Del Frisco's (DFRG) Prelim. Q4, FY15 Sales Metrics Completely Miss Views

Del Frisco’s Restaurant Group, Inc. (NASDAQ: DFRG) reported preliminary and unaudited sales results for the fourth quarter and fiscal year 2015 ended December 29, 2015.

For the fourth quarter 2015 compared to the fourth quarter 2014:

• Consolidated revenues are expected between $113.9 million and $114.1 million representing an increase of 7.7% to 7.8% from $105.8 million (The Street was at $115.9 million);
• Comparable restaurant sales decreased 1.6% at Del Frisco’s Double Eagle Steak House.
• Comparable restaurant sales decreased 1.8% at Sullivan’s Steakhouse.
• Comparable restaurant sales decreased 4.5% at Del Frisco’s Grille.
• Blended comparable restaurant sales decreased 2.2%.

For the fiscal year 2015 compared to the fiscal year 2014:

• Consolidated revenues are expected between $331.4 million and $331.6 million representing an increase of 9.8% to 9.9% from $301.8 million (The Street was at $333.3 million);
• Comparable restaurant sales increased 0.1% at Del Frisco’s Double Eagle Steak House.
• Comparable restaurant sales increased 0.2% at Sullivan’s Steakhouse.
• Comparable restaurant sales decreased 4.4% at Del Frisco’s Grille.
• Blended comparable restaurant sales decreased 0.7%.

Mark S. Mednansky, Chief Executive Officer of Del Frisco's Restaurant Group, Inc., said, "Our fourth quarter top-line and comparable restaurant sales results fell short of our expectations due to macro pressures as well as some of the same factors that we articulated during our third quarter conference call – namely, challenges in some markets related to the oil-industry slowdown. We did see each consecutive period within the quarter improve versus the prior period. In 2016 we will be devoting greater effort towards refining and improving operations at all of our existing restaurants while limiting development. We believe this approach will pay long-term dividends for the benefit of all shareholders and will position us for growth in 2017 and beyond.”

Restaurant PortfolioIn the fourth quarter of 2015, we opened three Del Frisco’s Grilles in Little Rock, Arkansas, Hoboken, New Jersey and Cherry Creek, Colorado. Additionally we closed two Del Frisco’s Grilles in Palm Beach, Florida and Phoenix, Arizona.

During 2016, we will open two to three Grilles including locations in Huntington, Long Island, New York and in Nashville, Tennessee. Early in the fourth quarter of 2016, we will be moving the Del Frisco's Double Eagle Steak House in North Dallas to Uptown Dallas. Del Frisco's Double Eagle Steak House Dallas will continue to serve guests from its current location in North Dallas until the new restaurant is completed.

ICR Conference Presentation TodayThe Company is presenting at 4:30 PM Eastern Time today at the 18th Annual ICR Conference at the Grande Lakes Orlando Resort in Florida. Investors and interested parties may listen to a live and archived webcast of the presentation from our corporate 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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