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Fiesta Restaurant Group sees mixed results on turnaround plan

Traffic continues to be a big problem for the parent company of Pollo Tropical and Taco Cabana.
Photograph: Shutterstock

It continues to be a tale of two brands for Fiesta Restaurant Group, the parent company of fast-casual chains Pollo Tropical and Taco Cabana.

Fresh off the recent shuttering of nearly two dozen underperforming units, the Dallas-based company reported mixed financial results Monday as it tries to find its footing in a crowded market.

Same-store sales at Pollo Tropical dropped 1.9%, for the quarter ended Dec. 30, 2018; comparable-store sales at Taco Cabana, however, climbed 5.1% during the same period.

The company’s total revenues increased 3.3% to $167.6 million for the fourth quarter, with Pollo Tropical sales growing 0.2% and Taco Cabana sales increasing 7.5%.

Traffic, however, remains a major hurdle for both brands: Pollo Tropical saw a 6.3% drop in traffic for the quarter, while Taco Cabana reported a 4.5% traffic slide.

This week, Fiesta Restaurant Group announced a partnership with delivery service DoorDash to grow off-premise business.

“We are excited as to the positive impact on our business,” Danny Meisenheimer, the company’s SVP and COO said of the partnership during a call this week with analysts.

 

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