Boston, MA, 03/18/2014 – The Diversified Restaurant Holdings, Inc. (NASDAQ:BAGR), which owns fav hospitality brands like full-service, ultra-casual restaurant and bar Bagger Dave’s, and which is one of the largest franchisees for Buffalo Wild Wings (“BWW”) recently come out with some good numbers in their Q-4 results for FY 13. The primary set of numbers in this quarter for the firm reveals a net revenue $28.5 million (up by $2.4mn or 9% in the same period in 2012) and an increase of 1.1% in comparable restaurant sales on a consolidated basis. In the period even though the restaurant operating costs witnessed a slight rise to $1.7 million (primarily due to increased number of locations) yet it scaled down by 70 basis points as a percentage of revenue. In this quarter, the administrative and non administrative expenses decreased to $2.2 million, or 7.7% of sales in the last year which was $2.3 million, or 8.8% of sales respectively.
It all happened due to the benefits of scale and strict cost controls. Regulated EBITDA expanded 25.8% to $3.4 million, or 12.1% of sales, from $2.7 million, or 10.5% of sales, in the previous-year period. DRH’S Net loss period also show an improvement as they came down to $0.2mn from $0.6 million in the same period a year ago. Even though the numbers for Q-4 in 2013 was for a 14 week period as compared to 13 weeks in 2012 yet the robust growth in the numbers more than offset the extended sales period.
The company officials lost no time to add that the Q-4 results were not an exception and they maintained a steady growth throughout 2013. Michael Ansley, the President and CEO of Diversified Restaurant Holdings, Inc. (NASDAQ:BAGR) recently commented that they made exceptional progress in 2013 which is demonstrated by their growth in restaurants and sales. They added 10 new restaurants and one were also relocated in the year. The company expanded into a new market, continued to be creative.
A quick look at their number for FY2013 (a 52-week period) reveals a sales growth of $31.5 million (up 40/6%) to $108.9 million from fiscal 2012 (a 53-week period). For the year 2013, the comparable sales were up 3.7%, on both trade and pricing, compared with 7.6% in 2012. For 2013 restaurant operating costs increased $26.0 million to $88.9 million driven by new locations, increasing to 81.5% of sales from 81.3% in the prior-year period. Diversified Restaurant Holdings, Inc. (NASDAQ:BAGR)’s Adjusted EBITDA increased 62.7%, or $5.0 million, to $13.0 million in 2013. Restaurant-level EBITDA increased by $5.6 million to $20.2 million.