About Fiesta Restaurant Group
Fiesta Restaurant Group Inc. (FRGI) owns, operates, and franchises two fast-casual restaurant brands, Pollo Tropical and Taco Cabana. The brands specialize in the operation of fast-casual ethnic restaurants that offer distinct and unique Caribbean and Mexican-inspired flavors with broad appeal at a compelling value.
The restaurants feature made-from-scratch cooking, fresh salsa bars, and drive-through service and catering. FRGI, a Caribbean-inspired brand, was founded in Miami 25 years ago without any direct competitors.
Operating model highlights
Fiesta Restaurant Group’s operating success began with differentiated, freshly prepared food. The company has industry-leading average unit volumes of $2.6 million for Pollo Tropical and $1.8 million for Taco Cabana.
The company operates in the fast casual segment where convenience is the cornerstone of its operating model. Both the brands feature drive-throughs coupled with online ordering and catering, leading to a steadily growing share of off-premise consumption.
Price value proposition
One of the major drivers of FRGI’s growth is the value price proposition that it offers to its customer base. Many customers can’t believe how they got that amount of quality food for that little amount of money. Plus, the company’s goal of growing net restaurant counts by 8%-10% suggests that Fiesta Restaurant Group is under-penetrated, one of the reasons investors are interested in the company.
In this series, we’ll take a deeper look into the company’s functioning, its latest earnings performance, and many other aspects to better understand the company dynamics, its future performance, and an investor’s perspective regarding FRGI. The company’s peers are Chipotle Mexican Grill, Inc. (CMG), Jack in the Box Inc. (JACK), Yum! Brands, Inc. (YUM), and McDonald’s Corporation (MCD).