Jefferies Reiterates Buy Following Meetings with Fiesta Restaurant (FRGI)

Jefferies reiterates a Buy rating and $70.00 price target on Fiesta Restaurant Group (NASDAQ: FRGI) following meetings with management and investors. Analyst Alexander Slagle says that FRGI released additional metrics, providing blunt transparency about the viability of the brand in new markets.

Slagle commented, "While management had been verbally communicating the initial success it was seeing in new store opening volumes in its emerging markets for many months (first Jacksonville, then Atlanta & Nashville, and now in multiple DMAs in TX), some investors may have missed it, or were just confused about the dynamics between volumes in the various markets, and what all of this implied about AUVs in TX and Atlanta. Now that the company has released additional data, investors can see for themselves the impressive AUVs being seen in new markets (Yr. 1 AUVs of $1.9mm in TX actually exceed that seen in many openings in Pollo’s home state of FL – all done without media support!), as well as the robust SSS ramp that occurs as newer markets reach media efficiency (Orlando, Naples/Ft. Myers & Tampa averaging 10% SSS upon nearing media efficiency & starting TV support)."

For an analyst ratings summary and ratings history on Fiesta Restaurant Group click here. For more ratings news on Fiesta Restaurant Group click here.

Shares of Fiesta Restaurant Group closed at $51.06 yesterday.

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