SOUTHLAKE, Texas (AP) — Del Frisco's third-quarter loss narrowed from a year ago when its results were weighed down by a large fee.
But its performance fell short of Wall Street's view, and the restaurant operator cut its full-year earnings forecast.
The stock declined more than 4 percent in midday trading.
For the period ended Sept. 3, the company that owns Del Frisco's Double Eagle Steak House, Sullivan's Steakhouses and Del Frisco's Grille restaurants, lost $380,000, or 2 cents per share. That compares with a loss of $2.4 million, or 12 cents per share, a year earlier.
The prior-year period included an asset advisory agreement termination fee of $3 million. The latest quarter also included $3.7 million in public offering transaction bonuses, compared with $1.5 million in bonuses a year ago.
Removing unusual items, earnings were 10 cents per share.
Analysts, on average, expected earnings of 11 cents per share, according to a FactSet poll.
Revenue for the Southlake, Texas, company rose 13 percent to $54.2 million from $47.9 million, helped by more operating weeks in the quarter. Wall Street called for $54.8 million in revenue.
Revenue at restaurants open at least a year edged down 0.2 percent.
Revenue at Del Frisco's Double Eagle restaurants open at least a year climbed 4.4 percent mostly on improved traffic. At Sullivan's Steakhouse the figure fell 5.9 percent. This metric is a key indicator of a restaurant operator's health because it excludes results from locations recently opened or closed.