Today Fiesta Restaurant Group (FRGI) Hits New Lifetime High

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 Fiesta Restaurant Group ( FRGI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Fiesta Restaurant Group as such a stock due to the following factors:

  • FRGI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.2 million.
  • FRGI has traded 3,348 shares today.
  • FRGI is trading at a new lifetime high.

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More details on FRGI:

Fiesta Restaurant Group, Inc., through its subsidiaries, owns, operates, and franchises fast-casual restaurants. It operates its fast-casual restaurants under the Pollo Tropical and Taco Cabana brand names. FRGI has a PE ratio of 77.0. Currently there are 6 analysts that rate Fiesta Restaurant Group a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Fiesta Restaurant Group has been 297,600 shares per day over the past 30 days. Fiesta Restaurant Group has a market cap of $1.6 billion and is part of the services sector and leisure industry. The stock has a beta of 2.05 and a short float of 7.4% with 4.37 days to cover. Shares are up 17.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Fiesta Restaurant Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including 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 9.3%. Since the same quarter one year prior, revenues rose by 10.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FIESTA RESTAURANT GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, FIESTA RESTAURANT GROUP INC increased its bottom line by earning $0.40 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($1.33 versus $0.40).
  • Powered by its strong earnings growth of 61.90% and other important driving factors, this stock has surged by 35.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The gross profit margin for FIESTA RESTAURANT GROUP INC is currently lower than what is desirable, coming in at 29.50%. Regardless of FRGI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.89% trails the industry average.
  • 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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