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J. Alexander’s Holdings, Inc. Reports Results for Fourth Quarter and Full Year Ended January 3, 2021; Sales Recovery Continues in Fiscal 2021; Fourth Quarter Operating Cash Flows Beats Prior Year
March 15, 2021 08:14 AM Eastern Daylight Time
NASHVILLE, Tenn.--(BUSINESS WIRE)--J. Alexander’s Holdings, Inc. (NYSE: JAX) (the “Company”), owner and operator of J. Alexander’s, Redlands Grill, Stoney River Steakhouse and Grill and other restaurants, today provided a business update and reported results for the fourth quarter and year ended January 3, 2021. Fiscal 2020 included 53 weeks as compared to 52 weeks in fiscal 2019, and the fourth quarter of fiscal 2020 included 14 weeks as compared to 13 weeks in the corresponding period of fiscal 2019.
Mark A. Parkey, Chief Executive Officer of J. Alexander’s Holdings, Inc., stated, “As we approach the one-year anniversary of the mid-March 2020 mandated dining room closures after the onset of the novel coronavirus (COVID-19) pandemic, I want to take this opportunity to reflect on the resilience and perseverance that our restaurant management and hourly teams have demonstrated over the last twelve months- all while adapting to a new business model that includes carry-out, restricted indoor seating capacities, daily sanitation protocols, enhanced technology features, rapid product development and deployment, and staffing challenges. They have consistently risen to the occasion, and I could not be prouder of the accomplishments that we have collectively achieved over this past year.” Parkey continued, “I am also encouraged by our sales recovery in the first two periods of 2021. In January and February 2021, our sales reached approximately 75% and 85%, respectively, of sales for the same periods of 2020 and approximately 78% and 88% of the same periods of 2019. Given the recent announcements easing capacity restrictions in various states, we are optimistic that sales will continue to build toward pre-pandemic levels.”
Fourth Quarter 2020 Highlights Compared To The Fourth Quarter Of 2019
Cash flow from operations for the fourth quarter of 2020 was $7,603,000 as compared to cash flow from operations in the fourth quarter of 2019 of $6,501,000.
Net sales for the fourth quarter of 2020 were $52,569,000, down from $63,439,000 reported in the fourth quarter of 2019. The fourth quarter of fiscal 2020 included 14 weeks, as compared to 13 weeks included in the fourth quarter of 2019. This extra week in the 2020 fourth quarter included the New Year’s holiday period, and management estimates that it contributed approximately $4,300,000 to net sales for the quarter.
Average weekly same store sales per restaurant (1) for the fourth quarter of 2020 were down 21.4% to $90,500 for the J. Alexander’s/Grill restaurants and down 24.9% to $63,100 for the Stoney River Steakhouse and Grill restaurants compared to the fourth quarter of 2019.
Income from continuing operations before income taxes totaled $1,257,000 for the fourth quarter of 2020. This compares to income from continuing operations before income taxes of $1,753,000 in the fourth quarter of 2019. Management estimates that the extra week contributed approximately $770,000 in income from continuing operations before income taxes to fourth quarter 2020 results. Additionally, during the fourth quarter of 2020, the Company recorded $1,082,000 in estimated Employee Retention Credits (discussed further below) which increased income from continuing operations before income taxes by the same amount.
Results for the fourth quarter of 2020 included an income tax benefit of $2,707,000 compared to an income tax benefit of $330,000 in the fourth quarter of 2019.
Net income for the fourth quarter of 2020 totaled $3,921,000 compared to net income of $2,030,000 in the fourth quarter of 2019.
Basic and diluted earnings per share were $0.27 for the fourth quarter of 2020 compared to basic and diluted earnings per share of $0.14 for the fourth quarter of 2019.
Adjusted EBITDA (2) was $4,493,000 in the fourth quarter of 2020 compared to $6,960,000 in the fourth quarter of 2019. Management estimates that the 53rd week included in the fourth quarter of 2020 contributed approximately $820,000 to Adjusted EBITDA.
Restaurant Operating Profit Margin (3) was 11.2% in the fourth quarter of 2020 compared to 12.2% for the fourth quarter of 2019.
Food and beverage costs as a percentage of net sales in the fourth quarter of 2020 were 30.8% compared to 32.9% in the fourth quarter of 2019.
As previously disclosed, the Company’s 2020 fourth quarter results were negatively impacted by dining room closures and increased capacity restrictions that began in mid-November 2020 and carried into January of 2021. As a result of those capacity constraints and the ongoing pandemic, the Company experienced downward trends in its average weekly same store sales(1) during the fourth quarter of 2020. Average weekly same store sales(1) comparisons by month for the fourth quarter of 2020 as compared to the same periods of 2019 are as follows:
October 2020
(4 weeks)
November 2020
(4 weeks)
December 2020
(6 weeks)
J. Alexander’s / Grill Restaurants
(11.2)%
(20.4)%
(28.9)%
Stoney River Steakhouse and Grill
(10.3)%
(21.1)%
(36.2)%
Off-premise sales continued to represent a meaningful portion of the Company’s business during the fourth quarter of 2020, comprising approximately 20% of total net sales for the quarter, which represents approximately $730,000 on average in off-premise sales weekly. As previously disclosed, off-premise sales were particularly robust during the holiday season and averaged approximately $850,000 weekly during the final six weeks of 2020 (i.e. the December 2020 accounting period).
As mentioned above, an additional item impacting fourth quarter 2020 results is the anticipated impact of the Employee Retention Credit available to the Company under the CARES Act, which was recorded as a reduction to “restaurant labor and related costs” totaling $1,082,000, which was the amount deemed probable of realization by the Company related to payroll costs incurred during the first three quarters of 2020. The Company has treated this as a reduction to Adjusted EBITDA(2) for the fourth quarter of 2020 given its unusual nature. An analysis of the payroll costs incurred by the Company during the fourth quarter of 2020 with regard to any potential Employee Retention Credits is ongoing and will be recorded if and when realization of such credits is deemed probable.
View full version at J. Alexander's
Del Taco Restaurants, Inc. Reports Fiscal Fourth Quarter and Fiscal Year 2020 Financial Results
March 08, 2021 04:05 PM Eastern Standard Time
LAKE FOREST, Calif.--(BUSINESS WIRE)--Del Taco Restaurants, Inc. (“Del Taco” or the “Company”), (NASDAQ: TACO), the second largest Mexican-American quick service restaurant chain by units in the United States, today reported fiscal fourth quarter and fiscal year 2020 financial results for the 16-week and 52-week periods ending December 29, 2020 and provided a business update.
Management Commentary
John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “We delivered a solid fourth quarter performance in terms of comparable restaurant sales growth, restaurant contribution margin and adjusted EBITDA performance. Our great food, great value, and great experiences drove overall satisfaction scores to record levels, while the success of our Crispy Chicken menu and seasonal Tamale promotion enabled us to grow system-wide comparable restaurant sales while navigating through the clear headwinds affecting our industry. The hard work of our restaurant teams and support center staff helped us manage our margins and profitability despite the many challenges presented by the ongoing pandemic. In doing so, during the second half of 2020 we demonstrated not only the resilience of our business, but also accelerated performance which sets us up for success in 2021.”
Cappasola continued, “Both company-operated and franchise restaurants continue to generate positive comparable restaurant sales to date in the first quarter and have demonstrated sequential improvement compared to the fourth quarter last year. We further expect accelerated performance for the remainder of the first quarter and through the second quarter as we lap the initial COVID-19 impact. In addition, we believe our five drivers of acceleration, coupled with ongoing margin management strategies, will help drive our results in the second half of the year and facilitate modest restaurant contribution margin expansion on an annual basis.”
Fiscal Fourth Quarter 2020 Highlights
System-wide comparable restaurant sales increased 3.8%;
Company-operated comparable restaurant sales increased 0.6%;
Franchised comparable restaurant sales increased 7.5%;
Total revenue of $156.7 million, representing a 0.2% decline from the fiscal fourth quarter 2019;
Company-operated restaurant sales of $141.7 million, representing a 2.2% decline from the fiscal fourth quarter 2019 primarily due to fewer company-operated restaurants open during 2020 compared to 2019 due to our refranchising activity;
Company-operated comparable restaurant sales within Los Angeles, Orange and Clark (Las Vegas) counties representing approximately half of company-operated restaurants were notably negative, while all other company-operated counties had positive comparable restaurant sales;
Net income of $7.5 million, or $0.20 per diluted share, compared to net loss of $114.1 million, or $3.08 per diluted share, in the fiscal fourth quarter 2019;
Adjusted net income* of $7.5 million, or $0.20 per diluted share, compared to adjusted net income* of $6.7 million, or $0.18 per diluted share, in the fiscal fourth quarter 2019;
Restaurant contribution* margin of 17.0% compared to 17.4% in the fiscal fourth quarter 2019;
Adjusted EBITDA* of $18.4 million compared to $20.5 million in the fiscal fourth quarter 2019; and
Two franchise-operated restaurants opened and two franchise-operated restaurants closed.
Fiscal Year 2020 Highlights
System-wide comparable restaurant sales decreased 0.9%;
Company-operated comparable restaurant sales decreased 2.9%;
Franchised comparable restaurant sales increased 1.4%;
Total revenue of $491.9 million, representing a 4.1% decrease from the fiscal year 2019;
Company-operated restaurant sales of $446.8 million, representing a 5.7% decline from the fiscal year 2019 in part due to fewer company-operated restaurants open during 2020 compared to 2019 due to our refranchising activity;
Net loss of $89.7 million, or $2.41 per diluted share, compared to net loss of $118.3 million, or $3.20 per diluted share, in fiscal year 2019;
Adjusted net income* of $13.5 million, or $0.36 per diluted share, compared to adjusted net income* of $17.7 million, or $0.47 per diluted share, in the fiscal year 2019;
Restaurant contribution* margin of 16.1% compared to 17.3% in the fiscal year 2019;
Adjusted EBITDA* of $54.6 million compared to $63.8 million in the fiscal year 2019; and
Three company-operated and seven franchise-operated restaurants opened, two company-operated and eight franchise-operated restaurants closed, and six company-operated restaurants were sold to franchisees.
* Adjusted net income, 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.
Review of Fiscal Fourth Quarter 2020 Financial Results
Total revenue decreased 0.2% to $156.7 million compared to $157.1 million in the fiscal fourth quarter 2019. Comparable restaurant sales increased 3.8% system-wide, increased 0.6% at company-operated restaurants, and increased 7.5% at franchised restaurants.
Net income was $7.5 million, or $0.20 per diluted share, compared to net loss of $114.1 million, or $3.08 per diluted share, last year.
Adjusted net income*, which excludes various items, was $7.5 million or $0.20 per diluted share compared to adjusted net income* of $6.7 million or $0.18 per diluted share last year.
Restaurant contribution* was $24.1 million compared to $25.2 million in the fiscal fourth quarter 2019. As a percentage of company-operated restaurant sales, restaurant contribution margin decreased 40 basis points year-over-year to 17.0%. The decrease was the result of an approximate 110 basis point decrease in food and paper costs, an approximate 20 basis point decrease in labor and related expenses, and an approximate 170 basis point increase in occupancy and other operating expenses.
Adjusted EBITDA* was $18.4 million compared to $20.5 million in the fiscal fourth quarter 2019.
View full version at Del Taco
Ruth’s Hospitality Group, Inc. Reports Fourth Quarter With a Return to Positive Net Income
March, 8 2021
Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) last week provided a business update on the impact of the COVID-19 pandemic and reported unaudited financial results for its fourth quarter and fiscal year ended December 27, 2020.
Business and Liquidity Update:
At the end of the fourth quarter of 2020, 91% (70 of 77) of company-owned and managed restaurants were open, which included 48 restaurants offering limited capacity dining service, three restaurants offering outdoor seating only, and 19 restaurants offering to-go and delivery service only. Beginning in the second half of November, the Company faced an increasing number of local COVID-19 pandemic-related governmental restrictions, including all of the Company’s California-based restaurants being limited to to-go and delivery service only.
93% (67 of 72) of the Company’s franchisee-owned restaurants were open as of the end of the fourth quarter, which included 60 restaurants offering limited capacity dining service, two restaurants offering outdoor seating only, and five restaurants offering to-go and delivery service only.
Fourth quarter comparable restaurant sales at Company-owned restaurants decreased 39.7% compared to the fourth quarter of 2019. While sales trends improved in October with comparable sales down 26.1% at Company-owned restaurants compared to 2019, the renewed COVID-related restrictions negatively impacted sales trends in November and December, with comparable sales down 35.2% and 53.9% compared to 2019, respectively. In 2021, we have seen improved performance in January and February with Company-owned comparable sales down 38.9% and 25.6% compared to 2020, respectively, reflecting restaurants shifting to open or outdoor dining status.
Fourth quarter comparable sales for Company-owned restaurants with open dining rooms decreased 24.4% compared to the fourth quarter of 2019. In 2021, comparable sales for Company-owned restaurants with open dining rooms decreased 16.3% through February compared to 2020.
As of December 27, 2020, the Company’s cash balance was approximately $95.4 million, with $115.0 million of debt outstanding under its senior credit facility and $4.8 million of outstanding letters of credit.
During the fourth quarter, the Company repaid $20.2 million in debt and secured a term extension to February 2023 on its senior credit facility.
On January 28, 2021, the Company entered into an amendment to its existing $120.0 million credit agreement that provided for a $10.0 million commitment reduction from the existing credit agreement. The amendment also extended relief from the financial covenants to maintain a specified quarterly minimum adjusted Fixed Charge Coverage Ratio and maximum Consolidated Leverage Ratio until the second fiscal quarter of 2021.
As of February 26, 2021, the Company’s cash balance was approximately $112.0 million.
Highlights for the Fourth Quarter 2020
Total revenue in the fourth quarter of 2020 was $77.4 million, compared to $135.0 million in the fourth quarter of 2019.
Net income in the fourth quarter of 2020 was $1.4 million, or $0.04 per diluted share, compared to net income of $14.5 million, or $0.50 per diluted share, in the fourth quarter of 2019.
Net income in the fourth quarter of 2020 included a $2.5 million employee retention payroll tax credit, which reduced restaurant operating expenses; $322 thousand in severance costs and accelerated stock expense; $28 thousand in gain related to lease modifications; a $295 thousand impairment loss related to restaurant closures, and a $1.1 million income tax expense related to the impact of discrete income tax items. Net income in the fourth quarter of 2019 included $124 thousand in acquisition-related expenses associated with the previously completed acquisition of the three restaurants from our Philadelphia and Long Island franchisee and $374 thousand in closure costs associated with accelerating the closure of a restaurant in Washington, DC.
Excluding these items, non-GAAP diluted earnings per common share was $0.03 in the fourth quarter of 2020, compared to $0.52 in the fourth quarter of 2019. The Company believes that non-GAAP diluted earnings per common share provides a useful alternative measure of financial performance to improve comparability of diluted earnings per common share between periods. Investors are advised to see the attached Reconciliation of Non-GAAP Financial Measure table for additional information.
Cheryl Henry, President and Chief Executive Officer of Ruth's Hospitality Group, Inc., stated, “2020 was truly a challenging year for our Ruth’s Chris team and our franchisees. We managed through two significant shutdowns during the year, the first in late March, and the other most recently during our fourth quarter. Despite these challenges, I’m pleased that our amazing team and franchise partners displayed resilience and agility in the face of uncertainty, resulting in strong fourth quarter results.”
Henry added, “COVID has taught us flexibility and innovation, which includes new operating procedures at the restaurant level as well as a more flexible labor model, better capacity utilization, and the adoption of technology not only by us as an organization, but by our customers. With an iconic, 55-year old brand behind these efforts we are proud of where we are today and optimistic about the future.”
View full version at Ruth's Hospitality
Fiesta Restaurant Group, Inc. Reports Fourth Quarter 2020 Results
March, 8 2021
Pollo Tropical Q4 Adjusted EBITDA % of Restaurant Sales Increased from 11.8% in 2019 to 13.8% in 2020 - Taco Cabana Q4 Adjusted EBITDA of $2.5 million Compared to Adjusted EBITDA loss in 2019
Fiesta Restaurant Group, Inc. (NASDAQ: FRGI), parent company of the Pollo Tropical and Taco Cabana restaurant brands, last week reported results for the 14-week fourth quarter 2020, which ended on January 3, 2021 and provided a business update related to current operations. The Company uses a 52 or 53 week fiscal year ending on the Sunday nearest to December 31. The fourth quarter of 2019 included 13 weeks.
Fiesta President and Chief Executive Officer Richard Stockinger said, "Both of our brands showed improvement in comparable restaurant sales from the third quarter to the fourth quarter. Pollo Tropical comp sales accelerated from -11.1% in the third quarter of 2020 to -8.2% in the fourth quarter of 2020 and improved to -6.4% in December. After adjusting for the impact of named storms in the third and fourth quarters, Pollo Tropical's sales growth in the fourth quarter would have been even stronger, with adjusted fourth quarter 2020 comp sales approximately 40 basis points higher. Taco Cabana also improved its comparable restaurant sales trend from -14.2% in the third quarter of 2020 to -10.0% in the fourth quarter of 2020. January 2021 comp sales trends showed growth compared to the fourth quarter at both brands. In February 2021, we began to open additional dining rooms at both brands based on what we believe to be an increase in consumer demand for dine-in visits."
Stockinger added, "As we closed 2020, we were pleased with the progress we made against our priorities identified in March when the pandemic began: We continue to place the safety of our guests and employees first, we maximized liquidity through increased restaurant EBITDA margins, working capital efficiency and property sales, and we made important investments in our digital platform that we expect will contribute to strong sales growth in 2021. In addition, we made progress in aggressively growing all off-premise sales channels in an effort to offset our pre-COVID estimated dine-in sales mix of approximately 25% for both brands. In the fourth quarter, both brands generated drive-thru comparable restaurant sales growth of at least 24% compared to the same period last year and we more than tripled our delivery sales compared to the same period last year."
Stockinger continued, "In the fourth quarter of 2020, we improved Adjusted EBITDA margins at both brands compared to the fourth quarter of 2019. Net income was $0.9 million and pre-tax income was $1.5 million for the quarter, which included total gains on the sale or sale-leaseback of properties of $2.2 million. Consolidated Adjusted EBITDA, a non-GAAP measure(1), increased 42% compared to the same period last year to $14.6 million. After excluding the extra week in the 2020 fiscal year, estimated fourth quarter Consolidated Adjusted EBITDA grew 13.4% compared to 2019. The impact of the extra week in fiscal 2020 on Consolidated Adjusted EBITDA is estimated at $2.9 million. Our overall financial position improved from the start of the pandemic, with a reduction in total debt from $148.4 million as of March 18, 2020 at the start of the pandemic to $73.3 million as of January 3, 2021 and net debt, a non-GAAP financial measure(2), of $23.3 million as of January 3, 2021. In addition, we generated full year cash flow provided by operating activities of $40.3 million."
Stockinger concluded, "In 2021 we will continue to concentrate on non-dine-in trade channels to match the evolving changes in customer behavior, and will focus on creating a great guest experience across all channels. We are planning to make further enhancements to our digital platform and improvements in the speed and ease of use for off-premise sales channels such as an enhanced digital drive-thru experience, geofencing technology designed to improve curbside speed and infrastructure changes designed to improve order cycle times for drive-thru and delivery orders. We also intend to continue to drive traffic and check through differentiated new menu introductions, effective LTO's and improved marketing. We are optimistic about 2021 and believe that our growth initiatives will build momentum and accelerate sales over the course of 2021."
View full version at Fiesta Restaurant Group
Thompson Street Capital Partners Acquires Freddy’s Frozen Custard & Steakburgers
March 4, 2021
St. Louis, MO (RestaurantNews.com) Thompson Street Capital Partners (TSCP), a private equity firm based in St. Louis, has acquired Freddy’s Frozen Custard & Steakburgers (Freddy’s), a Kansas-based franchisor of fast casual restaurants. Terms of the transaction were not disclosed.
Founded in 2002 with its first company-owned location in Wichita, Freddy’s fast casual restaurants feature steakburgers, shoestring fries, and freshly churned frozen custard. The Company’s family friendly restaurants focus on premium quality ingredients, cooked-to-order food, and best-in-class hospitality. Since opening the first franchise location in 2004, Freddy’s award-winning system has rapidly expanded to more than 360 franchised locations and over 30 company-operated restaurants spanning more than 30 states nationwide.
Randy Simon, Freddy’s co-founder and CEO, said, “When Freddy, Bill, Scott and I started Freddy’s in 2002, our goal was to serve craveable food to our guests with quick-service speed and full-service hospitality at a price that was fair and competitive. There remains a large segment of the country where we are not present and by partnering with TSCP we will be better able to expand in those areas and continue our strong growth going forward. Obviously, the credit goes to our Team Members who have contributed immensely to our success to date and to our close-knit family of franchisees who have devoted their time and capital to develop the Freddy’s brand. We are confident that TSCP shares our values and philosophies as we continue to be guided by The Freddy’s Way in all we do.”
Scott Redler, co-founder and COO, added, “By operating The Freddy’s Way, we have developed close relationships with each and every franchisee, prioritizing their growth and success above all. We have continued to invest in an unparalleled corporate support system to ensure our operators have the resources they need, and our partnership with TSCP will elevate those capabilities and enable us to take our franchisee support to another level. When we were introduced to the exceptional team at TSCP, it was apparent that our core values and company culture aligned, making them the perfect fit for our Freddy’s family of Team Members, franchisees and vendor partners.”
Bob Dunn, Managing Partner, TSCP, said, “Freddy’s is a highly unique, scaled franchisor platform that has built a premium brand over the past two decades with leading franchisee retention, remarkable growth, and a passionate guest following of ‘FredHeads.’ We look forward to working with the outstanding team at Freddy’s to accelerate the Company’s already exceptional growth.”
Joe St. Geme, Director, TSCP, added, “Freddy’s presents an exciting opportunity to partner with the founders and management to continue to grow a premier system by accelerating franchise development, increasing focus on marketing and technology deployment, and enabling operational best practices across the footprint. We are thrilled to join the Freddy’s family and are excited to invest behind the continued successful expansion of the Freddy’s brand.”
View source version at Thompson Street Capital - Freddy's
Red Robin Gourmet Burgers, Inc. Reports Results for the Fiscal Fourth Quarter and Year Ended December 27, 2020
March 03, 2021 04:05 PM Eastern Standard Time
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) ("Red Robin" or the "Company"), a full-service restaurant chain serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today reported financial results for the quarter and year ended December 27, 2020.
Fourth Quarter 2020 Financial Summary Compared to Fourth Quarter 2019
Total revenues were $201.1 million, a decrease of 33.6%, primarily due to the impacts of the COVID-19 pandemic including related state and local dining room restrictions;
Comparable restaurant revenue decreased 29.0%;
Off-premise sales increased 131.8% and comprised 43.9% of total food and beverage sales, with approximately 80% of off-premise orders driven through digital channels;
Net loss was $39.3 million compared to net loss of $7.7 million;
GAAP loss per diluted share was $2.53 compared to GAAP loss per diluted share of $0.60;
Adjusted loss per diluted share was $1.79 compared to adjusted loss per diluted share of $0.36 (see Schedule I);
Adjusted EBITDA was a loss of $6.4 million compared to adjusted EBITDA of $26.7 million (see Schedule III); and
The Company received $49.4 million in cash tax refunds, including interest, and expects to generate approximately $16 million of additional cash refunds within the next twelve months.
Paul J. B. Murphy III, Red Robin’s President and Chief Executive Officer, said, "2020 was a challenging year for our Team Members, for the Communities and Guests that we serve, and for our business. However, not only did Red Robin persevere, we took advantage of the opportunity created by the pandemic to improve our Guest experience and strengthen our enterprise business model. We implemented our Total Guest Experience hospitality model, optimized our management labor structure, simplified our menu, and renegotiated our lease portfolio, all of which will enable us to generate more than 100 basis points of incremental enterprise-level margin improvement when we return to pre-COVID sales volumes. In the first quarter of 2021, we also secured a second amendment to our credit facility, which provides increased near-term flexibility as we continue to de-lever our balance sheet and strategically position the brand for the future."
Murphy concluded, "There is no doubt that increased dining restrictions during the fourth quarter in California, Colorado, Oregon, and Washington had a significant, negative impact to our topline momentum. However, we are bullish as we look to the future reopening of these markets, which represented almost 40% of our 2019 restaurant sales. We are very encouraged by our recent sales trajectory, and as capacity restrictions loosen in these Western markets, we believe our geographic mix will drive sales growth that outpaces the industry. In addition, we are confident that the continued rollout of Donatos®, which we expect will generate over $60 million in annual pizza sales by 2023, higher off-premise sales, record Guest satisfaction scores, and other Company sales drivers will augment our strengthening business results and create and grow long-term value for our shareholders."
Fourth Quarter 2020 Operating Results
Total revenues, which primarily include Company-owned restaurant revenue and franchise royalties, decreased $101.9 million to $201.1 million in the fourth quarter of 2020, from $302.9 million in the fourth quarter of 2019. Restaurant revenue decreased $101.2 million due to a $78.2 million decrease in comparable restaurant revenue(1) and a $23.0 million decrease primarily from closed restaurants. The decrease in comparable restaurant revenue was driven by restaurants operating at limited occupant capacity for dining rooms that were opened during the quarter, off-premise only restaurants with closed dining rooms, or closed restaurants due to the COVID-19 pandemic. Restaurants which offered Donatos® in the fourth quarter outperformed non-Donatos® restaurants with similar indoor dining restrictions by over 500 basis points, partially offsetting the decline in comparable restaurant revenue.
System-wide restaurant revenue, which includes $49.9 million of restaurant revenue reported by our franchisees, for the fourth quarter of 2020 totaled $245.4 million, compared to $361.6 million for the fourth quarter of 2019.
Comparable restaurant revenue(1) decreased 29.0% in the fourth quarter of 2020 compared to the same period a year ago, driven by a 28.8% decrease in Guest count and a 0.2% decrease in average Guest check. The decrease in average Guest check resulted from a 2.9% decrease in menu mix and a 0.3% decrease from higher discounts, partially offset by a 3.0% increase in pricing. The decrease in menu mix was primarily driven by lower sales of beverages and Finest burgers as a result of limited dining room capacity at reopened restaurants and operating off-premise only at restaurants with closed dining rooms.
Net loss was $39.3 million for the fourth quarter of 2020 compared to net loss of $7.7 million for the same period a year ago. Adjusted net loss (a non-GAAP financial measure) was $27.8 million for the fourth quarter of 2020 compared to adjusted net loss of $4.7 million for the same period a year ago (see Schedule I).
Restaurant-level operating profit as a percentage of restaurant revenue (a non-GAAP financial measure) was 6.2% in the fourth quarter of 2020 compared to 18.9% in the same period a year ago. The decrease was primarily due to sales deleverage, higher hourly wages and benefits costs, and costs driven by higher off-premise sales, partially offset by pricing, favorable commodity costs, and lower janitorial and maintenance costs. Schedule II of this earnings release defines restaurant-level operating profit, discusses why it is a useful metric for investors, and reconciles this metric to loss from operations and net loss, the most directly comparable GAAP metrics.
View full version at Red Robin
The Wendy's Company Reports Fourth Quarter And Full Year 2020 Results
Mar 03, 2021, 07:00 ET
DUBLIN, Ohio, March 3, 2021 /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) today reported results for the fourth quarter and fiscal year ended January 3, 2021.
"I could not be more proud of our results and the work that was done by the Wendy's® System across the globe in 2020 with all the challenges we faced and overcame during the year. I am confident that we have emerged as a stronger, more unified brand that is poised to deliver outsized growth" President and Chief Executive Officer Todd Penegor said. "We accomplished a lot in 2020, including securing our position as the #2 QSR hamburger restaurant chain* in the U.S., achieving our two highest quarterly Global same restaurant sales results in over 15 years, launching our highly successful breakfast daypart, more than doubling our digital sales, enhancing our restaurant economic model, and continuing to enhance access to our brand with net new restaurant development. As we turn the page to 2021, we remain confident in our playbook of investing smartly to drive accelerated growth behind our three major long-term growth pillars: significantly building our breakfast daypart, accelerating our digital business, and expanding our footprint, both Internationally and in the U.S."
Fourth Quarter and Full Year 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
Fourth Quarter
Full Year
2020
2019
2020
2019
Systemwide Sales Growth(1)
U.S.
14.2%
5.9%
4.8%
4.2%
International(2)
5.5%
6.3%
(5.5)%
6.7%
Global
13.2%
5.9%
3.7%
4.4%
Same-Restaurant Sales Growth(1)
U.S.
5.5%
4.5%
2.0%
2.9%
International(2)
(2.3)%
2.7%
(6.0)%
3.2%
Global
4.7%
4.3%
1.2%
2.9%
Systemwide Sales (In US$ Millions)(3)
U.S.
$2,795
$2,447
$10,231
$9,763
International(2)
$323
$304
$1,107
$1,182
Global
$3,118
$2,751
$11,339
$10,944
Restaurant Openings
U.S. - Total / Net
25 / 7
39 / 27
98 / 29
107 / 42
International - Total / Net
26 / 7
32 / 18
49 / 11
75 / 35
Global - Total / Net
51 / 14
71 / 45
147 / 40
182 / 77
Global Reimaging Completion Percentage
64%
58%
(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. 2020 includes the impact of a 53rd operating week with respect to systemwide sales growth, but excludes the impact of a 53rd operating week with respect to same-restaurant sales.
(2) Excludes Venezuela and Argentina.
(3) Systemwide sales include sales at both Company-operated and franchise restaurants. 2020 includes the impact of a 53rd operating week.
* In the 12 months ended December 2020, Wendy's is #2 in traffic share among U.S. QSR burger chains, according to The NPD Group CREST® data
Financial Highlights
Fourth Quarter
Full Year
2020
2019
B / (W)
2020
2019
B / (W)
(In Millions Except Per Share Amounts)
(Unaudited)
(Unaudited)
Total Revenues
$
474.3
$
427.2
11.0
%
$
1,733.8
$
1,709.0
1.5
%
Adjusted Revenues(1)
$
382.1
$
341.7
11.8
%
$
1,400.2
$
1,369.5
2.2
%
Company-Operated Restaurant Margin
17.6
%
14.3
%
3.3
%
14.9
%
15.5
%
(0.6)
%
General and Administrative Expense
$
59.3
$
53.9
(10.0)
%
$
206.9
$
200.2
(3.3)
%
Operating Profit
$
78.6
$
36.7
114.2
%
$
269.3
$
262.6
2.6
%
Net Income
$
38.7
$
26.5
46.0
%
$
117.8
$
136.9
(14.0)
%
Adjusted EBITDA
$
114.5
$
83.4
37.3
%
$
420.1
$
412.8
1.8
%
Reported Diluted Earnings Per Share
$
0.17
$
0.11
54.5
%
$
0.52
$
0.58
(10.3)
%
Adjusted Earnings Per Share
$
0.17
$
0.08
112.5
%
$
0.57
$
0.59
(3.4)
%
Cash Flows from Operations
$
284.4
$
288.9
(1.6)
%
Capital Expenditures
$
(69.0)
$
(74.5)
7.4
%
Free Cash Flow(2)
$
163.4
$
221.0
(26.1)
%
View full version at Wendy's
Dine Brands Global, Inc. Reports Fourth Quarter and Fiscal 2020 Results
Robust Off-Premise Growth Continued
Cash Position Remains Strong
98% of Domestic Restaurants Open
March 02, 2021 08:00 AM Eastern Standard Time
GLENDALE, Calif.--(BUSINESS WIRE)--Dine Brands Global, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill + Bar® and IHOP® restaurants, today announced financial results for the fourth quarter and fiscal 2020.
“Dine Brands enters 2021 positioned for improved sales and robust off-premise growth. In the face of the unprecedented environment resulting from the pandemic, our franchisees, team members and restaurant teams rose to the challenge. Operationally, the collective system implemented heightened cleanliness standards to enhance the safety and well-being of our teams and guests, for both dine-in and off-premise occasions. In 2020, Dine moved swiftly to right size our business and brands in response to the precipitous decline in revenue by reducing costs, strengthening our balance sheet, and lowering capital spending. While the current environment remains challenging, we believe our financial condition is strong and we look ahead to the rest of 2021 with optimism,” said John Peyton, chief executive officer of Dine Brands Global, Inc.
Mr. Peyton added, “I’m proud to be here and I’ve joined an outstanding team made up of an exceptionally talented group of leaders, franchisees and team members. Dine is a well-positioned company with a strong portfolio of brands. We’re confident we have the right plans in place to drive long-term growth for all stakeholders.”
Allison Hall, interim chief financial officer and vice president, controller, added, “Our fourth quarter results are evidence our brands remain effectively positioned to win in an off-premise environment and that our business model is positioned for solid growth once we emerge from the pandemic. Off-premise comparable sales at both Applebee’s and IHOP increased significantly primarily due to the resurgence of COVID-19 cases nationwide and the related reinstatement of federal, state and local level governmental restrictions on dine-in service as well as a shift in consumer behavior. With iconic category-leading brands, Dine is well positioned for future growth for years to come.”
Domestic System-Wide Comparable Same-Restaurant Sales Performance
Domestic Same-Restaurant SalesPreliminary SalesQ4 2020Q1 2021 QTD through WE 2/21Applebee's
(17.6%)
(18.1%)IHOP
(30.1%)
(27.2%)
View full version at Dine Brands
Shake Shack Announces Fourth Quarter and Fiscal Year 2020 Financial Results
March, 1 2021
Suburban Same-Shack Sales Improved From Down 16% in the Third Quarter 2020, to Nearly Flat in the Fourth Quarter 2020, Exiting the Fiscal Year with Positive Year-on-Year Growth
Shake Shack Inc. (NYSE: SHAK), reported financial results for the fourth quarter and the fiscal year ended December 30, 2020, periods that included 14 and 53 weeks, respectively, as fiscal 2020 contained an additional operating week compared to fiscal 2019.
Randy Garutti, Chief Executive Officer of Shake Shack, stated, “As we close the chapter on 2020, I'm so grateful and proud of the way our Shack family has overcome the obstacles that came our way, and led the continued recovery of our business while supporting each other and our communities. With much of the country still under varying degrees of lockdown, we're pleased to report revenue in the fourth quarter of $157.5 million, with same-Shack sales improving to down 17.4% compared to down 31.7% in the third quarter 2020. Looking at fiscal 2021, we were encouraged to see recovery momentum continue with same-Shack sales in fiscal January 2021 down only 5%, and with suburban Shacks delivering growth of 8% compared to last year. The first few weeks in fiscal February have been impacted by the cold weather and snowstorms across many parts of the country, with same-Shack sales down around 16% through the 17th of the fiscal month. We're just a few short weeks away from turning the dial on a full year of COVID impact, and beginning to compare against the hardest hit sales months of last year. Looking forward, our digital channels will continue to represent a sizeable opportunity for us to acquire new guests and we are focused on exciting new limited-time menu offerings and culinary collaborations.”
Garutti continued, “We are excited to accelerate unit growth and will be targeting between 35 and 40 new domestic Company-operated Shacks this year, while ramping up to 45 to 50 in fiscal 2022, representing in total, about a 45% increase to our year-end 2020 domestic Company-operated Shack count over the next two years. We believe we are uniquely positioned to exit this challenging period stronger and with greater opportunity than where we started. We have laid out a robust and accelerated development pipeline for fiscal 2021 and 2022, which will capture great real estate opportunities while encompassing our new Shack Track, curbside and drive-thru experiences. Additionally, we expect to open 15 to 20 new licensed Shacks in fiscal 2021 and 20 to 25 new licensed Shacks in fiscal 2022.”
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Domino's Pizza® Announces Fourth Quarter and Fiscal 2020 Financial Results
Global retail sales growth (excluding foreign currency impact and 53rd week impact) of 12.0% for the fourth quarter; 10.4% for fiscal 2020
U.S. same store sales growth of 11.2% for the fourth quarter; 11.5% for fiscal 2020
International same store sales growth of 7.3% for the fourth quarter; 4.4% for fiscal 2020
Global net store growth of 388 for the fourth quarter; 624 for fiscal 2020
Diluted EPS up 23.4% to $3.85 for the fourth quarter; up 29.6% to $12.39 for fiscal 2020
Company announces new two- to three-year outlook
Feb 25, 2021, 07:30 ET
ANN ARBOR, Mich., Feb. 25, 2021 /PRNewswire/ -- Domino's Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world based on global retail sales, announced results for the fourth quarter and fiscal 2020, comprised of growth in global retail sales, same store sales and earnings per share. Global retail sales increased 21.7% in the fourth quarter, or 20.9% excluding the positive impact of foreign currency. Global retail sales increased 12.5% in fiscal 2020, or 13.2% excluding the negative impact of foreign currency. Global retail sales were benefited in the fourth quarter and fiscal 2020 by the inclusion of an extra, or 53rd week. Global retail sales increased 12.0% in the fourth quarter, excluding the positive impact of foreign currency and the impact of the 53rd week. Global retail sales increased 10.4% in fiscal 2020 excluding the negative impact of foreign currency and the positive impact of the 53rd week.
U.S. same store sales grew 11.2% during the quarter and 11.5% for the full year, continuing the positive sales momentum in the Company's U.S. stores business. The international business also posted positive results, with same store sales growth of 7.3% during the quarter and 4.4% for the full year. The fourth quarter marked the 108th consecutive quarter of international same store sales growth and the 39th consecutive quarter of U.S. same store sales growth. The Company had strong fourth quarter global net store growth of 388 stores, comprised of 116 net U.S. store openings and 272 net international store openings. In fiscal 2020, the Company had 624 net store openings, comprised of 229 net U.S. store openings and 395 net international store openings.
Fourth quarter diluted EPS was $3.85, up 23.4% over the prior year quarter. Fiscal 2020 diluted EPS was $12.39, up 29.6% over the prior year. Diluted EPS for both the fourth quarter and fiscal 2020 was positively impacted by the inclusion of the 53rd week, and diluted EPS for both the fourth quarter and fiscal 2019 was negatively impacted by expenses associated with the Company's November 2019 recapitalization transaction (the "2019 Recapitalization"). Fourth quarter diluted EPS, as adjusted, was $3.46, up 10.5% over the prior year quarter diluted EPS, as adjusted, of $3.13. Fiscal 2020 diluted EPS, as adjusted, was $12.01, up 25.5% over the prior year diluted EPS, as adjusted, of $9.57. Refer to the Financial Results Comparability and the Comments on Regulation G sections below for additional information.
During the fourth quarter of 2020, the Company repurchased and retired 567,807 shares of its common stock in open market repurchases under its Board of Directors-approved share repurchase program for approximately $225.0 million. Subsequent to the fourth quarter and through February 18, 2021, the Company repurchased and retired an additional 65,870 shares of common stock for a total of approximately $25.0 million. On February 24, 2021, the Company's Board of Directors authorized a new share repurchase program to repurchase up to $1.0 billion of the Company's common stock. This repurchase program replaces the remaining availability of approximately $76.6 million under the Company's previously approved $1.0 billion share repurchase program.
On February 24, 2021, the Company's Board of Directors declared a quarterly dividend of $0.94 per common share payable on March 30, 2021 to shareholders of record at the close of business on March 15, 2021. This represents an increase of 20.5% over the previous quarterly dividend amount.
"We celebrated our 60th year as a company in 2020, and while it was a challenging year in so many ways, it was also a year that saw the Domino's brand rise to the occasion all over the world," said Ritch Allison, Domino's Chief Executive Officer. "We led with our values first and delivered an outstanding year of growth and financial performance. This past year, a year like none other, reminded me once again that Domino's has the best group of global franchisees and team members in the restaurant business."
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Beyond Meat® Announces Global Strategic Partnership with Yum! Brands to Offer Signature Plant-Based Menu Items
February 25, 2021 16:10 ET
EL SEGUNDO, Calif., Feb. 25, 2021 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ: BYND) today announced a global strategic partnership with Yum! Brands (NYSE: YUM) to co-create and offer craveable and innovative plant-based protein menu items that can only be found at KFC, Pizza Hut and Taco Bell over the next several years. Beyond Meat® and Yum! Brands expect to leverage their industry-leading research and development capabilities to meet the evolving tastes of the consumers of today and tomorrow.
“We are honored to enter into a global strategic partnership with Yum! Brands, one of the world's largest restaurant companies. We look forward to expanding our work with the teams at Yum's iconic KFC, Pizza Hut and Taco Bell brands to together bring truly delicious plant-based product innovation to consumers," said Ethan Brown, Beyond Meat Founder & CEO.
Beyond Meat’s strategic partnership with Yum! Brands will be an expansion of the companies’ growing track record of collaborations to offer delicious and sustainable plant-based products. KFC was the first national U.S. quick-service restaurant to introduce plant-based chicken when it tested Beyond Fried Chicken™ at an Atlanta-area restaurant in 2019. Since the initial rollout, KFC has expanded testing of Beyond Fried Chicken in other U.S. cities. In 2020, Pizza Hut U.S. launched the Beyond Italian Sausage Pizza and the Great Beyond Pizza nationwide, becoming the first national pizza chain to introduce a plant-based meat pizza coast-to-coast.
Through this collaboration, Yum! Brands will build on its tradition of food innovation and creating new consumer markets for industry-defining items and increase the number of plant-based options that appeal to flexitarians, those looking to incorporate plant-based meat or more diverse protein options into their diets.
“Today’s announcement builds on our strong relationship with Beyond Meat and, given the consumer response during recent tests with Beyond Meat, we’re excited about the long-term potential plant-based protein menu items have to attract more customers to our brands, especially younger consumers,” said Chris Turner, Yum! Brands CFO. “We expect this Beyond Meat partnership to strengthen our brands’ capability to offer delicious, plant-based menu items that are driven by consumer demand for more diverse protein options and our brands’ strategies in local markets.”
Terms of the global strategic partnership are subject to mutually agreeable definitive agreements.
ABOUT BEYOND MEAT About Beyond Meat Beyond Meat, Inc. (NASDAQ: BYND) is one of the fastest growing food companies in the United States, offering a portfolio of revolutionary plant-based meats made from simple ingredients without GMOs, bioengineered ingredients, hormones, antibiotics, or cholesterol. Founded in 2009, Beyond Meat products are designed to have the same taste and texture as animal-based meat while being better for people and the planet. Beyond Meat’s brand commitment, Eat What You Love™, represents a strong belief that there is a better way to feed our future and that the positive choices we all make, no matter how small, can have a great impact on our personal health and the health of our planet. By shifting from animal-based meat to plant-based meat, we can positively impact four growing global issues: human health, climate change, constraints on natural resources and animal welfare. As of December 31, 2020, Beyond Meat had products available at approximately 122,000 retail and foodservice outlets in over 80 countries worldwide. Visit www.BeyondMeat.com and follow @BeyondMeat, #BeyondBurger and #GoBeyond on Facebook, Instagram and Twitter and @BeyondMeatOfficial on TikTok.
View source version at Beyond Meat
Papa John’s Announces Fourth Quarter and Full Year 2020 Financial Results
February 25, 2021 07:15 AM Eastern Standard Time
LOUISVILLE, Ky.--(BUSINESS WIRE)--Papa John’s International, Inc. (NASDAQ: PZZA) today announced financial results for the three months and full year ended December 27, 2020.
Fourth quarter highlights compared to prior year
Total revenues of $469.8 million, up 12.5% over 2019
Comparable sales up by 13.5% in North America and 21.4% Internationally
Earnings per diluted share rose to $0.28 from loss per diluted share of ($0.18)
Adjusted earnings per diluted share grew to $0.40 versus adjusted loss per diluted share of ($0.25), excluding Special items
40 net unit openings in the fourth quarter driven by International
Paid end-of-year bonuses to front-line team members of $2.7 million ($0.06 per diluted share)
Full year 2020 highlights compared to prior year
Total revenues of $1,813.2 million, up 12.0% over 2019
Comparable sales up by 17.6% in North America and 12.6% Internationally
Earnings per diluted share rose to $1.28 compared to loss per diluted share of ($0.24)
Adjusted earnings per diluted share grew to $1.40 from adjusted earnings per diluted share of $0.03, excluding Special items
Cash flow from operations of $186.4 million and free cash flow of $137.1 million for full year 2020
“2020 was a transformational year for Papa John’s, as we turned our focus to the future. We were able to deliver industry-leading sales growth and significant profitability by coming together as a system to take care of our team members, customers and communities in one of the most challenging years in history,” said President & CEO Rob Lynch. “Q4 2020 was the third consecutive quarter of double-digit comparable sales growth and the sixth straight quarter of positive comparable sales in North America. We ended the year with the launch of Epic Stuffed Crust, the biggest product innovation in the company’s history, and our future is extremely bright.”
Mr. Lynch continued, “We are confident that the foundations of our business – our company’s core values, our iconic brand, our dedicated team members, our strong franchise system and our rapidly improving financial performance – are stronger than ever, and we continue to build momentum. We remain hopeful for a swift end to the global pandemic and continue to prioritize the health and safety of our team and customers, while we meet our responsibility to serve millions of new and returning customers.”
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Ruby Tuesday Emerges from Voluntary Chapter 11 Restructuring
February 24, 2021
Classic American Restaurant Group, Ruby Tuesday, Emerges from Bankruptcy
Maryville, TN (RestaurantNews.com) Ruby Tuesday today announces its successful emergence from bankruptcy. A Delaware bankruptcy judge confirmed the casual dining restaurant chain’s Chapter 11 plan of reorganization on February 17. The company had sought bankruptcy protection on October 7, 2020. The bankruptcy allowed Ruby Tuesday to shed liabilities, including leases from closed locations that were significantly impacted by COVID-19, and to strengthen its core business of 209 corporate-owned and operated locations. The successful emergence from Chapter 11 will allow Ruby Tuesday to reinforce the brand’s commitment to its existing guests, while continuing to develop virtual “delivery-only” brands to capitalize on its core strengths and increased off-premise business as part of the company’s long-term growth plan.
“Ruby Tuesday is a healthier company now and is positioned to be more efficient, competitive and stable for the future,” said Shawn Lederman, CEO of Ruby Tuesday. “We want to thank our employees, partners and creditors for helping to ensure our plan of reorganization was successful and we look forward to continuing quality service for our guests and communities for many years to come.”
Ruby Tuesday was advised through its reorganization by Pachulski Stang Ziehl & Jones LLP as legal counsel, CR3 Partners, LLC, as financial advisor, FocalPoint Securities, LLC, as investment banker, and Hilco Real Estate, LLC, as lease restructuring advisor and consultant.
The company’s prepetition secured lenders, affiliates of Goldman Sachs and TCW, were represented by Cleary Gottlieb Steen & Hamilton LLP and Paul Hastings LLP, respectively, as legal counsel. Grant Thornton LLP served as the lenders’ financial advisor.
Additional information about the company’s reorganization can be found at https://dm.epiq11.com/RubyTuesday.
About Ruby Tuesday
Founded in 1972 in Knoxville, Tennessee, Ruby Tuesday, is dedicated to delighting guests with exceptional casual dining experiences that offer uncompromising quality paired with passionate service every time they visit. The company currently owns, operates and franchises casual dining restaurants in the United States, Guam, and five foreign countries under the Ruby Tuesday® brand. For more information, visit www.rubytuesday.com.
View source version at Ruby Tuesday
Cracker Barrel Reports Second Quarter Fiscal 2021 Results
Feb 23, 2021, 08:00 ET
LEBANON, Tenn., Feb. 23, 2021 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the second quarter of fiscal 2021 ended January 29, 2021.
Second Quarter Fiscal 2021 Highlights
Dining room service was adversely impacted by the nationwide resurgence of COVID-19 during the quarter, resulting in increased dining room closures and capacity restrictions compared to the first quarter.
For the second quarter, comparable store restaurant sales decreased 21.9% and comparable store retail sales decreased 15.3% compared to the prior year quarter.
Comparable store off-premise sales grew 78% over the prior year quarter and represented approximately 30% of restaurant sales.
GAAP operating income in the second quarter was $14.4 million, or 2.1% of total revenue. Adjusted operating income was $17.6 million, or 2.6% of total revenue, compared to prior year quarter GAAP operating income of $79.1 million, or 9.4% of total revenue. (See non-GAAP reconciliation below.)
GAAP earnings per diluted share were $0.59, and adjusted earnings per diluted share were $0.70, compared to prior year quarter GAAP earnings per diluted share of $2.55. (See non-GAAP reconciliation below.)
Commenting on the second quarter results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "The resurgence of COVID-19 during the busy holiday and travel season impacted our business on a variety of fronts, but I was proud that our teams were able to provide a hospitable and safe experience for our guests and especially pleased at the number of guests who made us a part of their holiday celebrations in this unprecedented environment. Despite the challenges we faced in the second quarter, we expect to return to stronger levels of performance in the back half of the year.
The COVID-19 resurgence we experienced around the country during the second quarter impacted our guests and our employees and produced headwinds for both sales and margins. While our sales were largely in line with expectations coming out of the first quarter, monthly sales in the second quarter were volatile, as the resurgence forced unanticipated dining room closures, increased capacity restrictions, and disrupted typical holiday seasonal travel patterns. These closures and capacity restrictions also shifted our mix to a higher percentage of off-premise business during the busy holiday season, including a higher percentage of Heat n' Serve sales, which is a lower margin offering and plays an outsized role in our holiday sales, particularly this year. Further, the shift to off-premise and the operational and staffing challenges caused by increased cases of COVID-19 negatively impacted food waste and labor efficiency during the quarter. Although we were pleased with our strong retail sales performance, the shift to a higher percent of total sales increased our cost of goods sold.
Despite these challenges, our teams did an outstanding job delivering hospitality and care to our guests, and we believe these efforts further enhanced our position as the preferred choice for many families for their holiday celebrations. Looking ahead, we believe that as dining rooms open to greater capacities in the spring and summer, we should continue to see improvement in both sales and margin and believe that our business is well-positioned to capitalize on a more normalized environment. We are particularly focused on our fourth quarter, which is typically one of our biggest and most important quarters of the year."
View full version at Cracker Barrel
Bloomin’ Brands Reports Strengthening Q1 2021 Sales Trends
Generating Strong Cash Flow with Enhanced Liquidity Position
Announces 2020 Q4 Financial Results
Provides Selective 2021 Financial Guidance
February 18, 2021 07:00 AM Eastern Standard Time
TAMPA, Fla.--(BUSINESS WIRE)--Bloomin’ Brands, Inc. (Nasdaq: BLMN) today reported results for the fourth quarter 2020 (“Q4 2020”) and fiscal year ended December 27, 2020 (“Fiscal Year 2020”) compared to the fourth quarter 2019 (“Q4 2019”) and fiscal year ended December 29, 2019 (“Fiscal Year 2019”).
CEO Comments
“Our priorities and focus remain on taking care of our people and providing a great and safe experience for guests in the restaurant or in the convenience of their home,” said David Deno, Chief Executive Officer. “The fourth quarter showed our continued resilience in navigating through a rapidly changing environment. We are making great progress across key initiatives to improve margins, increase cash flow, and pay down debt, while taking market share. Thus far in 2021 we have seen sales momentum and volume increases relative to Q4 with U.S. comp sales of (12.9)% through the first seven weeks of the fiscal year.”
Diluted EPS and Adjusted Diluted EPS
The following table reconciles Diluted (loss) earnings per share attributable to common stockholders to Adjusted diluted earnings (loss) per share for the periods indicated:
Q4
FISCAL YEAR
2020
2019
CHANGE
2020
2019
CHANGE
Diluted (loss) earnings per share attributable to common stockholders
$
(0.16
)
$
0.32
$
(0.48
)
$
(1.85
)
$
1.45
$
(3.30
)
Adjustments (1)
0.18
—
0.18
1.16
0.09
1.07
Adjusted diluted earnings (loss) per share (1)
$
0.02
$
0.32
$
(0.30
)
$
(0.69
)
$
1.54
$
(2.23
)
___________________
(1) See Non-GAAP Measures later in this release.
Fourth Quarter Financial Results
(dollars in millions)
Q4 2020
Q4 2019
CHANGE
Total revenues
$
812.5
$
1,022.2
(20.5
)%
GAAP restaurant-level operating margin
11.8
%
14.4
%
(2.6
)%
Adjusted restaurant-level operating margin (1)
12.4
%
13.9
%
(1.5
)%
GAAP operating (loss) income margin
(0.9
)%
4.2
%
(5.1
)%
Adjusted operating income margin (1)
1.3
%
4.2
%
(2.9
)%
___________________
(1) See Non-GAAP Measures later in this release.
The decrease in Total revenues was primarily due to: (i) significantly lower comparable restaurant sales and franchise revenues principally attributable to the COVID-19 pandemic, (ii) the effect of foreign currency translation of the Brazil Real relative to the U.S. dollar and (iii) the net impact of restaurant closures and openings.
Restaurant-level operating margin decreased due to: (i) significantly lower comparable restaurant sales and costs incurred in connection with the COVID-19 pandemic, including incremental delivery related costs and (ii) higher labor costs. These decreases were partially offset by: (i) reduced advertising expense, (ii) a reduction in prep labor hours and (iii) cost savings from waste reduction initiatives. COVID-19 related charges are excluded from Adjusted restaurant-level operating margin.
GAAP operating (loss) income margin decreased due to: (i) a decline in restaurant-level operating margin discussed above, (ii) sales deleveraging in connection with the COVID-19 pandemic across general and administrative expense, depreciation and amortization and (iii) asset impairment charges related to the COVID-19 pandemic. COVID-19 related charges are excluded from Adjusted operating income margin.
Fourth Quarter Comparable Restaurant Sales
THIRTEEN WEEKS ENDED DECEMBER 27, 2020
COMPANY-OWNED
Comparable restaurant sales (stores open 18 months or more):
U.S.
Outback Steakhouse
(15.2)
%
Carrabba’s Italian Grill
(11.4)
%
Bonefish Grill
(27.1)
%
Fleming’s Prime Steakhouse & Wine Bar
(29.7)
%
Combined U.S.
(17.7)
%
International
Outback Steakhouse - Brazil
(14.8)
%
Liquidity Update and Recent Sales Results
As of this morning, our total available liquidity was $675 million. Our liquidity position has improved over the last several weeks due to increased sales performance, holiday gift card sales and working capital inflows.
As of February 14, 2021, approximately 99% of our U.S. restaurants are open with limited in-restaurant dining capacity (vs. 85% as of December 27, 2020) in accordance with local mandates.
The following table includes quarter-to-date U.S. company-owned comparable restaurant sales for the seven-week period ended February 14, 2021:
View full version at Bloomin' Brands