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Engaged Capital Urges Del Frisco's To Explore Strategic Alternatives

Activist investment firm Engaged Capital, LLC has Thursday in a letter to the Board of Directors of Del Frisco's Restaurant Group, Inc. (DFRG) urged them to fulfill their fiduciary obligations to shareholders to explore strategic alternatives for the company, accusing them of destroying substantial shareholder value.

Engaged Capital, together with its affiliates, is a significant shareholder of DFRG and currently beneficially owns 3,328,000 shares, representing about 9.99 percent ownership of the Company.

Engaged Capital believes that there are numerous parties interested in acquiring DFRG's concepts at valuations that would deliver a significant premium to the current share price and be very attractive to the Company's shareholders.

The investment firm claims that the Board's decision to approve the acquisition of Barteca Restaurant Group, which was announced on May 7, 2018 and closed on June 27, 2018, along with the management's weak operating performance in strategy and capital deployment has destroyed substantial shareholder value.

It reiterated that quick and decisive action by the Board for a sale of DFRG, in whole or in parts, presents the most attractive risk-adjusted return for shareholders.

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