1

Investor Presentation
January 2016

www.frgi.com

Presenters

Tim Taft
President & Chief Executive Officer

President & Chief Executive Officer

Lynn Schweinfurth
Chief Financial Officer

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Forward-looking Statements
This document and our presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended and are intended to be covered by the safe harbor created by those sections. All
statements, other than statements of historical facts included herein, including, without limitation, statements regarding our future financial position and
results of operations, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking
statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as may, will, expect, anticipate,
intend, plan, believe, seek, estimate or continue or the negative of such words or variations of such words and similar expressions. These
statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements and we can give no assurance
that such forward-looking statements will prove to be correct. Important factors that could cause actual results to differ materially from those expressed or
implied by the forward-looking statements, or cautionary statements, include, but are not limited to: increases in food and other commodity costs; risks
associated with the expansion of our business; our ability to manage our growth and successfully implement our business strategy; general economic
conditions, particularly in the retail sector; competitive conditions; weather conditions; fuel prices; significant disruptions in service or supply by any of our
suppliers or distributors; changes in consumer perception of dietary health and food safety; labor and employment benefit costs; regulatory factors; the
outcome of pending or future legal claims or proceedings; environmental conditions and regulations; our borrowing costs; the availability and terms of
necessary or desirable financing or refinancing and other related risks and uncertainties; the risk of an act of terrorism or escalation of any insurrection or
armed conflict involving the United States or any other national or international calamity; factors that affect the restaurant industry generally, including
product recalls, liability if our products cause injury, ingredient disclosure and labeling laws and regulations, reports of cases of food-borne illnesses such
as mad cow disease and avian flu, and the possibility that consumers could lose confidence in the safety and quality of certain food products, as well
as negative publicity regarding food quality, illness, injury or other health concerns.

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Strategic & Operational Overview

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Investment Considerations
What you want to know
Compelling Business Model

Two Leading, Differentiated Brands

Accelerating Development Given Significant Potential

Well Positioned Within the Growing Fast-Casual Segment

Proven Financial Results

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Long-term Business Model

8%-10%
Company
Restaurant
Growth

2%-3%
SSS
Growth

Meaningful
EPS
Growth

10%-12%
Revenue
Growth

Margin
Expansion

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Industry-leading AUVs

$2.7

$2.5

$2.4
$1.8

As of FY 2014, $s in millions. Sources: company filings

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$1.5

$1.2

$1.1

$1.0

Industry-leading AUVs

AUV Growth CAGR = 3.2%

AUV Growth CAGR = 7.3%

$2.5

$2.7

$1.8

$2.7

$1.8

$1.7

$2.3
$1.6

$2.1

2010

$1.8

2011

2012

2013

2014

2010

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2011

2012

2013

2014

Compelling Restaurant-level EBITDA

28.3%

Q3 YTD 2015, % of Restaurant Sales

25.5%

21.5%
19.7%

19.4%

19.3%
16.7%

Restaurant-level EBITDA is defined as restaurant sales minus cost of sales, labor, occupancy, other operating
and advertising expenses. Pre-opening cost is excluded from the calculation. Sources: company filings

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15.8%

10

Restaurant Growth Potential

1,946

1,895

Number of System-wide Restaurants in U.S.

661
611
488

420
358
168

169

Unit
Potential
% of Unit
Potential

165

160

3,200

4,500

2,000

N/A

2,500

N/A

N/A

N/A

N/A

1,600

60%

41%

32%

N/A

19%

N/A

N/A

N/A

N/A

9%

Sources: Company brands as of FY 2015. Domestic system wide unit counts for competitors as of the most recent filings.

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11

www.frgi.com

A Unique and Extraordinary Brand

Freshly prepared Caribbean-inspired food you feel good about eating.
A 28 year old brand originating in South Florida
Truly differentiated restaurant concept with no direct competitor
Signature offerings: fresh, grilled bone-in chicken marinated with tropical fruit juices and spices, rice and beans
Additional proteins, side dishes, salads and wraps further broaden target audience
Rum punch and Caribbean beer

Self service Saucing Island includes made from scratch salsas and sauces
Significant restaurant growth potential
Best-in-class restaurant economics
Attractive value proposition - great quality food with an average check of ~ $10

Convenience with dine-in, take out and drive-thru

Catering growth is a meaningful opportunity

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12

Restaurant Sales Growth and Margin Trends

Restaurant-level EBITDA Margin
(% of Restaurant Sales)

SSS Growth

8.1%

26.3%

6.6%
5.9%

25.9%

5.0%

2012

2013

2014

25.6%

Q3 YTD
2015

2012

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25.5%

2013

2014

Q3 YTD
2015

13

Freshly Prepared, Caribbean-inspired Menu

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Our Differentiated Restaurant Growth Vehicle

New Prototype Introduced in Texas in March 2014

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Our Differentiated Restaurant Growth Vehicle

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Accelerating Growth and National Potential

155 Company
& 36 Franchise
Restaurants

36-40 New
Company
Restaurants in
2016, or 23%
Brand
Restaurant
Growth

Short-term
Southern Focus;
Long-term
National
Potential

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Non-traditional
U.S. Licensing
Opportunities

Market Share
Growth with
Planned
Cannibalization

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Accelerating Growth and National Potential

Current U.S. Footprint

New Company-Owned Restaurants Opened

2010................................................................ 2
2011................................................................ 2
2012................................................................ 5
2013.............................................................. 12
2014.... 22
2015..... 32
2016 . 36-40E

11 / 0
23/ 0
117 / 5

Where two numbers appear on the map, the first represents company-owned restaurants and the second
represents franchised and licensed restaurants.

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19

Development Strategy

CORE SOUTH FLORIDA MARKETS

OTHER FLORIDA MARKETS

SUPERIOR BRAND AWARENESS

DRIVING TRAFFIC GROWTH WITH MEDIA

Miami-Dade, Broward, & Palm Beach Counties

Exceptional financial performance

Orlando, Naples/Fort Myers, Tampa,

Jacksonville & Nashville

Driving higher brand awareness through

new development and media strategies
At scale to drive meaningful sales growth
with media

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EMERGING MARKETS
LOW BRAND AWARENESS,
NOT ON BROADCAST MEDIA

Dallas, Houston, San Antonio & Atlanta

Robust development pipeline in Texas;

build out Atlanta over time as trade
areas develop
Atlanta & San Antonio to begin
broadcast media in late 2016

Reimaging Program Initiated in 2015

Former

Reimaged
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www.frgi.com

Broad Menu Offerings with Mexican Authenticity

Fresh, contemporary food prepared with authentic flavors of Mexico

A 38 year old brand originating in San Antonio

24-hour format
Broad, authentic Mexican product offerings including sizzling fajitas, enchiladas, quesadillas, burritos
and salads
Margaritas and beer
Fresh tortillas made daily
Self service salsa bar includes made from scratch salsas and sauces
Top five AUV in the fast casual segment, operating performance at peak
Expansion in Texas
Attractive value proposition - great quality food with an average check of ~ $9
Convenience with dine-in, take out and drive-thru
Catering growth is a meaningful opportunity

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22

Restaurant Sales Growth and Margin Trends

Restaurant-level EBITDA Margin
(% of Restaurant Sales)

SSS Growth

19.4%
4.8%
4.7%

17.9%

3.3%

16.9%

16.7%

2012

2013

0.5%

2012

2013

2014

Q3 YTD
2015

Restaurant-level EBITDA Margin excludes pre-opening costs.

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2014

Q3 YTD
2015

23

Fresh, Authentic Flavors of Mexico

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Renewed Texas Expansion Leveraging Proven Brand Affinity

All stores reimaged between 2012 and 2015

2012 Prototype

New Prototype
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Renewed Texas Expansion Leveraging Proven Brand Affinity

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2016 sales and traffic drivers

Guidance low to mid single digit comparable sales growth at both brands

1% pricing
Incremental advertising expense at Pollo ~ 50 bps or $4 million+
Increased media weights in mature markets
At least 84% of restaurants will be supported by broadcast media
Earlier investment in new markets
New advertising campaign at Pollo
New product news with limited-time-promotions
Continuation of the Pollo remodel program
Introduction of new loyalty programs
Continuation of new focus on off premise
Ongoing operations focus and execution

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1% to 2% of pricing
New product news with limited-time-promotions
Recently completed Taco Cabana remodel program
Introduction of new loyalty programs
Continuation of new focus on off premise
Ongoing operations focus and execution

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The rest of the story.

(what you need to know)

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Not the typical growth story

Atlanta

Jacksonville

THE BIG 3
Miami-Dade, Palm Beach and Broward

Tampa

Orlando

Represents 65 of the 91 restaurants in 2012

Average Unit Volume of $2.8 in 2012
Other five markets

Ft. Myers

26
restaurants

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5
cities

$1.9
Million AUV

From 2012 to 2015

THE BIG 3
65 to 77 units
$2.8 to $3.3 AUV

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Growth of the other five cities

Atlanta

Jacksonville

26 to 50 units
Tampa

Orlando

$1.9 to $2.0 AUV

Now Media Efficient

Ft. Myers

Media in Atlanta to begin 2016

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33

In 2016, 84% Restaurants in Markets with Broadcast Media

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Case Study Naples / Ft Myers

Ft. Myers

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35

Case Study Naples / Ft Myers, Building Market Share

7

1.3
1.1

6
4

2012

2014

2015

Company-owned Restaurants

2012

2013

2014

2015

$1.6

0.4

2013

$2.3

$2.1

0.7

$2.4

2014

Total Transactions

2015

2012

2013

Annual Unit Volume

(in millions)

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Growth in Texas

36

Opened Texas in 2014

Dallas

Increased units in 2015 from 10 to 23

Austin
Houston

Project 41 total units by the end of 2016

San Antonio media begins 2016

San Antonio

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The rest of the story

37

Management teams overhauled

Recipes & portion sizes made consistent
Achieving all-time best customer
feedback scores
Positive transactions despite sizable
price increases
Enhanced culinary team

System reimage program completed

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The rest of the story

38

The Big 3 represent 50% of

all restaurants
Funded emerging Florida markets
Maintain highest AUVs in the industry
Reworked process, procedures,
I.T. infrastructure, HR, development
and supply chain all while plane is flying

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Still many levers to pull to drive SSS

39

MARKETING
CATERING
OFF PREMISE
CONSUMPTION

53%
LOYALTY

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INNOVATION

By end of 2016

Doubling in size since 2012

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41

And now you know

the rest of the story.

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42

Financial Summary

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43

Accelerating Growth Since 2012 Spin-off

21.9%

21.2%

10.8%
9.0%
7.3%

6.4%

8.2%

$1.33
20.8%
$0.83
$0.60

0.8%
2012

2013

2014

Company-owned Restaurant Growth

2012

2013

2014

2012

2013

2014

Restaurant-level EBITDA Margin

% of Restaurant Sales

Revenue Growth

110 bps Margin Expansion

Note: Restaurant-level EBITDA Margin excludes pre-opening costs.

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2012

2013

Adjusted Diluted EPS

CAGR = 48.6%

2014

44

Proven Business Model

18.4%
20.5%

16.5%

16.5%

2013

2014

13.2%

21.6%

11.3%

13.3%

9.5%
12.1%

8.5%

0.0%
2012

2013

2014

Company-owned Restaurant Growth

Note: Restaurant-level EBITDA Margin excludes pre-opening costs.

2012

2013

2014

Revenue Growth

2012

2013

2014

Adjusted EBITDA Growth

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2012

Restaurant-level EBITDA Growth

45

Performance Trends Improved to Current Record Level

5.6%

26.5%
4.0%

11.4%

4.1%

3.1%
5.2%
1.3%

1.2%

3.1%
2012

2012

2013

2014

2012

2013

1.7%
2013

2014

2014

2012

2013

2014

-4.2%

Company-owned Restaurant Growth

Note: Restaurant-level EBITDA Margin excludes pre-opening costs.

Adjusted EBITDA Growth

Revenue Growth

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Restaurant-level EBITDA Growth

3Q15 YTD Financial Results

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46

Leverage and Liquidity

End of Q3 2015, $77.0M in Borrowing Capacity, 1.8% rate

$150M revolving credit facility (currently, LIBOR + 150 bps)

through 2018
Repurchased $200M, 8.875% Notes in Q4 2013
Refinancing including $135M equity offering net proceeds
New Capital Structure Contributed ~ 25% EPS Growth in 2014

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47

2016 Operating Targets

SSS at Low to Mid Single Digit at Both Brands
Cost of Sales, as a % of Sales, Between 30% to 31%
G&A of Approximately $60 million to $62 million
Effective Tax Rate of 37% to 39%
Company-owned Restaurant Openings of 40 to 44
Capital Expenditures of $95 million to $110 million

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48

Commodity Cost Overview

Top 5 Food Purchases 2016F

The Company Contracts Commodities

With Some Suppliers
2016 Projected Consolidate Commodity
Decrease ~ Low Single Digits

2016 Commodities Under Fixed Pricing

By Year End ~ 70%-80% COGS

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Top 5 Food Purchases 2016F

49

Focused Capital Allocation

New Restaurant Development Focused on Pollo Tropical
Continued Reimaging Initiative at Pollo Tropical, ~ 15 in 2016
Ongoing Strategic Investments to Optimize Restaurant Management, Guest
Experience and Infrastructure

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Appendix

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52

Franchising
Franchise Locations

Current focus is U.S. non-traditional franchising (universities and airports)

- Currently, 5 Pollo and 2 Taco locations

Bahamas .................... 1
Ecuador....................... 1

International franchise locations are Pollo Tropical restaurants

We have one traditional Taco franchisee in Albuquerque, NM with 4 restaurants

Guatemala.................. 3
Honduras .................... 1
Panama....................... 5

Franchise revenues are not meaningful today, <1% of total revenues

Puerto Rico ................. 17

Franchise expansion anticipated to be a growth platform in the future

Trinidad and Tobago 2

United States..11
Venezuela ................... 1

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Total Adjusted EBITDA Reconciliation

FY2012

($s in millions)

Restaurant-level Adjusted EBITDA Excluding Pre-Opening Costs:

Pollo Tropical
Taco Cabana
Consolidated
Less:
Pre-Opening Costs
Restaurant-level Adjusted EBITDA:
Pollo Tropical
Taco Cabana
Consolidated
Add:
Franchise Royalty Revenues and Fees
Less:
General and Administrative (Excluding Stock-based Compensation)
Adjusted EBITDA:
Pollo Tropical
Taco Cabana
Consolidated
Less:
Depreciation and Amortization
Impairment and Other Lease Charges
Interest Expense
Loss on Extinguishment of Debt
Provision for Income Taxes
Stock-Based Compensation
Other Expense / (Gain)
Net Income

FY2013

FY2014

58.2 $
47.2
105.4 $

67.8 $
48.7
116.5 $

1.7

2.8

57.1
46.6
103.7 $

65.7
48.0
113.7 $

2.4

2.4

2.6

1.9

2.1

41.8

46.2

46.0

33.5

38.6

38.6
25.6
64.2 $

43.7
26.1
69.8 $

52.7
33.0
85.7

39.2
25.8
65.0 $

44.0
30.0
74.0

18.3
7.0
24.4
4.3
2.0
(0.1)
8.3 $

20.4
0.2
18.0
16.4
3.8
2.3
(0.6)
9.3 $

23.0
0.4
2.2
21.0
3.5
(0.6)
36.2

17.0
0.2
1.7
16.9
2.6
(0.6)
27.2 $

21.8
0.5
1.3
18.1
3.2
(0.7)
29.7

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79.0
54.2
133.2

3Q14 YTD 3Q15 YTD

$
$

4.1
75.6
53.5
129.1

58.4 $
41.6
99.9 $
3.3

55.5
41.1
96.6 $

68.2
46.1
114.3
3.9
64.6
45.9
110.5

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Adjusted EBITDA Reconciliation

FY2012

($s in millions)

Restaurant Sales
Less:
Cost of Sales
Restaurant Wages and Related Expenses
Restaurant Rent Expense
Other Restaurant Operating Expenses
Advertising Expense
Restaurant-Level Adjusted EBITDA Excluding PreOpening Costs
Less: Pre-Opening Costs
Restaurant-Level Adjusted EBITDA
Add: Franchise Revenue
Less: General and Administrative Expenses
Adjusted EBITDA

227.4

FY2013
$

75.4
53.6
7.7
26.8
5.7
$
$

58.2
1.1
57.1
1.9
20.4
38.6

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257.8

FY2014
$

85.5
57.9
10.1
30.8
5.7
$
$

67.8
2.0
65.7
1.9
23.9
43.7

305.4

3Q14 YTD

3Q15 YTD

100.5
67.5
12.5
38.3
7.7
$
$

79.0
3.4
75.6
2.1
24.9
52.7

224.5
74.2
49.3
9.0
27.9
5.7

$
$

58.4
2.8
55.5
1.6
17.9
39.2

267.9
89.7
58.9
11.6
32.7
6.7

$
$

68.2
3.6
64.6
1.6
22.2
44.0

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Adjusted EBITDA Reconciliation

FY2012

($s in millions)

Restaurant Sales
Less:
Cost of Sales
Restaurant Wages and Related Expenses
Restaurant Rent Expense
Other Restaurant Operating Expenses
Advertising Expense
Restaurant-Level Adjusted EBITDA Excluding PreOpening Costs
Less: Pre-Opening Costs
Restaurant-Level Adjusted EBITDA
Add: Franchise Revenue
Less: General and Administrative Expenses
Adjusted EBITDA

279.9

FY2013
$

88.1
82.6
13.9
37.0
11.1
$
$

47.2
0.6
46.6
0.5
21.4
25.6

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291.1

FY2014
$

90.6
85.5
16.7
38.2
11.4
$
$

48.7
0.7
48.0
0.5
22.4
26.1

303.1

3Q14 YTD

3Q15 YTD

91.8
87.6
17.2
40.6
11.8
$
$

54.2
0.7
53.5
0.5
21.1
33.0

228.5
69.3
66.0
12.9
30.1
8.6

$
$

41.6
0.5
41.1
0.4
15.7
25.8

237.9
71.1
68.1
12.8
31.0
8.8

$
$

46.1
0.2
45.9
0.5
16.3
30.0

Adjusted Income from Operations Reconciliation

($s in millions)

3Q14 YTD

Income from Operations

Add:
Impairment and Other Lease Charges
Gain on Condemnation
Legal Settlements and Related Costs
Adjusted Income from Operations

45.8 $

49.1

0.2
(0.6)
(0.5)
44.9 $

0.5
(0.4)
1.1
50.3

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3Q15 YTD

56

Adjusted Net Income Reconciliation

$

FY2012
$
EPS
8.3 $ 0.35 $

FY2013
$
EPS
9.3 $ 0.39 $

FY2014
$
EPS
36.2 $ 1.35

4.6
1.2
(0.1)
14.1 $

0.1
0.3
0.01
10.5
0.44
(0.3)
(0.01)
19.9 $ 0.83 $

0.2
0.01
(0.3)
(0.01)
(0.3)
(0.01)
35.7 $ 1.33 *

($s in millions, except per share amounts)

Net Income
Add (each net of tax effect):
Impairment and other lease charges (a)
Qualification for sale leaseback accounting (b)
Secondary offering expenses (c)
Loss on extinguishment of debt (d)
Gain on condemnation (e)
Legal settlements and related costs (f)
Gain on sale of property (g)
Adjusted net income & EPS

0.20
0.05
0.60 $

Q314YTD
$
EPS
27.2 $ 1.02 $

Q315YTD
$
EPS
29.7 $ 1.11

0.1
(0.3)
(0.01)
(0.3)
(0.01)
26.6 $ 1.00 $

0.3
0.01
(0.2)
(0.01)
0.7
0.03
30.5 $ 1.14

* Amounts do not add to adjusted total due to rounding

(a) Impairment and other lease charges for the twelve months ended December 30, 2012 are primarily related to the closure of five Pollo Tropical restaurants in New Jersey in the first quarter of 2012. Impairment and other lease charges for each
period are presented net of taxes of $0.1 million, $0.1 million and $2.4 million for the twelve months ended December 28, 2014, December 29, 2013 and December 30, 2012, respectively, and $0.2 million and $0.1 million for the nine months ended
September 27, 2015 and September 28, 2014, respectively.
(b) Prior to the spin-off from Carrols Restaurant Group, Inc. ("Carrols"), certain sale-leaseback transactions were classified as lease financing transactions because Carrols guaranteed the related lease payments. Effective upon the spin-off, the
provisions that previously precluded sale-leaseback accounting were cured or eliminated. As a result, the real property leases entered into in connection with these transactions are now recorded as operating leases. Additionally, in the second
quarter of 2012, we exercised purchase options associated with the leases for five restaurant properties also previously accounted for as lease financing obligations and purchased those properties from the lessor.
The amount reported as "qualification for sale leaseback accounting" represents the net increase in rent expense, decrease in depreciation expense and decrease in interest expense, that would have impacted net income had the leases been
accounted for as operating leases for all periods presented, based on the deferred gain on sale-leaseback transactions calculated at the time of the spin-off, and had the five properties been owned for the full year ended December 30, 2012.
Qualification for sale leaseback accounting is shown net of taxes of $0.6 million in the twelve months ended December 30, 2012. This amount is included for comparative purposes only, and may not be indicative of what actual results would have
been had the qualification for sale-leaseback accounting treatment of these leases (and the treatment of such leases as operating leases) occurred on the dates described above.
(c) Secondary offering expenses for the twelve months ended December 29, 2013 include expenses related to the underwritten secondary public equity offering completed during March 2013 totaling $0.4 million. The Company did not receive any
proceeds from the sale of shares in the offering. Secondary offering expenses are presented net of taxes of $0.2 million.

(d) The Company recognized a loss on extinguishment of debt of $16.4 million in the fourth quarter of 2013 related to the repurchase and redemption of its Notes. The loss on extinguishment of debt for the twelve months ended December 29, 2013
is presented net of taxes of $5.9 million.
(e) Gain on condemnation in 2015 primarily includes a previously deferred gain from a sale-leaseback transaction that was recognized upon termination of the lease. Gain on condemnation in 2014 includes a gain from a condemnation award
resulting from an eminent domain proceeding. Gain on condemnation for each period is presented net of taxes of $(0.2) million for the twelve months ended December 28, 2014, and $(0.1) million and $(0.2) million for the nine months ended
September 27, 2015 and September 28, 2014, respectively.
(f) Legal settlements and related costs in 2015 include legal fees and other costs, including estimated settlement charges, associated with a class action litigation, and in 2014 include the benefit of a payment received as settlement of a litigation
matter. Legal settlements and related costs for each period are presented net of taxes of $(0.2) million for the twelve months ended December 28, 2014, and $0.4 million and $(0.2) million for the nine months ended September 27, 2015 and
September 28, 2014, respectively.
(g) Gain on sale of property for each period is presented net of taxes of $(0.2) million and $(0.0) million for the twelve months ended December 29, 2013 and December 30, 2012, respectively.

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Use of Non-GAAP Financial Measures

Adjusted EBITDA, restaurant-level adjusted EBITDA, and restaurant-level adjusted EBITDA excluding pre-opening costs are all non-GAAP financial measures.
Adjusted EBITDA is defined as earnings attributable to the applicable segment before interest, loss on extinguishment of debt, income taxes, depreciation and
amortization, impairment and other lease charges, stock-based compensation expense and other income and expense. It includes an allocation of corporate and
brand general and administrative expenses (each excluding stock-based compensation). Restaurant-level adjusted EBITDA (excluding pre-opening costs) is defined
as Adjusted EBITDA excluding franchise royalty revenues and fees, pre-opening costs and general and administrative expenses. Management believes that such
financial measures, when viewed with our results of operations calculated in accordance with GAAP and our reconciliation of restaurant-level adjusted EBITDA and
restaurant-level adjusted EBITDA excluding pre-opening costs and adjusted EBITDA to net income (i) provide useful information about our operating performance and
period-over-period growth (including at the restaurant level), (ii) provide additional information that is useful for evaluating the operating performance of our business,
and (iii) permit investors to gain an understanding of the factors and trends affecting our ongoing earnings, from which capital investments are made and debt is
serviced. However, such measures are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to
net income or cash flow from operating activities as indicators of operating performance or liquidity. Also these measures may not be comparable to similarly titled
captions of other companies.
Adjusted income from operations and adjusted net income and related adjusted earnings per share are non-GAAP financial measures. Adjusted income from
operations is defined as income from operations before impairment and other lease charges, gain on condemnation and legal settlements and related costs. Adjusted
net income is defined as net income before impairment and other lease charges, the impact of the qualification for sale-leaseback accounting (primarily upon the spinoff from Carrols) for certain leases previously accounted for as lease financing obligations, secondary offering expenses, loss on extinguishment of debt, gain on
condemnation, legal settlements and related costs and gain on sale of property. Management believes that adjusted income from operations, adjusted net income and
related adjusted earnings per diluted share, when viewed with our results of operations calculated in accordance with GAAP (i) provide useful information about our
operating performance and period-over-period growth, (ii) provide additional information that is useful for evaluating the operating performance of our business, and (iii)
permit investors to gain an understanding of the factors and trends affecting our ongoing earnings, from which capital investments are made and debt is serviced.
However, such measures are not measures of financial performance or liquidity under GAAP and, accordingly should not be considered as alternatives to net income
or net income per share as indicators of operating performance or liquidity. Also these measures may not be comparable to similarly titled captions of other
companies.
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