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NEW YORK (TheStreet) -- Del Friscos Restaurant Group (DFRG) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEL FRISCOS RESTURNT GRP LLC (DFRG) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues rose by 14.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 570.0% when compared to the same quarter one year prior, rising from -$0.38 million to $1.79 million.
- Net operating cash flow has significantly increased by 239.01% to $2.80 million when compared to the same quarter last year. In addition, DEL FRISCOS RESTURNT GRP LLC has also vastly surpassed the industry average cash flow growth rate of -17.70%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- DEL FRISCOS RESTURNT GRP LLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DEL FRISCOS RESTURNT GRP LLC reported lower earnings of $0.51 versus $0.61 in the prior year. This year, the market expects an improvement in earnings ($0.90 versus $0.51).
- You can view the full analysis from the report here: DFRG Ratings Report