Jim Cramer on Del Frisco's Restaurant Group: This Stock Should Be Higher

NEW YORK (TheStreet) -- Shares of Del Frisco's Restaurant Group  (DFRG) rose 0.63% to $20.62 in morning trading Monday after CEO Mark Mednansky appeared on Jim Cramer's Mad Money program on CNBC on Friday.

Del Frisco's is trading slightly above its 52-week lows despite its recent earnings beat of 2 cents a share, 12.7% year-over-year increase in revenue, and a 2.2% rise in comparable-store sales.

Mednansky said the company continues to represent great value and believes there is a lot of upside remaining for Del Frisco's. He noted the company's newest locations continue to perform well and touted Del Frisco's great pipeline of restaurants in development.

"All we need to do is keep moving," he said, and the markets will eventually appreciate the company's value.

Mednansky added that cost control is one of the company's greatest strengths, as maintaining low costs eliminates the need to raise prices. Del Frisco's restaurants also sit on the higher end of the price curve, which means they are not as levered to gas prices.

Cramer said on the show that Del Frisco's stock should be higher, and he added Monday morning that the company's Grille unit is a key one to watch.

"The big worry here is will the Grille unit be able to 'comp' positively. That's the division that could have the best store growth, but remember store growth in itself does not drive success. Same store sales do," he said. "Del Frisco's was not able to deliver last year but this could be the year that the company pulls it off."

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