Andrew Walker, CFA
Long/short equity, deep value, special situations

Del Frisco's Could Be A Juicy Acquisition Candidate

To wrap up a successful deal, investment bankers might begin their night toasting with Del Frisco's (NASDAQ:DFRG) $17 martinis. It's our belief that within the next twelve months, the deal investment bankers will be toasting will be the sale of Del Frisco's itself, likely at a significant premium to today's price.

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For those who haven't been, Del Frisco's is a chain of high-end steakhouses. The company actually owns three different brands: Del Frisco's Double Eagle Steak House (the flagship brand; from here on known as "Eagle" to avoid confusion with the parent company), Sullivan's Steakhouse ("Sullivan's"), and Del Frisco's Grille ("Grille").

The underlying investment thesis in DFRG is simple: the company is ripe for activism.

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