Fogo de Chão, Inc. Reports Preliminary Results for the Fiscal Third Quarter of 2017
Third quarter 2017 financial results, on a preliminary, unaudited basis, are expected to include the following:
- Total revenue of approximately
$71.4 million. Total revenue in the quarter was negatively impacted by approximately $0.9 millionas a result of hurricane activity;
- Consolidated comparable restaurant sales decreased 5.1%(1);
- U.S. company-owned comparable restaurant sales decreased 2.1%(1). Excluding the impact of the hurricane activity during the quarter, U.S company-owned comparable restaurant sales decreased 1.4%;
Brazilcompany-owned comparable restaurant sales decreased 17.1%. Excluding the impact of the two Rio de Janeirolocations, Brazilcompany-owned comparable restaurant sales increased 3.0%. The Rio de Janeirolocations’ results included lapping last year’s Olympic Games and security issues in that city during the quarter; and
- GAAP net income per share is expected to be between
$0.08 and $0.10, including an estimated impact from the hurricanes of approximately $0.03.
Johnson continued, “Irrespective of these third quarter issues, the fundamentals of our business are healthy as demonstrated by a return to more normalized operating activity early in the fourth quarter. We remain committed to our strategic platforms of daypart expansion, price optionality and all-day value and continue to enhance these strategies with both core and seasonal innovation, including our new fall menu which features a limited-time, bone-in Cowboy Ribeye. We believe this focus, as well as our enhanced group sales effort, positions us well for the near and long term.”
“We are appreciative of the efforts of all of our teams in the face of three devastating hurricanes. I want to say a particular thank you to our team in the
The Company maintains comprehensive insurance coverage on all of its restaurants including property, flood and business interruption. The Company is working with its insurance providers to assess the overall impact from the three storms and expects the assessment to take several weeks to complete.
Preliminary results remain subject to the completion of normal quarter-end accounting procedures and adjustments and are subject to change.
During the quarter, the Company’s
Updated 2017 Guidance
The Company is updating its guidance for the 52-week fiscal year 2017, which ends on
- Total revenue of
$306 million to $311 million, assuming an exchange rate of 3.25 Brazilian reais to 1 U.S. dollar;
- Company-owned comparable restaurant sales of -1.5% to -2.5%;
The Company intends to provide annual guidance as it relates to revenue, comparable restaurant sales growth, restaurant contribution margin, general and administrative expense, tax expense, and development schedule during its third quarter 2017 earnings conference call. The Company expressly disclaims any duty to update this guidance.
(1) A restaurant in the comparable restaurant base that is forced to close for at least four consecutive days is removed from the comparable sales calculation for the full quarter in which the closure occurred until the first full quarter following the anniversary of the closure. Certain restaurants that were directly impacted by Hurricane Harvey (two in
(2) The Company uses adjusted net income as a non-GAAP financial measure for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the methods used by other companies. A reconciliation of GAAP net income per share to adjusted net income is included in the accompanying financial data.
Third Quarter 2017 Earnings Conference Call
The Company will host a conference call to discuss its third quarter financial results on
About Fogo de Chão
Fogo de Chão (fogo-dee-shown) is a leading Brazilian steakhouse, or churrascaria, which has specialized for more than 37 years in fire-roasting high-quality meats utilizing the centuries-old Southern Brazilian cooking technique of churrasco. Fogo delivers a distinctive and authentic Brazilian dining experience through the combination of high-quality Brazilian cuisine and a differentiated service model known as espeto corrido (Portuguese for "continuous service") delivered by gaucho chefs. Fogo offers its guests a tasting menu of a variety of meats including beef, lamb, pork and chicken, simply seasoned and carefully fire-roasted to expose their natural flavors, a gourmet Market Table with seasonal salads, soup and fresh vegetables, seafood, desserts, signature cocktails and an award-winning wine list. The first Fogo de Chão opened in
Safe Harbor Statement
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. Forward-looking statements relate to expectations, beliefs, projections, guidance, future plans, objectives and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, the development and introduction of new products, and the implementation of our marketing and branding strategies. Forward-looking statements can also be identified by words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “seeks,” “intends,” “targets” or the negative of these terms or other comparable terminology. Forward-looking statements are not guarantees of future performance and actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in the section entitled "Risk Factors" in our recent annual report on Form 10-K for the fiscal year ended
Reconciliation to Adjusted Net Income per Share attributable to Fogo de Chão, Inc.
|52-Week Fiscal Year Ended
December 31, 2017
|GAAP Diluted Net Income Per Share||$||0.74||$||0.77|
|Secondary Offering Costs||0.02||0.02|
|Non-recurring expense (a)||0.01||0.01|
|Adjusted Diluted Net Income Per Share||$||0.77||$||0.80|
|(a) Reserve for Brazilian Union settlement|
Source: Fogo de Chao