Fiesta Restaurant Group, Inc. Reports Second Quarter 2020 Comparable Restaurant Sales

Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ: FRGI), parent company of the Pollo Tropical and Taco Cabana restaurant brands, today reported comparable restaurant sales for the 13-week second quarter 2020, which ended on June 28, 2020, and for the subsequent two-week period, which ended on July 12, 2020. The Company also provided a liquidity update and announced the completion of an amendment to its revolving credit facility.

Fiesta President and Chief Executive Officer Richard Stockinger said, “We are very encouraged by the significant sequential improvement in comparable restaurant sales at both brands in the second quarter, which has continued into the third quarter. These improving trends have come despite the fact that we are operating in two of the most challenged states in terms of COVID and economic conditions, Florida and Texas. Pollo Tropical comp sales acceleration was the most significant, improving from ‑49.2% in April to ‑12.2% in the first half of July. As we continue to prioritize the well-being of our team members and guests during this pandemic, we are also creating a better business model that is easier and safer for our consumers including expanded delivery options, new curbside and pick-up capabilities, and a much-enhanced online ordering experience.”

Mr. Stockinger continued, “We have been taking ongoing steps to ensure a safe operating environment throughout this crisis. Effective July 12, we made the decision to close all of our dining rooms until further notice to ensure team member and guest safety. We will continue to operate our restaurants for drive thru, delivery and pick up, and we are accelerating efforts to better enable our customers to enjoy our brands safely and conveniently across all channels - wherever and whenever they choose.”

Mr. Stockinger concluded, “We have also finalized an amendment to our credit agreement that includes adjustments to our covenants that are more reflective of current sales and profit trends. We believe the amendment allows us adequate covenant and liquidity cushion to comfortably operate the business in this challenging environment. For the remainder of 2020, the only applicable financial covenant that requires compliance will be a minimum liquidity target. As a result of our rising sales trends and improved cash flow management, our cash balance increased $26.5 million over the second quarter from $75.1 million as of April 3 to $101.6 million on June 28⁽¹⁾. Our outstanding revolver balance was $150.0 million and our net revolver debt at the end of Q2 was $48.4 million⁽²⁾. At current sales trends we believe we will continue to improve liquidity, despite the challenging environment.”