Del Frisco's Restaurant Group Inc.
) recently unveiled a Del Frisco's Grille unit in California.
Apart from California, Del Frisco's Grille operates in New York,
Washington DC, Dallas, Atlanta, Phoenix and Houston.
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Currently, Del Frisco's Restaurant Group, which owns and operates
Del Frisco's Double Eagle Steak House, Sullivan's Steakhouse and
Del Frisco's Grille brands, boasts more than 30 restaurants
across the U.S.
This Zacks Rank #3 (Hold) company continues to focus on its
expansion plans. Del Frisco's Grille will continue to be the core
growth driver for the group since the concept is generating solid
sales volume. The company will focus on its two other brands, Del
Frisco's Double Eagle and Sullivan's Steakhouses, beyond 2013.
All its Grille units have been well-accepted in various markets.
The latest Del Frisco's Grille restaurant, located in Santa
Monica, marks the second of the company's 6 targeted openings for
A strong lunch day-part and an upscale young guest base drive the
brand. Hence, management is looking for dynamic markets to
beef up its Grille portfolio. The upcoming Del Frisco
Grilles will be opened in Fort Worth and Southlake, Texas;
Boston, Mass. and Palm Beach, Fla.
Spread across approximately 6,400 square feet, the Santa Monica
unit with its ocean views, contemporary ambience, hand-crafted
cocktails and upscale menus is expected to drive considerable
sales for Del Frisco's.
We believe that the core California market, which was badly hit
during the housing downturn, has begun to turn around. The
gradual recovery of this market has not escaped Del Frisco's
notice. The state has the potential to generate about $67.4
billion in restaurant sales in 2013, as per the National
However, we believe Del Frisco's Grille might face competition
BJ's Restaurants Inc.
) in the California market. BJ's also operates in the same
segment (bar and grill) as Del Frisco's Grille but with much
larger exposure to the market. BJ's Restaurants currently
operates more than 60 restaurants in California..
Some companies from the restaurant sector that are worth a look
AFC Enterprises Inc.
The Cheesecake Factory Inc.
) both carrying a Zacks Rank #2 (Buy)