Del Frisco's (NASDAQ: DFRG) reported Q1 EPS of $0.20, $0.01 worse than the analyst estimate of $0.21. Revenue for the quarter came in at $83.9 million versus the consensus estimate of $84.47 million.

Outlook

The following statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them. We refer all of you to our recent filings with the SEC for a more detailed discussion of the risks that could impact our future operating results and financial condition.

Based upon current information, we are raising our earnings per share outlook (related to the below stock repurchase) and reiterating our other guidance for the 52-week fiscal year 2017, which ends on December 26, 2017.

• Total comparable restaurant sales of -0.5% to 0.5%. **
• One Del Frisco’s Double Eagle Steak House and one Del Frisco’s Grille opening.
• Two Sullivan’s Steakhouse closings, one of which occurred on March 31, 2017 and the other by the end of the second quarter.
• Cost of sales of 27.8% to 28.2% of consolidated revenues.
• Restaurant-level EBITDA* of 21.1% to 21.4% of consolidated revenues.
• General and administrative costs of approximately $27.4 million to $27.9 million.
• Consulting engagement costs of approximately $2.9 million to $3.1 million, most of which will be incurred in first half of the year.
• Pre-opening costs of approximately $2.1 million to $2.4 million.
• Effective tax rate of approximately 29% to 31%.
• Gross capital expenditures (before tenant allowances and inclusive of remodels and expenditures related to 2018 openings) of $32.8 million to $33.8 million.
• Annual adjusted net income* per diluted share between $0.82 and $0.86, increased from between $0.80 and $0.84 related to stock repurchases made during the first quarter. (Excludes consulting engagement costs referenced above and assumes no additional share repurchases beyond those made during the first quarter.)

** includes expected impact of the elimination of lunch operating hours in selected Sullivan’s Steakhouse markets.

Key highlights from the first quarter 2017 compared to the first quarter 2016 include:

• Consolidated revenues increased 3.3% to $83.9 million from $81.2 million.
• Total comparable restaurant sales decreased 0.2% comprised of a 0.8% decrease in average check offset by a 0.6% increase in customer counts.— Comparable restaurant sales decreased 0.5% at Del Frisco’s Double Eagle Steak House comprised of a 0.7% increase in average check and 1.2% decrease in customer counts.— Comparable restaurant sales increased 1.1% at Sullivan’s Steakhouse comprised of a 0.8% decrease in average check and 1.9% increase in customer counts.— Comparable restaurant sales decreased 0.9% at Del Frisco’s Grille comprised of a 2.0% decrease in average check and 1.1% increase in customer counts.
• Cost of sales, as a percentage of consolidated revenues, improved to 28.3% from 28.6%.
• GAAP Net Income of $3.3 million, or $0.14 per diluted share, compared to GAAP Net Income of $5.4 million, or $0.23 per diluted share.
• Adjusted Net Income* of $4.6 million, or $0.20 per diluted share, compared to Adjusted Net Income of $5.4 million, or $0.23 per diluted share.
• Restaurant-level EBITDA* held steady at $18.0 million.

For earnings history and earnings-related data on Del Frisco's (DFRG) click here.