Fiesta Restaurant Group owns, operates, and franchises its fast-casual restaurants under the Pollo Tropical and Taco Cabana brand names. The company was founded in 2011 and is based in Addison, Texas.
FRGI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Fiesta Restaurant Group Inc. To summarize, we found that Fiesta Restaurant Group Inc ranked in the 93th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2566% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Fiesta Restaurant Group Inc, consider:
54% of the company's capital comes from equity, which is greater than only 23.1% of stocks in our cash flow based forecasting set.
Fiesta Restaurant Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.18. This coverage rate is greater than that of merely 10.93% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Fiesta Restaurant Group Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SIG, SPWH, LAD, TA, and EDUC can be thought of as valuation peers to FRGI, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Well, there is, indeed, an animated potato of Mark King, head of Taco Bell, apparently underground, apologizing for removing the spuds from the menu and proclaiming their triumphant return. Taco Bell's Cheesy Fiesta (NASDAQ:FRGI) Potatoes and the Spicy Potato Soft Taco will be back starting March 11. Taco Bell is also teaming up with Beyond Meat (NASDAQ:BYND) to create a new plant-based protein that will be tested in the next year.
Fiesta Restaurant Group (FRGI) shows sequential improvement in its comparable restaurant sales for FQ4.Pollo Tropical comparable sales -8.2% compared to -11.1% in Q3, with November (-8.2%) at Pollo Tropical negatively impacted by Tropical Storm Eta. On adjusting, it could result in ~130bps increase during the month, taking Q4 comps up...
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