Improvement in Comparable Restaurant Sales
Compared to the Third Quarter
New $75 million Term Loan and $10 million
Revolver Facilities Completed on November 23, 2020
Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company")
(NASDAQ: FRGI), parent company of the Pollo Tropical® and Taco
Cabana® restaurant brands, today reported comparable restaurant
sales for the 14-week fiscal fourth quarter 2020 ended January 3,
2021 and provided a liquidity update.
Fiesta President and Chief Executive Officer Richard Stockinger
said, “Both of our brands demonstrated sequential improvement in
comparable restaurant sales from third quarter levels during the
fourth quarter. Pollo Tropical comparable restaurant sales
accelerated from -11.1% in the third quarter of 2020 to -6.4% in
December. After adjusting for the estimated impact of named storms
in the third and fourth quarters, Pollo Tropical’s sales growth
would have been even stronger. Taco Cabana also improved its
comparable restaurant sales trend from -14.2% in the third quarter
of 2020 to -10.2% in December. The sales acceleration at both
brands was realized despite closed dining rooms across most units
along with continued headwinds in terms of COVID and economic
conditions in Florida and Texas.”
Mr. Stockinger continued, “As we have previously stated,
maximizing liquidity during the COVID crisis has been a top
priority. Our new Senior Credit Facility consisting of a $75
million term loan and $10 million revolver that we entered into on
November 23(1) allowed us to replace our prior credit agreement
with a more flexible and longer-term loan through 2025 that
provides ample liquidity during the remainder of this challenging
period and beyond. The financial covenants of the loan are more
flexible, requiring only a minimum liquidity requirement of $20
million through 2021. We believe the progress we made in reducing
total net debt(2) from the beginning of the pandemic in mid-March
combined with this new senior credit facility will enable us to
exit this crisis in a much stronger financial position, poised for
future growth.”
Mr. Stockinger concluded, “As we begin 2021, our focus will
continue to be on driving profitable sales growth by increasing
capacity and ease of use through channels most desired by consumers
including online ordering, drive-thru, pickup and delivery, and
selectively opening dining rooms in situations in which we can
achieve profitable sales. As we did in 2020, we will continue to
focus our investments on improving the customer experience in those
desired channels through a number of initiatives including curbside
enhancements, such as geofencing, drive-thru experience upgrades
for faster ordering and payment, including digital menu boards, and
ongoing app and loyalty platform improvements.”
(1)
See the Current Report on Form 8-K filed on November 30,
2020.
(2)
Defined as total debt less total cash.
Comparable Restaurant Sales Summary
The Company is temporarily releasing its comparable restaurant
sales results and liquidity status commentary more frequently as a
result of the rapidly changing economic environment and conditions
related to the COVID-19 pandemic, consistent with many other peer
companies in the restaurant segment. The Company will continue to
evaluate the benefits of this temporary change in disclosure
practices as the economic and COVID-19 pandemic conditions evolve.
The Company uses a 52- or 53-week fiscal year that ends on the
Sunday closest to December 31. The fiscal year and fourth quarter
ended January 3, 2021 contained 53 weeks and 14 weeks,
respectively. Fourth quarter 2020 comparable restaurant sales
exclude the extra week in fiscal fourth quarter 2020 and are
reported on a 13-week basis.
Third Quarter 2020
Fiscal October
Fiscal November
Fiscal December
Fourth Quarter 2020
Pollo Tropical
-11.1%
-9.7%
-8.2%
-6.4%
-8.2%
Taco Cabana
-14.2%
-12.4%
-6.4%
-10.2%
-10.0%
As a reminder, third quarter 2020 comparable restaurant sales at
Pollo Tropical benefited from the estimated negative impact of
Hurricane Dorian in 2019 of approximately 140 basis points.
Fiscal November 2020 comparable restaurant sales at Pollo
Tropical were negatively impacted by Tropical Storm Eta in 2020.
After adjusting for the estimated impact of that named storm,
fiscal November 2020 comparable restaurant sales would have been
approximately 130 basis points higher, and fourth quarter 2020
comparable restaurant sales would have been approximately 40 basis
points higher.
Restaurants are included in comparable restaurant sales after
they have been open for 18 months or longer. Restaurants are
excluded from comparable restaurant sales for any fiscal month in
which the restaurant was closed for more than five days. Comparable
restaurant sales are compared to the same period in the prior year.
For comparative purposes, the calculation of the changes in
comparable restaurant sales is based on a 13-week fiscal quarter.
Restaurant sales for the extra week in the fiscal quarter ended
January 3, 2021 have been excluded for purposes of calculating the
change in comparable company-owned restaurant sales.
About Fiesta Restaurant Group, Inc.
Fiesta Restaurant Group, Inc., owns, operates and franchises the
Pollo Tropical® and Taco Cabana® restaurant brands. The brands
specialize in the operation of fast casual/quick service
restaurants that offer distinct and unique flavors with broad
appeal at a compelling value. The brands feature fresh-made
cooking, drive-thru service and catering. For more information
about Fiesta Restaurant Group, Inc., visit the corporate website at
www.frgi.com.
Forward Looking Statements
Certain statements contained in this news release and in our
public disclosures, whether written, oral or otherwise made,
relating to future events, or future performance, including any
discussion, express or implied regarding the impact of the COVID-19
pandemic, our financial position and our belief with respect to our
financial position and future growth resulting from our new credit
facility and debt reduction and our initiatives on future sales,
margins, operating profit, cash liquidity and earnings
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These statements
are often identified by the words "may," "might," "believes,"
"thinks," "anticipates," "plans," "positioned," "target,"
"continue," "expects," "look to," "intends" and other similar
expressions, whether in the negative or the affirmative, that are
not statements of historical fact. These forward-looking statements
are not guarantees of future performance and involve certain risks,
uncertainties, and assumptions that are difficult to predict, and
you should not place undue reliance on our forward-looking
statements. Our actual results and timing of certain events could
differ materially from those anticipated in these forward-looking
statements as a result of certain factors, including, but not
limited to, those discussed from time to time in our reports filed
with the Securities and Exchange Commission, including our Annual
Report on Form 10-K for the fiscal year ended December 29, 2019 and
our quarterly reports on Form 10-Q. All forward-looking statements
and the internal projections and beliefs upon which we base our
expectations included in this release are made only as of the date
of this release and may change. While we may elect to update
forward-looking statements at some point in the future, we
expressly disclaim any obligation to update any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210111005985/en/
Investor Relations Contact: Raphael Gross 203-682-8253
investors@frgi.com
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