Operations

Pollo Tropical, Taco Cabana parent reveals results of tough Q3 in main operating states

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November 6, 2020

Pollo Tropical and Taco Cabana parent company, Fiesta Restaurant Group Inc., reported a tough third quarter of results for the 13-week period ending on Sept. 27, according to a news release. Total revenues for the period fell 16.4% to $137.3 million from $164.2 million in the third quarter of 2019. Comp sales at Pollo Tropical dropped 11.1%, while comp sales at Taco Cabana fell 14.2%.

Other significant third-quarter results, include:

• $4.6 million or 18 cents per diluted share in net income in the quarter, compared to net loss of $22.2 million, or a decline of 84 cents per diluted share last year's quarter.
• Adjusted net income of $2.1 million, or 8 cents per diluted share for the quarter compared to adjusted net income of $0.2 million, or 1 cent per diluted share last year's quarter.
• Pollo Tropical third-quarter adjusted EBITDA of $10.6 million compared to $11 million last year's quarter.
• Pollo Tropical third-quarter restaurant-level adjusted EBITDA of $16.4 million, or 21.2% of sales, compared to $17.8 million, or 20.1% last year's quarter.
• Taco Cabana third-quarter adjusted EBITDA of $4.2 million compared to $1.2 million last year's quarter.
• Taco Cabana third-quarter restaurant-level adjusted EBITDA of $8.8 million, or 14.9% of sales, compared to $6.9 million, or 9.2% of sales last year's quarter.
• Third-quarter consolidated adjusted EBITDA of $14.8 million compared to $12.2 million last year's quarter.

"While prioritizing the well-being of our team members and guests during these challenging times, we are very encouraged that our business trajectory continues to strengthen. " Fiesta President and CEO Richard Stockinger said in the release. "Notably, our progress was achieved despite reclosing our dining rooms in mid-July in response to COVID outbreaks in Florida and Texas, the two states where we operate.

"Our operating model optimization and cost management efforts have significantly increased profit margins at both brands at a sustainable level. Third quarter Pollo Tropical Adjusted EBITDA margin improved 120 basis points and Taco Cabana Adjusted EBITDA margin expanded by 540 basis points. We will continue focusing on increasing ease of use and capacity for the most desired channels by consumers including online, drive-thru, pickup and delivery, and selectively opening dining rooms in situations in which we can achieve profitable sales."