Del Frisco's (DFRG) Q4 Comps Rise 0.8%; Sales See at $119-$119.2M, Vs $117.3M Cons

Del Frisco’s Restaurant Group, Inc. (NASDAQ: DFRG) reported preliminary and unaudited sales results for the fourth quarter and fiscal year 2016 ended December 27, 2016.

For the fourth quarter 2016 compared to the fourth quarter 2015:

• Consolidated revenues are expected between $119.0 million and $119.2 million representing an increase of 4.2% to 4.4% from $114.1 million. (*** consensus is $117.29 million)
• Total comparable restaurant sales increased 0.8%.
  • Comparable restaurant sales increased 0.1% at Del Frisco’s Double Eagle Steak House comprised of a 0.4% decrease in traffic and a 0.5% increase in average check.
  • Comparable restaurant sales increased 0.9% at Sullivan’s Steakhouse comprised of a 2.4% increase in traffic and a 1.5% decrease in average check.
  • Comparable restaurant sales increased 2.1% at Del Frisco’s Grille comprised of a 0.6% increase in traffic and a 1.5% increase in average check.

For the fiscal year 2016 compared to the fiscal year 2015:

• Consolidated revenues are expected between $351.5 million and $351.7 million representing an increase of 6.0% to 6.1% from $331.6 million.
• Total comparable restaurant sales decreased 0.8%.
  • Comparable restaurant sales decreased 1.2% at Del Frisco’s Double Eagle Steak House.
  • Comparable restaurant sales decreased 0.2% at Sullivan’s Steakhouse.
  • Comparable restaurant sales decreased 0.7% at Del Frisco’s Grille.

Norman Abdallah, Chief Executive Officer of Del Frisco's Restaurant Group, Inc., said, "We are pleased that all three concepts posted positive comparable restaurant sales for the quarter with positive traffic at both Del Frisco’s Grille and Sullivan’s Steakhouse despite a negative drag to total comparable sales of 1.1% due to restaurants in oil challenged markets.”

Abdallah concluded, “In 2017 we will have several initiatives underway to enhance our understanding of our consumer, drive top-line growth and improve flow-thru at our existing restaurants while limiting development. We firmly believe this approach will pay long-term dividends for the benefit of all shareholders and enable us to ramp up growth in 2018 and beyond with improved returns on invested capital.”

Stock RepurchaseDuring the fourth quarter of 2016, we repurchased 303,187 shares of common stock for $4.8 million under the authority provided by our Board of Directors in October 2014.

Restaurant PortfolioDuring the fourth quarter of 2016, we completed the relocation of the Del Frisco's Double Eagle Steak House in North Dallas to Uptown Dallas as well as opened two Del Frisco’s Grille locations in Nashville and Brentwood, TN.

For fiscal year 2017, we will be opening three restaurants including a Del Frisco’s Double Eagle Steak House in Plano, TX and Del Frisco’s Grilles in downtown New York City and Westwood, MA.

ICR Conference Presentation TodayWe will participate in a fireside chat discussion at 1:00 PM Eastern Time today at the 19th Annual ICR Conference at the Grande Lakes Hotel & Resort in Orlando, FL. Investors and interested parties may listen to a live and archived webcast of the discussion from our website at www.DFRG.com under the “Investor Relations” section or directly through the ICR Conference website at www.icrconference.com.

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