Investors in Fiesta Restaurant Group (NASDAQ:FRGI) have unfortunately lost 58% over the last three years
If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. Long term Fiesta Restaurant Group, Inc. (NASDAQ:FRGI) shareholders know that all too well, since the share price is down considerably over three years. Regrettably, they have had to cope with a 58% drop in the share price over that period. Furthermore, it's down 11% in about a quarter. That's not much fun for holders. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
View our latest analysis for Fiesta Restaurant Group
While Fiesta Restaurant Group made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.
Over the last three years, Fiesta Restaurant Group's revenue dropped 10% per year. That's not what investors generally want to see. With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 17% per year. Having said that, if growth is coming in the future, now may be the low ebb for the company. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We know that Fiesta Restaurant Group has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think Fiesta Restaurant Group will earn in the future (free profit forecasts).
A Different Perspective
Fiesta Restaurant Group shareholders are up 28% for the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 8% endured over half a decade. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand Fiesta Restaurant Group better, we need to consider many other factors. Take risks, for example - Fiesta Restaurant Group has 2 warning signs (and 1 which is potentially serious) we think you should know about.
We will like Fiesta Restaurant Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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