Del Frisco's Restaurant Group (DFRG) Hits New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Del Frisco's Restaurant Group ( DFRG) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Del Frisco's Restaurant Group as such a stock due to the following factors:

  • DFRG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.7 million.
  • DFRG has traded 1,933 shares today.
  • DFRG is trading at a new lifetime high.

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More details on DFRG:

Del Frisco's Restaurant Group, Inc. develops, owns, and operates restaurants. The company operates restaurants under Del Frisco's Double Eagle Steak House, Sullivan's Steakhouse, and Del Frisco's Grille names. DFRG has a PE ratio of 31.8. Currently there are 6 analysts that rate Del Frisco's Restaurant Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Del Frisco's Restaurant Group has been 320,800 shares per day over the past 30 days. Del Frisco's Restaurant Group has a market cap of $639.3 million and is part of the services sector and leisure industry. Shares are up 18.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Del Frisco's Restaurant Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 20.5%. 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.
  • DFRG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, DEL FRISCOS RESTURNT GRP LLC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for DEL FRISCOS RESTURNT GRP LLC is currently lower than what is desirable, coming in at 25.95%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.71% trails that of the industry average.

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