(1)	See non-GAAP reconciliation table below.

(2)	Outstanding revolving credit facility balance plus outstanding letters of credit.

(3)

We define net revolver debt as outstanding revolving credit facility borrowings plus outstanding letters of credit less unrestricted cash balance as defined in our credit agreement (generally cash in bank less outstanding payments), which were $$19.5 million, $3.5 million and $14.0 million, respectively, as of November 2, 2020 and $146.4 million, $3.5 million and $75.5 million, respectively, as of March 18, 2020. Net revolver debt is a non-GAAP measure which we believe assists investors in understanding of our management of our overall liquidity and financial flexibility.

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•	Total revenues decreased 16.4% to $137.3 million in the third quarter of 2020 from $164.2 million in the third quarter of 2019;

•	Comparable restaurant sales at Pollo Tropical decreased 11.1%;

•	Comparable restaurant sales at Taco Cabana decreased 14.2%;

•	Net income of $4.6 million, or $0.18 per diluted share, in the third quarter of 2020, which included a benefit from income taxes of $4.2 million, compared to net loss of $22.2 million, or ($0.84) per diluted share, in the third quarter of 2019, which included the unfavorable net impact of $19.3 million, or $0.73 per diluted share, related to a non-cash impairment of goodwill;

•	Adjusted net income (a non-GAAP financial measure) of $2.1 million, or $0.08 per diluted share, in the third quarter of 2020, compared to adjusted net income of $0.2 million, or $0.01 per diluted share, in the third quarter of 2019 (see non-GAAP reconciliation table below);

•	Adjusted EBITDA for Pollo Tropical of $10.6 million in the third quarter of 2020 compared to $11.0 million in the third quarter of 2019;

•	Restaurant-level Adjusted EBITDA (a non-GAAP financial measure) for Pollo Tropical of $16.4 million, or 21.2% of Pollo Tropical restaurant sales, in the third quarter of 2020 compared to $17.8 million, or 20.1% of Pollo Tropical restaurant sales, in the third quarter of 2019 (see non-GAAP reconciliation table below);

•	Adjusted EBITDA for Taco Cabana of $4.2 million in the third quarter of 2020 compared to $1.2 million in the third quarter of 2019;

•	Restaurant-level Adjusted EBITDA (a non-GAAP financial measure) for Taco Cabana of $8.8 million, or 14.9% of Taco Cabana restaurant sales, in the third quarter of 2020 compared to $6.9 million, or 9.2% of Taco Cabana restaurant sales, in the third quarter of 2019 (see non-GAAP reconciliation table below); and

•	Consolidated Adjusted EBITDA (a non-GAAP financial measure) of $14.8 million in the third quarter of 2020 compared to Consolidated Adjusted EBITDA of $12.2 million in the third quarter of 2019 (see non-GAAP reconciliation table below).

•

Due to ongoing uncertainty and volatility surrounding the COVID-19 pandemic and guidelines, effective July 12, 2020, we closed all of our dining rooms and began re-opening certain dining rooms and patios with limited capacity and hours at both brands in late September at locations in which we believe we can generate profitable dining room sales while maintaining health safety. We continue to operate our restaurants for drive-thru, delivery and pickup, and we have accelerated efforts to better enable our customers to enjoy our brands safely and conveniently across all channels—wherever and whenever they choose.

•	Third quarter comparable restaurant sales at Pollo Tropical benefited from the negative impact of Hurricane Dorian in 2019. After adjusting for the impact of that named storm, 2020 third quarter comparable sales would have been approximately 140 basis points lower.

•	At the end of the third quarter of 2020, we had $18.0 million in cash and $41.8 million in debt, which includes $39.9 million outstanding under our amended senior credit facility and $1.9 million in finance lease obligations.

•

The reduction in our net revolver debt to $9.0 million(3) as of November 2, 2020 was funded by cash flow from operations and the sale or sale-leaseback of nine Company-owned properties. We currently have offers or contracts in place for the sale or sale-leaseback of our seven remaining Company-owned properties being marketed, with additional transactions expected to close in the fourth quarter to enable further debt pay down. However, there can be no assurance that such transactions will be completed during the fourth quarter or at all. We are also exploring the potential refinancing of our current credit agreement, although we cannot make any assurance of the timing or certainty of completing any refinancing transactions at this time.

•	2020 full year capital expenditures will not exceed $22.0 million.

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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 nine-month periods ended September 27, 2020 and September 29, 2019 each included 13 and 39 weeks, respectively.

(b)

Restaurant wages and related expenses include stock-based compensation of $47 and $102 for the three months ended September 27, 2020 and September 29, 2019, respectively, and $152 and $145 for the nine months ended September 27, 2020 and September 29, 2019, respectively. General and administrative expenses include stock-based compensation expense of $597 and $509 for the three months ended September 27, 2020 and September 29, 2019, respectively, and $2,332 and $1,993 for the nine months ended September 27, 2020 and September 29, 2019, respectively.

(c)	See notes (h) and (i) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information."

(d)	See note (c) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information."

(e)	See note (d) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information."

(f)	See note (e) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information."

(g)	See note (f) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information."

(h)	See notes (a) and (b) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information."

(i)	See note (g) to the reconciliation of net income (loss) to adjusted net income (loss) in the tables titled "Supplemental Non-GAAP Information."

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

(b)	Comparable restaurants are restaurants that have been open for 18 months or longer. Average sales for comparable Company-owned restaurants are derived by dividing comparable restaurant sales for such period for the applicable segment by the average number of comparable restaurants for the applicable segment for such period.

(c)	New restaurants are restaurants that have been open for less than 18 months. Average sales for new Company-owned restaurants are derived by dividing new restaurant sales for such period for the applicable segment by the average number of new restaurants for the applicable segment for such period.

(d)	Average sales for total Company-owned 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.

(e)	Restaurant-level Adjusted EBITDA is a non-GAAP financial measure. Please see the reconciliation from net income (loss) to Restaurant-level Adjusted EBITDA in the table titled "Supplemental Non-GAAP Information."

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(a)

The provision for (benefit from) income taxes related to the adjustments was calculated using the Company's combined federal statutory and estimated state rate of 23.9% and 27.7% for the periods ending September 27, 2020 and September 29, 2019, respectively. For fiscal years beginning January 1, 2018, our federal statutory tax rate is 21% as a result of the enactment of the Tax Cuts and Jobs Act (the "Act") in December 2017. For the three and nine months ended September 27, 2020, we recorded a $0.1 million and $1.9 million tax benefit, respectively, related to prior year net operating losses as a result of a provision in the CARES Act that allows net operating losses from 2018–2020 to be carried back for five years. Additionally, the three and nine months ended September 27, 2020 includes an incremental benefit of $1.9 million related to reclassifying certain assets as qualified improvement property as permitted by the CARES Act and other

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(b)

For the three and nine months ended September 27, 2020, we recorded a reduction of $3.0 million and $1.3 million, respectively, to our valuation allowance against deferred income tax assets primarily related to reclassifying certain assets as qualified improvement property and filing our 2019 federal income tax returns as well as other changes in our deferred income tax assets where it was determined to be more likely than not that the deferred tax assets will not be realized through the reversal of existing deferred tax liabilities.

(c)

Impairment and other lease charges for the three and nine months ended September 27, 2020 consist of impairment charges of $2.6 million and $8.4 million, respectively, and other lease charges (gains) of $(0.2) million and $0.5 million, respectively. For the three months ended September 27, 2020, impairment charges primarily relate to the write-down of saucing islands and self-service soda machines that are being removed from dining rooms as a result of COVID-19. For the nine months ended September 27, 2020, impairment charges also include the impairment of assets from three underperforming Pollo Tropical restaurants, two of which were closed in the third quarter of 2020, and two underperforming Taco Cabana restaurants, as well as the write-down of assets held for sale to their fair value. For the three months ended September 27, 2020, other lease gains primarily relate to a gain from a lease termination of $(0.2) million. For the nine months ended September 27, 2020, other lease charges also include lease termination charges of $0.9 million for restaurant locations we decided not to develop, net of a gain from a lease termination of $(0.2) million.

(d)	Goodwill impairment for the three and nine months ended September 29, 2019 consists of a non-cash impairment charge to write down the value of goodwill for the Taco Cabana reporting unit.

(e)

Closed restaurant rent expense, net of sublease income for the three and nine months ended September 27, 2020 primarily consists of closed restaurant lease costs of $3.0 million and $8.9 million, respectively, partially offset by sublease income of $(1.5) million and $(3.9) million, respectively. Closed restaurant rent expense, net of sublease income for the three and nine months ended September 29, 2019 primarily consists of closed restaurant lease costs of $1.9 million and $6.2 million, respectively, partially offset by sublease income of $(1.1) million and $(2.8) million, respectively.

(f)

Other expense (income), net for the three and nine months ended September 27, 2020 primarily consists of total gains of $(1.6) million on the sale-leaseback of two restaurant properties and the sale of two restaurant properties, partially offset by costs for the removal, transfer, and storage of equipment from closed restaurants and other closed restaurant related costs of $0.3 million and $1.4 million, respectively. Other expense (income), net for the nine months ended September 27, 2020 also includes the write-off of site development costs of $0.6 million. Other expense (income), net for the three and nine months ended September 29, 2019 consists of the write-off of site development costs of $0.1 million. Other expense (income), net for the nine months ended September 29, 2019 also includes costs for the removal, transfer, and storage of equipment from closed restaurants of $0.7 million.

(g)	Loss on extinguishment of debt for the three and nine months ended September 27, 2020 consists of the write-off of unamortized deferred financing fees related to extinguished debt.

(h)	Restructuring costs and retention bonuses for the three and nine months ended September 27, 2020 include severance costs related to terminations in response to the COVID-19 pandemic. Restructuring costs and retention bonuses for the nine months ended September 29, 2019 include severance costs related to eliminated positions.

(i)	Digital and brand repositioning costs for the three and nine months ended September 27, 2020 and September 29, 2019 include consulting costs related to repositioning the digital experience for our customers.