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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 9/10

vs
industry
vs
history
Cash to Debt No Debt
DFRG's Cash to Debt is ranked higher than
86% of the 312 Companies
in the Global Restaurants industry.

( Industry Median: 0.75 vs. DFRG: No Debt )
DFRG' s 10-Year Cash to Debt Range
Min: 0.06   Max: No Debt
Current: No Debt

Equity to Asset 0.69
DFRG's Equity to Asset is ranked higher than
85% of the 308 Companies
in the Global Restaurants industry.

( Industry Median: 0.48 vs. DFRG: 0.69 )
DFRG' s 10-Year Equity to Asset Range
Min: 0.41   Max: 0.71
Current: 0.69

0.41
0.71
Interest Coverage 248.49
DFRG's Interest Coverage is ranked higher than
84% of the 224 Companies
in the Global Restaurants industry.

( Industry Median: 16.07 vs. DFRG: 248.49 )
DFRG' s 10-Year Interest Coverage Range
Min: 1.76   Max: 248.49
Current: 248.49

1.76
248.49
F-Score: 4
Z-Score: 5.02
M-Score: -1.30
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 6.58
DFRG's Operating margin (%) is ranked higher than
70% of the 286 Companies
in the Global Restaurants industry.

( Industry Median: 7.40 vs. DFRG: 6.58 )
DFRG' s 10-Year Operating margin (%) Range
Min: 6.58   Max: 12.65
Current: 6.58

6.58
12.65
Net-margin (%) 4.49
DFRG's Net-margin (%) is ranked higher than
72% of the 286 Companies
in the Global Restaurants industry.

( Industry Median: 4.43 vs. DFRG: 4.49 )
DFRG' s 10-Year Net-margin (%) Range
Min: 4.49   Max: 5.92
Current: 4.49

4.49
5.92
ROE (%) 6.21
DFRG's ROE (%) is ranked higher than
58% of the 280 Companies
in the Global Restaurants industry.

( Industry Median: 10.65 vs. DFRG: 6.21 )
DFRG' s 10-Year ROE (%) Range
Min: 6.21   Max: 9.36
Current: 6.21

6.21
9.36
ROA (%) 4.23
DFRG's ROA (%) is ranked higher than
66% of the 287 Companies
in the Global Restaurants industry.

( Industry Median: 4.69 vs. DFRG: 4.23 )
DFRG' s 10-Year ROA (%) Range
Min: 3.83   Max: 5.32
Current: 4.23

3.83
5.32
ROC (Joel Greenblatt) (%) 14.42
DFRG's ROC (Joel Greenblatt) (%) is ranked higher than
64% of the 285 Companies
in the Global Restaurants industry.

( Industry Median: 18.07 vs. DFRG: 14.42 )
DFRG' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 14.42   Max: 28.9
Current: 14.42

14.42
28.9
» DFRG's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

DFRG Guru Trades in

Q3 2013

DFRG Guru Trades in Q3 2013

Ron Baron 1,600,000 sh (New)
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Q4 2013

DFRG Guru Trades in Q4 2013

Steven Cohen 94,700 sh (New)
Paul Tudor Jones 19,036 sh (New)
Ron Baron 2,063,470 sh (+28.97%)
» More
Q1 2014

DFRG Guru Trades in Q1 2014

John Keeley 1,020,000 sh (New)
Jim Simons 12,400 sh (New)
Steven Cohen 203,800 sh (+115.21%)
Ron Baron 2,061,500 sh (-0.1%)
Paul Tudor Jones 16,649 sh (-12.54%)
» More
» Details

Insider Trades

Latest Guru Trades with DFRG

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Keeley 2014-03-31 New Buy0.49%$22.2 - $29.05 $ 22.01-10%1020000
Ron Baron 2013-12-31 Add 28.97%0.04%$17.94 - $23.27 $ 22.0110%2063470
Ron Baron 2013-09-30 New Buy0.15%$18.4 - $22.96 $ 22.017%1600000
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Del Frisco's Restaurant Group Inc

Baron Funds Comments on Del Frisco's Restaurant Group - Mar 05, 2014

Del Frisco's Restaurant Group, Inc. (DFRG) is an operator of 46 fine dining steakhouse restaurants under three brands (Del Frisco's Double Eagle, Del Frisco's Grille and Sullivan's). These include the highest volume restaurant in all of New York City (the Del Frisco's Double Eagle steakhouse on Sixth Avenue in midtown Manhattan does about $37 million in annual sales!) The menu at Del Frisco's looks like a typical steakhouse menu (steaks, seafood and an extensive wine list) but the food is phenomenal. In fact, it is our favorite steakhouse in New York (and if you go we would highly recommend the bone-in rib eye). We are most excited about the company's growth concepts, Del Frisco's Double Eagle Steakhouse and Del Frisco's Grille. The Del Frisco's Grille concept is the newest concept and as the name suggests, it is a more casual version of the flagship Double Eagle restaurant. The Grilles are open for lunch (unlike most of the Double Eagles) and they attract more female guests, extending Del Frisco's demographic.

We believe that the company can double the number of Del Frisco's Double Eagle Steakhouses (to 20 from 10 today) and can grow Del Frisco's Grille from 17 units today to around 100 units over time. The combination of restaurant growth and comparable store sales of 2% to 5% should deliver top line growth in the mid-teens. This, combined with some margin leverage, should deliver 20% EPS growth. And there is upside from a potential corporate restructuring, which would enhance the company's growth profile. Over the next few years, EPS could grow to around $2, and we believe that a fast-growth concept like Del Frisco's could earn a multiple of 25x or more. This would represent at least a double from the current price of around $23.

From Ron Baron (Trades, Portfolio)'s Baron Funds fourth quarter 2013 commentary.

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Baron Funds Comments on Del Frisco's Restaurant Group - Nov 21, 2013



Del Frisco's Restaurant Group, Inc. (DFRG) owns and operates 35 upscale steakhouses under the brands Del Frisco Double Eagle, Sullivans and Del Frisco's Grille. We believe the company's operating culture is best in class, its restaurants are unique and have great brand awareness, and have strong economics. There are 10 Double Eagles in marquee locations that dominate their markets as high end business destinations. We think that, over time, this division will more than double as the company meticulously adds best in class large units in major cities.

The company began development of its Grille concept last year and has now built seven stores, all of which are successful and have exceeded expectations. These restaurants have a broader menu, are packed at both lunch and dinner, and are working in both urban and suburban locations. This will be the primary growth vehicle and we believe that there easily can be 50 of these in time. We think the company can grow earnings at between 20-25% per year for the foreseeable future. However it trades at only a high teens multiple because current sales are soft in the Sullivans' units which matters less to the overall business as the other concepts grow. We believe the multiple should expand along with the earnings growth.

From Ron Baron’s Baron Funds third quarter 2013 report.


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Top Ranked Articles about Del Frisco's Restaurant Group Inc

Baron Funds Comments on Del Frisco's Restaurant Group
Del Frisco's Restaurant Group, Inc. (DFRG) is an operator of 46 fine dining steakhouse restaurants under three brands (Del Frisco's Double Eagle, Del Frisco's Grille and Sullivan's). These include the highest volume restaurant in all of New York City (the Del Frisco's Double Eagle steakhouse on Sixth Avenue in midtown Manhattan does about $37 million in annual sales!) The menu at Del Frisco's looks like a typical steakhouse menu (steaks, seafood and an extensive wine list) but the food is phenomenal. In fact, it is our favorite steakhouse in New York (and if you go we would highly recommend the bone-in rib eye). We are most excited about the company's growth concepts, Del Frisco's Double Eagle Steakhouse and Del Frisco's Grille. The Del Frisco's Grille concept is the newest concept and as the name suggests, it is a more casual version of the flagship Double Eagle restaurant. The Grilles are open for lunch (unlike most of the Double Eagles) and they attract more female guests, extending Del Frisco's demographic. Read more...
Baron Funds Comments on Del Frisco's Restaurant Group
Del Frisco's Restaurant Group, Inc. (DFRG) owns and operates 35 upscale steakhouses under the brands Del Frisco Double Eagle, Sullivans and Del Frisco's Grille. We believe the company's operating culture is best in class, its restaurants are unique and have great brand awareness, and have strong economics. There are 10 Double Eagles in marquee locations that dominate their markets as high end business destinations. We think that, over time, this division will more than double as the company meticulously adds best in class large units in major cities.

The company began development of its Grille concept last year and has now built seven stores, all of which are successful and have exceeded expectations. These restaurants have a broader menu, are packed at both lunch and dinner, and are working in both urban and suburban locations. This will be the primary growth vehicle and we believe that there easily can be 50 of these in time. We think the company can grow earnings at between 20-25% per year for the foreseeable future. However it trades at only a high teens multiple because current sales are soft in the Sullivans' units which matters less to the overall business as the other concepts grow. We believe the multiple should expand along with the earnings growth.

From Ron Baron’s Baron Funds third quarter 2013 report. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 38.80
DFRG's P/E(ttm) is ranked higher than
60% of the 328 Companies
in the Global Restaurants industry.

( Industry Median: 31.10 vs. DFRG: 38.80 )
DFRG' s 10-Year P/E(ttm) Range
Min: 18.6   Max: 51.01
Current: 38.8

18.6
51.01
P/B 2.60
DFRG's P/B is ranked higher than
62% of the 328 Companies
in the Global Restaurants industry.

( Industry Median: 3.42 vs. DFRG: 2.60 )
DFRG' s 10-Year P/B Range
Min: 1.9   Max: 3.29
Current: 2.6

1.9
3.29
P/S 1.80
DFRG's P/S is ranked lower than
51% of the 328 Companies
in the Global Restaurants industry.

( Industry Median: 1.19 vs. DFRG: 1.80 )
DFRG' s 10-Year P/S Range
Min: 1.16   Max: 2.42
Current: 1.8

1.16
2.42
EV-to-EBIT 25.79
DFRG's EV-to-EBIT is ranked higher than
59% of the 328 Companies
in the Global Restaurants industry.

( Industry Median: 20.34 vs. DFRG: 25.79 )
DFRG' s 10-Year EV-to-EBIT Range
Min: 11.4   Max: 34
Current: 25.79

11.4
34
Current Ratio 1.16
DFRG's Current Ratio is ranked higher than
75% of the 310 Companies
in the Global Restaurants industry.

( Industry Median: 1.10 vs. DFRG: 1.16 )
DFRG' s 10-Year Current Ratio Range
Min: 0.9   Max: 1.4
Current: 1.16

0.9
1.4
Quick Ratio 0.73
DFRG's Quick Ratio is ranked higher than
65% of the 310 Companies
in the Global Restaurants industry.

( Industry Median: 0.98 vs. DFRG: 0.73 )
DFRG' s 10-Year Quick Ratio Range
Min: 0.44   Max: 0.93
Current: 0.73

0.44
0.93

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 5.60
DFRG's Price/Tangible Book is ranked higher than
57% of the 328 Companies
in the Global Restaurants industry.

( Industry Median: 5.02 vs. DFRG: 5.60 )
DFRG' s 10-Year Price/Tangible Book Range
Min: 5.5   Max: 7.3
Current: 5.6

5.5
7.3
Price/Median PS Value 1.00
DFRG's Price/Median PS Value is ranked higher than
73% of the 328 Companies
in the Global Restaurants industry.

( Industry Median: 1.29 vs. DFRG: 1.00 )
DFRG' s 10-Year Price/Median PS Value Range
Min: 0.67   Max: 1.3
Current: 1

0.67
1.3
Price/Graham Number 3.10
DFRG's Price/Graham Number is ranked higher than
65% of the 328 Companies
in the Global Restaurants industry.

( Industry Median: 3.69 vs. DFRG: 3.10 )
DFRG' s 10-Year Price/Graham Number Range
Min: 2.57   Max: 4.03
Current: 3.1

2.57
4.03
Earnings Yield (Greenblatt) 4.10
DFRG's Earnings Yield (Greenblatt) is ranked higher than
50% of the 288 Companies
in the Global Restaurants industry.

( Industry Median: 5.70 vs. DFRG: 4.10 )
DFRG' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.9   Max: 8.8
Current: 4.1

2.9
8.8

Business Description

Industry: Restaurants » Restaurants
Compare: » details
Del Frisco's Restaurant Group Inc is a Delaware Corporation. The Company develops, owns and operates three contemporary, high-end, complementary restaurants: Del Frisco's Double Eagle Steak House, or Del Frisco's, Sullivan's Steakhouse, or Sullivan's, and Del Frisco's Grille, or the Grille. It currently operates 32 restaurants in 18 states. Each of its three restaurant concepts offers steaks as well as other menu selections, such as chops and fresh seafood. Del Frisco's, Sullivan's and the Grille are positioned within the fine dining segment and are designed to appeal to both business and local dining customers. The Company's Del Frisco's restaurants are sited in urban locations to target customers seeking a 'destination dining' experience while its Sullivan's and Grille restaurants are intended to appeal to a broader demographic, allowing them to be located either in urban areas or in close proximity to affluent residential neighbourhoods. Del Frisco's is a premier steakhouse concept in the United States. The Del Frisco's brand is defined by its menu, which includes 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. It is also distinguished by its 'swarming service,' whereby customers are served simultaneously by multiple servers. Each restaurant has a sommelier to guide diners through an extensive, award-winning wine list and its bartenders specialize in hand-shaken martinis and crafted cocktails. Del Frisco's restaurants target customers seeking a full-service, fine dining steakhouse experience. The Company currently operates nine Del Frisco's steakhouses in seven states. These restaurants range in size from 11,000 to 24,000 square feet with seating capacity for at least 300 people. Sullivan's was created in the mid-1990 as a complementary concept to Del Frisco's. The Sullivan's brand is defined by a fine dining experience at a more accessible price point, along with a vibrant atmosphere created by an open kitchen, live music and a bar area designed to be a center for social gathering and entertainment. Each Sullivan's features fine hand-selected aged steaks, fresh seafood and a broad list of custom cocktails, along with an extensive selection of award-winning wines. The Company currently operates 19 Sullivan's steakhouses in 15 states. These restaurants range in size from 7,000 to 11,000 feet with seating capacity for at least 250 people. The Company developed the Grille, its newest concept, to take advantage of the positioning of the Del Frisco's brand and to provide greater potential for expansion due to its smaller size, lower build out cost and more diverse menu. The Grille's menu is designed to appeal more broadly to both business and casual diners and features a variety of Del Frisco's prime aged steaks, top selling signature menu items and a broad selection of the same quality wines. The Grille also
» More Articles for DFRG

Headlines

Articles On GuruFocus.com
Baron Funds Comments on Del Frisco's Restaurant Group Mar 05 2014 
Baron Funds Comments on Del Frisco's Restaurant Group Nov 21 2013 

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