Fiesta Restaurant Group, Inc. announces comparable restaurant sales for the fourth quarter of fiscal 2020


Comparable restaurant sales improved compared to the third quarter

New $ 75 Million Term Loan and $ 10 Million Revolver Facilities Completed 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 announced comparable restaurant sales for the fourth quarter 14-week fiscal year 2020 ended January 3, 2021 and provided a liquidity update.

Fiesta President and CEO Richard Stockinger said, “Our two brands showed sequential improvement in comparable restaurant sales from third quarter levels during the fourth quarter. Pollo Tropical’s 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 acceleration in sales of both brands was achieved despite the closure of dining rooms in most units as well as persistent headwinds in terms of COVID and economic conditions in Florida and Texas. “

Mr Stockinger continued, “As we stated previously, maximizing cash flow during the COVID crisis has been a top priority. Our new senior credit facility consisting of a term loan of $ 75 million and a revolver of $ 10 million that we entered into on November 23.(1) allowed us to replace our previous credit agreement with a more flexible, longer-term loan through 2025 that provides abundant liquidity through the remainder of this difficult time and beyond. The financial terms of the loan are more flexible, requiring only a minimum liquidity requirement of $ 20 million until 2021. We believe that the progress we have made in reducing total net debt(2) from the start of the pandemic to mid-March combined with this new senior credit facility will allow us to emerge from this crisis in a much stronger financial position, ready for future growth. “

Mr Stockinger concluded: “As we begin 2021, we will continue to focus on profitable sales growth by increasing capacity and ease of use through the channels most sought after by consumers, including online ordering, drive-thru, pickup and delivery, and the selective opening of dining rooms in situations where we can achieve profitable sales. As we did in 2020, we will continue to focus our investments on improving the customer experience in desired channels through a number of initiatives, including curbside improvements, such as geofencing. , drive-thru experience upgrades for faster ordering and payments, including digital menu boards and ongoing improvements to the loyalty apps and platform. “

(1)

See the current report on Form 8-K filed November 30, 2020.

(2)

Defined as total debt minus total cash.

Summary of comparable restaurant sales

The Company is temporarily releasing comparable restaurant sales results and cash flow commentary more frequently due to the economic environment and rapidly changing conditions associated with the COVID-19 pandemic, according to numerous other companies comparable in the catering segment. The Company will continue to assess the benefits of this temporary change in disclosure practices as economic conditions and the COVID-19 pandemic 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 consisted of 53 weeks and 14 weeks, respectively. Comparable restaurant sales in Q4 2020 exclude the additional week of fiscal Q4 2020 and are presented on a 13 week basis.

Third quarter
2020

Fiscal October

Fiscal November

Fiscal December

Fourth trimester
2020

Pollo Tropical

-11.1%

-9.7%

-8.2%

-6.4%

-8.2%

Taco shack

-14.2%

-12.4%

-6.4%

-10.2%

-10.0%

As a reminder, the third quarter 2020 comparable store sales of Pollo Tropical restaurants benefited from the estimated negative impact of Hurricane Dorian in 2019 of around 140 basis points.

November 2020 restaurant comparable sales in Pollo Tropical were negatively impacted by Tropical Storm Eta in 2020. After adjusting for the estimated impact of this named storm, November 2020 restaurant comparable sales would have been approximately 130 higher. basis points, and those for the fourth quarter of 2020 comparable. restaurant sales would have been about 40 basis points higher.

Restaurants are included in comparable restaurant sales after they have been open for 18 months or more. 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 of the previous year. For comparison purposes, the calculation of comparable restaurant sales changes is based on a 13-week fiscal quarter. Restaurant sales for the additional week in the fiscal quarter ended January 3, 2021 have been excluded for purposes of calculating the change in sales of comparable company-owned restaurants.

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 operating casual / quick-service fast food restaurants that deliver distinct and unique flavors with wide appeal at compelling value. The brands offer freshly prepared cuisine, drive-thru and catering. For more information about Fiesta Restaurant Group, Inc., visit the company’s website at www.frgi.com.

Forward-looking statements

Certain statements contained in this press release and in our public disclosures, whether written, oral or otherwise, regarding future events or future performance, including any discussion, express or implied regarding the impact of the COVID pandemic -19, our financial position and our belief in 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 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”, “could”, “believe”, “think”, “anticipate”, “plan”, “positioned”, “target”, “continue”, “expect” , “Look at,” “the intention” and other similar expressions, whether in the negative or the affirmative, which 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 the timing of certain events could differ materially from those anticipated in these forward-looking statements due to 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 internal projections and beliefs on which we base our expectations included in this release are made as of the date of this release and are subject to change. While we may choose to update forward-looking statements at some time in the future, we expressly disclaim any obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20210111005985/en/

Contacts

Investor Relations Contact:
Raphael Gross
203-682-8253
[email protected]


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