On September 28, 2013, we opened our eighth Del Frisco's Grille in Palm Beach, FL.
Limited Stock Repurchase Authorization
Our Board of Directors has provided authority for up to $10 million to be utilized for the repurchase of our common stock over the next two years in order to offset dilution caused by the issuance and exercise of stock options and other equity compensation. Repurchases are intended to protect existing shareholders and will be made exclusively through the use of excess cash flow. They will have no impact on our ongoing development and growth plans.
Based on current information, we are providing the following updated guidance for the 53-week fiscal year 2013, which ends on December 31, 2013.
- Total comparable restaurant sales increase of 1.0% to 1.5% (on a comparable 52-week basis)
- Six Del Frisco's Grille restaurant openings
- Cost of sales of 30.3% to 30.7% of consolidated revenues
- Restaurant-level EBITDA** of 23.0% to 23.4% of consolidated revenues
- General and Administrative expenses of $17.5 million to $18.0 million
- Pre-opening expenses of approximately $4.4 to $4.6 million
- Effective tax rate of approximately 30% to 32%
- Earnings per diluted share of $0.89 to $0.93 based on an annual weighted average diluted common shares outstanding of approximately 23.9 million (versus 20.4 million shares during 2012)
- Gross capital expenditures (before tenant allowances) of $31 million to $33 million
We are also providing initial guidance for the development of five to seven restaurants in the 2014 fiscal year, including one Del Frisco's Double Eagle restaurant in Washington, DC, and four to six Del Frisco's Grille locations. Based on currently executed, or near executed, leases, we anticipate building Del Frisco's Grille restaurants in Rockville, MD; Burlington, MA; Irvine, CA; and Tampa, FL.
The Del Frisco's Grille in Southlake, TX which had originally been slated to open in the first quarter of fiscal year 2014 will be the sixth and final restaurant opening of this year. Therefore, restaurant development for fiscal year 2014 will not begin until the second quarter and will be spread evenly throughout the balance of next year.