US-based Fiesta Restaurant Group has reported total revenues of $688.6m for the fiscal year ending 30 December 2018 (FY2018).
When compared with the previous year’s revenue of $669.13m, the slight growth was driven primarily by comparable restaurant sale increases of 2.2% at Pollo Tropical and 4.5% at Taco Cabana. Growth was also driven by sales from new restaurants, which were partially offset by permanent restaurant closures.
Operating expenses amounted to $679.62m, compared to expenses of $710.24m during the previous year.
The company revealed a net income of $7.8m ($0.29 per diluted share) in 2018, compared to a net loss of $36.2m ($1.35 per diluted share) in 2017.
Fiesta president and chief executive officer Richard Stockinger said: “We ended 2018 with a flurry of activity, relaunching Pollo Tropical Catering with dedicated resources, piloting third-party delivery in South Florida, rolling out the ‘My Pollo’ and ‘My TC’ loyalty programmes, and most importantly, completing the components of the Strategic Renewal Plan, including our comprehensive portfolio review, that we began in 2017.
“Through these actions, we believe that we have achieved higher quality restaurant operations and a healthier and more profitable restaurant portfolio.”
Fiesta Restaurant reported total revenues of $167.6m in the fourth quarter of 2018, which is a 3.3% increase compared with $162.2m in 2017.
During the quarter, the restaurant group also reported a 5.1% increase in comparable restaurant sales at Taco Cabana restaurants and a 1.9% decline at Pollo Tropical.
Stockinger added: “Taco Cabana generated its ninth consecutive month of positive comparable restaurant sales growth in December 2018.
“Importantly, positive NPS trends at both brands, including Pollo Tropical experiencing its peak performance in December 2018 led by our South Florida markets, coupled with continued improvements to restaurant-level adjusted EBITDA margins, gives us continuing confidence in the future trajectory of the business.”
During the quarter, Fiesta opened three Pollo Tropical restaurants in South Florida and closed 14 Pollo Tropical restaurants in Florida and Georgia. The company also closed nine Taco Cabana restaurants in Texas.