Fiesta Restaurant (FRGI) Misses Q1 EPS by 4c

Fiesta Restaurant (NASDAQ: FRGI) reported Q1 EPS of $0.25, $0.04 worse than the analyst estimate of $0.29. Revenue for the quarter came in at $175.6 million versus the consensus estimate of $178.12 million.

• Total revenues decreased 0.6% to $175.6 million;
• Comparable restaurant sales at Pollo Tropical decreased 6.7% and comparable restaurant transactions decreased 8.9%. Sales cannibalization negatively impacted comparable restaurant transactions by approximately 0.7%;
• Comparable restaurant sales at Taco Cabana decreased 4.5% and comparable restaurant transactions decreased 4.0%;
• Three Company-owned Pollo Tropical restaurants and one Company-owned Taco Cabana restaurant were opened;
• Net loss of $15.1 million, or $0.56 per diluted share, compared to net income in the prior year period of $9.9 million, or $0.37 per diluted share; and
• Adjusted net income of $6.7 million, or $0.25 per diluted share, compared to adjusted net income in the prior year period of $10.0 million, or $0.37 per diluted share (see non-GAAP reconciliation table below).

Fiesta President and Chief Executive Officer Richard Stockinger said, “We are addressing our challenges and disappointing financial performance through a strategic Renewal Plan that we believe will create long-term value for our shareholders. We have already taken action by recently closing 30 Pollo Tropical restaurants in emerging markets that contributed material pre-tax operating losses in 2016 and the first quarter of 2017, while we focus on our core markets at both brands. With ignited passion, our entire team is galvanized and focused on re-establishing Fiesta as a best-in-class restaurant operator within our sector. Our goal is to be recognized for providing the best quality and value to our loyal guests, and our revitalization efforts have begun in earnest.”

For earnings history and earnings-related data on Fiesta Restaurant (FRGI) click here.

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