Boston, MA 08/07/2014 (wallstreetpr) – Fiesta Restaurant Group Inc (NASDAQ:FRGI) is the parent brand of the Taco Cabana and the Pollo Tropical brands. The chief executive and president of Fiesta expect the current year to be a very pivotal year for the brand. It can go ahead and fine tune new brands in year 2014.
The Development Path
Fiesta Restaurant Group Inc (NASDAQ:FRGI) will seek new market and accelerate the pace of development in the current year. The focus will remain on positioning to achieve sustainable growth. The company reported strong set of second quarter results. The net income came rose 87.4% to come at $9.3 million. It amounts to 35 cents a share. Fiesta has posted net income of $5 million in the prior-year period. The revenue rose 9.4% to come at $154.2 million as compared to $149.9 million in the prior-year period.
The New Openings
Fiesta Restaurant Group Inc (NASDAQ:FRGI) opened almost 18 new restaurants in last one year. The opening of new restaurants at the prime locations added to the sales growth. The sales were higher, and the revenues improved from both the major brands. The same store sales from Pollo Tropical came higher by 6.7% whereas at Taco Cabana it rose by 2.8%. The reported momentum of sales in the second quarter is continued in the third quarter. Till this time, Pollo has reported sales growth of 5.2% whereas Taco Cabana has reported sales growth of 2.2%. The momentum in same-store sales in the third quarter is seen as industry leading.
Outperforming The Industry
There is the softness prevailing as a whole in the industry. However, Pollo Tropical sales are outperforming the industry. The sales momentum is unaffected by the slowdown in the industry. The strong sales are witnessed in the Texas market. The factors leading to growth are differentiation and the open-ended growth strategies. The margin trends are encouraging at Taco Cabana. The Texas openings of last year are outperforming the markets. Fiesta Restaurant Group Inc (NASDAQ:FRGI) plans to open 22 to 26 new restaurants this year.
