High-end steakhouse operator Del Frisco’s Restaurant Group LLC filed registration papers Tuesday to raise $100 million in an initial public offering of stock.
The Southlake, Texas-based operator of 31 restaurants in 18 states under the Del Frisco’s, Sullivan’s and Del Frisco’s Grille brands is owned by Lone Star Fund V LP, a private equity fund. It had filed for an IPO three years ago, but pulled the plug because of unfavorable market conditions.
A statement from the company said the number of shares to be offered, the allocation of shares expected to be sold by Del Frisco’s and Lone Star Fund, and the price range for the offering have not yet been determined.
Deutsche Bank Securities and Piper Jaffray & Co. will act as joint book running managers for the offering, the company said.
This marks the first pending restaurant IPO of 2012.
It also comes as one of a handful of publicly-traded steakhouse operators, Morton’s Restaurant Group Inc., exits the market, going private in a deal involving restaurant chain aggregator Tilman Fertitta.
According to filings with federal regulators, for the fourth quarter ended Sept. 16, Del Frisco’s reported revenue of $186.4 million, up 16.1 percent from the same period a year earlier. Companywide same-store sales grew 11 percent compared with the prior year.
The revenue increase resulted in net income of $9.9 million, an increase of 130.8 percent from the same 2010 period, the company said.
On a year-over-year basis, adjusted earnings before interest, taxes, depreciation and amortization grew 13 percent, to $33.3 million.
Del Frisco’s filed for an initial public offering in October of 2007, but killed the plan the following December, noting inhospitable mid-recession market conditions.
In its S1 registration statement, the company said that for the year ended in September its Del Frisco’ Double Eagle Steak House concept had average annual sales of $12.1 million from an average check of $98.
Its Sullivan's Steakhouse group generated average annual sales of $4.2 million from an average check of $58.
For its newest concept, the months-old Del Frisco’s Grille, the company is targeting average annual sales between $4 million and $6 million from an average check between $45 and $55.
Editor's note: This story has been updated with the amount Del Frisco's is seeking to raise in its initial public offering.
Contact Alan J. Liddle at [email protected].
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