Ron Baron (Trades, Portfolio) of Baron Funds trimmed his stake in Del Frisco's Restaurant Group Inc. (DFRG, Financial), a Southlake, Texas-based steakhouse restaurant chain, by more than 73% on April 30.
Baron sold 1,282,910 shares for $15.93 per share. The transaction had a -0.09% impact on Baron’s portfolio.
Baron’s remaining stake of 467,090 shares is 1.99% of Del Frisco’s outstanding shares and 0.03% of Baron’s total assets. Baron remained Del Frisco’s leading shareholder among the gurus.
Del Frisco’s was founded in 1981 and went public in 2012. The group operates operates 32 locations across the U.S. under the names Del Frisco's Double Eagle Steak House, Sullivan's Steakhouse and Del Frisco's Grille. In addition to steaks, the menu offers chops and seafood as well as a thorough selection of wines.
On April 26 Del Frisco’s Restaurant Group reported its first-quarter financial results, which included:
- Consolidated revenues increased 8.1% to $81.2 million from $75.1 million.
- Revenues increased 24.5% to $23.9 million from $19.2 million.
- Total comparable restaurant sales decreased 1.1%.
- Comparable restaurant sales decreased 0.1% at Del Frisco’s Double Eagle Steak House comprised of a 1.0% decrease in average check partially offset by a 0.9% increase in customer counts.
- Comparable restaurant sales decreased 1.8% at Sullivan’s Steakhouse comprised of a 4.5% decrease in customer counts partially offset by a 2.7% increase in average check.
- Comparable restaurant sales decreased 2.8% at Del Frisco’s Grille comprised of a 4.7% decrease in average check partially offset by a 1.9% increase in customer counts.
- Cost of sales, as a percentage of consolidated revenues, improved to 28.6% from 28.8%.
- Net income of $5.4 million, or 23 cents per diluted share.
- Restaurant-level EBITDA, a non-GAAP measure, increased 5.3% to $18 million from $17.1 million.
Del Frisco’s has a P/E of 23.3, a forward P/E of 17.4, a P/B of 1.6 and a P/S of 1.1. GuruFocus gives Del Frisco’s a Financial Strength rating of 9/10 and a Profitability and Growth rating of 7/10.
Del Frisco’s sold for $16.16 per share Tuesday afternoon.
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