NEW YORK (TheStreet) -- Shares of Fiesta Restaurant Group Inc. (FRGI - Get Report) are up 5.31% to $40.85 after Raymond James Financial (RJF - Get Report) analysts upgraded the company today to a "strong-buy" from "outperform."
The firm cited the recent pullback in shares and lowered its price target for shares to $48 from $60.
- The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that FRGI's debt-to-equity ratio is low, the quick ratio, which is currently 0.56, displays a potential problem in covering short-term cash needs.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 316.7% when compared to the same quarter one year ago, falling from $2.56 million to -$5.55 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, FIESTA RESTAURANT GROUP INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: FRGI Ratings Report