Financing

Del Frisco's explores sale of Sullivan's

A drop in the concept's comps and traffic is prompting the move.
Sullivan's Steakhouse

Del Frisco’s Restaurant Group has retained Piper Jaffray to explore the sale of its Sullivan’s Steakhouse concept, the company revealed in an earnings call on Thursday.

Sullivan’s comps were down 10.8% and customer counts decreased by 15.5% year over year during the fourth quarter, CEO Norman Abdallah said on the call. Although a 4.7% rise in check averages partially offset these declines, the company wants to focus on its two other brands: Double Eagle Steakhouse and Del Frisco’s Grille, which saw comps increases of 1.2% and 0.9%, respectively.

“While Sullivan’s Steakhouse has many compelling attributes, we believe that Del Frisco’s Double Eagle Steakhouse and Del Frisco’s Grille provide us with far greater opportunities for expansion,” Abdallah said. The company also noted the latter brands’ growth in check averages and the addition of new menu items in late 2017, particularly dry-aged steaks and an enhanced wine and cocktail selection.

Looking ahead, the company plans to open four Double Eagle Steakhouses and three Del Frisco’s Grilles in 2018.

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