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Fiesta Restaurant Group

Fiesta (FRGI) is the least known of these three companies. It was spun off from Carrols (TAST), which operates 570 Burger King (BKW) restaurants in 13 states in the Northeast and Mid-Atlantic, in April 2012.

It operates 310 quick-casual restaurant brands Pollo Tropical and Taco Cabana. Pollo Tropical offers tropical and Caribbean inspired food at 100 company owned and 38 franchised restaurants in the U.S., Puerto Rico, the Bahamas, Costa Rica, Ecuador, Honduras, India, Panama, Trinidad & Tobago, Venezuela and the Dominican Republic.

It has been aggressively expanding the Pollo Tropical chain internationally. Fiesta also operates 164 company owned and 8 franchised Taco Cabana restaurants in the U.S.

  • Forward P/E = 54.5
  • 2013 Expected Earnings Growth = 29%
  • 2014 Expected Earnings Growth = 26%

Zacks Rank #3 (Hold)

For 2014, it expects to open 20-22 Pollo Tropical and 2-4 Taco Cabana restaurants. It also forecasts 2014 comparable restaurant sales for Pollo Tropical of 3% to 5% and 1.5% to 3.5% at Taco Cabana. Fiesta also has a solid EPS track record. It has just 1 miss since its IPO.

Shares are up 237% since the IPO.

[In full disclosure, the author of this article owns shares of TRIP.]

Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the Turnaround Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec.

FORTUNE BRD H&S (FBHS): Free Stock Analysis Report

FIESTA RESTRNT (FRGI): Free Stock Analysis Report

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