Del Frisco’s Restaurant Earnings: Here’s Why Investors Like These Results

Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.59%.
Del Frisco’s Restaurant Group Inc Earnings Cheat Sheet

Results:

Revenue: Rose 17.69% to $60.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.2 per share. By that measure, the company beat the mean analyst estimate of $0.19. It beat the average revenue estimate of $59.13 million.

Quoting Management: Mark S. Mednansky, Chief Executive Officer of Del Frisco’s Restaurant Group, Inc., said, “We are very pleased that the efforts of our team produced a 2.5% increase in total comparable restaurant sales and we are very encouraged by the substantial traffic gains realized at both Del Frisco’s Double Eagle and Sullivan’s. Del Frisco’s Double Eagle continues to deliver solid results, Del Frisco’s Grille is on track with its development plan, while during the second quarter we began work on refreshing Sullivan’s with an emphasis on solidifying the brand as an affordable neighborhood steakhouse through the introduction of a fixed-price offering. From a cost standpoint, some operational inefficiencies at newer restaurants and deleveraging at Sullivan’s negatively impacted our restaurant-level margins, however solid controls and lower cost of sales with strong revenue gains allowed us to increase our four–wall profitability.”

Key Stats (on next page)…

Revenue increased 1% from $59.8 million in the previous quarter. EPS decreased 4.76% from $0.21 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.11 to a profit $0.12. For the current year, the average estimate is a profit of $0.96, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)