Habit Burger reports mixed Q4 financial results
The Habit Restaurants announced this week that its 4Q revenue increased 15.2 percent to $85.1 million compared to $73.9 million in the fourth quarter of 2016. Company-operated comparable restaurant sales, however, decreased 1 percent, according to a company press release.
"We believe we made progress solidifying our business in 2017 and remain confident in the strength of the Habit brand and our strategy of providing a differentiated, high-quality fast casual experience at a tremendous everyday value," President and CEO Russ Bendel said in the release. "We have a number of exciting and relevant initiatives that we’re working on to naturally evolve our brand, focused on quality/value, convenience and innovation. We believe our initiatives can enhance the Habit experience not only in 2018, but for many years to come."
Other highlights for the fourth quarter ended Dec 26, 2017 included:
- Net loss of $6.2 million, or $(0.30) per diluted weighted average share, which included $6.1 million of net expense relating to the enactment of the Tax Cuts and Jobs Act of 2017, compared to net income of $1.3 million, or $0.07 per diluted weighted average share, in the fourth quarter of 2016.
- Adjusted fully distributed pro forma net loss was $44,000, or $(0.00) per fully distributed weighted average share compared with adjusted fully distributed pro forma net income of $1.8 million, or $0.07 per fully distributed weighted average share for the fourth quarter of 2016. Adjusted EBITDA was $7.3 million compared to $8.4 million for the fourth quarter of 2016.
- Opened 13 company-operated restaurants and one franchised restaurant during the fourth quarter.
- As of Dec. 26, 2017, the company had 193 company-operated locations and 16 franchised/licensed locations (excluding seven licensed locations in Santa Barbara County, California from which the company is not entitled to royalties) for a system-wide total of 209 locations.
"During the quarter, we opened 13 new company-operated Habit Burger Grills, of which four were drive-thrus and one franchised restaurant in Shanghai, China," Bendel said. "In 2018, we plan to open approximately 30 new company-operated locations, including approximately 15 drive-thru locations, while franchisees expect to open six to eight locations during the year."
The company anticipates the following for its fiscal year 2018:
- Total revenue between $389 million to $393 million.
- Company-operated comparable restaurant sales of flat to slightly positive for the year.
- The opening of 30 company-operated restaurants and six to eight franchised/licensed restaurants.
- Restaurant contribution margin of 16-17 percent.
- General and administrative expenses of $37.5 million to $38 million.
- Depreciation and amortization expense of approximately $24.0 million.
- Capital expenditures of $43 million to $46 million
- An effective pro forma tax rate of approximately 29 to 30 percent, which assumes the conversion of all common units of The Habit Restaurants, LLC for shares of our Class A common stock (and cancellation of corresponding shares of our Class B common stock), which would eliminate the non-controlling interests.
Topics: Operations Management