company has already produced impressive results in its first reported quarter. The stock, which began trading in May below $13, closed at $16.16 yesterday.
Last week, Fiesta reported its results for the second quarter. The company showed strong comparable store sales increases of 7.8% at Pollo Tropical and 4.5% at Taco Cabana. Operating increased 25.6% to $12.9 million, though not all of this increase flowed into net income due to spinoff related costs. The company has been successful in expanding profitability and has a strong pipeline in place for its international expansion plans.
The company’s ability to grow same store sales, grow overall volume, and reduce costs bode well for continued stock price appreciation. We think that Fiesta Restaurant Group continues to represent a good value with good prospects for future earnings growth.
Disclosure: The author holds no position in any stock mentioned