News

The Habit boasts increased Q2 revenues, international growth

August 1, 2019

Q2 was good to The Habit, whose parent company, The Habit Restaurants Inc., reported Wednesday that revenues were up 14.7% to $117.9 million for the quarter ending in June.

"We are very pleased with our results this quarter, which included total revenue growth of 14.7% and company-operated comparable restaurant sales growth of 3.9%," CEO Russ Bendel said in a company press release. "In addition, we are thrilled with how aggressively and efficiently we have moved to provide a 'Total Access' brand to our customers in this ever-changing consumer environment."

Other highlights included:

• Company-operated comparable restaurant sales increased 3.9%, compared to the second quarter of 2018.
• Net income was $2 million, or $0.09 per diluted weighted average share, compared to net income of $2.1 million, or $0.10 per diluted weighted average share, in the second quarter of 2018.
• Adjusted fully distributed pro forma net income was $2.4 million, or $0.09 per fully distributed weighted average share, compared to net income of $2.2 million, or $0.08 per fully distributed weighted average share for the second quarter of 2018.
• Adjusted EBITDA was $11.9 million, compared to $10.5 million for the second quarter of 2018.
• Opened four company-operated restaurants and three franchised/licensed restaurants during the second quarter of 2019. As of June 25, the company had 234 company-operated locations and 28 franchised/licensed locations (excluding eight licensed locations in Santa Barbara from which the company is not entitled to royalties) for a system-wide total of 262 locations.

2019 Outlook
The company anticipated the following for fiscal year 2019:

• Total revenue between $462 million to $465 million.
• Company-operated comparable restaurant sales growth of approximately 2.5% to 3.5%.
• The opening of 21 to 23 company-operated restaurants and seven to nine franchised/licensed restaurants.
• Restaurant contribution margin of 16.25% to 16.75%, which includes a 0.3% unfavorable impact related to the change in lease accounting.
• General and administrative expenses of $44 million to $45 million.
• Depreciation and amortization expense of approximately $28.5 million.
• Capital expenditures of $35 million to $38 million.

Opening in Cambodia
The Habit announced Thursday that it is expanding throughout Cambodia with Amory F&B Company Ltd in a 25-store development agreement. The first unit will open next year in Phnom Penh.

"The Habit's excellent brand, best-in-class systems, and experience will help us to go the extra distance to become national leaders in the burger segment, " Madam Chhun Sophearoth, CEO of Amory F&B Company, said in the release. "As an organization we keep developing and investing in our people, much like The Habit Burger, and this will be an important part of our success."

The Habit has grown to over 265 restaurants in 12 states throughout Arizona, California, Florida, Idaho, Maryland, Nevada, New Jersey, North Carolina, Pennsylvania, Utah, Virginia and Washington as well as six international locations.