** Restaurant-level EBITDA, a non-GAAP measure, represents net income before interest, taxes and depreciation and amortization plus the sum of certain non-operating expenses, including pre-opening costs, management fees and accounting expenses paid to a related party, secondary public offering costs, public offering transactions bonuses, non-cash impairment charges, and general and administrative expenses. For a reconciliation of restaurant-level EBITDA to the most directly comparable financial measure presented in accordance with GAAP and a discussion of why we consider it useful, see the financial information accompanying this release.
Mark S. Mednansky, Chief Executive Officer of Del Frisco's Restaurant Group, Inc., said, "Quarterly results fell short of our expectations due to a combination of factors -- inefficiencies at four newly opened Grille restaurants, slightly later new restaurant openings within the quarter, lower operating leverage on the 17 th week than we had anticipated, and weather issues during our very profitable holiday season. Still, Del Frisco's Double Eagle delivered impressive, industry-leading sales and traffic gains, while at Sullivan's, trends improved sequentially as brand enhancements began to take hold. Looking ahead, we are very optimistic that our guests will be eager to dine out in 2014 and we will continue to focus on reducing new unit inefficiencies."
Mednansky concluded, "After more than two years and 11 successful openings across multiple geographies, we are more confident than ever that Del Frisco's Grille has earned its place as our dominant expansion vehicle. The Grille's ability to attract a broad demographic of upwardly mobile and affluent guests -- millennials, generation x, and even baby boomers, is quite extraordinary and truly 'next generation'. Discerning guests of all ages appreciate the Grille's casual atmosphere and upscale experience and it has quickly become a dining and social destination in every market that it serves. We will open five Del Frisco's Grilles this year as we expand our footprint in the Northeast, Mid-Atlantic, Florida, and California. We will also be opening a Del Frisco's Double Eagle in Washington, DC, at CityCenter, one of the most exciting development projects in our nation's capital in some time."
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