Fiesta Restaurant Group Inc. will move up its Pollo Tropical advertising launch in the Atlanta market to take advantage of media efficiencies, executives said Monday.
“Reaching media efficiency is critically important to building brand awareness for Pollo Tropical in emerging geographies,” said Tim Taft, Fiesta president and CEO, in a statement released Monday with first-quarter earnings.
“In San Antonio and Nashville, where we recently launched media, we have experienced a meaningful lift in sales,” Taft said. “We will be launching media in Atlanta during the third quarter, ahead of our original schedule, and are hopeful for a similar, favorable response.”
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Addison, Texas-based Fiesta, which also owns the Taco Cabana concept, on Monday reported that net income in the first quarter ended April 3 fell 5.8 percent, to $9.9 million, or 37 cents per share, from $10.5 million, or 39 cents per share, in the same period last year. Revenue increased 7.8 percent, to $176.7 million, from $163.9 million the previous year.
Same-store sales at Pollo Tropical were flat in the first quarter, with traffic increasing 0.1 percent, the company said. Same-store sales at Taco Cabana rose 1.7 percent, with comparable traffic falling 0.8 percent.
“During the first quarter, Pollo Tropical matched a record comparable-restaurant sales level from the prior year despite the approximate 2-percent negative impact of planned cannibalization and the general slowdown in restaurant sales industry-wide,” Taft said.
Later this year, both brands will roll out new loyalty programs, third-party delivery and an expanded focus on catering, he said.
“We believe investment spending in new markets and the current consumer environment will put pressure on results in the first half of 2016,” Taft added. “However, we are expecting the trajectory of sales and margins to improve in the second half of the year.”
The company said in February that it would separate Pollo Tropical and Taco Cabana into two companies in 2017 or 2018. Fiesta was created in May 2012, when the two brands were spun off from Burger King franchisee Carrols Restaurant Group Inc., based in Syracuse, N.Y.
As of April 3, Fiesta had 161 company-owned Pollo Tropical restaurants, 162 company-owned Taco Cabana units, 36 franchised Pollo Tropical locations and six franchised Taco Cabana units.
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