Del Frisco’s Restaurant Group exploring strategic alternatives, including sale

Irving-based Del Frisco’s Restaurant Group Inc. (NASDAQ: DFRG) on Dec. 20 announced that its Board of Directors has commenced a comprehensive review of strategic alternatives, including a sale of the company or any of its dining concepts.

The Del Frisco’s Board, in consultation with its financial and legal advisors, will review and consider a full range of options focused on maximizing shareholder value.

An investor in the company, Engaged Capital, which owns a 9.99 percent stake, has been urging the restaurant operator to explore strategic alternatives, including sale.

Ian R. Carter, Chairman of the Board, commented, “The Board believes that conducting a strategic review process is in the best interests of shareholders. The Board continues to support the Company’s existing strategic priorities and believes that Del Frisco’s exceptional collection of dining concepts will serve as the foundation for continued growth. We believe that pursuing these complementary paths is in the best interests of our shareholders and is designed to maximize value.”

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Norman J. Abdallah, Chief Executive Officer, said, “While the Board conducts its review, Del Frisco’s management team and employees will continue delivering world-class dining experiences, executing our ongoing initiatives, increasing operational efficiencies, improving financial performance, and attracting and retaining extraordinary talent.”

The Board is proceeding expeditiously and has formed a transaction committee to assist in its evaluation of strategic alternatives. The Board did not specify a time frame for the review and said it would not comment until the process is complete.

There can be no assurance that the exploration of strategic alternatives will result in a transaction.

Piper Jaffray & Co. is serving as financial advisor and Kirkland & Ellis LLP is serving as legal advisor to Del Frisco’s.

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Del Frisco’s Restaurant Group, Inc. is a collection of 73 restaurants across 16 states and Washington, D.C., including Del Frisco’s Double Eagle Steakhouse, Barcelona Wine Bar, bartaco, and Del Frisco’s Grille.