Fiesta Restaurant Group, Inc. (“Fiesta” or the “Company”) (NASDAQ: FRGI), the owner, operator, and franchisor of the Pollo Tropical® and Taco Cabana® fast-casual restaurant brands, today reported results for the second quarter of 2012 which ended on July 1, 2012.
Highlights of Second Quarter 2012 Results Include:
- Completion of the tax-free spin-off of Fiesta from Carrols Restaurant Group, Inc. (“Carrols”) on May 7, 2012;
- Total revenues increased 6.3% to $128.8 million compared to $121.2 million in the prior year period;
- Comparable restaurant sales increased 7.8% at Pollo Tropical and 4.5% at Taco Cabana;
- Comparable restaurant guest traffic increased 6.9% at Pollo Tropical and 0.6% at Taco Cabana;
- Four company-owned restaurants opened including three Pollo Tropical restaurants and one Taco Cabana restaurant;
- Income from operations increased 25.6% to $12.9 million compared to $10.2 million in the prior year period; and
- Net income increased $0.3 million to $3.9 million, or $0.17 per diluted share, compared to $3.6 million, or $0.16 per diluted share, in the prior year period.
Tim Taft, President and Chief Executive Officer of Fiesta Restaurant Group, Inc., commented, “Our second quarter marked strong top-line performance from both of our brands against strong prior year sales comparisons, coupled with effective cost management that positively impacted our restaurant-level profitability. Despite the sluggish economy and general softness in discretionary spending, our guests are responding favorably to our quality menu offerings and value proposition complemented by our enhanced service model and facilities. We view our brands as well-positioned and differentiated in the competitive landscape and believe that through continued execution of our strategies, we can continue to build long-term value for our shareholders.”
Taft concluded, “Our development plans are on track and we are encouraged by the preliminary results from our recent restaurant openings in expansion markets along with the quality of sites in our pipeline that will open in the second half of the year and beyond. We are also pleased to be expanding our international presence by signing new agreements with franchisees to develop restaurants in Panama and Guatemala as well as the recently announced development agreement with our new franchisee in India.”