Company Profile:

Del Frisco’s Restaurant Group, Inc. develops, owns and operates three contemporary, complementary restaurants: Del Frisco’s Double Eagle Steak House (Del Frisco’s), Sullivan’s Steakhouse (Sullivan’s) and Del Frisco’s Grille (the Grille). As of December 27, 2016, the Company operated 53 restaurants in 24 states and the District of Columbia in the United States. The Company’s segments include Del Frisco’s, Sullivan’s and the Grille. Del Frisco’s is a steakhouse concept in the United States. The Del Frisco’s brand’s menu includes the United States Department of Agriculture (USDA) Prime grade, wet-aged steaks hand-cut at the time of order and a range of other offerings, including prime lamb, fresh seafood, and signature side dishes and desserts. Each restaurant has a sommelier to guide diners through a wine list. As of August 1, 2017, it operated 53 restaurants in 23 states and Washington, D.C. The company was founded in 1981 and is headquartered in Southlake, Texas.

Recent News:

For the second quarter ended June 13, 2017, the company reported consolidated revenues increased 3.0% to $82.3 million from $79.9 million. Total comparable restaurant sales decreased 2.2% comprised of a 0.1% decrease in average check and 2.1% decrease in customer counts.

On Aug. 01, 2017, the company announced plans for new Double Eagle Steak Houses in Boston and Atlanta and a Del Frisco’s Grille in Philadelphia, all slated to open in 2018.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

DFRG’s strengths can be seen in its better growth, better profitability and strong solvency compared with its peers. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI (14) stands at 48.50 with positive bias. We rate Del Frisco’s Restaurant Group, Inc. (DFRG) a STRONG BUY.