Fiesta Restaurant Group, Inc. Reports Third Quarter 2016 Results

Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ:FRGI), parent company of the Pollo Tropical® and Taco Cabana® fast casual restaurant brands, today reported results for the third quarter 2016, which ended on October 2, 2016.

Select third quarter 2016 results as compared to third quarter 2015 results include:
  • Total revenues increased 5.9% to $182.3 million;
  • Comparable restaurant sales at Pollo Tropical decreased 1.0% and comparable guest traffic decreased 2.5%, including the impact of sales cannibalization that negatively impacted comparable guest traffic by approximately 1%;
  • Comparable restaurant sales at Taco Cabana decreased 4.1% and comparable guest traffic decreased 3.5%;
  • Nine Company-owned Pollo Tropical restaurants were opened;
  • Net loss of $4.5 million, or $0.17 per diluted share, compared to the prior year period of net income of $7.9 million, or $0.30 per diluted share. Net loss in the third quarter of 2016 included previously disclosed asset impairment charges of $18.5 million related to ten closed Pollo Tropical restaurants and certain additional restaurants the Company continues to operate; and
  • Adjusted net income decreased $0.8 million to $8.0 million, or $0.30 per diluted share, compared to the prior year period of adjusted net income of $8.8 million, or $0.33 per diluted share (see non-GAAP reconciliation table below).

Fiesta Interim President and Chief Executive Officer Danny Meisenheimer commented, "The Board and management team are committed to restoring momentum and building long-term shareholder value. We approach 2017 with optimism and a focused plan to deploy capital for new restaurant development in core markets, while we work to build brand awareness and frequency in our emerging Pollo Tropical markets and deliver exceptional brand fundamentals across both systems. We will continue our remodeling program at Pollo Tropical primarily in South Florida, while we invest in keeping our restaurants competitive, and building strategic organizational systems and people capabilities."

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