Although Dallas-based Fiesta Restaurant Group Inc.'s Q1 revenue was down 1.3% to $144.7 million compared to last year's $146, it beat analysts' estimates of $139,610,000.

The company reported Thursday that comparable restaurant sales at one of its brands — Pollo Tropical — increased 4.3%, but comparable restaurant sales at its other fast casual brand, Taco Cabana, decreased by the exact same percentage, resulting in a net loss of $2.1 million or 8 cents per share. Earnings, adjusted for non-recurring costs, were 1 cent per share.

Still, the numbers are going in the right direction compared to Q4 2020, Fiesta President and CEO Richard Stockinger said in a company press release

"Overall we were pleased with our first-quarter sales and profit after considering the impact of Winter Storm Uri on February sales, which negatively affected the entire state of Texas for multiple weeks," he said. "Both of our brands showed continued positive momentum in sales trends during the first quarter of 2021 compared to the fourth quarter of 2020, which continued in April."

Pollo Tropical's first quarter 2021 comparable restaurant sales improved to positive 4.3% compared to the first quarter of 2020 and were -3.3% vs. the first quarter of 2019. Taco Cabana first quarter 2021 comparable restaurant sales improved to -4.3% compared to the first quarter of 2020. We estimate that winter storm Uri negatively impacted Taco Cabana first-quarter comparable restaurant sales by approximately 480 basis points."

Stockinger said the company spent Q1 — the 13 weeks ended April 4 — optimizing its operating model.

"We made progress over the quarter improving our drive-thru infrastructure and are making ongoing investments in our digital platform such as enhancements to our geofencing capability to improve curbside speed of service and building an enhanced, digital drive-thru experience," he said. "We expect these initiatives to drive accelerated sales growth as they reach full implementation."

First Quarter 2021 Financial Summary

  • Total revenues decreased 1.3% to $144.7 million.
  • Comparable restaurant sales at Pollo Tropical increased 4.3%.
  • Comparable restaurant sales at Taco Cabana decreased 4.3%.
  • A net loss of $2.1 million 8 cents per diluted share
  • Adjusted net income of $0.2 million 1 cent per diluted share, in the first quarter of 2021.

On Thursday, Fiesta shares, which have risen nearly 17% since the beginning of the year, hit $13.39, up 98% over the past 12 months.

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