Chanticleer Holdings, Inc., a minority owner in the privately-held parent company of the Hooters® brand, Hooters of America (“HOA”), and a franchisee of international Hooters restaurants, announced today, its financial results for the third quarter ended September 30, 2012.

Third Quarter & Year-to-Date Highlights

• Chanticleer reported revenues of $1.77 million for the third quarter as compared to ($5,726) in same period last year.
• Chanticleer reported record revenues of $4.9 million for the first nine months of 2012, as compared to revenue of $468,417 in the same period last year.
• Campbelltown, Australia became profitable, generating net income for the third quarter of $68,000, of which our share of profits is 49%.
• Earnings per share loss decreased in the third quarter to a loss of $0.20 per share as compared to a loss of $0.40 per share in the year ago period.
• Chanticleer opens its sixth international Hooters® restaurant in Budapest, Hungary.

Mike Pruitt, President and CEO of Chanticleer Holdings, commented, “We are pleased to report our third quarter financial results and expansion of our International Hooters® restaurants. Year to date, we have grown our number of operating restaurants by 100% to six as compared to three restaurants at 2011 year-end. During the year, we opened restaurants in Campbelltown, Australia; Emperor’s Palace, South Africa; and Budapest, Hungary. We continue to execute on our plan to grow the Hooters brand in our exclusive international emerging markets.”

Third Quarter 2012 Results:

For the third quarter ended September 30, 2012, total revenue increased to $1.77 million, compared to total revenue of ($5,726) in the third quarter of 2011. This growth is attributable to gaining majority ownership in our first three South African restaurants on September 30, 2011, at which point we began consolidating our South African Hooters operations, effective October 1, 2011. This growth is also attributable to opening our Emperor’s Palace, South Africa and Budapest, Hungary locations in 2012, where our Emperor’s Palace continues to be a success and profitable. Also, The Company’s Campbelltown, Australia location, where Chanticleer owns 49%, became profitable during the third quarter, generating $68,000 in net income.

For the nine months ended September 30, 2012, total revenue increased to $4.9 million as compared to $468,417 in the same period last year, due to consolidating our South African operations, effective October 1, 2011 and opening our Emperor’s Palace, South Africa and Budapest, Hungary locations in 2012.

The Company reported a net loss of $739,766 or $0.20 per share and a net loss of $495,756 or $0.40 per share during the three-month period ended September 30, 2012 and September 30, 2011, respectively. The increase in net loss is due to increased expenses associated with the consolidation of our South African restaurant operations, effective October of 2011 and our continued expansion of our international footprint, where during the third quarter, the Company incurred approximately $126,000 in one-time expenses related to opening the Hooters Budapest location. The Company closed the September Quarter with cash and cash equivalents of $1.7 million.

The independent investigation by the Company’s Audit Committee is nearing completion. No other findings of misconduct have been identified that have not previously been publicly disclosed. However, the independent investigation did identify certain weaknesses in internal controls and the Company is in the process of implementing a remediation plan.

The Company is continuing to provide the NASDAQ Staff with all information requested in a timely manner. The company intends to continue to inform investors of any material developments in a timely manner.

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