Fiesta Restaurant closes 19 Taco Cabana restaurants in Texas
Fiesta Restaurant announced that it will close 19 Taco Cabana restaurants in Texas, effective immediately. Nearly all employees impacted by the closures will be offered positions at other Taco Cabana locations. The 19 Taco Cabana restaurants contributed approximately $24.5M in restaurant sales and an estimated $4.2M in restaurant level pre-tax operating losses, including $2M in depreciation expense, for the twelve months ended December 29, 2019. The company expects to recognize estimated non-cash long-lived asset impairment charges of approximately $7M-$8M and estimated lease right-of-use asset impairment charges of approximately $1M-$3M related to these 19 Taco Cabana restaurants in Q4. The company also expects to recognize costs associated with de-imaging and removing equipment related to these restaurants in Q1, but it does not expect these additional closure related costs to be material.