Del Frisco’s stock tumbles after falling short of Q1 expectations

The restaurant company, which operates the Double Eagle steakhouse chain and other concepts, is still conducting a strategic review with an eye toward a possible sale.
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Del Frisco’s Restaurant Group is still undergoing a strategic review process, which might include a sale of the multiconcept restaurant company, executives said Tuesday.

“No assurances can be made with regard to the timeline for completion of the strategic review, or whether the review will result in any particular outcome,” the company said in a statement.

The Irving, Texas-based company’s stock was down more than 7% midday Tuesday, after falling short of analyst estimates for the quarter ended March 26.

Chainwide same-store sales grew 1.3% for the quarter, and revenue increased 64.1% to $120.4 million. The revenue increase was largely due to Del Frisco’s acquisition of Barcelona Wine Bar and Bartaco last June.

For the quarter, Bartaco’s same-store sales grew 6.7%, Barcelona’s grew 3.7%, Del Frisco’s Grille’s grew 0.2% and Double Eagle Steakhouse’s fell 0.4%.

The company is still working to integrate its new acquisitions into the fold and expects to soon eliminate some administrative costs.

Del Frisco’s Restaurant Group, which operates 78 units in 17 states and Washington, D.C., predicts systemwide same-store sales to be flat or up 1.5% for the year.

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