Del Frisco's 2Q net income triples on sales growth

Del Frisco's 2nd-qtr net income jumps on increases in diners and average check

Associated Press

SOUTHLAKE, Texas (AP) -- Steak house chain Del Frisco's Restaurant Group Inc. said Tuesday that its second-quarter net income more than tripled to $3.6 million, as more diners visited its Del Frisco's Double Eagle restaurants and spent more on their meals.

The Southlake, Texas-based company, which went public Aug. 1, said its profit for the quarter that ended June 12 amounted to 20 cents per share and compared with net income of $1 million, or 6 cents per share, in the same quarter last year.

Revenue jumped 18 percent to $51.3 million from $43.5 million, as revenue from Del Frisco's Double Eagle restaurants grew 15 percent to $27.8 million and revenue at its Sullivan's restaurants was flat at $19.3 million.

Overall revenue at restaurants open at least a year increased 4 percent. That included a 7.3 percent increase at Del Frisco's Double Eagle restaurants and 0.3 percent growth at Sullivan's restaurants.

The metric is a key measure of a restaurant chain's health, because it excludes sales at restaurants that opened or closed during the year.

Both the average check size and the number of meals served at Del Frisco's Double Eagle restaurants open at least a year increased during the recent quarter. Check size also rose at Sullivan's restaurants, but was partially offset by a drop in the number of meals served.

Overall revenue also got a boost from the addition of four new restaurants, the company said.

For the full fiscal year 2012, Del Frisco's said it expects a 3 percent to 4 percent increase in revenue at restaurants open at least a year.

As of June 12, Del Frisco's owned and operated 32 restaurants in 18 states including nine Del Frisco's Double Eagle locations, 20 Sullivan's restaurants, and three Del Frisco's Grilles.

Shares of Del Frisco's fell 14 cents to $12.51 in morning trading.

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