Industry News | July 28, 2017

Bojangles’ Will Open Fewer Company-Operated Stores

Bookmark/Search this post
Email this story Email this story
Printer-friendly versionPrinter-friendly version

Read More About

Bojangles’, Inc. announced financial results for the 13-week second fiscal quarter ended June 25, 2017. Bojangles’ also revised its annual guidance for the 53-week fiscal year 2017 ending on December 31, 2017.

Highlights for the Second Fiscal Quarter 2017 Compared to the Second Fiscal Quarter 2016

Total revenues increased 2.1 percent to $134.4 million from $131.6 million.

System-wide comparable restaurant sales decreased 1.4 percent, while company-operated comparable restaurant sales decreased 3.3 percent and franchised comparable restaurant sales decreased 0.1 percent.

14 system-wide restaurants were opened—seven company-operated restaurants and seven franchised restaurants—and five company-operated restaurants were refranchised.

Net Income was $8.6 million as compared to $10 million in the prior year fiscal quarter.

Diluted Net Income per Share was $0.22 as compared to $0.27 in the prior year fiscal quarter.

Adjusted Net Income was $9 million as compared to $10.1 million in the prior year fiscal quarter.

Adjusted Diluted Net Income per Share was $0.23 as compared to $0.27 in the prior year fiscal quarter.

Adjusted EBITDA was $19.5 million as compared to $23.2 million in the prior year fiscal quarter.

Descriptions of Adjusted Net Income, Adjusted Diluted Net Income per Share, Adjusted EBITDA and other non-GAAP financial measures are provided in “Use and Definition of Non-GAAP Measures,” and reconciliations to GAAP figures are provided in the tables at the end of this release.

“The continuing challenging conditions in the limited service restaurant industry require navigating with experience, a clearly defined plan and a willingness to make adjustments when necessary to stay competitive and relevant. We believe in a steady, deliberate, and measured approach to expansion, ensuring operational excellence, integrating technology, and creating the best Bojangles’ experience possible,” says Bojangles’ President and CEO Clifton Rutledge.

“We are expanding our footprint into adjacent markets and are pleased to have recently signed several franchise development agreements. Franchisees will continue to lead our expansion efforts as we intend to open fewer new company-operated restaurants on a go-forward basis,” concludes Mr. Rutledge.

Second Fiscal Quarter 2017 Financial Review

System-wide comparable restaurant sales decreased 1.4 percent, consisting of a 3.3% decrease in company-operated comparable restaurant sales and a 0.1 percent decrease in franchised comparable restaurant sales. The comparable restaurant sales decrease at company-operated restaurants was composed of a decrease in transactions, partially offset by increases in price and mix.

Total revenues increased 2.1 percent to $134.4 million in the second fiscal quarter of 2017 from $131.6 million in the prior year fiscal quarter. The increase was primarily due to a net additional 51 system-wide restaurants at June 25, 2017 compared to June 26, 2016, partially offset by comparable restaurant sales declines at our company-operated and franchised restaurants.

Company restaurant revenues increased 1.9 percent to $127.1 million in the second fiscal quarter of 2017 from $124.7 million in the prior year fiscal quarter. Franchise royalty revenues increased 5.4 percent to $7 million in the second fiscal quarter of 2017 from $6.6 million in the prior year fiscal quarter.

Restaurant contribution, a non-GAAP measure, decreased 16.9% to $20.4 million in the second fiscal quarter of 2017 from $24.5 million in the prior year fiscal quarter. As a percentage of company restaurant revenues, restaurant contribution margin, a non-GAAP measure, decreased to 16.0% in the second fiscal quarter of 2017 from 19.7% in the prior year fiscal quarter.

General and administrative expenses increased 4.4 percent to $9.8 million in the second fiscal quarter of 2017 from $9.4 million in the prior year fiscal quarter.

Net Income decreased 14.1 percent to $8.6 million in the second fiscal quarter of 2017 compared to $10.0 million in the prior year fiscal quarter. Diluted Net Income per Share decreased 18.5% to $0.22 in the second fiscal quarter of 2017 compared to $0.27 in the prior year fiscal quarter.

Adjusted Net Income, a non-GAAP measure, decreased 10.7 percent to $9.0 million in the second fiscal quarter of 2017 compared to $10.1 million in the prior year fiscal quarter. Adjusted Diluted Net Income per Share decreased 14.8 percent to $0.23 in the second fiscal quarter of 2017 compared to $0.27 in the prior year fiscal quarter.

Adjusted EBITDA, a non-GAAP measure, decreased 15.8% to $19.5 million in the second fiscal quarter of 2017 from $23.2 million in the prior year fiscal quarter.

Fiscal Year 2017 Guidance

Bojangles’ has revised its annual outlook for the 53-week period ending on December 31, 2017 based upon performance to date and updated expectations for the remainder of the fiscal year:

Total revenues of $549 million to $553 million (previously $560.0 million to $569.0 million);

System-wide comparable restaurant sales of negative low-single digits (previously negative low-single digits to flat).

The opening of 53 to 56 system-wide restaurants (previously 57 to 62)

25 to 26 company-operated restaurants (previously 27 to 28).

28 to 30 franchised restaurants (previously 30 to 34).

Net increase of 45 to 48 system-wide restaurants (previously 49 to 54).

Net increase of 16 to 17 company-operated restaurants (previously 19 to 20), which includes the impact of our refranchising of five company-operated restaurants, which took place on April 24, 2017;

Net increase of 29 to 31 franchised restaurants (previously 30 to 34), which includes the impact of our refranchising of five company-operated restaurants which took place on April 24, 2017.

Restaurant contribution margin of 16 percent to 16.3 percent (previously 17 percent to 17.5 percent).

General and administrative expenses of $40.0 million to $41 million (previously $40.5 million to $41.5 million).

Adjusted Diluted Net Income per Share of $0.81 to $0.84 (previously $0.87 to $0.93).

Adjusted EBITDA of $78.0 million to $80.0 million (previously $84.0 million to $89.0 million).

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.