Fourth Quarter 2013 Financial Results
Revenue Growth of 17.4%
Total revenue increased $13.5 million in the fourth quarter of 2013, or 17.4%, to $91.5 million, compared with $77.9 million in the fourth quarter of 2012. This increase was the result of new restaurants opened system-wide since the beginning of the fourth quarter of 2012, in addition to an increase in sales at our comparable base restaurants. In the fourth quarter of 2013, comparable restaurant sales increased 4.3% for company-owned restaurants, 1.5% for franchise restaurants and 3.9% system-wide.
The company-owned comparable restaurant sales increase of 4.3% in the fourth quarter 2013 was comprised of a price increase of approximately 2.5% and a combination of traffic and menu mix increases.
Adjusted Net Income (2) Growth of 65.9%
Adjusted net income increased 65.9% to $3.5 million, from $2.1 million in the prior period. GAAP Net income was $2.4 million in the fourth quarter of 2013, compared with net income of $1.6 million in the fourth quarter of 2012.
Restaurant contribution margin decreased to 21.0% in the fourth quarter of 2013, compared with 21.3% in the fourth quarter of 2012. The decrease was primarily due to increased operating and occupancy costs, resulting from investment in our limited-time offering, repairs and maintenance, as well as expenses related to the increased number of new restaurants.
On December 5, 2013, we completed a follow-on offering of 4,500,000 shares of our Class A common stock at a price of $39.50 per share. All of the shares in the offering were offered by selling stockholders, except for 108,267 shares offered by us, the net proceeds of which were used to repurchase the same number of shares from certain officers at the same net price per share. We did not receive any of the proceeds from the offering. The selling stockholders paid all of the underwriting discounts and commissions associated with the sale of their shares; however, we incurred approximately $696,000 in costs and expenses related to this offering during the fourth quarter of 2013.