LOS ANGELES, March 1, 2022 /PRNewswire/ -- Tasty Brands, LP (the "Company"), an affiliate of Los Angeles-based private equity firm Triton Pacific Capital Partners, reported its financial results for the fourth quarter ending December 29, 2021 and provided a letter to its shareholders outlining the results.
Financial Highlights
Highlights for the fourth quarter of 2021 versus the fourth quarter of 2020 include:
Total restaurant sales increased 16.6% to $56.0 million compared to $48.0 million in the fourth quarter of 2020. For the full year, total restaurant sales of $231.7 million are +36% compared to total restaurant sales of $170.4 million in 2020.
Adjusted restaurant-level EBITDA1 was $5.8 million compared to $6.0 million in the prior year quarter. Fiscal year 2021 adjusted restaurant-level EBITDA of $27.0 million compared to $16.1 million in 2020, a +68% change.
Adjusted income from operations2 increased to $3.4 million from $2.9 million in the prior year quarter, and increased +136% on a full-year basis, with $16.6 million in 2021 compared to $7.0 million in the prior year.
Loan-to-value for consolidated restaurant operations was 17.8%3 as of year-end 2021.
As of December 29, 2021, the Company owned 253 restaurants, including 69 Burger King and 184 Pizza Hut locations.
Management Commentary
Overall performance for Tasty Brands in Q4 was strong considering a challenging business environment in which inflationary cost pressures, labor shortages and lingering effects of the pandemic are all still very much evident. Tasty Brands, like the broader quick service restaurant industry, was tested in many ways in 2021, but its resiliency, stability, and value proposition yielded robust financial performance and continued growth. Both Burger King and Pizza Hut portfolio companies continue to execute key strategic initiatives across all aspects of the business, while investments in people, assets, and the guest experience underpin the results. Tasty Brands has demonstrated its ability to innovate and adapt to outside forces by developing and implementing strategies to drive sales, pass-through cost increases and realize strong conversion of incremental sales to bottom-line profitability.
There were several accomplishments and updates across the Tasty Brands portfolio for the quarter include. Some include:
Tasty King experienced strong openings for two new Burger King restaurants located in Butler, Missouri and Smithville, Missouri. Average weekly sales are currently running at $30,000+, which implies $1.5 million annualized, above brand average.
Tasty Brands' sales growth at portfolio companies have outperformed other franchisees in their respective DMAs in almost every period of 2021; both Tasty King and Tasty Hut achieved positive same store sales growth in Q4.
Asset actions completed in Q4 across both portfolio companies showed early signs of strong financial performance and return on investment.
Tasty Hut completed a strategic add-on investment of 23 units located throughout New York, New Hampshire and Massachusetts. This transaction of Pizza Hut restaurants in the Northeast creates opportunity for further expansion via subsequent add-on acquisitions and strategic new unit development. Tasty Hut has 3 additional units under contract from this transaction that will close in Q1 2022 and has already secured properties for new store development within this region.
Distribution Update
The Company declared a quarterly distribution for Q4 2021 of $0.4375 per share.
About Tasty Brands, LP
Tasty Brands, LP is a multi-brand restaurant franchisee within the quick service restaurant industry. Tasty Brands' portfolio companies include Tasty Hut, LLC, a Pizza Hut franchisee and Tasty King, LLC, a Burger King franchisee. Portfolio companies operate across 13 states, employing more than 4,000 employees. Some of the statements in this press release may contain forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, consumer preferences for the chain restaurant industry generally and our portfolio company brands specifically, unusual catastrophic loss events such as the current COVID-19 coronavirus pandemic and related government, private sector, and individual consumer responsive actions, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. Tasty does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. You are urged to consider these factors carefully in evaluating any forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and Tasty undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
About Triton Pacific
Triton Pacific, founded in 2001, is a private equity firm offering income and growth investment programs to accredited investors. The firm focuses on investing in established companies across multiple sectors that exhibit attractive fundamentals.
For more information contact Tasty@TritonPacific.com
Contact: Rebecca Cleary Spotlight Marketing Communications
Spotlight Marketing Communications
949.427.1462
1 Adjusted restaurant-level EBITDA is a non-GAAP financial measure and represents earnings from operations as adjusted to exclude general and administrative expenses, depreciation and amortization, impairment and other non-recurring lease charges, restaurant-level integration costs, pre-opening costs, and any non-cash items.
2 Adjusted income from operations is a non-GAAP financial measure and represents adjusted restaurant-level EBITDA less administrative G&A and interest expense. This calculation does not include corporate G&A expense.
3 Loan-to-value represents net debt (total portfolio company debt – portfolio company balance sheet cash – Tasty Brands cash) to enterprise value (based on most recent quarterly valuations). Does not consider Propco investment.
SOURCE Tasty Brands, LP