Adds Highly-Qualified Industry Executive
Paul Twohig to the Board
Promotes Danny Meisenheimer to Chief
Operating Officer
Names Stacey Rauch Chairman of the
Board
Provides Strategic Update
Fiesta Restaurant Group, Inc. (“Fiesta” or the “Company”)
(NASDAQ:FRGI), parent company of the Pollo Tropical® and Taco
Cabana® fast casual restaurant brands, today announced new changes
to its management team and Board designed to strengthen the Company
and its governance, and a strategic update.
Leadership Update
The Board has appointed Richard (“Rich”) Stockinger as Chief
Executive Officer of Fiesta. Mr. Stockinger served as President and
Chief Executive Officer of Benihana Inc. from 2009 to 2014, a
member of the Board of Directors of Benihana from 2008 to 2014, a
member of the Audit Committee of Benihana from 2008 to 2009 and
Chairman of the Board of Directors of Benihana from 2010 to 2012.
Prior to joining Benihana, he spent more than two decades at The
Patina Restaurant Group, LLC and its predecessor Restaurant
Associates, Inc. during which time he served in various senior
executive capacities, including as President from 2003 to 2008 and
as a Director from 1998 to 2006. Most recently, Mr. Stockinger has
been a consultant of Bruckmann, Rosser, Sherrill & Co., a
private equity firm, and Not Your Average Joes, a private
restaurant company of which Mr. Stockinger is a member of the Board
of Directors. The Company believes Mr. Stockinger’s strong track
record as a director and executive with multiple private and public
restaurant companies makes him an excellent choice to lead
Fiesta.
Moreover, the Company appointed Paul Twohig as a non-executive
member of the Board of Directors of Fiesta. Mr. Twohig joined
Dunkin’ Brands in 2009 and currently serves as President, Dunkin'
Donuts U.S. and Canada. Prior to joining Dunkin’ Brands, Mr. Twohig
served as a Senior Vice President, Eastern Division for Starbucks
Corporation. Mr. Twohig also previously served as Chief Operating
Officer for Panera Bread Company. The Company plans to leverage Mr.
Twohig’s extensive operating experience with highly successful and
growing restaurant brands. The Company worked with a prominent
executive search firm to identify CEO and director candidates, as
previously announced by the Company in September 2016.
The Board also appointed Stacey Rauch as non-executive Chairman
of the Board of Directors of Fiesta. Ms. Rauch has served as a
non-executive Director of the Company since 2012. Ms. Rauch is a
Director Emeritus of McKinsey & Company from which she retired
in September 2010, after serving 24 years with the company. Ms.
Rauch was a leader in McKinsey’s Retail and Consumer Goods
Practices, served as the head of the North American Retail and
Apparel Practice, and acted as the Global Retail Practice Convener.
In her expanded leadership role, she brings a wealth of experience
working with companies in the dynamic consumer and retail
industries.
Lastly, Danny Meisenheimer has been promoted to Chief Operating
Officer and Senior Vice President of Fiesta. Mr. Meisenheimer has
been interim CEO of Fiesta since September 2016, and Chief
Operating Officer and Vice President of Pollo Tropical since 2013.
Mr. Meisenheimer previously served as Chief Brand
Officer of Pollo Tropical in 2012. Prior to joining Pollo
Tropical, Mr. Meisenheimer was Chief Operating Officer
at Souper Salad, Inc. from 2010 to 2012 and
Chief Brand Officer at Souper Salad, Inc. from 2008 to 2010.
Before that, Mr. Meisenheimer was Vice President, Brand Management
at Pizza Inn from 2005 to 2008.
Board Chair Stacey Rauch said, “We are very pleased to welcome
Rich Stockinger as Fiesta’s new CEO and President. Rich is a
respected, results-driven industry veteran who understands the
value of our Pollo Tropical and Taco Cabana brands and has the
skills and experience necessary to be a strong and effective leader
in advancing our strategic initiatives at this critical juncture.
Danny Meisenheimer’s material contributions over the past five
years at Pollo Tropical and as recent Interim CEO and President
make him the obvious choice to become COO of Fiesta and partner
with Rich to lead operations across both brands. I would also like
to welcome to our Board Paul Twohig, who brings extensive
restaurant leadership and operating experience, and thank Jack
Smith for his long-standing service as Chairman and continued
leadership as a non-executive Director.”
Richard Stockinger said, “The opportunity at Fiesta is
extraordinary. The competitive positioning and potential upside of
both Pollo Tropical and Taco Cabana makes me optimistic about the
future of the Company. I look forward to working closely with the
Board, the rest of management and all of our dedicated team members
to establish a comprehensive operating and growth plan that we can
deliver as a cohesive unit.”
Strategic Update
For the past four months, a Committee of the Board of Fiesta
carefully evaluated a range of strategic alternatives potentially
available to the Company, including a possible sale of the
Company. The Company retained financial and legal advisors to
assist it in evaluating a sale of the Company and to conduct a
confidential sale process. Following the review of information
provided by the Company, no potential counterparty presented a
final proposal to acquire Fiesta. Given recent soft Company
performance and a weak industry outlook, the Board concluded that
the Company should suspend the sale evaluation process, complete
the hiring of a permanent CEO and new director to bolster Company
leadership and continue to pursue a business plan focused on value
creation as a standalone company.
The Board also affirmed its previously stated position that it
will not pursue the spin-off of the Taco Cabana brand at this time.
In addition, Fiesta will not pursue a divestiture of Taco Cabana
given the opportunities the Board believes remain with the brand
and the significant tax inefficiencies currently inherent in a sale
transaction.
For the time being, as previously disclosed, the Company intends
to maintain growth initiatives and restaurant development focused
on lower-risk and higher return Florida markets for Pollo Tropical
and Texas markets for Taco Cabana. In 2017, the Company expects to
open 12 new Company-owned Pollo Tropical restaurants in Florida and
10 new Taco Cabana restaurants in Texas. Also during 2017, the
Company plans to remodel approximately 20 Pollo Tropical
restaurants in its most profitable region, south Florida. In
addition, Fiesta’s current year priorities at both Pollo Tropical
and Taco Cabana include improving field operations through
retraining and recertification of restaurant managers and team
members, optimizing and evolving its menus through new product
innovation, impactful marketing and expanding off-premise sales
through online ordering, catering, and third-party delivery
services.
Ms. Rauch concluded, “Fiesta operates two powerful brands with
tremendous appeal. Significant opportunities remain for growth in
Pollo Tropical and Taco Cabana’s existing markets, and while our
expansion into Texas for Pollo Tropical has been challenging, we
continue to believe in the long term attractiveness of the business
model and its potential beyond its traditional markets. In
addition, we believe our 2017 priorities will enhance the overall
brand experience, increase guest frequency and open additional
channels of sales growth. With an energized team in place, we are
eager to continue to deliver to our loyal guests the quality and
value they have long appreciated at Pollo Tropical and Taco Cabana
and to introduce new guests to our unique and craveable product
offerings.”
About Fiesta Restaurant Group, Inc.
Fiesta Restaurant Group, Inc. is the parent company of the Pollo
Tropical and Taco Cabana restaurant brands. The brands specialize
in the operation of fast-casual restaurants that offer distinct and
unique Caribbean and Mexican inspired flavors with broad appeal at
a compelling value. The brands feature made-from-scratch cooking,
fresh salsa bars, drive-thru service and catering. For more
information about Fiesta Restaurant Group, Inc., visit the
corporate website at www.frgi.com.
Forward-Looking Statements
Except for the historical information contained in this news
release, the matters addressed are forward-looking statements.
Forward-looking statements, written, oral or otherwise made,
represent Fiesta's expectation or belief concerning future events.
Without limiting the foregoing, these statements are often
identified by the words "may," "might," "believes," "thinks,"
"anticipates," "plans," "expects," "intends" or similar
expressions. In addition, expressions of Fiesta's strategies,
intentions or plans are also forward-looking statements. Such
statements reflect management's current views with respect to
future events and are subject to risks and uncertainties, both
known and unknown. You are cautioned not to place undue reliance on
these forward-looking statements as there are important factors
that could cause actual results to differ materially from those in
forward-looking statements, many of which are beyond Fiesta's
control. Investors are referred to the full discussion of risks and
uncertainties as included in Fiesta's filings with the Securities
and Exchange Commission.
Important Additional Information
The Company, its directors and certain of its executive officers
are participants in the solicitation of proxies from the Company’s
stockholders in connection with the Company’s 2017 Annual Meeting
of Stockholders. The Company intends to file a proxy statement and
white proxy card with the U.S. Securities and Exchange Commission
(the “SEC”) in connection with any such solicitation of proxies
from the Company’s stockholders. STOCKHOLDERS OF THE COMPANY ARE
STRONGLY ENCOURAGED TO READ SUCH PROXY STATEMENT, ACCOMPANYING
WHITE PROXY CARD AND ALL OTHER DOCUMENTS FILED WITH THE SEC
CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY
WILL CONTAIN IMPORTANT INFORMATION. Information regarding the
ownership of the Company’s directors and executive officers in
Company stock, restricted stock and options is included in the
Company’s SEC filings on Forms 3, 4, and 5, which can be found
through the Company’s website www.frgi.com in the section “Investor
Relations” or through the SEC’s website at www.sec.gov. Information
can also be found in the Company’s other SEC filings, including the
Company’s definitive proxy statement for the 2016 Annual Meeting of
Stockholders and its Annual Report on Form 10-K for the year ended
January 3, 2016. Updated information regarding the identity of
potential participants, and their direct or indirect interests, by
security holdings or otherwise, will be set forth in the definitive
proxy statement and other materials to be filed with the SEC in
connection with the 2017 Annual Meeting. Stockholders will be able
to obtain any proxy statement, any amendments or supplements to the
proxy statement and other documents filed by the Company with the
SEC at no charge at the SEC’s website at www.sec.gov. Copies will
also be available at no charge at the Company’s website at
www.frgi.com in the section “Investor Relations.”
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170227006335/en/
Investor Relations:Raphael Gross,
203-682-8253investors@frgi.com
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