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 third quarter of 2013 which ended on September 29, 2013. The Company also provided initial operating targets for 2014.
Highlights of Third Quarter 2013 Results Include:
- Total revenues increased 9.8% to $140.7 million, compared to $128.2 million in the prior year period;
- Comparable restaurant sales increased 6.5% at Pollo Tropical and 1.8% at Taco Cabana;
- Comparable restaurant guest traffic increased 3.2% at Pollo Tropical and decreased 0.1% at Taco Cabana;
- Four company-owned Pollo Tropical restaurants were opened; and
- Net income increased 38.2% to $5.0 million, or $0.21 per diluted share, compared to net income of $3.6 million, or $0.16 per diluted share, in the third quarter of 2012.
Tim Taft, President and Chief Executive Officer of Fiesta, commented, “We had an exceptionally strong third quarter characterized by positive comparable restaurant sales, increased restaurant-level profitability and meaningful growth in earnings per share Additionally, the infrastructure investments we’ve made have enabled us to substantially complete the administrative transition from Carrols while further providing ongoing support to our growing restaurant footprint. We expect to end 2013 with 18 new company-owned restaurants, of which 12 are Pollo Tropical and six are Taco Cabana.”
Taft concluded, “We are optimistic about 2014 as we continue to implement our long-term business plan. In addition to backfilling Pollo Tropical in Florida, we are also building our presence in Georgia and Tennessee. The restaurants in these markets are already generating healthy sales volumes despite not having yet achieved media efficiency. In 2014, we expect to nearly double the pace of Company-owned Pollo Tropical restaurant openings which will include our first Texas-based Pollo Tropical restaurant, in Dallas. Development of Taco Cabana restaurants was limited to Texas in 2013, but next year we will be entering Georgia with our new elevated concept that we believe will emerge as a growth vehicle for the Taco Cabana concept outside of Texas. Above all, we are fortunate to have two concepts that possess significant brand equity and are positioned to make meaningful contributions to our success.”