Markets Watch: Del Frisco’s Restaurant (NASDAQ:DFRG) Hits Record High

Del Frisco’s Restaurant (NASDAQ:DFRG)¬†reached a record high Wednesday after reporting an improved Q4 year-over-year but fell short of analysts’ expectations.

The company also provided fiscal 2014 earnings guidance below Street estimates.

Shares are up 0.74% at $24.44, reaching an all-time high of $25.64.

The company, which owns and operates Del Frisco’s Double Eagle Steak House, Sullivan’s Steakhouse, and Del Frisco’s Grille, reported Q4 adjusted earnings of $0.36 per share, compared with the prior-year period’s $0.31 per share. Revenue was $97.5 million, up 20.5% from $80.87 million in the same quarter last year.

Analysts polled by Capital IQ were expecting EPS of $0.38 on revenues of $99.22 million.   Blended comparable restaurant sales rose 2.8% across all three restaurants and benefited from one additional operating day versus the prior year.

The company expects FY14 EPS of $0.94 – $0.98, below the Street view of $1.04 EPS; it sees an increase in total comparable restaurant sales of 1.5% – 2.5%.

In Other News

U.S. Treasuries have been under light pressure as stocks move higher and auctions loom, but the futures open has brought in some buyers. The 10-year was guiding the remainder of the curve quietly lower, but stalled between 2.71% and 2.72%.

The Mortgage Bankers’ Association purchase applications fell 8.5% which added some support adding to the futures buying. Trade has been ticking in a tight range with global bonds mixed, but generally on offer. Overnight saw prices sliding along while Germany saw another bond auction miss, with a 30-year sale not attracting enough cash to cover the offering size.

Wednesday data has January new home sales (10 AM ET). There are two auctions with a reopened $13 billion two-year floating-rate note offering (11:30 AM ET) and $35 billion five-years, (1 PM ET).

Federal Reserve speakers have Boston’s Eric Rosengren on the regional economic outlook (12 PM ET) and Cleveland’s Sandra Pianalto on the history of the Fed (7:30 PM ET).

The Fed will be in with permanent open market operations doing $1 billion- to $1.25 billion in Outright Treasury Coupon Purchases in the 2036-2044 maturity range.


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