Fiesta Restaurant Group, Inc. Reports Fourth Quarter and Full Year 2012 Results

  Fiesta Restaurant Group, Inc. Reports Fourth Quarter and Full Year 2012
  Results

Business Wire

ADDISON, Texas -- February 28, 2013

Fiesta Restaurant Group, Inc. (“Fiesta” or the “Company”) (NASDAQ: FRGI), the
owner, operator, and franchisor of the Pollo Tropical® and Taco Cabana®
fast-casual restaurant brands, today reported results for the fourth quarter
and the full year of 2012 which ended on December 30, 2012.

Highlights of Fourth Quarter 2012 Results Include:

  *Total revenues increased 8.2% to $126.6 million compared to $116.9 million
    in the prior year period;
  *Comparable restaurant sales increased 8.3% at Pollo Tropical and 6.8% at
    Taco Cabana;
  *Comparable restaurant guest traffic increased 6.7% at Pollo Tropical and
    4.2% at Taco Cabana;
  *One Company-owned Pollo Tropical and two Company-owned Taco Cabana
    restaurants were opened; and
  *Net income increased $2.7 million to $2.6 million in the fourth quarter of
    2012, or $0.11 per diluted share, compared to net loss of $(0.1) million,
    or $(0.01) per diluted share, in the fourth quarter of 2011.

Tim Taft, President and Chief Executive Officer of Fiesta, commented, “We are
pleased to have completed 2012 from a position of strength by delivering
outstanding financial results in the fourth quarter. Pollo Tropical and Taco
Cabana both posted robust comparable restaurant sales and transaction growth
over the three-month period, which enabled us to achieve substantially higher
operating profitability. We believe our menu selections, value proposition,
marketing messages, and elevated dining experience are clearly resonating with
a growing customer base, and underscore what we believe is our substantial
opportunity to profitably grow both concepts.”

Taft continued, “New restaurant development will be key to our go-forward
business strategy, and we plan to open 14 to 17 Company-owned restaurants in
2013 on top of the 10 Company-owned restaurants openings in 2012. While most
of this year's growth will be in core Texas and Florida markets, Pollo
Tropical opened its first of two locations planned for 2013 in the Nashville
area on February 1st, and will further expand its emerging presence in
Atlanta, as well. Internationally, franchise development is expected to
consist of more than 10 Pollo Tropical restaurant openings in 2013, including
our first franchised restaurant in India. Considering our own Company
initiatives to develop an increasing number of new Company-owned restaurants
over time and brand initiatives to continue to grow comparable restaurant
sales, along with the substantial completion of the transition from Carrols,
we believe that 2013 is poised to be a very exciting year for Fiesta.”

Fourth Quarter Financial Review

Consolidated Results

Total revenues increased 8.2% in the fourth quarter of 2012 to $126.6 million
from $116.9 million in the fourth quarter of 2011. Restaurant sales in the
fourth quarter of 2012 increased 8.1% to $125.9 million from $116.5 million in
the fourth quarter of 2011, due primarily to comparable restaurant sales
growth at both Pollo Tropical and Taco Cabana. Franchise revenues in the
fourth quarter of 2012 increased to $649,000 from $477,000 in the prior year
period.

Cost of sales improved as a percentage of restaurant sales in the fourth
quarter of 2012 compared to the prior year period primarily due to increases
in menu pricing, lower commodity costs and sales mix. Restaurant wages and
related expenses improved as a percentage of restaurant sales primarily due to
the positive impact of a sales increase on fixed costs. Other restaurant
operating expenses increased as a percentage of restaurant sales primarily due
to new restaurant opening expenses that were partially offset by the positive
impact of a sales increase on fixed costs and lower utility rates. Advertising
expense increased as a percentage of restaurant sales primarily due to timing.

Rent expense increased $1.9 million to $6.3 million in the fourth quarter of
2012 compared to $4.4 million in the prior year period. Rent expense was $1.6
million higher in the fourth quarter of 2012 compared to the fourth quarter of
2011 primarily due to certain transactions that qualified for sale-leaseback
accounting treatment (and the related leases being treated as operating
leases) upon the spin-off on May 7, 2012, that, until that time, had been
classified as lease financing obligations, as previously disclosed.

General and administrative expenses increased $0.7 million to $11.1 million in
the fourth quarter of 2012 from $10.4 million in the fourth quarter of 2011,
due primarily to Fiesta employee additions and costs incurred to transition
various information technology functions from the Company's former parent
company, Carrols Restaurant Group, Inc. ("Carrols").

Depreciation and amortization decreased $0.4 million to $4.6 million in the
fourth quarter of 2012 from $5.0 million in the fourth quarter of 2011,
primarily due to the elimination of depreciation expense of $0.5 million as a
result of the qualification for sale treatment of certain sale-leaseback
transactions upon completion of the spin-off.

Interest expense decreased $2.6 million to $5.1 million in the fourth quarter
of 2012 from $7.7 million in the fourth quarter 2011, primarily because of the
elimination of $2.7 million in interest expense as a result of the
qualification for sale treatment of certain sale-leaseback transactions upon
the completion of the spin-off.

The provision for income taxes in the fourth quarter of 2012 was derived using
an effective annual income tax rate of 34.2% as compared to an effective
annual tax rate for 2011 of 32.7%, primarily due to the expiration of the Work
Opportunity Tax Credit and the HIRE Act retention tax credit effective 2011.
The 2012 effective annual tax rate does not include any impact from the
reenactment of the Work Opportunity Tax Credit subsequent to year end.

Net income increased to $2.6 million in the fourth quarter of 2012, or $0.11
per diluted share, compared to net loss of $(0.1) million, or $(0.01) per
diluted share, in the fourth quarter of 2011.

Brand Results

Pollo Tropical restaurant sales increased 8.8% to $56.1 million in the fourth
quarter of 2012 from $51.6 million in the fourth quarter of 2011, primarily
due to a comparable restaurant sales increase of 8.3%. The growth in
comparable restaurant sales resulted from a 6.7% increase in guest traffic
along with a 1.6% increase in average check. Pollo Tropical franchise revenues
increased to $435,000 in the fourth quarter of 2012 from $403,000 in the
fourth quarter of 2011. Adjusted Segment EBITDA for Pollo Tropical increased
to $7.9 million in the fourth quarter of 2012 from $7.8 million in the fourth
quarter of 2011. However, Adjusted Segment EBITDA was negatively impacted by
an increase in rent expense of $0.6 million in the fourth quarter of 2012
compared to the fourth quarter of 2011 due to the qualification for sale
treatment of sale-leaseback transactions upon the completion of the spin-off,
as discussed above.

Taco Cabana restaurant sales increased 7.6% to $69.8 million in the fourth
quarter of 2012 from $64.9 million in the fourth quarter of 2011, primarily
due to a comparable restaurant sales increase of 6.8%. The growth in
comparable restaurant sales resulted from a 4.2% increase in guest traffic
along with a 2.5% increase in average check. Taco Cabana franchise revenues
increased to $214,000 in the fourth quarter of 2012 from $74,000 in the fourth
quarter of 2011 primarily due to the franchising of two previously
Company-owned restaurants in New Mexico. Adjusted Segment EBITDA for Taco
Cabana decreased to $5.9 million in the fourth quarter of 2012 from $6.1
million in the fourth quarter of 2011. Adjusted Segment EBITDA was negatively
impacted by an increase in rent expense of $1.0 million in the fourth quarter
of 2012 compared to the fourth quarter of 2011 due to the qualification for
sale treatment of sale-leaseback transactions upon the completion of the
spin-off, as discussed above.

Full Year 2012 Financial Summary

Total revenues increased 7.3% to $509.7 million compared to $475.0 million in
the prior year period, driven by comparable restaurant sales growth of 8.1% at
Pollo Tropical and 4.7% at Taco Cabana. The growth in comparable restaurant
sales resulted from an increase in comparable guest traffic of 6.6% at Pollo
Tropical and 1.9% at Taco Cabana, with an increase in average check of 1.5% at
Pollo Tropical and 2.8% at Taco Cabana.

Net income decreased $1.3 million to $8.3 million, or $0.35 per diluted share,
compared to $9.5 million, or $0.41 per diluted share, in 2011. The variance
was due to the impact of the spin-off from Carrols on May 7, 2012 and related
expenses, the establishment of a separate public company with a transitioning
infrastructure and senior management team, and impairment charges primarily
associated with the closure of Pollo Tropical restaurants in the New Jersey
market. These factors more than offset the positive impact of revenue growth
and related profitability, and the positive impact of the qualification for
sale treatment of sale-leaseback transactions.

Restaurant Development

Fiesta opened two new Company-owned Taco Cabana restaurants in the Dallas,
Texas area and one new Company-owned Pollo Tropical restaurant on the east
coast of Florida during the fourth quarter of 2012. Fiesta also sold two Taco
Cabana restaurants to an existing franchisee in the fourth quarter of 2012.
For the full year of 2012, there were a total of ten Company-owned Pollo
Tropical and Taco Cabana restaurant openings and eight closings, including the
closure of five Pollo Tropical restaurants resulting from the exit of the New
Jersey market in the first quarter of 2012, and the sale of two Taco Cabana
restaurants to an existing franchisee in the fourth quarter of 2012.

As of December 30, 2012, the Company owned 91 Pollo Tropical restaurants and
160 Taco Cabana restaurants and franchised 35 Pollo Tropical restaurants in
the U.S., Puerto Rico, the Bahamas, Costa Rica, Ecuador, Honduras, Panama,
Trinidad & Tobago, and Venezuela, and eight Taco Cabana restaurants in the
U.S.

Reinstatement of the Work Opportunity Tax Credit

On January 2, 2013, President Obama signed the American Taxpayer Relief Act of
2013 into law, which included a provision to re-enact the Work Opportunity Tax
Credit as of January 1, 2012, with a new expiration date of December 31, 2013.
Because the Act was re-enacted after Fiesta's fiscal year-end, the retroactive
re-enactment of the Work Opportunity Tax Credit is not reflected in the
Company's 2012 provision for income taxes and will be recognized in the first
quarter of 2013. As a result, Fiesta now expects the 2013 effective tax rate
to be 32% to 34%, which includes the impact of the reinstatement of the Work
Opportunity Tax Credits for both 2012 and 2013.

Investor Conference Call Today

Fiesta will host a conference call and webcast to review fourth quarter and
full year 2012 results today at 4:30 PM ET. Hosting the call will be Tim Taft,
President and Chief Executive Officer, and Lynn Schweinfurth, Vice President
and Chief Financial Officer.

The conference call can be accessed live over the phone by dialing
888-287-5532 or for international callers by dialing 719-325-2250. A replay
will be available after the call and can be accessed by dialing 877-870-5176
or for international callers by dialing 858-384-5517; the passcode is 8047814.
The replay will be available until Thursday, March 7, 2013.

The conference call will also be webcast live from the corporate website at
www.FRGI.com, under the investor relations section. A replay of the webcast
will be available through the corporate website shortly after the call has
concluded.

About Fiesta Restaurant Group, Inc.

Fiesta Restaurant Group, Inc. owns, operates, and franchises the Pollo
Tropical® and Taco Cabana® restaurant brands with 251 company-owned and
operated restaurants and 43 franchised restaurants in the U.S., Puerto Rico,
the Bahamas, Costa Rica, Ecuador, Honduras, Panama, Trinidad & Tobago, and
Venezuela as of December 30, 2012. The brands specialize in the operation of
fast-casual, ethnic restaurants that offer distinct and unique flavors with a
broad appeal at a compelling value. Both brands feature made-from-scratch
cooking, fresh salsa bars, and drive-thru service and catering. For more
information about Fiesta Restaurant Group, Inc. visit our 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.

Fiesta Restaurant Group, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share amounts)
                 (unaudited)                      
                 Three months ended (a)             Twelve months ended (a)
                 December 30,    January 1, 2012   December 30,   January 1,
                 2012                               2012            2012
                                                                    
Revenues:
Restaurant sales $  125,929       $   116,469       $   507,351     $  473,249
Franchise
royalty revenues 649             477              2,375          1,719
and fees
Total revenues   126,578          116,946           509,726         474,968
Costs and
expenses:
Cost of sales    40,408           37,859            163,514         152,711
Restaurant wages
and related      34,444           32,134            136,265         129,083
expenses (b)
Restaurant rent  6,306            4,404             22,006          16,930
expense (c)
Other restaurant
operating        16,094           14,786            64,819          61,877
expenses
Advertising      4,953            3,903             17,047          16,264
expense
General and
administrative   11,070           10,373            43,870          37,459
expenses
(b)(d)(e)
Depreciation and 4,575            4,954             18,278          19,537
amortization (c)
Impairment and
other lease      223              1,728             7,039           2,744
charges
Other expense    (92         )    39               (92         )   146
(income)
Total costs and  117,981         110,180          472,746        436,751
expenses
Income from      8,597            6,766             36,980          38,217
operations
Interest expense 5,090           7,703            24,424         24,041
(c)
Income (loss)
before income    3,507            (937         )    12,556          14,176
taxes
Provision
(benefit) for    945             (807         )    4,289          4,635
income taxes
Net income       $  2,562        $   (130     )    $   8,267      $  9,541
(loss)
                                                                    
Basic and
diluted net      $  0.11         $   (0.01    )    $   0.35       $  0.41
income (loss)
per share (f)
                                                                    
Basic and
diluted weighted
average common   22,748,241      23,161,822       22,890,018     23,161,822
shares
outstanding

                                                             

                          
(a) The Company uses a 52 or 53 week fiscal year that ends on the Sunday
closest to December 31. The three and twelve month periods ended December 30,
2012 and January 1, 2012 included 13 and 52 weeks, respectively.

(b) Restaurant wages and related expenses include stock-based compensation
expense of $2 and $3 for the three month periods ended December 30, 2012 and
January 1, 2012, respectively, and $11 and $18 for the years ended December
30, 2012 and January 1, 2012, respectively. General and administrative
expenses include stock-based compensation expense of $431 and $406 for the
three month periods ended December 30, 2012 and January 1, 2012, respectively,
and $2,025 and $1,690 for the years ended December 30, 2012 and January 1,
2012, respectively.

(c) Prior to the spin-off from 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. Because of the
qualification of these leases and purchase of the five properties, restaurant
rent expense was $1.6 million higher, depreciation expense was $0.5 million
lower, and interest expense was $2.7 million lower in the fourth quarter of
2012 as compared to the fourth quarter of 2011. For the year ended December
30, 2012, restaurant rent expense was $4.4 million higher, depreciation
expense was $1.4 million lower, and interest expense was $7.1 million lower as
compared to the year ended January 1, 2012.

(d) General and administrative expenses include expenses related directly to
Fiesta and corporate expenses allocated from Carrols (parent company of Fiesta
until May 7, 2012). Such allocated expenses are for administrative support
including executive management, information systems and certain accounting,
legal and other administrative functions. Following the spin-off, the Company
performs these functions or purchases services from either Carrols (under a
transition services agreement) or third parties.

(e) General and administrative expenses in the year ended December 30, 2012
include a charge of $0.6 million associated with announced retirements of the
Executive Vice Presidents of both the Pollo Tropical and Taco Cabana brands
effective January 31, 2013.

(f) As previously disclosed, Fiesta has granted shares of restricted stock to
certain of its employees. Because the unvested shares participate in any
dividends declared, the unvested shares are considered a second class of
common stock for accounting purposes, impacting the calculation of net income
per share. For further information, please see the Company's audited financial
statements to be included in the Company's Annual Report on Form 10-K for the
year ended December 30, 2012.
                                                     


Fiesta Restaurant Group, Inc.

Condensed Consolidated Balance Sheet

(in thousands)
                                                          
                                         December 30, 2012     January 1, 2012
                                                               
Assets
Cash                                     $     15,533          $   13,670
Other current assets                     15,424                13,939
Property and equipment, net              126,516               195,122
Goodwill                                 123,484               123,484
Intangible assets, net                   202                   301
Deferred income taxes                    13,101                11,659
Deferred financing costs, net            5,690                 6,908
Other assets                             3,779                 5,083        
Total assets                             $     303,729         $   370,166  
                                                               
Liabilities and Stockholders' Equity
(Deficit)
Current liabilities                      $     41,278          $   36,673
Long-term debt, net of current           200,889               200,949
portion
Lease financing obligations              3,029                 123,019
Deferred income sale-leaseback of        36,096                4,055
real estate
Other liabilities                        11,933                10,142       
Total liabilities                        293,225               374,838
Stockholders' equity (deficit)           10,504                (4,672       )
Total liabilities and stockholders'      $     303,729         $   370,166  
equity (deficit)
                                                                            

                        Fiesta Restaurant Group, Inc.
                           Supplemental Information
 The following table sets forth certain unaudited supplemental financial and
                     other data for the periods indicated
        (in thousands, except percentages and number of restaurants):


                (unaudited)                    (unaudited)
                Three months ended              Twelve months ended
                December 30,   January 1,      December 30,    January 1,
                2012            2012            2012             2012
Segment
Revenues:
Pollo Tropical  $  56,535       $  51,972       $  229,343       $  209,525
Taco Cabana     70,043         64,974         280,383         265,443     
Total revenues  126,578         116,946         509,726          474,968
                                                                 
Change in
comparable
restaurant
sales: (a)
Pollo Tropical  8.3        %    7.8        %    8.1         %    9.9         %
Taco Cabana     6.8        %    2.7        %    4.7         %    3.7         %
                                                                 
Adjusted
Segment EBITDA
(b):
Pollo Tropical  $  7,850        $  7,758        $  38,592        $  35,567
Taco Cabana     5,886           6,138           25,649           26,785
                                                                 
Average Sales
per Restaurant
(c):
Pollo Tropical  $  623          $  567          $  2,538         $  2,287
Taco Cabana     432             411             1,768            1,690
                                                                 
Number of
Company-Owned
Restaurants:
Pollo Tropical  91              91              91               91
Taco Cabana     160            158            160             158         
Total
company-owned   251             249             251              249
restaurants
                                                                 
Company-Owned
Restaurant
Openings:
Pollo Tropical  1               —               5                2
Taco Cabana     2              —              5               4           
Total new
restaurant      3               —               10               6
openings
                                                                 
Company-Owned
Restaurant
Closings:
Pollo Tropical  —               —               5                2
Taco Cabana (d) 2              —              3               1           
Net change in   1               —               2                3
restaurants
                                                          



(a) Restaurants are included in comparable restaurant sales after they have
been open for 18 months.

(b) Adjusted Segment EBITDA is defined as earnings attributable to the
applicable segment before interest, income taxes, depreciation and
amortization, impairment and other lease charges, stock-based compensation
expense, and other income and expense. Adjusted Segment EBITDA is used because
it is the measure of segment profit or loss reported to our chief operating
decision maker for purposes of allocating resources to the segments and
assessing each segment’s performance. This may not be necessarily comparable
to other similarly titled captions of other companies due to differences in
methods of calculation.

(c) Average sales for company-owned or operated restaurants are derived by
dividing restaurant sales for such period for the applicable segment by the
average number of open restaurants for the applicable segment for such period.

(d) During the fourth quarter of 2012, Fiesta sold two Company-owned Taco
Cabana restaurants to an existing franchisee.


                        Fiesta Restaurant Group, Inc.
                      Supplemental Non-GAAP Information
 The following table sets forth certain unaudited supplemental financial data
                          for the periods indicated
                  (in thousands, except per share amounts):

Adjusted net income and related adjusted earnings per share are non-GAAP
financial measures. Adjusted net income is defined as net income before
impairment and other lease charges and the impact of the qualification for
sale-leaseback accounting (primarily upon the spin-off from Carrols) for
certain leases previously accounted for as lease financing obligations.
Management believes that adjusted net income and related adjusted earnings per
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.


                (unaudited)                                          (unaudited)
                  Three months ended                                     Twelve months ended
                  December 30, 2012        January 1, 2012             December 30, 2012         January 1, 2012
                  $           EPS          $           EPS           $            EPS          $            EPS
Net income        $ 2,562       $ 0.11       $ (130  )     $ (0.01 )     $ 8,267        $ 0.35       $ 9,541        $ 0.41
Add (each net
of tax
effect):
Impairment
and other         148           0.01         1,163         0.05          4,632          0.20         1,847          0.08
lease charges
(a)
Qualification
for sale
leaseback         —            —           872          0.04         1,249         0.06        3,645         0.15
accounting
(b)
Adjusted net      $ 2,710      $ 0.12      $ 1,905      $ 0.08       $ 14,148      $ 0.60      $ 15,033      $ 0.63
income
                                                                                                                    

(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 $76, $565, $2,407
and $897 for the three and twelve months ended December 30, 2012 and January
1, 2012, respectively.

(b) For certain of our sale-leaseback transactions, Carrols Corporation (a
wholly-owned subsidiary of Carrols) has guaranteed the lease payments on an
unsecured basis or is the primary lessee on the leases associated with certain
of our sale-leaseback transactions. Prior to the spin-off from Carrols, these
leases were classified as lease financing obligations because the guarantee
from Carrols Corporation, a related party prior to the Spin-off, constituted
continuing involvement and caused the sale to not qualify for sale-leaseback
accounting. Upon completion of the spin-off from Carrols, such leases
qualified for sale-leaseback accounting treatment due to the cure or
elimination of the provisions that previously precluded sale-leaseback
accounting (and the treatment of such leases as operating leases), primarily
the guarantees of Carrols Corporation. As a result of the qualification for
sale-leaseback accounting treatment during the second quarter of 2012 due to
the spin-off from Carrols, we removed the associated lease financing
obligations, property and equipment, and deferred financing costs from our
balance sheet, and recognized deferred gains on sale-leaseback transactions,
which is amortized as a component of rent expense.

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. Subsequently, four of the five properties were sold prior to
December 30, 2012, and qualified for sale leaseback treatment at the time of
sale. The above table does not consider the impact of the qualification of
sale-leaseback accounting for these four properties on the Company's rent and
depreciation expense for all periods presented above.

As a result of the qualification of these leases and purchase of the five
properties, restaurant rent expense was $1.6 million and $4.4 million higher,
depreciation expense was $0.5 million and $1.4 million lower and interest
expense was $2.7 million and $7.1 million lower in the three and twelve months
ended December 30, 2012, respectively, compared to the prior year periods.

The amounts reported as "qualification for sale leaseback accounting"
represent 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 all periods
presented. These amounts are shown net of taxes of $424, $649, and $1,771 in
the three months ended January 1, 2012 and the twelve months ended December
30, 2012 and January 1, 2012, respectively. These amounts are 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 (an the treatment of such leases as operating leases) occurred
on the dates described above.

Contact:

Fiesta Restaurant Group, Inc.
Investor Relations:
Raphael Gross, 203-682-8253
investors@frgi.com