Fiesta Restaurant Group Inc., parent company of Pollo Tropical and Taco Cabana, reported major declines Friday for Q1, which ended March 29.

Total revenues decreased 11.5%, to $146.7 million in the first quarter of 2020, from $165.9 million in the first quarter of 2019, according to a press release. Comparable restaurant sales at Pollo Tropical decreased 7.3% but had actually increased .6% during the first 10 weeks of the first quarter of 2020 prior to the impact of COVID-19.

It's a number that brought hope to Fiesta President and CEO Richard Stockinger, who said that although Taco Cabana's comparable restaurant sales were down 13.5% compared to last year's Q1, both of the brands' post COVID-19 comp sales declines stabilized in late March.

"We have realized sequential sales improvement weekly at both brands since that time," he said in the release. "Aided by strong drive-thru and carry out sales, recent weekly Taco Cabana comparable restaurant sales for the two weeks ended May 3, 2020, have improved to down 18.6% compared to the same weeks last year."

Pollo Tropical comparable restaurant sales trends have improved to -37.8% compared to the same weeks last year, supported by increased drive-thru and delivery sales.

"At those sales trends, we estimate that we generate break-even profitability, which we believe should be sustainable and provide us a base from which to rebuild the bottom line as the economy re-accelerates," he said. 

Stockinger said the company was seizing the opportunity created by changes in response to COVID-19 to create a better business model.

"We have expanded and will continue to expand delivery options, we are creating more in-home dining options including Pollo Pantry and TC Pantry and we are rapidly improving our curbside and pick up capabilities to be faster and safer for our customers," he said. "Additionally, we have completed our re-opening plans in compliance with applicable state and local guidelines for the return of safe dine-in activity in Texas and Florida in markets that are allowing dine-in activity."

First quarter 2020 financial summary

  • Total revenues decreased 11.5% to $146.7 million in the first quarter of 2019 from $165.9 million in the first quarter of 2019.
  • Comparable restaurant sales at Pollo Tropical decreased 7.3%; comparable restaurant sales for Pollo Tropical increased 0.6% during the first 10 weeks of the first quarter of 2020 prior to the impact of COVID-19 compared to the prior-year period and decreased 32 % during the last three weeks of the first quarter of 2020 compared to the prior-year period.
  • Comparable restaurant sales at Taco Cabana decreased 13.5%; comparable restaurant sales for Taco Cabana decreased 8.6% during the first 10 weeks of the first quarter of 2020 prior to the impact of COVID-19 compared to the prior-year period and decreased 28.3% during the last three weeks of the first quarter of 2020 compared to the prior-year period;
  • Net loss of $7.3 million, or $0.29 per diluted share, in the first quarter of 2020 compared to a net income of $2.3 million, or $0.08 per diluted share, in the first quarter of 2019.
  • Comparable restaurant sales during fiscal April decreased 49.2% for Pollo Tropical and 26.2% for Taco Cabana compared to the prior-year period.

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