51.9 F
Fort Worth
Sunday, October 25, 2020
Business Taco Cabana closing 19 restaurants in Texas, including Tarrant Co.

Taco Cabana closing 19 restaurants in Texas, including Tarrant Co.

Other News

JC Penney sees bankruptcy protection exit by Christmas

NEW YORK (AP) — J.C. Penney believes it will emerge from bankruptcy protection before Christmas under a new ownership agreement that would...

Petalo, not Charmin: Virus brings Mexican toilet paper to US

By JOSEPH PISANI AP Retail Writer NEW YORK (AP) — Toilet...

Mall owners close to buying JC Penney out of bankruptcy

By ANNE D'INNOCENZIO AP Retail WriterNEW YORK (AP) — Mall owners Simon Property Group and Brookfield Property Partners are close to a...

At Home launches collection with Fort Worth connection

At Home Group Inc. (NYSE: HOME), The Home Décor Superstore, has debuted an exclusive collection with interior...

Dallas-based Fiesta Restaurant Group Inc. (NASDAQ: FRGI), parent company of the Pollo Tropical and Taco Cabana fast-casual restaurant brands, today announced that it will close 19 Taco Cabana restaurants in Texas, effective immediately. Nearly all employees impacted by the closures will be offered positions at other Taco Cabana locations.

In North Texas, stores in Hurst, North Richland Hills, Denton, Dallas, Allen and Frisco will be closing.

Fiesta President and Chief Executive Officer Richard Stockinger said, “During the fourth quarter, our Taco Cabana team began implementation of a margin improvement plan that we expect to improve restaurant-level Adjusted EBITDA margins by approximately 200 to 300 basis points in 2020 vs. 2019. The margin improvement plan includes efficiency initiatives in operations across food and operating expense categories and the closure of 19 underperforming restaurants in Texas. These closures eliminate all stores with significant losses, which we expect will result in a highly viable portfolio of restaurants.”

Stockinger concluded, “We continue to make progress on sales building initiatives across both Pollo Tropical and Taco Cabana in off premise sales, including catering, online and delivery. In addition, as our new senior management team enters their first full year together, we are optimistic about improving comparable restaurant sales at both brands in 2020.”

The 19 Taco Cabana restaurants contributed approximately $24.5 million in restaurant sales and an estimated $4.2 million in restaurant level pre-tax operating losses, including $2.0 million in depreciation expense, for the twelve months ended December 29, 2019.

The company expects to recognize estimated non-cash long-lived asset impairment charges of approximately $7.0 million to $8.0 million and estimated lease right-of-use asset impairment charges of approximately $1.0 million to $3.0 million related to these 19 Taco Cabana restaurants in the fourth quarter of 2019. The Company also expects to recognize costs associated with de-imaging and removing equipment related to these restaurants in the first quarter of 2020, but it does not expect these additional closure related costs to be material.

In the third quarter, the company said total revenues decreased 6.0% to $164.2 million in the from $174.6 million in the third quarter of 2018. The company also said that comparable restaurant sales at Pollo Tropical decreased 3.8% and 4.8 percent at Taco Cabana.

Latest News

Show your support for the Margarita party

Want to party? Want to vote? Want to political party? Want to show...

In a pickle: Best Maid turns 90

Fort Worth Business Press (TX) - October 15, 2016 Author/Byline: Rick Mauch FWBP Features WriterSection: Briefs

Best Maid can put you in a pickle store

Fort Worth's Best Main can put you in a pickle – a pickle store, that is. Friday, Fort Worth’s...

38 & Vine wine tasting room reopens

38 & Vine reopened Oct. 24 with a new outdoor patio in compliance with the regulatory orders announced by Gov. Greg Abbott...

Facebook Data Center honored with Vandergriff Award

The Facebook Data Center was honored with the annual Fort Worth Chamber of Commerce’s Vandergriff Award at the Chamber’s 10th Annual State...