What is Del Frisco′s Restaurant Group Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Del Frisco′s Restaurant Group's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Del Frisco′s Restaurant Group's Probability of Financial Distress (%)
For the Restaurants subindustry, Del Frisco′s Restaurant Group's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Del Frisco′s Restaurant Group's Probability of Financial Distress (%) Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Del Frisco′s Restaurant Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Del Frisco′s Restaurant Group's Probability of Financial Distress (%) falls into.
Del Frisco′s Restaurant Group Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Del Frisco′s Restaurant Group (Del Frisco′s Restaurant Group) Business Description
Traded in Other Exchanges
N/A
Address
2900 Ranch Trail, Irving, TX, USA, 75063
Del Frisco's Restaurant Group Inc owns and operates roughly 50 restaurants under three different names: Del Frisco's Double Eagle Steak House, a fine-dining restaurant that accounts for approximately half of the company's total sales; Sullivan's Steakhouse, a similar concept to Del Frisco's Steak House that offers a lower price point; and Del Frisco's Grille, an upscale casual restaurant with a broader menu that includes less expensive items. The company operates exclusively in the United States. The company purchases beef and seafood at the national level for all of its restaurants; other products are sourced locally by each restaurant's chef.
Executives
| Ian Russell Carter |
director |
HILTON HOTELS CORPORATION, 9336 CIVIC CENTER DRIVE, BEVERLY HILLS CA 90210 |
| Armistice Capital, Llc |
10 percent owner |
510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022 |
| Armistice Capital Master Fund Ltd. |
10 percent owner |
C/O ARMISTICE CAPITAL, LLC, 510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022 |
| Steven Boyd |
10 percent owner |
510 MADISON AVENUE, 7TH FLOOR, NEW YORK NY 10022 |
| David B Barr |
director |
1319 GARRICK WAY, MARIETTA 2Q 30068 |
| Coleman Brandon Charles Iii |
officer: President, Grille |
920 S. KIMBALL AVE., SUITE 100, SOUTHLAKE TX 76092 |
| Joseph E Reece |
director |
ONE VALERO WAY, BUILDING D, SUITE 200, SAN ANTONIO TX 78249 |
| Jeff Frank Carcara |
officer: CEO, Emerging Brands |
2900 RANCH TRAIL, IRVING TX 75063 |
| Pennison Thomas J Jr |
officer: Chief Financial Officer |
930 S. KIMBALL AVE., SUITE 100, SOUTHLAKE TX 76092 |
| Fidelity National Financial, Inc. |
10 percent owner |
601 RIVERSIDE AVENUE, JACKSONVILLE FL 32204 |
| John P Grayken |
10 percent owner |
2711 NORTH HASKELL AVENUE SUITE 1700 DALLAS TX 75204 |
| Samuel D Loughlin |
director, other: Chairman of the Board |
12018 SUNRISE VALLEY DRIVE SUITE 600 RESTON VA 20191 |
Del Frisco′s Restaurant Group (Del Frisco′s Restaurant Group) Headlines
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