Comparable improvements in sales at both the Pollo Tropical and Taco Cabana brands propelled Fiesta Restaurant Group Inc. to a 20.8 percent increase in profit for the second quarter ended June 28, the company reported Thursday.
The Addison, Texas-based fast-casual operator said net income in the second quarter was $11.2 million, or 42 cents a share, up from $9.3 million, or 35 cents a share, in the same period a year ago. Revenues increased 11.5 percent, to $171.9 million from $154.2 million in the same period a year ago.
Same-store sales increased 4.3 percent at Pollo Tropical in the quarter and guest traffic decreased 0.2 percent. Same-store sales at Taco Cabana rose 5.6 percent in the quarter, and comparable guest traffic increased one percent, the company said.
Tim Taft, Fiesta’s president and CEO, said the same-store sales increases were continuing into the third quarter.
“Sales at Pollo Tropical accelerated in July with comparable restaurant sales growth of 6.4 percent, as we believe the impact of healthcare enrollment and related premiums in South Florida dissipated,” Taft said in a statement. “The improved results at Taco Cabana are also gratifying.”
During the second quarter, Fiesta opened six company-owned Pollo Tropical restaurants in Florida and Texas and one company-owned Taco Cabana restaurant in Texas. Fiesta closed two company-owned Taco Cabana restaurants in Texas.
As of June 28, Fiesta owned and operated 136 Pollo Tropical restaurants and 163 Taco Cabana restaurants. It franchised 35 Pollo Tropical restaurants in the United States and abroad and six Taco Cabana restaurants in the United States.
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