Shares of Del Frisco's Restaurant Group (DFRG) heated up Monday following a report that the struggling restaurant chain could soon receive final bids to buy the company for what sources say would be about $9 a share.
Shares rose 31.2% on the news to close at $6.23, then tacked on another 1.1% in after-hours trading to reach $6.30 shortly before 8 p.m. ET.
Last week, Del Frisco's said that it plans to lay off up to 15% of its general and administrative workforce.The company said the layoffs were expected to reduce administrative costs in 2019 by $3 million while saving $5 million on an annualized run-rate basis.
CEO Norman Abdallah said in a statement that "a reduction in force is a difficult but necessary step."
A year ago, Del Frisco's purchased Barteca Restaurant Group, the parent company of Barcelona Wine Bar and Bartaco, for $325 million.
A message to Del Frisco's seeking comment about the proposed deal wasn't immediately returned.