(Reuters) - Del Frisco’s Restaurant Group Inc (DFRG.O) said on Thursday it is evaluating options for its business, including a possible sale amid pressure from activist investor Engaged Capital.
Earlier this month Engaged Capital, which owns a 9.99 percent stake in the company, pushed for Del Frisco’s sale, saying it was poorly managing its steakhouse restaurants and had rushed into buying two chains to avoid an acquisition.
Del Frisco’s, which owns Eagle Steak House and Frisco’s Grille chains, adopted a shareholder rights plan, or “poison pill,” with a 10 percent trigger to counter Engaged.
Del Frisco’s has missed Wall Street sales estimates for six out of the last eight quarters, according to Refinitiv data, and its same-store sales have fallen in the past two years.
Reporting by Uday Sampath and John Benny in Bengaluru; Editing by James Dalgleish and Richard Chang