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Freitag,
26.05.2017 14:05
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PR Newswire
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JCP Reiterates The Facts For Fiesta Restaurant Group Stockholders
Ein gedeckter Tisch in einem Restaurant (Symbolbild).
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PR Newswire
HOUSTON, May 26, 2017
HOUSTON, May 26, 2017 /PRNewswire/ -- JCP Investment Management, LLC, together with its affiliates and the other participants in its solicitation (collectively, "JCP" or "we"), collectively one of the largest stockholders of Fiesta Restaurant Group, Inc. ("Fiesta" or the "Company") (NASDAQ:FRGI), with aggregate ownership of approximately 9.0% of the Company's outstanding shares, feels compelled to remind Fiesta stockholders of the facts following additional false and misleading statements made by the Company in its May 25, 2017 press release.
1. During their tenure on Fiesta's Board of Directors (the "Board"), Barry J. Alperin and Brian P. Friedman, the two Jefferies-affiliated directors we are seeking to replace, have not proven themselves capable of executing a plan to enhance stockholder value.
- Fiesta has produced negative total shareholder returns over the last 1, 2 and 3-year periods under the incumbents' leadership
- Messrs. Alperin and Friedman approved the prior plan that squandered more than $70 million expanding Pollo Tropical into Texas
- The failed expansion into Texas was pursued only after Jefferies sold its last shares at a significant premium to where Fiesta trades today
- After the expansion into Texas was abandoned, Leucadia (Jefferies' parent company and where Mr. Friedman serves as President and a director) purchased Fiesta shares at a discount to where the Company trades today
- We question whether Messrs. Alperin and Friedman have been representing stockholders' best interests or those of Jefferies and its parent company
- Fiesta's "Strategic Renewal Plan" is void of specifics, hardly making it the "detailed and sophisticated" plan claimed by the Company
- JCP has put forth a detailed illustrative plan for the Company in its Investor Presentation available at https://tinyurl.com/FRGI-Presentation
2. JCP's track record of value creation speaks for itself.
| TICKER | NAME | IRR | % RETURN | PERIOD(1) (MOS) | ENTERPRISE VALUE |
| JAX | J. Alexander's Corporation | 256% | 112% | 7 | $92m |
| PTRY | The Pantry, Inc. | 210% | 138% | 9 | $1.7b |
| MRFD | Morgan's Foods, Inc. | 120% | 488% | 27 | $48m |
| CWST | Casella Waste Systems, Inc. | 54% | 144% | 25 | $1.1b |
| AMRE | AmREIT, Inc. | 52% | 21% | 5 | $764m |
| CST | CST Brands, Inc. | 39% | 25% | 8 | $5.2b |
| VVI | Viad Corp. | 25% | 61% | 25 | $1.1b |
| HTM | US Geothermal Inc. | 14% | 18% | 15 | $170m |
| TLF | Tandy Leather Factory, Inc. | 11% | 11% | 12 | $67m |
| JMBA | Jamba, Inc. | -28% | -54% | 28 | $107m |
| AVERAGE | | 75% | 96% | 16 | $1.0b |
| (1)Performance calculated from date of public involvement or joining board, as applicable, until May 23, 2017 (unless company was acquired). |
JCP has driven stockholder value and effected positive change from inside and outside of the boardroom. In the midst of the Casella proxy contest, Casella actually replaced two incumbent directors, made a number of corporate governance enhancements and released 3 year earnings guidance – JCP served as a catalyst for these changes and its stock is up over 144% since JCP's involvement. JCP believes similar changes are needed at Fiesta.
Fiesta represents JCP's largest investment – incentivizing maximum effort to ensure that value is maximized for Fiesta's stockholders. Messrs. Alperin and Friedman have not invested a single dollar into Fiesta shares – the minimal shares they do own have been awarded to them. Who should stockholders trust more to represent their best interests?
3. Fiesta has materially underperformed its OWN peer group and produced negative total shareholder returns over the last 1, 2 and 3-year periods. No cherry-picking necessary!
| | | Share Price Performance (1) | |||
| | | 1-Year | 2-Year | 3-Year | 5-Year |
| 2016 FRGI Proxy Group (2) | | 11% | 0% | 27% | 143% |
| | | | | | |
| Fiesta Restaurant Group Inc | | -3% | -53% | -37% | 98% |
| | | | | | |
| Underperformance vs. 2016 FRGI Proxy Group | -13% | -53% Werbung Mehr Nachrichten zur Fiesta Restaurant Group Aktie kostenlos abonnieren
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