Skip to content

Triton Affiliate Tasty Brands Reports Portfolio Performance for 2Q22

Tasty Brands, LP, an affiliate of Los Angeles-based private equity firm Triton Pacific Capital Partners, has reported its financial results for the second quarter of 2022 and provided a letter to its shareholders outlining the results.

Tasty Brands, LP, an affiliate of Los Angeles-based private equity firm Triton Pacific Capital Partners, has reported its financial results for the second quarter of 2022 and provided a letter to its shareholders outlining the results.

Tasty Brands, LP is a multi-brand restaurant franchisee within the quick service restaurant industry. Its portfolio companies include Tasty Hut, LLC, a Pizza Hut franchisee and Tasty King, LLC, a Burger King franchisee. As of July 13, 2022, the company owned 287 restaurants, including 68 Burger King and 219 Pizza Hut locations.

Highlights for the Second Quarter of 2022:

Total restaurant revenue increased 21.8 percent to $64.3 million, compared to $52.8 million in the second quarter of 2021.

Adjusted restaurant-level EBITDA totaled $6.8 million in the second quarter 2022, compared to $5.7 million in the prior year quarter, an increase of 18.7 percent.

Adjusted income from operations totaled $3.3 million in the second quarter of 2022, compared to $3.5 million in the second quarter of 2021, a decrease of 6.3 percent.

Loan-to-value for consolidated restaurant operations was 35.2 percent.

“Despite continued macroeconomic pressures and a challenging operating environment, financial performance in the second quarter of 2022 was strong, highlighted by total restaurant revenue and adjusted restaurant-level EBITDA improvement compared to the prior year,” the company said in a statement. “The investments made in add-on acquisitions, new unit development and ROI-driven asset actions continue to drive overall performance and position both Burger King and Pizza Hut portfolio companies for sustained growth.”

The company also pointed out “several accomplishments” that took place during the quarter.

Tasty Hut completed two acquisitions, including seven units in the Northeast, further expanding its footprint in the region from which to execute a new unit development growth strategy, and 27 units in West Virginia, Kentucky, Ohio and Virginia.

Tasty King’s restaurant-level EBITDA margin increased approximately 230 basis points in the second quarter of 2022, compared to the prior year period, “signaling improved operational execution,” the company said.

The company said that same store sales growth for both portfolio companies over pre-COVID levels “continues to be robust,” and menu price increases taken at both Tasty Hut and Tasty King have yielded “meaningful improvements in average check.”

Second Quarter 2022 Financial Results

Total restaurant revenue increased 21.8 percent to $64.3 million in the second quarter of 2022, compared to $52.8 million in the second quarter of 2021, an increase of 21.8 percent.

Adjusted restaurant-level EBITDA totaled $6.8 million in the second quarter of 2022, compared to $5.7 million in the prior year’s period, with an adjusted restaurant-level EBITDA margin of 10.5 percent of total restaurant revenue.

Adjusted income from operations was $3.3 million for the quarter, compared to $3.5 million in the prior year period, reflecting 5.1 percent of total restaurant revenue. Administrative general and administrative expenses were higher by $0.82 million.

The company declared a quarterly distribution of $0.4375 per share.

Triton Pacific, founded in 2001, is a private equity firm offering income and growth investment programs for both institutional and high net worth investors. The firm focuses on investing in established small and mid-size companies across multiple sectors.

For more Triton Pacific news, please visit their directory page.