News

Q3 financials bring good news for Habit Burger

October 31, 2019

Q3 revenue, income and company-operated comparable restaurant sales were up at The Habit Burger, according to the brand's parent company, Habit Restaurants Inc, which released financial results Thursday for the quarter ended September 24, 2019:

• Total revenue increased 12.1% to $117.3 million, compared to $104.6 million in the third quarter of 2018.
• Company-operated comparable restaurant sales increased 3.1%.
• Net income was $1.0 million, or $0.05 per diluted weighted average share, compared to net loss of $0.6 million, or $(0.03) per diluted weighted average share, in the third quarter of 2018.
• Adjusted fully distributed pro forma net income was $1.6 million, or $0.06 per fully distributed weighted average share, compared to net income of $1.4 million, or $0.05 per fully distributed weighted average share, for the third quarter of 2018.
• The company opened six company-operated restaurants and closed three company-operated restaurants in the Orlando, Florida market

"We're pleased to report strong results this quarter, which included our sixth consecutive quarter of company-operated comparable restaurant sales growth, at 3.1%," President and CEO Russ Bendel said in a press release. "We also continued to make progress on our mission to be a total access brand to our customers. Our total number of drive-thrus reached 51 during the quarter, we also installed self-ordering kiosks in our twentieth restaurant, and saw our mobile app downloads and usage increase dramatically in the third quarter."

2019 Outlook

The company anticipates the following for its fiscal year 2019:

• Total revenue between $463.0 million to $465.0 million.
• Company-operated comparable restaurant sales growth of approximately 3% to 3.5%.
• The opening of 21 company-operated restaurants and six franchised/licensed restaurants.

Habit has 237 company-operated locations and 28 franchised/licensed locations — excluding eight licensed locations in Santa Barbara County, California from which the company is not entitled to royalties —  for a systemwide total of 265 locations.

The chain expects to open 29 to 35 locations next year, including 12 to 15 franchise locations, which would more than double its expected franchise openings in 2019, Bendel said.