Fiesta Restaurant Group: Q1 Sell-Off Provides Gift Opportunity
Fiesta Restaurant Group produced disappointing Q1 results highlighted my weak guidance.
The company is feeling the growing pains of aggressively pushing the Pollo Tropical concept into several new markets from a South Florida base.
The stock now trades at an extremely low valuation multiple providing a gift opportunity.
The quarterly results for Fiesta Restaurant Group (NASDAQ:FRGI) were slightly disappointing, but the stock reaction was extreme. The main restaurant concept is moving from clustered in prime South Florida markets to multiple new markets outside of Florida. The shift provides for lumpy results that the market is extrapolating too much as weakness.