NEW YORK (TheStreet) -- Shares of Fiesta Restaurant (FRGI) - Get Report were spiking 9.47% to $25.03 on heavy trading volume late afternoon Friday as its CEO Tim Taft said he plans to retire at the end of this year.

An independent committee will begin searching for his successor. It will also review the composition of the company's board to see if any changes are necessary, Fiesta said in a statement late yesterday.

"In addition, the company's board of directors has determined that, in light of this transition, as well as challenging market conditions affecting the entire industry, it intends to review the company's strategic plan, including the previously announced separation of Taco Cabana," the company added.

Dallas-based Fiesta said it will also review its new store openings, capital expenditure plans and ways to maximize shareholder value. 

Fiesta is the parent company of fast-casual dining brands Pollo Tropical and Taco Cabana.

About 1.49 million of the company's shares have changed hands so far today vs. its average volume of 799,277 shares per day.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

TheStreet Ratings Team rates Fiesta Restaurant Group as a Hold with a ratings score of C. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, the team also finds weaknesses including deteriorating net income, poor profit margins and disappointing return on equity.

You can view the full analysis from the report here:

FRGI

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