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•	Restaurant sales increased 21.6% to $368.6 million (including $50.7 million in restaurant sales from Cambridge) from $303.0 million in the prior year quarter;

•	Comparable restaurant sales increased 0.1% compared to a 5.0% increase in the prior year quarter;

•	Adjusted EBITDA(1) was $23.8 million compared to $32.8 million in the prior year quarter;

•	Net loss was $3.7 million, or $0.09 per diluted share (which included a $7.4 million loss on extinguishment of debt), compared to net income of $7.8 million, or $0.17 per diluted share, in the prior year quarter; and

•	Adjusted net income(1) was $4.3 million, or $0.07 per diluted share, compared to adjusted net income of $10.0 million, or $0.22 per diluted share, in the prior year quarter.

(1)	Adjusted EBITDA, Restaurant-level EBITDA and Adjusted net income are non-GAAP financial measures. Refer to the definitions and reconciliation of these measures to net income (loss) or to income (loss) from operations in the tables at the end of this release.

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•	Total restaurant sales are expected to be $1.44 billion to $1.47 billion, including approximately $200 million of restaurant sales from Cambridge for approximately eight months in 2019 (previously $1.45 billion to $1.48 billion);

•	Comparable restaurant sales growth of 2.0% to 3.0% (previously 2.0% to 3.5%);

•	Commodity costs are expected to increase 3% to 4% with beef costs increasing 7% to 9% (previously 2% to 3% with beef costs increasing 5% to 6%);

•	General and administrative expenses are expected to be $68 million to $72 million, excluding stock compensation expense and acquisition or integration costs. The Company expects to fully integrate the Cambridge corporate functions by the end of the year;

•	Adjusted EBITDA is expected to be $100 million to $105 million, including $10 million to $12 million in contributions from Cambridge for approximately eight months in 2019 (previously $114 million to $121 million);

•	Capital expenditures are expected to be $120 million to $130 million, including $50 million to $60 million for construction of 20 to 25 new Burger King® and 5 to 7 new Popeyes® restaurants, and $35 million to $40 million for remodels and upgrades;

•	Proceeds from sale/leasebacks are expected to be approximately $15 million to $25 million;

•	The Company expects to close up to 15 Burger King® restaurants, of which 10 have already closed through the second quarter of 2019.

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(a)	The Company uses a 52 or 53 week fiscal year that ends on the Sunday closest to December 31. The three and six months ended June 30, 2019 and July 1, 2018 each included thirteen and twenty-six weeks, respectively.

(b)	General and administrative expenses include acquisition costs of $1.4 million and $0.1 million for the three months ended June 30, 2019 and July 1, 2018 respectively and $4.0 million and $0.2 million for the six months ended June 30, 2019 and July 1, 2018, respectively.

(c)	General and administrative expenses include stock-based compensation expense of $1.3 million and $1.4 million for the three months ended June 30, 2019 and July 1, 2018 respectively and $2.8 million and $3.0 million for the six months ended June 30, 2019 and July 1, 2018, respectively.

(d)

Other expense, net, for the three months ended June 30, 2019 included a loss on disposal of assets of $0.5 million and a gain on a sale-leaseback transaction of $0.1 million. Other income, net, for the six months ended June 30, 2019, included, among other things, a $1.9 million gain related to a settlement with Burger King Corporation for the approval of new restaurant development by other franchisees which unfavorably impacted our restaurants.

(e)	Basic net income (loss) per share was computed excluding loss attributable to preferred stock and non-vested restricted shares unless the effect would have been anti-dilutive for the periods presented.

(f)	Diluted net income (loss) per share was computed including shares issuable for convertible preferred stock and non-vested restricted shares unless their effect would have been anti-dilutive for the periods presented.

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(a)	Restaurants are generally included in comparable restaurant sales after they have been operated by us for 12 months. The calculation of changes in comparable restaurant sales is based on the comparable 13-week or 26-week period.

(b)	Average weekly sales per restaurant are derived by dividing restaurant sales for the comparable 13-week or 26-week period by the average number of restaurants operating during such period.

(c)

EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Restaurant-Level EBITDA, Restaurant-Level EBITDA margin and Adjusted net income (loss) are non-GAAP financial measures and may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation. Refer to the Company's reconciliation of net income (loss) to EBITDA, Adjusted EBITDA and Adjusted net income (loss), and to the Company's reconciliation of income (loss) from operations to Restaurant-Level EBITDA for further detail. Both Adjusted EBITDA margin and Restaurant-Level EBITDA margin are calculated as a percentage of restaurant sales. Adjusted diluted net income (loss) per share is calculated based on Adjusted net income (loss) and reflects the dilutive impact of shares, where applicable, based on Adjusted net income (loss).

(d)

Long-term debt and finance lease liabilities (including current portion and excluding deferred financing costs) at June 30, 2019 included $425,000 of the Company's Term Loan B under our senior credit facility, $25,000 of outstanding revolving borrowings under the Company's senior credit facility, $1,200 of lease financing obligations and $3,654 of finance lease liabilities. Long-term debt and finance lease liabilities (including current portion and excluding deferred financing costs) at December 30, 2018 included $275,000 of the Company's 8% Senior Secured Second Lien Notes, $1,203 of lease financing obligations and $3,941 of finance lease liabilities.

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(a)

Within our press release, we make reference to EBITDA, Adjusted EBITDA, Restaurant-Level EBITDA and Adjusted net income (loss) which are non-GAAP financial measures. EBITDA represents net income (loss) before income taxes, interest expense and depreciation and amortization. Adjusted EBITDA represents EBITDA as adjusted to exclude impairment and other lease charges, acquisition costs, integration costs, stock-based compensation expense, and other non-recurring income or expense. Restaurant-Level EBITDA represents income (loss) from operations as adjusted to exclude general and administrative expenses, integration costs, depreciation and amortization, impairment and other lease charges and other non-recurring income or expense. Adjusted net income (loss) represents net income (loss) as adjusted to exclude impairment and other lease charges, acquisition costs, integration costs, gain on bargain purchase, and other non-recurring income or expense.

(b)	Acquisition costs for the three and six months ended June 30, 2019 mostly include legal and professional fees incurred in connection with the acquisition of 165 Burger King and 55 Popeyes restaurants from Cambridge Franchise Holdings, LLC, which were included in general and administrative expense.

(c)	Integration costs for the three and six months ended June 30, 2019 includes $1.2 million for certain professional fees, corporate payroll, and other costs related to the integration of the Cambridge merger and $0.4 million of one-time repairs and maintenance costs which are included in Restaurant-Level EBITDA.

(d)

Other expense, net for the three months ended June 30, 2019 included a loss on disposal of assets of $0.5 million and a gain on a sale-leaseback transaction of $0.1 million. Other income, net for the six months ended June 30, 2019 included a $1.9 million gain related to a settlement with Burger King Corporation for the approval of new restaurant development by other franchisees which unfavorably impacted our restaurants, a gain on two sale-leaseback transactions of $0.1 million, and a gain related to an insurance recovery from a fire at one of our restaurants in the prior year of $0.1 million.

(e)	The income tax effect related to the adjustments for impairment and other lease charges, gain on bargain purchase, acquisition costs, and other non-recurring expense (income) during the periods presented was calculated using an effective income tax rate of 25% for the three and six months ended June 30, 2019 and 21% for the three and six months ended July 1, 2018, respectively.

(f)	For the three months ended June 30, 2019, approximately 17.2 million shares issuable upon conversion of preferred stock and non-vested shares were included in the computation of adjusted diluted net income per share.