Stock Monitor: Denny's Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 09, 2018 / If you want access to our free research report on Del Frisco's Restaurant Group, Inc. (NASDAQ: DFRG) ("Del Frisco's"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DFRG as the Company's latest news hit the wire. On May 07, 2018, the Company disclosed that it has signed an agreement to acquire Barteca Restaurant Group ("Barteca"). Barteca is the owner of two restaurant chains - Barcelona Wine Bar and bartaco. The all-cash deal is valued at approximately $325 million. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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The transaction has been approved by the Board of Directors of Del Frisco's. The deal is expected to close in Q2 2018, subject to getting clearance from antitrust regulators and fulfilment of other closing conditions. The acquisition does not require the approval of Del Frisco's shareholders.

Once the deal is complete, Jeff Carcara, the current Chief Executive Officer (CEO) of Barteca, will continue to lead the business and will report to Norman Abdallah, CEO of Del Frisco's.

Management Quotes

Commenting on the acquisition, Norman Abdallah, CEO of Del Frisco's, said:

"We believe Barteca's innovative and ?best in class' concepts are highly complementary and will provide Del Frisco's portfolio with significant growth and development opportunities."

Ian Carter, Chairman of Del Frisco's, stated:

"Barcelona and bartaco are the perfect additions to the Del Frisco's portfolio, and are well-positioned to deliver a long-term positive impact on our team, guests, and shareholders."

Jeff Carcara, CEO of Barteca, added:

"I believe Norman and the team at DFRG share in the vision for what's possible in terms of our evolution. There is strength in numbers and I am excited to see what more we can accomplish together."

About Barteca's Restaurant Businesses

Andrew Pforzheimer and Sasa Mahr-Batuz are the Founders of Barteca and the brains behind the award-winning concept restaurant chains - Barcelona Wine Bar and bartaco. Barteca has a total of 31 restaurants operating in 10 states and Washington D.C. Both restaurant concepts have distinct vibe, food, drinks, and design, with primary focus on guest experience.

Barcelona is the largest Spanish restaurant concept in the US and is inspired by the culture of Spain and its tapas bars. These restaurants offer an ever-changing selection of tapas made using both local and seasonal ingredients, as well as specialties from Spain and the Mediterranean. The restaurant also boasts of an award-winning wine list with 400 Spanish and South American wines. Currently, there are 15 Barcelona restaurants and 3 restaurants under development. Del Frisco's estimates that this concept has the market potential for 50 and 100 restaurants domestically.

bartaco's concept is mostly inspired by a healthy, outdoor lifestyle, and combines fresh, upscale street food with a coastal vibe in a relaxed environment. The restaurant's menu offers a broad palate of bold flavors from the Mediterranean, Asia, and beyond. The restaurant is known for its award-winning cocktails made from artisanal spirits and freshly-squeezed juices. At present, there are 16 bartaco restaurants with 4 restaurants under development. Del Frisco's estimates that this concept has the market potential for 200 and 300 restaurants domestically.

Benefits of the Acquisition

Del Frisco's expects that the acquisition will provide significant growth opportunities and allow it to capture market share in the experiential dining segments, and simultaneously help in mitigating the risk of seasonality and economic downturns.

The acquisitions also make great financial sense. Barteca's net sales were $127.9 million in FY17, with a profit margin of 24.8%. Barcelona's net sales were $60.2 million in FY17, with a profit margin of 23.6%. The restaurants witnessed a 1.9% increase in comparable restaurant sales in FY17, while in Q1 2018, the comparable restaurant sales was 1.7% higher. The average Barcelona restaurant contributed $4.7 million in sales volume and the average check was approximately $35. These restaurants have current sales to investment ratio of 2.3 times and cash on cash return of 57%, which is among the highest in the industry.

On the other hand, bartaco's net sales were $67.1 million in FY17, with a profit margin of 26.1%. The restaurants witnessed a 7.3% increase in comparable restaurant sales in FY17, while in Q1 2018, the comparable restaurant sales was 2.6% higher. The average bartaco restaurant contributed $5.6 million in sales volume and the average check was approximately $22. The bartaco restaurants have current sales to investment ratio of 3 times and cash on cash return of 87%, which is among the highest in the industry.

About Del Frisco's Restaurant Group, Inc.

Irving, Texas-based Del Frisco's business consists of Del Frisco's Double Eagle Steakhouse, Del Frisco's Grille, and Sullivan's Steakhouse. Del Frisco's has over 50 restaurants across 23 states and Washington D.C. These restaurants are known for using quality ingredients, the freshest produce, premium cuts of meat, and top-notch essentials for serving up culinary masterpieces. Del Frisco's Double Eagle Steakhouse serves mouth-watering appetizers, hand-cut steaks, fresh seafood, and an extensive award-winning wine list. Del Frisco's Grille has a modern, inviting, stylish, and fun vibe and takes the classic bar and grill concept to new heights. Sullivan's Steakhouse is a great neighborhood place for a big night out on the town, and offers outstanding food, hand-shaken martinis, an award-winning wine list, and live entertainment.

Stock Performance Snapshot

May 08, 2018 - At Tuesday's closing bell, Del Frisco's Restaurant Group's stock dropped 1.92%, ending the trading session at $15.35.

Volume traded for the day: 873.20 thousand shares, which was above the 3-month average volume of 241.80 thousand shares.

Stock performance in the previous six-month period ? up 10.83%; and year-to-date - up 0.66%

After yesterday's close, Del Frisco's Restaurant Group's market cap was at $313.06 million.

The stock is part of the Services sector, categorized under the Restaurants industry.

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