UPDATE: Stephens Starts Fiesta Restaurant Group (FRGI) at Overweight

April 19, 2021 4:21 PM EDT
Get Alerts FRGI Hot Sheet
Price: $13.92 +2.88%

Rating Summary:
    4 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 38 | Down: 18 | New: 7
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(Updated - April 20, 2021 6:25 AM EDT)

Stephens analyst James Ritherford initiates coverage on Fiesta Restaurant Group (NASDAQ: FRGI) with a Overweight rating.

The analyst comments "FRGI is an undervalued and under-followed small cap restaurant in our view. Some investors may recall FRGI with skepticism due to the poorly planned and poorly executed Pollo Tropical expansion from 2013 - 2016 into TX, GA, and TN. However, with a new management team, an ongoing digital transformation, and various near-term sales drivers, we are optimistic about the go-forward story. Decades of results show that Pollo Tropical is a very strong brand with impressive FCF generation abilities in its core markets. Taco Cabana is a smaller part of the valuation story, and there are turnaround efforts underway for that brand. While FRGI may not be a big unit growth compounder today, we do believe it is undervalued, and that execution and a strong management team will be the catalyst to unlocking that value. We are initiating coverage on FRGI with an Overweight rating and a $17 price target."

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 $13.73 yesterday.


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