US steakhouse chain Del Frisco’s Restaurant Group has reported consolidated revenues of $90m for the second quarter (Q2) ending 26 June, a 9.4% increase compared to $82.3m for the same period last year.
Total comparable restaurant sales of the company decreased 1.4%, comprising a 1.2% decrease at Del Frisco’s Double Eagle Steakhouse, a 6% decrease at Sullivan’s Steakhouse and a 0.7% increase at Del Frisco’s Grille.
The company’s adjusted net income was $4.4m or $0.22 per diluted share, compared to $3.4m or $0.15 per diluted share during the prior year.
Adjusted EBITDA of the steakhouse chain decreased 8.3% to $10.2m, compared to $11.1m for the same period last year. However, restaurant-level EBITDA of the company increased 10.8% to $18.7m from $16.9m.
Del Frisco’s Restaurant Group chief executive officer Norman Abdallah said: “Through our acquisition of Barcelona and bartaco, we have taken Del Frisco’s vision of celebrating life in restaurants to the next level with ‘best in class’ concepts that are not only highly complementary to each other but also provide competitive advantages to us in the marketplace.
“Our long-term model is predicated on creating shareholder value by growing comparable restaurant sales, disciplined expansion of our restaurant base by 10% to 12% each year, maintaining our high restaurant-level EBITDA margins, and leveraging G&A costs.
“Taken together, our goal is to increase revenues by at least 10% and adjusted EBITDA by at least 15% annually and generate more than $700m in consolidated revenues and more than $100m in adjusted EBITDA by fiscal year-end 2021, all while substantially lowering our indebtedness to between 2.5x and 3.0x adjusted EBITDA.”
In addition, the company opened a Del Frisco’s Double Eagle Steak House location in Boston, Massachusetts, during the second quarter. It has plans to open a location in Atlanta during the third quarter, as well as a location in each of San Diego and Century City, California, during the fourth quarter.
The company also entered leases in each of Pittsburgh in Pennsylvania, and Santa Clara in California to open new locations in 2019.