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$HOTR Chanticleer Holdings Reports Positive EBITDA for Second Consecutive Quarter


Revenue Growth, Improved Revenue Mix and Efficiency Initiatives Drive Improved Operating Results

CHARLOTTE, NC -- (Marketwired) -- 11/09/16 --

Chanticleer Holdings, Inc. (NASDAQ: HOTR) ("Chanticleer," or the "Company"), owner, operator and franchisor of multiple branded restaurants in the U.S. and abroad, today announced financial results for the third quarter ended September 30, 2016.

Third Quarter Revenue Increases 18%; Company Achieves Second Consecutive Quarter of Adjusted EBITDA Profitability:

Total revenue for the third quarter increased 18.3% to $11.0 million, primarily from growth in the Fast Casual Better Burger segment.
Cost of sales improved to 33.1% compared to 33.6% in the comparable quarter last year.
Operating expenses as a percentage of restaurant sales improved to 54.8% compared to 57.3% in the comparable quarter last year.
General and administrative expenses as a percentage of total revenue decreased to 12.3% from 17.8% in the comparable quarter last year.
Net loss from continuing operations improved to $(0.9) million or $(0.04) per share, compared to $(1.7) million or $(0.11) in the comparable quarter last year.
Restaurant EBITDA improved to $1.4 million compared to $0.9 million for the comparable quarter of last year.
Adjusted EBITDA improved to a profit of $0.2 million compared to a loss of $(0.2) million in the comparable quarter last year.
Nine Months Revenue Increases 30%; $1.7 Million Adjusted EBITDA Improvement:

Total revenue for the nine months increased 30.3% to $31.8 million, primarily from growth in the Fast Casual Better Burger segment.
Cost of sales improved to 33.0%, compared to 34.4% in the comparable period last year.
Operating expenses as a percentage of restaurant sales improved to 55.2% compared to 57.9% in the comparable period last year.
General and administrative expenses as a percentage of total revenue decreased to 13.8% from 21.1% of sales in the comparable period last year.
Net loss from continuing operations decreased to $(2.4) million or $(0.11) per share, compared to $(6.3) million or $(0.45) in the comparable period last year.
Net cash from operating activities of continuing operations improved to positive $0.1 million compared to a negative $(3.8) million in the first nine months of last year.
Restaurant EBITDA improved to $4.0 million compared to $2.1 million in the first nine months of last year.
Adjusted EBITDA improved to a profit of $0.2 million compared to a loss of $(1.9) million in the first nine months of last year.
Mike Pruitt, Chairman and CEO of Chanticleer commented, "We're pleased to have delivered excellent third quarter results, highlighted by strong revenue growth. Revenue growth in the quarter was driven by continued strength from our fast casual better burger business which has grown to represent 52% of our revenue. Little Big Burger is performing particularly well, contributing significantly to the 19% sequential growth in Adjusted EBITDA from continuing operations from Q2, and further validating our regional brand strategy."

Mr. Pruitt continued, "Our focus is on expanding our regional brands, driving margin improvement and achieving significant long term profitability growth. We have built a solid restaurant operating business with tremendous growth potential and are generating EBITDA profitability. Looking ahead, we are now setting our sights on accelerating growth of our regional brands and doubling the scale of our business by 2020.

"Subsequent to the close of the quarter, we announced a convertible preferred stock rights offering to retire a portion of our debt and provide working capital for store-related growth. We believe the offering will allow us to capitalize on the momentum we're seeing in the fast casual segment and allow us to accelerate growth in our high return burger concepts while potentially adding new shareholders to our company."


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