile, as we progress into the next phase of our technology and digital journey, we are laying the groundwork for another promising year in 2025 as evidenced by the expansion of drive-thru Voice AI technology at Taco Bell.”

SECOND-QUARTER HIGHLIGHTS

• Worldwide system sales grew 3%, excluding foreign currency translation, with KFC at 2%, Taco Bell at 7% and Pizza Hut flat.

• Unit count increased 5% including 894 gross new units in the quarter.

• Robust digital sales of nearly $8 billion, with digital mix over 50%.

• GAAP operating profit grew 6%, and core operating profit grew 10%.

• Foreign currency translation unfavorably impacted divisional operating profit by $12 million.

View full version at Yum! Brands

Bloomin’ Brands Announces 2024 Q2 Financial Results

Q2 Diluted EPS of $0.32 and Q2 Adjusted Diluted EPS of $0.51

Updates Full Year 2024 Guidance

August 06, 2024 06:55 AM Eastern Daylight Time

TAMPA, Fla.--(BUSINESS WIRE)--Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the second quarter 2024 (“Q2 2024”) compared to the second quarter 2023 (“Q2 2023”).

CEO Comments“

In the second quarter, the casual dining industry was softer than anticipated,” said David Deno, CEO. “While our comparable sales growth outpaced the industry in Q2, we did not meet our expectations. We are very focused on developing a path to sustainable growth at Outback and are making progress in improving the guest experience, providing meaningful value, and enhancing customer and digital capabilities. Our full year guidance has been updated to reflect current industry trends and our teams remain focused on delivering long-term sustainable growth.”

Diluted EPS and Adjusted Diluted EPS

The following table reconciles Diluted earnings per share to Adjusted diluted earnings per share for the periods indicated (unaudited):

	Q2
	2024		2023		CHANGE
Diluted earnings per share	$	0.32		$	0.70		$	(0.38	)
Adjustments (1)		0.19			—			0.19
Adjusted diluted earnings per share (1)	$	0.51		$	0.70		$	(0.19	)
_______________
(1) Adjusted diluted earnings per share for the thirteen weeks ended June 25, 2023 has been recast to remove the previously included non-GAAP adjustment of 5.0 million diluted weighted average common shares outstanding related to the convertible note hedge contracts entered into at the issuance of the 2025 Notes. See non-GAAP Measures later in this release. Also see Tables Four, Six and Seven for details regarding the nature of diluted earnings per share adjustments for the periods presented.

Second Quarter Financial Results

(dollars in millions, unaudited)	Q2 2024		Q2 2023		CHANGE
Total revenues	$	1,118.9			$	1,152.7			(2.9	)%
GAAP operating income margin		4.1	%			7.8	%		(3.7	)%
Adjusted operating income margin (1)(2)		5.7	%			7.8	%		(2.1	)%
Restaurant-level operating margin (2)		14.3	%			16.4	%		(2.1	)%
_______________
(1) See Table Six for details regarding the nature of operating income margin adjustments.
(2) See non-GAAP Measures later in this release.

• The decrease in Total revenues was primarily due to: (i) lower comparable restaurant sales, (ii) the net impact of restaurant closures and openings, and (iii) the benefit from the Brazil value added tax exemptions during 2023.

• GAAP operating income margin decreased from Q2 2023 primarily due to: (i) a decrease in restaurant-level operating margin, as detailed below, (ii) higher impairment and closure costs, and (iii) higher depreciation and amortization expense.

• Restaurant-level operating margin decreased from Q2 2023 primarily due to: (i) lower restaurant sales, as discussed above, (ii) higher labor, operating and commodity costs, primarily due to inflation, (iii) unfavorable product mix and (iv) higher advertising expense. These decreases were offset by an increase in average check per person and the impact of certain cost-saving and productivity initiatives.

• Adjusted income from operations primarily excludes impairment and closure costs primarily in connection with the decision to close nine restaurants in Hong Kong and the Q4 2023 decision to close 36 older, predominately underperforming restaurants.

View full version at Bloomin' Brands

Portillo’s Inc. Announces Second Quarter 2024 Financial Results

August 06, 2024 08:00 ET

CHICAGO, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today reported financial results for the second quarter ended June 30, 2024.

Michael Osanloo, President and Chief Executive Officer of Portillo’s, said, “We delivered sequential improvement in both revenue and margin this quarter as we continued to prioritize sales and transaction growth. We are confident that our strategic plan is focused on the right factors, allowing us to navigate near-term challenges and seize opportunities for continuous improvement. We're now on track to open at least 10 restaurants in 2024, including three full-service locations with an optimized footprint. We continue to successfully lower our build costs as we bring these restaurants online, which will support industry-leading returns on investment.”

Financial Highlights for the Second Quarter 2024 vs. Second Quarter 2023:

• Total revenue increased 7.5% or $12.7 million to $181.9 million;

• Same-restaurant sales* decreased 0.6%;

• Operating income increased $0.7 million to $18.1 million;

• Net income decreased $1.4 million to $8.5 million;

• Restaurant-Level Adjusted EBITDA** increased $1.8 million to $44.6 million; and

• Adjusted EBITDA** increased $0.6 million to $29.9 million.

For the quarter ended June 30, 2024, same-restaurant sales compares the 13 weeks from April 1, 2024 through June 30, 2024 to the 13 weeks from April 3, 2023 through July 2, 2023.*Adjusted EBITDA and Restaurant-Level Adjusted EBITDA are non-GAAP measures. Please see definitions and the reconciliations of these non-GAAP measures accompanying this release.

Recent Developments and Trends

In the quarter, total revenue grew 7.5% or $12.7 million, primarily due to new restaurant openings in 2023 and 2024. Same-restaurant sales declined 0.6% during the quarter ended June 30, 2024, compared to 5.9% same-restaurant sales growth during the same quarter in 2023. Same-restaurant sales defined below.

In June, we re-tiered some of our restaurants in higher-cost areas, contributing to an effective price increase of approximately 1%. We will keep a close eye on cost pressures, market competition, and consumer sentiment to guide our pricing decisions in the coming quarters.

In the quarter ended June 30, 2024, commodity inflation was 6.9%, compared to 5.5% for the quarter ended June 25, 2023. Labor, as a percentage of revenue, net was flat during the quarter ended June 30, 2024 compared to the quarter ended June 25, 2023 primarily due to an increase in our average check and lower variable-based compensation, offset by lower transactions and incremental wage rate increases to support our team members.

In the quarter ended June 30, 2024, total revenue, operating income, Restaurant-Level Adjusted EBITDA, and Adjusted EBITDA all improved, while net income decreased, versus the prior year. We believe this improvement stemmed from concentrating on the four strategic pillars we unveiled in our Q1 2024 earnings call.

View full version at Portillo's

First Watch Restaurant Group, Inc. Reports Q2 2024 Financial Results

August 06, 2024 07:00 ET

Total revenues increased 19.5% Income from operations margin improved 110 basis points and Restaurant level operating profit margin improved 100 basis points Net income increased 12% to $8.9 million and Adjusted EBITDA increased 37% to $35.3 million 7 new system-wide restaurants opened across 6 states

BRADENTON, Fla., Aug. 06, 2024 (GLOBE NEWSWIRE) -- First Watch Restaurant Group, Inc. (NASDAQ: FWRG) (“First Watch” or the “Company”), the leading Daytime Dining concept serving breakfast, brunch and lunch, today reported financial results for the thirteen weeks ended June 30, 2024 (“Q2 2024”).

“We are pleased with our second quarter results and proud of our teams for delivering exceptional experiences for our customers and employees. Amidst a challenging backdrop, which we view as transitory, we are operating our restaurants at a very high level and with tremendous efficiency, as exemplified by our adjusted EBITDA growth, high customer satisfaction scores, improved employee turnover and accelerated ticket times,” said Chris Tomasso, First Watch CEO and President. “Our future growth plans remain as strong as ever, with new restaurants overall and by vintage meeting or exceeding our AUV and capital return targets, and we have more than 130 new sites in the pipeline.”

Highlights for Q2 2024 compared to Q2 2023*:

• Total revenues increased 19.5% to $258.6 million in Q2 2024 from $216.3 million in Q2 2023

• System-wide sales increased 10.1% to $299.0 million in Q2 2024 from $271.5 million in Q2 2023

• Same-restaurant sales growth of negative 0.3% and same-restaurant traffic growth of negative 4.0%*

• Income from operations margin increased to 6.4% in Q2 2024 from 5.3% in Q2 2023

• Restaurant level operating profit margin** increased to 21.9% in Q2 2024 from 20.9% in Q2 2023

• Net income increased to $8.9 million, or $0.14 per diluted share, in Q2 2024 from $8.0 million, or $0.13 per diluted share, in Q2 2023

• Adjusted EBITDA** increased to $35.3 million in Q2 2024 from $25.8 million in Q2 2023

• Opened 7 system-wide restaurants in 6 states, resulting in a total of 538 system-wide restaurants (459 company-owned and 79 franchise-owned) across 29 states

• Acquired 21 operating franchise restaurants

___________________* Comparing the thirteen-week periods ended June 30, 2024 and July 2, 2023 in order to compare like-for-like periods. See “Key Performance Indicators” for additional information.** See Non-GAAP Financial Measures Reconciliations section below.

For additional financial information related to the thirteen weeks ended June 30, 2024, refer to the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on August 6, 2024, which can be accessed at https://investors.firstwatch.com in the Financials & Filings section.

View full version at First Watch

Shake Shack Announces Second Quarter 2024 Financial Results

• Total revenue of $316.5 million, up 16.4% versus 2023, including $305.5 million of Shack sales and $11.0 million of Licensing revenue.

• System-wide sales of $483.7 million, up 13.5% versus 2023.

• Same-Shack sales up 4.0% versus 2023.

• Operating income of $10.8 million versus $4.7 million in 2023.

  • Restaurant-level profit(1) of $67.1 million, or 22.0% of Shack sales.

• Net income of $10.4 million versus $7.2 million in 2023.

  • Adjusted EBITDA(1) of $47.2 million, up 27.4% versus 2023.

• Net income attributable to Shake Shack Inc. of $9.7 million, or earnings of $0.23 per diluted share.

  • Adjusted pro forma net income(1) of $12.1 million, or earnings of $0.27 per fully exchanged and diluted share.

• Opened twelve new Company-operated Shacks, including three drive-thrus. Opened eleven new licensed Shacks.

August 01, 2024 07:00 AM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) has posted its results for the second quarter of 2024 in a Shareholder Letter in the Quarterly Results section of the Company's Investor Relations website, which can be found here: Q2 2024 Shake Shack Shareholder Letter.

Shake Shack will host a conference call at 8:00 a.m. ET. Hosting the call will be Robert Lynch, Chief Executive Officer, and Katherine Fogertey, Chief Financial Officer. The conference call can be accessed live over the phone by dialing (877) 407-0792, or for international callers by dialing (201) 689-8263. A replay of the call will be available until August 08, 2024 by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671; the passcode is 13746900.

The live audio webcast of the conference call will be accessible in the Events & Presentations section of the Company's Investor Relations website at investor.shakeshack.com. An archived replay of the webcast will also be available shortly after the live event has concluded.

(1)

Restaurant-level profit, Adjusted EBITDA and Adjusted pro forma net income (loss) are non-GAAP measures. A reconciliation to the most directly comparable financial measures presented in accordance with GAAP is set forth in the schedules accompanying this release. See “Non-GAAP Financial Measures” below.

About Shake Shack

Shake Shack serves elevated versions of American classics using only the best ingredients. It’s known for its delicious made-to-order Angus beef burgers, crispy chicken, hand-spun milkshakes, house-made lemonades, beer, wine, and more. With its high-quality food at a great value, warm hospitality, and a commitment to crafting uplifting experiences, Shake Shack quickly became a cult-brand with widespread appeal. Shake Shack’s purpose is to Stand For Something Good®, from its premium ingredients and employee development, to its inspiring designs and deep community investment. Since the original Shack opened in 2004 in NYC’s Madison Square Park, the Company has expanded to over 540 locations system-wide, including over 350 in 33 U.S. States and the District of Columbia, and 190 international locations across London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo, Seoul and more.

Skip the line with the Shack App, a mobile ordering app that lets you save time by ordering ahead! Guests can select their location, pick their food, choose a pickup time and their meal will be cooked-to-order and timed to arrival. Available on iOS and Android.

View full version at Shake Shack

THE WENDY'S COMPANY REPORTS SECOND QUARTER 2024 RESULTS

Aug 01, 2024, 07:00 ET

Dublin, Ohio, Aug. 1, 2024 /PRNewswire/ -- The Wendy's Company (NASDAQ: WEN) today reported unaudited results for the second quarter ended June 30, 2024.

"Our restaurants across the globe continued to deliver same-restaurant sales growth, holding steady with the QSR burger category in the second quarter," President and Chief Executive Officer Kirk Tanner said. "Our industry leading quality, exciting innovation, and compelling value will remain in focus as we continue to execute our customer first approach and drive the restaurant economic model throughout the rest of the year and beyond."

Second Quarter 2024 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.

View full version at Wendy's

The Cheesecake Factory Reports Results for Second Quarter of Fiscal 2024

July 31, 2024 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 2024, which ended on July 2, 2024.

Total revenues were $904.0 million in the second quarter of fiscal 2024 compared to $866.2 million in the second quarter of fiscal 2023. Net income and diluted net income per share were $52.4 million and $1.08, respectively, in the second quarter of fiscal 2024.

The Company recorded a pre-tax net expense of $1.0 million related to Fox Restaurant Concepts (“FRC”) acquisition-related expenses and impairment of assets and lease termination income. Excluding the after-tax impact of these items, adjusted net income and adjusted net income per share for the second quarter of fiscal 2024 were $53.2 million and $1.09, 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 increased 1.4% year-over-year in the second quarter of fiscal 2024.

“Building on our first quarter momentum, we delivered solid top- and bottom-line results in the second quarter contributing to a strong performance in the first half of the year,” said David Overton, Chairman and Chief Executive Officer. “Our second quarter revenue finished towards the higher end of our expectations, and we generated robust earnings growth with profit margins exceeding the high end of our expectations. Our second quarter results were led by the strength of The Cheesecake Factory restaurants. The resilient consumer demand for the distinct, high-quality dining experiences we provide our guests and brand affinity for our namesake concept has been pivotal in supporting our continued outperformance of the broader casual dining industry. Our operators drove solid operational execution within our restaurants to deliver year-over-year improvements in labor productivity and hourly staff and manager retention.”

“We opened five new restaurants across various concepts and markets during the second quarter. The strong demand and sales performance at our new restaurant openings underscores the broad appeal of our experiential concepts. With 11 restaurants opened as of today, we are well-positioned to meet our development objective to open as many as 22 new restaurants in 2024. Most importantly, following three consecutive quarters of stable topline revenue, strong operational execution and significant profitability growth, we generated the consistent results that The Cheesecake Factory has long been known for.”

Development

During the second quarter of fiscal 2024, the Company opened five new restaurants, including one Cheesecake Factory, one North Italia restaurant, two Flower Child locations and one Culinary Dropout. In addition, one Cheesecake Factory restaurant opened internationally under a licensing agreement in China. Subsequent to quarter-end, the Company opened one Blanco location.

The Company continues to expect to open as many as 22 new restaurants in fiscal 2024, including as many as three The Cheesecake Factory restaurants, six to seven North Italia restaurants, six to seven Flower Child locations, and seven to eight other Fox Restaurant Concept locations.

View full version at Cheesecake Factory

Good Times Restaurants Reports Results for the 2024 Third Fiscal Quarter Ended

June 25, 2024

August 01, 2024 04:05 PM Eastern Daylight Time

DENVER--(BUSINESS WIRE)--Good Times Restaurants Inc. (Nasdaq: GTIM), operator of the Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard restaurant brands, today reported financial results for the 2024 third fiscal quarter.

Key highlights of the Company’s financial results include:

• Total Revenues for the quarter increased 6.5% to $37.9 million compared to the third quarter of fiscal 2023

• Same Store Sales1 for company-owned Bad Daddy’s restaurants increased 1.2% for the quarter compared to the third quarter of fiscal 2023

• Same Store Sales for company-owned Good Times restaurants increased 5.8% for the quarter compared to the third quarter of fiscal 2023

• Net Income Attributable to Common Shareholders was $1.3 million for the quarter

• The Company ended the quarter with $4.8 million in cash and $0.8 million of borrowings under its credit facility with Cadence Bank

• The Company repurchased 263,516 shares of its common stock during the quarter, including approximately 171,000 shares in a privately negotiated purchase

Ryan M. Zink, the Company’s Chief Executive Officer, said, “The Good Times brand produced strong same store sales again this quarter, and we are extremely pleased with the bottom line results the concept continues to generate. During the quarter, we accomplished several significant reinvestment milestones including completion of our fourth remodel, this one much more extensive, including structural repairs. The restaurant was closed for nearly six weeks during construction. Additionally, as previously reported, in April we began the pilot phase of our next-generation point-of-sale system. We quickly realized the benefits of this new system, assessed the test results, addressed minor issues, and moved to the rollout phase of the project and as of the end of July, the system has been installed in nineteen locations, with seven Company-owned locations yet to be installed. Those restaurants will be completed within the next four weeks, with our Denver-area franchise restaurants expected to be converted shortly thereafter. We also acquired a franchisee-owned restaurant in Parker, Colorado during the quarter, and made quick improvements to the facility, including new awnings, overhauled the parking lot and landscaping, and have both digital menu boards and new signage scheduled for installation.”

View full version at Good Times Restaurants

El Pollo Loco Holdings, Inc. Announces Second Quarter 2024 Financial Results

August 01, 2024 16:05 ET

COSTA MESA, Calif., Aug. 01, 2024 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced financial results for the 13-week period ended June 26, 2024.

Highlights for the second quarter ended June 26, 2024 compared to the second quarter ended June 28, 2023 were as follows:

• Total revenue was $122.2 million compared to $121.5 million.

• System-wide comparable restaurant sales(1) increased by 4.5%.

• Income from operations was $12.3 million compared to $10.9 million.

• Restaurant contribution(1) was $19.1 million, or 18.6% of company-operated restaurant revenue, compared to $17.6 million, or 16.9% of company-operated restaurant revenue.

• Net income was $7.6 million, or $0.25 per diluted share, compared to net income of $7.1 million, or $0.20 per diluted share.

• Adjusted net income(1) was $7.8 million, or $0.26 per diluted share, compared to $8.0 million, or $0.23 per diluted share.

• Adjusted EBITDA(1) was $17.2 million, compared to $16.6 million.

--------------------

Liz Williams, Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “I am proud of the solid performance we delivered in Q2, as demonstrated by 4.5% system-wide comparable restaurant sales growth and company operated store margins of 18.6%, a 170 basis-point improvement. Our iconic Fire-Grilled Chicken, renewed focus in everyday value, and our consistent operations have clearly resonated with our guests and delivered exceptional results for the quarter. We are pleased with our results for the quarter, and believe that there is still significant potential for this beloved brand.”

View full version at El Pollo Loco

Wingstop Inc. Reports Fiscal Second Quarter 2024 Financial Results

Jul 31, 2024, 08:01 ET

Delivers 15.0% Unit Growth

Domestic Same Store Sales Increased 28.7%, Driven by Transaction Growth

DALLAS, July 31, 2024 /PRNewswire/ -- Wingstop Inc. (NASDAQ: WING) today announced financial results for the fiscal second quarter ended June 29, 2024.

Highlights for the fiscal second quarter 2024 compared to the fiscal second quarter 2023:

• System-wide sales increased 45.2% to $1.2 billion

• 73 net new openings in the fiscal second quarter 2024

• Domestic restaurant AUV increased to $2.0 million

• Domestic same store sales increased 28.7%

• Digital sales increased to 68.3% of system-wide sales

• Total revenue increased 45.3% to $155.7 million

• Net income increased 69.9% to $27.5 million, or $0.93 per diluted share

• Adjusted EBITDA, a non-GAAP measure, increased 50.7% to $51.8 million

Adjusted EBITDA is a non-GAAP measure. A reconciliation of adjusted EBITDA to the most directly comparable financial measure presented in accordance with accounting principles generally accepted in the United States ("GAAP") is set forth in the schedule accompanying this release. See "Non-GAAP Financial Measures."

"The second quarter marked another industry-leading quarter for Wingstop, further solidifying our category-of-one position.  With same store sales growth of 28.7%, driven primarily by transactions, our AUVs now exceed $2.0 million, a target we set only two years ago when AUVs just crossed $1.5 million. Due to the strength and staying power of our multi-year strategies, we believe we have line of sight to a new AUV target of $3.0 million," said Michael Skipworth, President and Chief Executive Officer. "This growth in AUVs has further enhanced our best-in-class unit economics, and as we continue to open new restaurants at a record pace, we believe there is an opportunity to more than triple our current U.S. footprint."

View full version at Wingstop

FAT Brands Inc. Reports Second Quarter 2024 Financial Results

July 31, 2024 16:05 ET

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

LOS ANGELES, July 31, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) today reported financial results for the fiscal second quarter ended June 30, 2024.

“Over the last three years, we have grown the FAT Brands portfolio to 18 iconic restaurant brands with approximately 2,300 units across 40 countries and 49 U.S. states,” said Andy Wiederhorn, Chairman of FAT Brands. “We have opened 45 restaurants year to date, including 24 that opened during the second quarter, and plan to open over 120 new restaurants in 2024. We are seeing strong new franchisee activity as well as continued demand from existing franchise partners to develop other brands within our portfolio and heightened interest from our franchise partners who are eager to explore additional co-branding opportunities that leverage synergies within our brand offerings.”

Ken Kuick, Co-Chief Executive Officer of FAT Brands, commented, “We have signed over 180 development deals year to date, compared to 226 deals for the entirety of 2023, bringing our current pipeline to approximately 1,100 locations.” Kuick continued, “Continuing in 2024 is our focus on the expansion of Twin Peaks. We opened four new lodges during the first half of 2024 and plan to open another 12 to 15 new Twin Peaks lodges in 2024, ending the year with approximately 125 lodges. Additionally, our first conversion of a Smokey Bones location is officially underway. We see this as the first of many sites we will use to fuel Twin Peaks’ fast-paced growth.”

Rob Rosen, Co-Chief Executive Officer of FAT Brands, concluded, “Opportunities in 2024 are abundant. Our long-term strategy is to create value through the organic expansion of our existing brands, acquire additional brands that strategically complement our portfolio, realize value from strategic divestments when appropriate to manage outstanding debt, and ultimately increase long-term value for our stakeholders.”

Fiscal Second Quarter 2024 Highlights

• Total revenue improved 42.4% to $152.0 million compared to $106.8 million in the fiscal second quarter of 2023

  • System-wide sales growth of 8.6% in the fiscal second quarter of 2024 compared to the prior year fiscal quarter

    • Year-to-date system-wide same-store sales declined of 1.6% in the fiscal second quarter of 2024 compared to the prior year

  • 24 new store openings during the fiscal second quarter of 2024

• Net loss of $39.4 million, or $2.43 per diluted share, compared to $7.1 million, or $0.53 per diluted share, in the fiscal second quarter of 2023

• EBITDA(1) of $6.8 million compared to $25.6 million in the fiscal second quarter of 2023

• Adjusted EBITDA(1) of $15.7 million compared to $23.1 million in the fiscal second quarter of 2023

• Adjusted net loss(1) of $30.9 million, or $1.93 per diluted share, compared to adjusted net income(1) of $3.0 million, or

$0.08 per diluted share, in the fiscal second quarter of 2023

(1) EBITDA, adjusted EBITDA and adjusted net (loss) income are non-GAAP measures defined below, under “Non- GAAP Measures”. Reconciliation of GAAP net loss to EBITDA, adjusted EBITDA and adjusted net (loss) income are included in the accompanying financial tables.

View full version at FAT Brands

GEN Restaurant Group, Inc. Announces Second Quarter 2024 Financial Results

July 31, 2024 16:05 ET

CERRITOS, Calif., July 31, 2024 (GLOBE NEWSWIRE) -- GEN Restaurant Group, Inc. (“GEN” or the “Company”) (Nasdaq: GENK), owner of GEN Korean BBQ, a fast-growing casual dining concept with an extensive menu and signature “grill at your table” experience, is announcing financial results for the second quarter ended June 30, 2024.

Second Quarter 2024 Financial and Recent Operational Highlights 

• Total revenue increased 15.9% to $53.9 million compared to the second quarter of 2023.

• Income from operations was $1.6 million and 3.0% of revenue.

• Restaurant-level adjusted EBITDA(1) was $10.2 million and 19.0% of revenue.

• Adjusted EBITDA(1) was $4.9 million and 9.1% of revenue inclusive of pre-opening expense of approximately $1.6 million.

• Net Income was $2.1 million and 3.8% of revenue.

• Cash and cash equivalents at June 30, 2024 was $29.2 million.

• Opened one location in Jacksonville, Florida and began construction on seven additional stores during the second quarter. The Company now anticipates opening 10 to 11 total new locations in 2024.

(1)  Adjusted EBITDA and restaurant-level adjusted EBITDA are non-GAAP measures. For reconciliations of adjusted EBITDA and restaurant-level adjusted EBITDA to the most directly comparable GAAP measure see the accompanying financial tables. For definitions and a discussion of why we consider them useful, see “Non-GAAP Measures” below.

Management Commentary

“Our second-quarter results highlight our ongoing commitment to improving our operating margins, rapidly expanding GEN’s geographic footprint and increasing our market share,” said David Kim, Co-Chief Executive Officer of GEN. “We are pleased to report another strong quarter with a 16% year-over-year increase in total revenue and our restaurant-level adjusted EBITDA margin exceeding expectations at 19%. While the broader environment is experiencing a pullback in consumer spending related to persistent inflationary pressures, we continue to see outperformance at the new locations we’ve opened and our entire footprint is generating profitability levels in-line or exceeding our internal targets.

“Our expansion efforts remain robust as we spent much of the quarter preparing for new restaurant openings later this year and beyond. In fact, we are increasing our guidance and now anticipate opening 10 to 11 new locations by the end of 2024, with three already complete and seven currently under construction. As we progress into the second half of the year, our focus remains steadfast on expansion while delivering an exceptional, value-focused dining experience. Initiatives like our recently introduced premium menu have performed well alongside some enhanced operational procedures, as we remain committed to keeping our customer at the forefront of everything we do. With a strong balance sheet and profitable operating model, we are confident in our ability to continue executing our growth strategy and delivering long-term value to our shareholders.”

View full version at GEN Restaurant Group

Denny’s Corporation Reports Results for Second Quarter 2024

July 30, 2024 16:05 ET

SPARTANBURG, S.C., July 30, 2024 (GLOBE NEWSWIRE) -- Denny’s Corporation (the "Company") (NASDAQ: DENN), owner and operator of Denny's Inc. ("Denny's") and Keke's Inc. ("Keke's") today reported results for its second quarter ended June 26, 2024 and provided a business update on the Company’s operations.

Kelli Valade, Chief Executive Officer, stated, "I am very pleased that for the second quarter in a row Denny's outperformed BBI Family Dining same-restaurant sales, and Keke's continued to close the gap in Florida all while navigating a very competitive environment. We are also encouraged to see these trends continuing into July, which is being bolstered by our incremental advertising investments and the expansion of our third virtual brand. Additionally, we opened our second Keke's cafe in Tennessee, as well as completed our first remodel test at our highest volume Keke's corporate location. Despite these results and staying ahead of the competition, we know the overall industry is pressured and therefore we have updated our guidance accordingly and remain confident in our strategies and initiatives.”

Second Quarter 2024 Highlights(1)

• Total operating revenue was $115.9 million compared to $116.9 million for the prior year quarter.

• Denny's domestic system-wide same-restaurant sales** were (0.6%) compared to the equivalent fiscal period in 2023, including (0.4%) at domestic franchised restaurants and (2.6%) at company restaurants.

• Opened four restaurants, including one Keke's company location.

• Operating income was $9.1 million compared to $14.9 million for the prior year quarter.

• Adjusted franchise operating margin* was $30.8 million, or 50.0% of franchise and license revenue, and Adjusted company restaurant operating margin* was $7.2 million, or 13.2% of company restaurant sales.

• Net income was $3.6 million, or $0.07 per diluted share.

• Adjusted net income* and adjusted net income per share* were $6.9 million and $0.13, respectively.

• Adjusted EBITDA* was $20.3 million.

(1) Beginning fiscal 2024, the Company has evolved its definition of non-GAAP measures. Please see the definitions, explanations, and reconciliations further in this release.

View full version at Denny's

Texas Roadhouse, Inc. Announces Second Quarter 2024 Results

July 25, 2024 16:03 ET

LOUISVILLE, Ky., July 25, 2024 (GLOBE NEWSWIRE) -- Texas Roadhouse, Inc. (NasdaqGS: TXRH), today announced financial results for the 13 and 26 weeks ended June 25, 2024.

Financial Results

Financial results for the 13 and 26 weeks ended June 25, 2024 and June 27, 2023 were as follows:

		13 Weeks Ended		26 Weeks Ended
					($000's, except per share amounts)		June 25, 2024		June 27, 2023		% change		June 25, 2024		June 27, 2023		% change
Total revenue		$	1,341,202		$	1,171,203		14.5	%		$	2,662,419		$	2,345,559		13.5	%
Income from operations			142,816			95,412		49.7	%			275,944			196,357		40.5	%
Net income			120,141			82,271		46.0	%			233,347			168,658		38.4	%
Diluted earnings per share		$	1.79		$	1.22		46.4	%		$	3.48		$	2.51		38.7	%

Results for the 13 weeks ended June 25, 2024, as compared to the prior year as applicable, included the following:

• Comparable restaurant sales increased 9.3% at company restaurants and increased 8.3% at domestic franchise restaurants;

• Average weekly sales at company restaurants were $158,991 of which $19,975 were to-go sales as compared to average weekly sales of $146,727 of which $18,496 were to-go sales in the prior year;

• Restaurant margin dollars increased 32.7% to $242.6 million from $182.8 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, increased to 18.2% from 15.7% in the prior year driven by higher sales. The benefit of a higher average guest check and improved labor productivity more than offset wage and other labor inflation of 4.4% and commodity inflation of 0.4%;

• Diluted earnings per share increased 46.4% primarily driven by higher restaurant margin dollars partially offset by higher general and administrative expenses and higher depreciation and amortization expenses;

• Six company restaurants and three franchise restaurants were opened; and

• Capital allocation spend included capital expenditures of $77.8 million, dividends of $40.7 million, and repurchases of common stock of $26.2 million.

Results for the 26 weeks ended June 25, 2024, as compared to the prior year as applicable, included the following:

• Comparable restaurant sales increased 8.9% at company restaurants and increased 8.0% at domestic franchise restaurants;

• Average weekly sales at company restaurants were $159,184 of which $20,392 were to-go sales as compared to average weekly sales of $147,579 of which $18,762 were to-go sales in the prior year;

• Restaurant margin dollars increased 27.8% to $471.1 million from $368.5 million in the prior year primarily due to higher sales. Restaurant margin, as a percentage of restaurant and other sales, increased to 17.8% from 15.8% in the prior year driven by higher sales. The benefit of a higher average guest check and improved labor productivity more than offset wage and other labor inflation of 4.4% and commodity inflation of 0.7%;

• Diluted earnings per share increased 38.7% primarily driven by higher restaurant margin dollars partially offset by higher general and administrative expenses and higher depreciation and amortization expenses;

• 15 company restaurants and six franchise restaurants were opened; and

• Capital allocation spend included capital expenditures of $155.5 million, dividends of $81.5 million, and repurchases of common stock of $35.1 million.

Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc. commented, “We continued our momentum in the current quarter as strong traffic trends and some relief on commodity inflation led to increased profitability across all of our brands. With our operators delivering solid operating results, and a balanced development pipeline, we are well positioned for the second half of the year.”

Morgan continued, “We continue to grow our brand globally and now have over 50 international franchise locations. In addition, we recently unveiled our first purpose statement of ‘Serving Communities Across America…and the World’. We are confident that through our focus on this purpose and our commitment to providing legendary food and legendary service, we will continue to generate strong operating results that will enhance long-term shareholder value.”

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BJ’s Restaurants, Inc. Reports Fiscal Second Quarter 2024 Results

July 25, 2024 16:03 ET

HUNTINGTON BEACH, Calif., July 25, 2024 (GLOBE NEWSWIRE) -- BJ’s Restaurants, Inc. (NASDAQ: BJRI) today reported financial results for its fiscal 2024 second quarter ended Tuesday, July 2, 2024.

Fiscal Second Quarter 2024 Compared to Fiscal Second Quarter 2023

• Total revenues increased 0.1% to $349.9 million

• Comparable restaurant sales declined 0.6%

• Total restaurant operating weeks increased 0.4%

• Net income of $17.2 million, compared to $11.9 million; diluted net income per share of $0.72, compared to $0.50

• Adjusted EBITDA of $36.1 million, compared to $31.8 million

“Our second quarter results demonstrate continued success with the growth and productivity initiatives that we outlined during last year’s Investor Day,” commented Greg Levin, Chief Executive Officer and President. “After a softer sales start in April, comparable restaurant sales improved throughout the second quarter as guests chose BJ’s for their most important celebrations. Approximately half of our restaurants set sales records during the quarter, particularly around Mother’s Day, Father’s Day and graduations. The improving sales trend, coupled with our productivity initiatives, drove restaurant level operating margins higher by 100 basis points to 15.5% and Adjusted EBITDA higher by $4.3 million, or 13%, on a year-over-year basis.

“Our $70 million to $75 million capital expenditures target for 2024 will result in significant free cash flow generation this year,” Levin continued. “With this free cash flow, our capital allocation priorities will focus on continued investment in growth initiatives with attractive financial returns, while returning capital to shareholders through share repurchases,” concluded Levin.

BJ’s opened one new restaurant in the first half of 2024 and remains on track to open two additional restaurants in the second half of the year. All future BJ’s will feature a new restaurant prototype budgeted at approximately $1 million less than the prior prototype, while providing greater operating efficiencies and incorporating the best elements of BJ’s ongoing restaurant remodel initiative, including a new bar statement with the guest-favorite 130" television as a centerpiece. New restaurant openings are complemented by BJ’s remodel initiative, which continues to deliver attractive financial returns driven by improved guest traffic trends. By the end of 2024, approximately half of BJ’s restaurants will be either a newer prototype or recently remodeled, further elevating the attractiveness of the BJ’s concept to current and new guests.

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Chipotle Announces Second Quarter 2024 Results

Jul 24, 2024, 16:10 ET

COMPARABLE SALES INCREASE 11% DRIVEN BY OVER 8% TRANSACTION GROWTH AS MARGINS EXPAND

NEWPORT BEACH, Calif., July 24, 2024 /PRNewswire/ -- Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its second quarter ended June 30, 2024.

Second quarter highlights, year over year:

• Total revenue increased 18.2% to $3.0 billion

• Comparable restaurant sales increased 11.1%

• Operating margin was 19.7%, an increase from 17.2%

• Restaurant level operating margin was 28.9%1, an increase of 140 basis points

• Diluted earnings per share was $0.33, a 32.0% increase from $0.25. Adjusted diluted earnings per share, which excluded a $0.01 after-tax impact from an unrealized loss on a long-term investment and an increase in legal reserves, was $0.341, a 36.0% increase from $0.251

• Opened 52 new company-operated restaurants with 46 locations including a Chipotlane, and one international licensed restaurant

"The second quarter was outstanding as successful brand marketing, including the return of Chicken Al Pastor, drove strong demand to our restaurants. Our focus and training around throughput paid off as we were able to meet the stronger demand trends with terrific service and speed driving over 8% transaction growth in the quarter," said Brian Niccol, Chairman and CEO, Chipotle.

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Darden Restaurants to Acquire Chuy's Holdings, Inc. in Approximately $605 Million Transaction

July 17, 2024

ORLANDO, Fla. and AUSTIN, Texas, July 17, 2024 /PRNewswire/ -- Darden Restaurants, Inc. ("Darden") (NYSE:DRI) and Chuy's Holdings, Inc. ("Chuy's") (Nasdaq: CHUY), jointly announced today that they have entered into a definitive agreement pursuant to which Darden will acquire all of the outstanding shares of Chuy's for $37.50 per share, in an all-cash transaction with an enterprise value of approximately $605 million. Chuy's will complement Darden's portfolio of iconic brands, which currently includes Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V's and Bahama Breeze.

Founded in Austin, Texas, in 1982, Chuy's owns and operates full-service restaurants serving a distinct menu of authentic, made-from-scratch Tex-Mex inspired dishes. Chuy's highly flavorful and freshly prepared fare is served in a fun, eclectic and irreverent atmosphere, while each location offers a unique, "unchained" look and feel, as expressed by Chuy's motto "If you've seen one Chuy's, you've seen one Chuy's!" Chuy's had 101 restaurants in 15 states as of July 16, 2024, and in the latest twelve months ending March 31, 2024 generated total revenues over $450 million, and average annual restaurant volumes of $4.5 million.

"Chuy's is a differentiated brand within the full-service dining industry with strong performance and growth potential," said Darden President and CEO Rick Cardenas. "Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy's is an excellent fit that supports our winning strategy. I am excited to welcome their 7,400 team members to Darden and diversify the Darden portfolio into a new dining category."

Steven Hislop, Chairman, CEO and President of Chuy's, stated, "We are excited about the opportunity to join the Darden family and its portfolio of well-respected brands. Darden shares many of our same core values, particularly our operating philosophy and strong team member cultures. Together we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities."

Highlights

• Darden has agreed to acquire Chuy's for $37.50 per share in cash, with a total transaction enterprise value of approximately $605 million, a 40% premium to the 60-day volume weighted average price.

• Purchase price represents a 10.3x implied multiple of Chuy's latest twelve months ending March 31, 2024 Transaction Adjusted EBITDA.*

• Darden expects pre-tax net synergies of approximately $15 million by the end of its fiscal 2026.

• Total acquisition and integration-related expenses are expected to be approximately $50 to $55 million, pre-tax.

• Expected to be neutral to Darden's diluted net earnings per share for its fiscal 2025, excluding acquisition and integration-related expenses, and accretive by approximately 12 to 15 cents in its fiscal 2027.

• Transaction is expected to be completed in Darden's fiscal second quarter, subject to satisfaction of customary closing conditions.

• The transaction has been unanimously approved by the boards of directors of both Darden and Chuy's.

* See the "Non-GAAP Information" below for more details, including Darden's definition of Transaction Adjusted EBITDA and a reconciliation to Chuy's Net Income.

Summary of the Transaction

Under the terms of the merger agreement, Darden will acquire all of the outstanding shares of Chuy's for $37.50 per share in cash. Chuy's board of directors unanimously approved the merger agreement with Darden and determined to recommend that Chuy's stockholders vote to adopt the merger agreement.  The definitive merger agreement includes a 30-day "go-shop" period that will allow Chuy's to affirmatively solicit alternative proposals from interested parties. 

Darden has sufficient liquidity to complete the all-cash transaction. Darden expects to continue to maintain a strong balance sheet and have sufficient capital to achieve its stated capital allocation priorities of maintaining existing restaurants, growing new restaurants and returning capital to shareholders through dividends and strategic share repurchases.

The transaction is expected to close in Darden's fiscal second quarter subject to certain conditions set forth in the merger agreement, including the approval by a majority of Chuy's stockholders, the expiration or termination of the applicable waiting period under the HSR Act and other customary conditions.

Advisors BofA Securities is acting as financial advisor and Hunton Andrews Kurth LLP is acting as legal advisor to Darden.

Piper Sandler is acting as financial advisor and Winston & Strawn LLP is acting as legal advisor to Chuy's.

Investor Conference Call Darden will host a conference call to discuss the transaction on Thursday, July 18, 2024, at 10:00 am ET.  To listen to the call live, please go to https://event.choruscall.com/mediaframe/webcast.html?webcastid=17uPZVSK at least fifteen minutes early to register, download, and install any necessary audio software. Prior to the call, a slide presentation will be posted on the Investor Relations section of Darden's website at: www.darden.com. For those who cannot access the Internet, please dial 877-407-9219. For those who cannot listen to the live broadcast, a replay will be available on the Investor Relations section of Darden's website at: www.darden.com shortly after the call.

About Darden Darden is a restaurant company featuring a portfolio of differentiated brands that include Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V's and Bahama Breeze. For more information, please visit www.darden.com.

About Chuy's Founded in Austin, Texas in 1982, Chuy's owns and operates full-service restaurants across 15 states serving a distinct menu of authentic, made from scratch Tex-Mex inspired dishes. Chuy's highly flavorful and freshly prepared fare is served in a fun, eclectic and irreverent atmosphere, while each location offers a unique, "unchained" look and feel, as expressed by Chuy's motto "If you've seen one Chuy's, you've seen one Chuy's!" For further information, please visit www.chuys.com.

View source version at Darden