Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, August 23, 2019

Article Excerpt

DEL FRISCO’S RESTAURANT GROUP INC., $7.98, symbol DFRG on Nasdaq, is a Texas-based company that operates 71 restaurants: Double Eagle steakhouses and the more-casual Del Frisco’s Grille. In addition, the company acquired the Barteca Restaurant Group for $325 million in June 2018. Barteca operates 31 Barcelona Wine Bars and Bartaco restaurants. Barcelona is an upscale casual-dining chain that specializes in Spanish and Mediterranean cuisine. Bartaco’s cuisine is also based on South American and Mediterranean flavours, along with Asian seasoning. Its concept is “upscale street food.” Both restaurants are known for wine, small plates and a “comfortable, yet stylish atmosphere inspired by tapas bars in Spain and the beach culture of South America and Southern California.” California-based hedge fund Engaged Capital, which owned nearly 10% of Del Frisco’s stock, sent a letter to its board of directors on December 6, 2018, demanding a strategic review. Engaged believes Del Frisco’s erred in rushing to buy Barteca’s faster-growing chains given its own poorly managed steakhouses…