U.S. Markets close in 4 hrs 21 mins

Fiesta's Pollo Tropical Continues to Grow

Zacks Equity Research

Fla-based Fiesta Restaurant Group, Inc.’s (FRGI) subsidiary Pollo Tropical is on an expansion spree via new product innovations and new outlet openings.

Most recently, Pollo Tropical introduced two new varieties of its signature fresh grilled chicken, namely Tropical Chicken Spinach Salad and the Tropical Chicken Spinach Wrap. Pollo Tropical, which mainly serves Caribbean cuisine, has offered these two fresh and healthy chicken varieties for a month. Also, it will be available in limited markets.

The Tropical Chicken Spinach Salad has Pollo Tropical's popular citrus-marinated grilled chicken and fresh spinach, and is flavored with diced mango, red pepper, bits of bacon, sliced almonds and thinly sliced red onion, topped with pineapple-ginger vinaigrette. On the other hand, the Tropical Chicken Spinach Wrap is grill-pressed with citrus-marinated chicken breast, fresh spinach, bacon, and melted Monterey Jack and cheddar cheeses, wrapped up with a flavorful cilantro-garlic sauce.

Pollo Tropical is known for its fresh, never frozen, flame-grilled chicken marinated in a proprietary blend of tropical fruit juices and spices, as well as authentic, made-from-scratch side dishes, soups, salads and wraps. It has four licensed restaurants located on college campuses, and 36 international franchised locations throughout the Caribbean, Central America, South America and India.

Pollo Tropical unveiled its first franchised outlet in Delhi, the capital of India in Jun 2013, in association with its franchisee, Paramount Cuisines Pvt. Ltd, a subsidiary of the Paramount Group in Aug 2012.

Delhi-based Paramount Cuisines will unveil nine more Pollo Tropical outlets in India by 2016. The restaurants will be located in Northern India, including the National Capital Region, and states like Chandigarh, Punjab and Haryana.

Both Pollo Tropical and Paramount believe that its chicken options will appeal to Indian taste buds. Additionally, the restaurateur’s already-strong vegetarian offerings can successfully cater to the huge vegetarian population in India.

Pollo Tropical’s launch of new products and new openings reflect this Zacks Rank #1 (Strong Buy) company’s intention to expand. The new openings are likely to prove beneficial given the growing economy and under penetration of quick-service restaurants in the emerging markets.  On the other hand, the new launches will bring in some novelty to the product lineup in the already saturated North American countries.

Other restaurateurs worth considering include The Cheesecake Factory Incorporated (CAKE), Cracker Barrel Old Country Store, Inc. (CBRL) and Jack in the Box Inc. (JACK), all of them holding a Zacks Rank #2 (Buy).

Read the Full Research Report on CBRL
Read the Full Research Report on CAKE
Read the Full Research Report on JACK
Read the Full Research Report on FRGI

Zacks Investment Research