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The Restaurant Stock Bubble of 2011 Could End Badly
by: Rougemont July 6, 2011
Restaurant stocks have been one of the top performing sectors, especially with certain stocks that have become wildly popular. Investors love stocks that go up, just as many loved real estate as it was going up, and the upward trend and lofty valuations could last a little longer. However, there comes a time when it makes sense to sell stocks when they are priced at perfection levels. With the run these stocks have had, and the high PE ratio and other valuation metrics, chances are these stocks will not be able to continue to provide the type of gains they have been for the past couple years.
Investors might want to think seriously about whether these stocks are priced for perfection and therefore could easily drop on any disappointing news. The recent rally seems to be based on nothing more than momentum and short covering, not common sense based on solid valuations. Many of these stocks hit new 52 week highs yesterday, and this sector could be putting in a final speculative "blow off" top right now. You have a combination of highly stretched valuations, a very large amount of insider selling and frothy speculation rampant in these stocks with investors following a momentum-based trend, rather than using common sense. These indicators were present with Internet stocks and real estate just before they plunged. These are the signs you see when major tops are made. I believe many investors buying at these levels will be faced with large losses in most of these names in the next few months.
So far these stocks have defied gravity and some shorts have been badly hurt, however at some point, there is no doubt that these will fall under their own weight sooner or later. The more stretched valuations get in the sector, the more likely this bubble ends badly. These might be great companies with excellent management, but valuation still matters if you want solid returns and to avoid losses on your investments. Investors who paid too much for great companies in the past were often faced with large losses or many years of little to no gains. The stocks below are also overbought based on the relative strength index. I think it makes a lot of sense to follow the executives and directors at most of these companies and cash in while you can:
BJ's Restaurants, Inc. (BJRI) is trading near it's 52 week high of $55.05. The relative strength index is about 81 which indicates these shares are very overbought. These shares have risen from a 52 week low of $21.11 and hit a new 52 week high today. The 50 day moving average is $48.25 and the 200 day moving average is $38.59. The earnings estimates for 2011 are about $1.06 per share, and $1.27 for 2012. This puts the PE ratio at about 50 which is far too rich in my opinion. Insiders have been repeatedly selling shares. See insider selling here.
Chipotle Mexican Grill, Inc. (CMG) is trading around $321.45 per share. The relative strength index is about 78 which indicates these shares are overbought. These shares have risen from a 52 week low of $127.30 and hit a new 52 week high today. The 50 day moving average is $280.56 and the 200 day moving average is $243.98. The earnings estimates for 2011 are about $6.81 per share and $8.44 for 2012. This puts the PE ratio at well over 40 which is high for the restaurant sector. See insider selling here.
Red Robin Gourmet Burgers, Inc. (RRGB) is trading around $37.38. Red Robin is a gourmet burger restaurant based in Colorado. The relative strength index is about 69 which indicates these shares are overbought. The 50 day moving average is $32.57 and the 200 day moving average is $24.63. These shares have traded in a range between $17.03 to $38.58 in the last 52 weeks. RRGB is estimated to earn about $1.47 per share in 2011 and $1.81 in 2012. You can see insiders selling here.
Peets Coffee & Tea, Inc. (PEET) shares are trading at $60.87. PEET is a coffee roaster and operates retail coffee shops. The relative strength index is about 86 which indicates these shares are extremely overbought. The shares have traded in a range between $33.20 to $61.52 in the past 52 weeks. The 50 day moving average is $50.63 and the 200 day moving average is $43.48. Earnings estimates for PEET are just $1.46 per share in 2011, so the PE ratio is about 40. You can see insiders selling here.
Caribou Coffee Company, Inc. (CBOU) shares are trading at $14.01. The relative strength index is about 70 which indicates these shares are overbought. CBOU is a coffee roaster and operates retail coffee shops. The shares have traded in a range between $8.50 to $14.49 in the past 52 weeks. The 50 day moving average is $10.84 and the 200 day moving average is $10.36. Earnings estimates for CBOU are just 38 cents per share in 2011, so the PE ratio is about 36. You can see insiders selling here.
The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
http://seekingalpha.com/article/278164-the-restaurant-stock-bubble-of-2011-could-end-badly?source=yahoo
Golden Gate buying Calif. Pizza Kitchen for $470M
Golden Gate Capital buying California Pizza Kitchen for approximately $470 million
On Wednesday May 25, 2011, 8:42 am
LOS ANGELES (AP) -- Private equity firm Golden Gate Capital is buying California Pizza Kitchen Inc. for about $470 million, three months after the restaurant chain put itself up for sale.
The $18.50-per-share cash bid is an 11 percent premium to the restaurant chain's $16.71 closing stock Tuesday. Shares of California Pizza Kitchen gained $2.09, or 12.5 percent, to $18.80 in premarket trading Wednesday.
California Pizza Kitchen, which got its start in 1985, serves pizzas, pastas, soups, sandwiches and other food items. It has 265 restaurants, with 205 company-run and 60 under franchise or license agreements.
California Pizza Kitchen began exploring a potential sale of the company in February. The Los Angeles company's board unanimously approved the deal and recommends stockholders tender their shares in the tender offer.
"Golden Gate Capital is a leading investor in the restaurant industry, with a proven track record as a value-added partner to its portfolio companies, and we believe that its significant commitment and experience in the sector will benefit all of our stakeholders," co-CEOs and co-Chairmen Rick Rosenfield and Larry Flax said in a statement.
Golden Gate's other restaurant buyouts include the purchase of On the Border last year. And last month Lawson Software Inc. agreed to a $2 billion acquisition offer from Golden Gate and Infor.
An affiliate of Golden Gate will start a tender offer for all of California Pizza Kitchen's outstanding shares by June 8. The acquisition is expected to close in the third quarter.
Wendy's/Arby's shares rise on takeover inquiry.
Wendy's/Arby's Chairman Peltz says he was approached by group on possible deal; shares rise
CHICAGO (AP) -- Wendy's/Arby's Group Inc. Chairman Nelson Peltz said he's reviewing an overture from an unnamed group interested in acquiring the fast-food company.
His disclosure, made late Thursday in a regulatory filing, sent shares up 19 cents, or 4.4 percent, to $4.53 in midday trading Friday.
Peltz, whose investment firm owns 23.5 percent of the company's shares, gave few details about the inquiry, which he disclosed in a regulatory filing late Thursday.
But he said the possible deal could include his participation and that he would work with financial advisers to discuss the transaction. Among the many possiblities he listed in his filing, Peltz said he would likely meet with debt and equity financing sources regarding a possible deal.
Peltz led Arby's former parent Triarc Cos., which acquired Wendy's in 2008.
A spokesman for the fast-food chain declined to comment on Friday, as did a representative from Peltz's Trian Fund Management.
Wendy's/Arby's Group, based in Atlanta, has struggled during the recession as customers scaled back on even cheap eats like fast food. Arby's, with its pricier menu, was particularly hurt, despite efforts to offer value meals and other discounted menu items.
In the most recent quarter, the chain lost $3.4 million, or a penny per share, as Arby's poor sales continued to drag down results. That compares with a loss of $10.9 million, or 2 cents per share, the previous year.
To fix the brand, the company is heavily promoting its new dollar menu that was added to 3,700 Arby's locations in April. It includes items like a small roast beef or chicken sandwich as well as curly fries.
Removing 3 cents per share in charges, earnings amounted to 2 cents per share.
Total revenue fell 3 percent to $837.4 million from $864 million.
Morningstar analyst Joscelyn MacKay said she thinks the company's potential suitor is another restaurant owner, not a private equity firm. That's because the company's size -- far smaller than rivals McDonald's Corp. and Yum Brands Inc., makes it more suited for a so-called strategic deal, than a financial one, she said.
"The combination of Wendy's and Arby's created such a large-scale company," she said. "I would really think that any kind of transaction would be to even improve on that."
But she said any news from a possible combination or buyout is likely far off.
The announcement comes less than two months after the operator of Carl's Jr. and Hardee's restaurants a $694 million buyout offer from an affiliate of Apollo Management VII LP.
The private equity firm's offer was accepted after it topped another bid from a second private equity firm, Thomas H. Lee Partners.
Wendy's/Arby's Group runs more than 10,000 restaurants in the U.S. and 24 countries and U.S. territories worldwide.
The company's stock is trading at the midpoint of its 52-week range. Shares have traded between $3.55 and $5.55 in the past year.
Short short and short. Nice buys in 6-12 months.
Wendy’s/Arby’s Group, Inc. Announces Results of 2010 Annual Meeting of Stockholders
Wendy’s/Arby’s Group, Inc. (NYSE: WEN), the parent company of Wendy’s International, Inc. and Arby’s Restaurant Group, Inc., today announced the results of its 2010 Annual Meeting of Stockholders, which was held on May 27, 2010 in New York City.
The Company’s stockholders voted to elect 12 directors: Nelson Peltz, Peter W. May, Clive Chajet, Edward P. Garden, Janet Hill, Joseph A. Levato, J. Randolph Lewis, Peter H. Rothschild, David E. Schwab II, Roland C. Smith, Raymond S. Troubh, and Jack G. Wasserman. Each director will serve until the 2011 Annual Meeting of Stockholders. Eleven of the twelve directors were previous Board members. Peter Rothschild is a newly elected Board member and replaces former New York Governor Hugh L. Carey, who did not stand for re-election.
In addition, the Company’s stockholders voted in favor of the 2010 Omnibus Award Plan and a proposal to ratify the appointment of Deloitte & Touche LLP as the Company’s independent registered public accountants. The Company’s stockholders voted against a stockholder proposal regarding poultry slaughter.
Following the stockholder meeting, the Board of Directors voted to establish a Director Emeritus position and appointed former Board member, Hugh Carey, as Director Emeritus. Former Governor Hugh Carey has served on the Board for 16 years.
Additionally, the Board approved an increase in the Company’s stock repurchase authorization by $75 million to a total of $325 million. Since the Board authorized a stock repurchase program in 2009, the Company has repurchased approximately 47 million common stock shares for $223.1 million as of May 25, 2010, at an average price of $4.73 per share. The current common stock repurchase program, of which $101.9 million is now available, will remain in effect through January 2, 2011 and allow the Company to make repurchases as market conditions warrant.
Roland Smith, President and Chief Executive Officer of Wendy’s/Arby’s Group, said: "On behalf of the entire board of directors and management team, we thank our stockholders for their support. We share their confidence in the future of our Company as we continue to successfully execute on our goals. We believe Wendy’s/Arby’s Group is well-positioned to create value for our stockholders as we grow sales through distinct premium and value-oriented product offerings. We also plan to effectively control costs and invest in future growth through the development of breakfast at Wendy’s, remodeling of both of our brands and international. We look forward to communicating our progress in the months and years ahead.”
About Wendy's/Arby's Group, Inc.
Wendy’s/Arby’s Group, Inc. is the third largest quick-service restaurant company in the United States, and includes Wendy’s International, Inc., the franchisor of the Wendy’s® restaurant system, and Arby’s Restaurant Group, Inc., the franchisor of the Arby’s® restaurant system. The combined restaurant systems include more than 10,000 restaurants in the U. S. and 24 countries and territories worldwide. To learn more about Wendy’s/Arby’s Group, please visit the Company's web site at www.wendysarbys.com.
Hmmm lots of yummy things to nibble on around here.
Stocks I'm picking up these days.
CAKE below $25
WEN below $5
BJRI below $25
BWLD below $40
RRGB below $26
These are all for the long haul.
Buying WEN for the long haul. I think anything below $6 is good and anything below $5 is awesome!
Been a while since I've been over here...
Things have changed since the last time I've posted lol!
Tell me your in on this little run in this sector?
I happened to catch it on a scan I did this am -
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34051346
Great move, I should have been paying closer attention...
CHUX annotated chart:
Now who doesn't like Cake! lol!
GL!
I really like CAKE down here for starters...
The Cheesecake Factory Further Strengthens Its Restaurant Operations
06/18/2008 @ 4:30PM
The Cheesecake Factory Incorporated (NASDAQ: CAKE) is pleased to announce a number of organizational changes within its Restaurant Operations team that are designed to leverage its deep pool of leadership talent and further strengthen the overall organization.
Effective immediately, David Gordon, a 15-year veteran of The Cheesecake Factory, has been named to the role of Senior Vice President, Operations, and will lead the day-to-day operations for The Cheesecake Factory restaurants. Gordon was most recently Regional Vice President, West Coast Operations, having previously served as an Area Director of Operations, as well as General Manager in two of The Cheesecake Factory’s restaurants. He will report directly to David Overton, Chairman and CEO.
In addition, the Company announced that Russell Greene has been named to the role of Senior Vice President, Operations Services, from his current role of Senior Vice President, Beverage and Bakery; Jack Belk has been named to the role of Senior Regional Vice President from his current role of Regional Vice President; and Donald Moore has been named to the role of Senior Vice President, Kitchen Operations from his current role of Vice President, Kitchen Operations.
“The Cheesecake Factory has a long-standing track record of exceptional restaurant operations and execution, which is due to the strength and tenure of leaders such as David, Russell, Jack and Donald. These individuals are focused on quality and results, and drive our standards of operational excellence,” commented David Overton, Chairman and CEO. “We are proud to recognize their achievements.” About The Cheesecake Factory Incorporated The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept and continues to define it today with the two highest productivity concepts in the industry. The Company operates 141 restaurants throughout the U.S. under The Cheesecake Factory® name with an extensive menu of more than 200 items and fiscal 2007 average annual unit sales of approximately $10.4 million. Grand Lux Cafe®, the Company’s second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $12.7 million in fiscal 2007. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 60 varieties of quality cheesecakes and other baked products. Additionally, the Company licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafe® mark. For more information, please visit thecheesecakefactory.com.
I will take a look....
UWKI opening 2 new locations, might be one to watch...
http://seekingalpha.com/article/80102-more-clarity-on-new-uwink-restaurant-locations?source=yahoo
The Cheesecake Factory Holds Annual Meeting of Stockholders
The Cheesecake Factory Incorporated (NASDAQ:CAKE) today announced that at its Annual Meeting of Stockholders held on May 22, 2008, stockholders reelected two directors, approved a proposal to eliminate the Company’s classified board structure, ratified the appointment of independent auditors and voted against an amendment to a stock incentive plan.
At the meeting, stockholders voted to reelect both Chairman and CEO David Overton and independent director Agnieszka Winkler each for a three-year term and until their successors are elected and qualified. Each nominee received the affirmative votes of approximately 99% of the total shares voted. Stockholders also approved a proposal to amend the Company’s certificate of incorporation to eliminate its classified board structure and make conforming changes. As a result, the Company intends for all directors to stand for election to one-year terms beginning at the 2011 Annual Meeting of Stockholders. Additionally, stockholders ratified the selection of PricewaterhouseCoopers LLP to serve as the Company’s independent registered public accounting firm for fiscal 2008, which will end on December 30, 2008. Stockholders voted against an amendment to the Company’s Amended and Restated 2001 Omnibus Stock Incentive Plan to clarify that eligible individuals under the plan include directors, whether or not employed by the Company.
About The Cheesecake Factory Incorporated The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept and continues to define it today with the two highest productivity concepts in the industry. The Company operates 141 restaurants throughout the U.S. under The Cheesecake Factory® name with an extensive menu of more than 200 items and fiscal 2007 average annual unit sales of approximately $10.4 million. Grand Lux Cafe®, the Company’s second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $12.7 million in fiscal 2007. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 60 varieties of quality cheesecakes and other baked products. Additionally, the Company licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafe® mark. For more information, please visit thecheesecakefactory.com.
Kona Grill to Present at The Avondale 2008 Consumer Conference
Kona Grill, Inc. (NASDAQ: KONA), an American grill and sushi bar, today announced that the Company will be presenting at the Avondale 2008 Consumer Conference on Tuesday, May 20, 2008, at The Millennium Broadway Hotel in New York City. The presentation will begin at 2:55 PM Eastern Time.
Investors and interested parties will be able to listen to the investor presentation via webcast from the investor relations portion of the Company's website at www.konagrill.com.
About Kona Grill Kona Grill owns and operates restaurants in Scottsdale and Chandler, AZ; Denver, CO; Stamford, CT; Naples, FL; Lincolnshire and Oak Brook, IL; Carmel, IN; Baton Rouge, LA; Troy, MI; Kansas City, MO; Omaha, NE; Las Vegas, NV; Austin, Dallas, Houston, San Antonio, and Sugar Land (Houston), TX. Kona Grill restaurants offer freshly prepared food, personalized service, and a warm, contemporary ambiance that creates an exceptional, yet affordable, dining experience. Kona Grill restaurants serve a diverse selection of mainstream American dishes as well as a variety of appetizers and entrees with an international influence. Each restaurant also features an extensive sushi menu and sushi bar.
Red Robin Gourmet Burgers, Inc. to Host Conference Call to Discuss First Quarter 2008 Financial Results
Red Robin Gourmet Burgers, Inc., (NASDAQ: RRGB), a casual dining restaurant chain focused on serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, will host a conference call on Tuesday, May 20, 2008, at 5:00 P.M. Eastern Time to discuss first quarter 2008 financial results. The discussion will be webcast live at www.redrobin.com in the investor relations section. A press release with first quarter 2008 financial results will be issued at approximately 4:00 P.M. Eastern Time that same day.
About Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) Red Robin Gourmet Burgers, Inc. (http://www.redrobin.com), a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., serves up wholesome, fun, feel-good experiences in a kid- and family-friendly environment. Red Robin® restaurants are famous for serving more than two dozen insanely delicious, high-quality gourmet burgers in a variety of recipes with Bottomless Steak Fries®, as well as salads, soups, appetizers, entrees, desserts, and signature Mad Mixology® Beverages. There are more than 390 Red Robin® restaurants located across the United States and Canada, including corporate-owned locations and those operating under franchise agreements.
Casual dining stocks rise following upgrade of Ruby Tuesday
NEW YORK (Thomson Financial) - Shares of casual dining restaurants rose
Wednesday after an analyst upgrade of Ruby Tuesday Inc. lifted sentiment.
Ruby Tuesday rallied as much as 9% to $8.56 in recent trading after hitting
a high of $8.63, the highest level since Jan. 7.
SunTrust Robinson Humphrey upgraded Ruby Tuesday to buy from neutral, citing
the stock's recent underperformance.
"We recommend investors reconsider Ruby Tuesday, as its shares have traded
off as a result of declining earnings and a high level of debt," analyst
Christopher O'Cull wrote to clients.
O'Cull said during the past 12 months, declining same-restaurant sales have
resulted in a precipitous fall in margin and rising leverage ratios. While some
may view this performance as warranting a below-average price-to-earnings
multiple, "we believe the company has the potential to create positive returns
for income-oriented investors given its significant free cash flow potential."
Other casual dining stocks also traded higher, with shares of Darden
Restaurants Inc. up 4% at $36.74 and Cheesecake Factory Inc. 3.1% higher at
$22.38.
Elsewhere, shares of Texas Roadhouse Inc. rose 1.5% to $11.89 and California
Pizza Kitchen Inc. added 2.2% to $15.59.
Wanfeng Zhou
wz/pc
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BUCA, Inc. Announces First Quarter 2008 Financial Results
BUCA, Inc. (Nasdaq: BUCA) today announced financial results for the first fiscal quarter of 2008. The Company reported a net loss of $4.2 million, or ($0.20) per share, in the first quarter of fiscal 2008 as compared to a net loss of $2.8 million, or ($0.14) per share, in the first quarter of fiscal 2007.
John T. Bettin, the Company’s Chief Executive Officer and President commented, “The first quarter was clearly difficult for us, but not without its accomplishments. Our net loss of ($0.20) per share for the first quarter of fiscal 2008 included charges of approximately ($0.04) per share related to the impact of severance payments associated with our $2.1 million reduction in force executed in January of this year, and approximately ($0.03) per share related to the settlement of a wage and hour lawsuit in California. Despite a downturn in comparable restaurant sales of 2.5% for the period, our restaurants still did an excellent job of managing prime costs (the combination of product and labor costs), including lowering labor costs by 80 basis points as compared to the prior year. I am very proud of their tenacity and unwavering commitment to our Company during these most difficult of times for our industry. Although the environment will no doubt continue to be challenging on a number of fronts, we continue to have confidence that several of our new initiatives, including the recently expanded roll-out of catering and the upcoming launch of a new lunch menu, will help us weather the casual dining storm.” First Quarter 2007 Results Total restaurant sales in the first quarter of fiscal 2008 were $60.1 million compared to $62.8 million in the first quarter of fiscal 2007. The decrease in restaurant sales was primarily the result of the closure of four restaurants since the beginning of fiscal 2007 as well as the decrease in comparable restaurant sales, partially offset by the addition of New Year’s Eve to the first quarter of fiscal 2008 as compared to the same period of the prior year.
Comparable restaurant sales decreased 2.5% for the first quarter of fiscal 2008 as compared to the same period last year.
Product costs were $15.2 million in the first quarter of fiscal 2008 compared to $15.4 million in the first quarter of fiscal 2007. Product costs as a percentage of sales increased to 25.4% in the first quarter of fiscal 2008 from 24.5% in the first quarter of fiscal 2007. The decrease in product costs in dollars was primarily due to reductions in sales and the closure of four restaurants. The increase in product costs as a percentage of sales was primarily driven by the elimination of the Company’s Paisano Conference in first quarter 2008. The Paisano Conference is the Company’s annual strategic and celebratory meeting of its Paisano Partners, Divisional Vice Presidents and company executives. Because a portion of our Paisano Conference is typically sponsored by selected vendors, vendor sponsorship payments are accounted for as a reduction in product costs. The cancellation of the conference in the first quarter of fiscal 2008 has a corresponding negative impact on product costs as a percentage of sales.
Labor costs were $20.4 million in the first quarter of fiscal 2008 compared to $21.9 million in the first quarter of fiscal 2007. The decrease in labor cost dollars was primarily related to the closure of four restaurants. Labor cost as a percentage of sales decreased to 34.0% in the first quarter of fiscal 2008 from 34.8% in the first quarter of fiscal 2007. The decrease in labor costs as a percentage of sales was primarily related to a decrease in medical claims in the first quarter of fiscal 2008 as compared to the first quarter of fiscal 2007 and reductions in non-exempt staffing resulting from the Company’s labor management initiative, partially offset by increases in restaurant-level management staffing.
General and administrative expenses were $6.2 million in the first quarter of fiscal 2008 as compared to $5.6 million in the first quarter of fiscal 2007. General and administrative expenses as a percentage of restaurant sales were 10.2% in the first quarter of fiscal 2008 as compared to 8.9% in the comparable period of fiscal 2007. The increase in general and administrative expenses in the first quarter of fiscal 2008 was primarily related to severance costs associated with the Company’s previously announced reduction in force as well as the settlement of a wage and hour lawsuit in California, partially offset by the savings from the reduction in force.
Conference Call BUCA, Inc. will host a conference call on Tuesday, May 6, 2008 at 4:30 p.m. Eastern Time (3:30 p.m. Central Time) to discuss these results. John T. Bettin, the Company’s Chief Executive Officer and President, and Dennis J. Goetz, the company’s Chief Financial Officer, will be hosting the call. The conference call will be webcast and can be accessed from the following link: http://viavid.net/dce.aspx?sid=00004FE3. For those who are unable to listen to the webcast live, a telephone replay will be available for one week beginning at 7:30 p.m. (Eastern Time) on May 6, 2008, and can be accessed by dialing 1-888-203-1112 or 1-719-457-0820 (international callers) and entering pin number 5821244.
About the Company: BUCA, Inc. owns and operates 89 highly acclaimed Italian restaurants under the name Buca di Beppo in 25 states and the District of Columbia BUCA, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) Thirteen Weeks Ended March 30,
2008 April 1,
2007 Restaurant sales $ 60,105 $ 62,811 Restaurant costs: Product 15,237 15,378 Labor 20,417 21,860 Direct and occupancy 19,134 19,047 Depreciation and amortization 2,689 2,954 Loss on disposal of assets 20 100 Total restaurant costs 57,497 59,339 General and administrative expenses 6,211 5,624 Loss on impairment of long-lived assets 31 50 Lease termination charges - (3 ) Operating loss (3,634 ) (2,199 ) Interest income 27 137 Interest expense (592 ) (561 ) Loss before income taxes (4,199 ) (2,623 ) Income taxes - - Net loss from continuing operations (4,199 ) (2,623 ) Net loss from discontinued operations - (172 ) Net loss $ (4,199 ) $ (2,795 ) Net loss from continuing operations per share—basic and diluted $ (0.20 ) $ (0.13 ) Net loss from discontinued operations per share—basic and diluted $ - $ (0.01 ) Net loss per share—basic and diluted $ (0.20 ) $ (0.14 ) Weighted average common shares outstanding—basic and diluted 20,533,247 20,410,184 BUCA, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands, except share data) (Unaudited) March 30,
2008 December 30, 2007 ASSETS CURRENT ASSETS: Cash $ 819 $ 1,070 Accounts receivable 3,542 4,260 Inventories 5,947 6,084 Prepaid expenses and other 4,069 4,470 Total current assets 14,377 15,884 PROPERTY AND EQUIPMENT, net 96,725 98,327 OTHER ASSETS 3,121 3,186 $ 114,223 $ 117,397 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 7,948 $ 6,634 Unredeemed gift card liabilities 2,369 3,738 Accrued payroll and benefits 6,477 7,483 Accrued sales, property and income tax 3,177 3,897 Other accrued expenses 4,371 4,876 Line of credit borrowing 3,510 - Current maturities of long-term debt and capital leases 325 296 Total current liabilities 28,177 26,924 LONG-TERM DEBT AND CAPITAL LEASES, less current maturities 15,904 15,993 DEFERRED RENT 17,917 18,002 OTHER LIABILITIES 3,671 3,962 Total liabilities 65,669 64,881 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY: Undesignated stock, 5,000,000 shares authorized, none issued or outstanding - - Common stock, $.01 par value per share, 30,000,000 shares authorized; 21,438,453 and 21,088,651 shares issued and outstanding, respectively 214 211 Additional paid-in capital 173,081 172,903 Accumulated deficit (123,877 ) (119,678 ) Notes receivable from employee shareholders (864 ) (920 ) Total shareholders’ equity 48,554 52,516 $ 114,223 $ 117,397
The Cheesecake Factory Opens in Glendale, California
The Cheesecake Factory Incorporated (NASDAQ:CAKE) today announced the opening of its 140th Cheesecake Factory restaurant at the Americana at Brand in Glendale, California on May 2, 2008. The restaurant contains approximately 11,500 square feet and 330 seats.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated created the upscale casual dining segment in 1978 with the introduction of its namesake concept and continues to define it today with the two highest productivity concepts in the industry. The Company operates 140 restaurants throughout the U.S. under The Cheesecake Factory® name with an extensive menu of more than 200 items and fiscal 2007 average annual unit sales of approximately $10.4 million. Grand Lux Cafe®, the Company’s second concept, has 13 units in operation across the U.S. offering a broad menu of more than 150 items and average annual unit sales of approximately $12.7 million in fiscal 2007. The Company also operates two bakery production facilities in Calabasas Hills, CA and Rocky Mount, NC that produce over 60 varieties of quality cheesecakes and other baked products. Additionally, the Company operates one self-service, limited menu express foodservice operation and licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafe® mark. For more information, please visit thecheesecakefactory.com.
The Cheesecake Factory Incorporated
Jill Peters, 818-871-3000
Red Robin Gourmet Burgers Continues Virginia Expansion with Opening of Manassas Restaurant
Casual dining restaurant to donate 50 cents from every gourmet burger sold to the National Center for Missing & Exploited Children during opening week
GREENWOOD VILLAGE, Colo., May 5 /PRNewswire-FirstCall/ -- Red Robin Gourmet Burgers, Inc. (Red Robin) will open its 16th Virginia restaurant in Manassas, located at 9945 Sowder Village Square, off Route 28 near the new Super Target, on Monday, May 19, at 11 a.m. Red Robin serves high-quality gourmet burgers, appetizers, entrees, salads and beverages in a kid- and family-friendly atmosphere. As part of its grand opening celebrations, the Manassas Red Robin(R) restaurant will host a Burgers With A Heart(R) fundraiser to benefit the National Center for Missing & Exploited Children (NCMEC).
Through Burgers With a Heart(R), Red Robin will donate 50 cents from every gourmet burger sold to NCMEC during grand-opening week from May 19 to 25. NCMEC is a non-profit organization whose mission is to help prevent child abduction and sexual exploitation; help find missing children; and assist victims of child abduction and sexual exploitation, their families, and the professionals who serve them. The money raised will help bring prevention education to children nationwide.
'On behalf of the National Center for Missing & Exploited Children, I would like to thank Red Robin for their generous support of our mission,' said Robbie Callaway, NCMEC co-founder and past Chairman of the Board. 'It is important that we empower families to make safer decisions for their children, and communication and education are vital tools in that effort. With Red Robin's support, we are able to reach many more families across the country with our messages of child safety.'
'We are thrilled to be expanding the Red Robin family of restaurants in Virginia, while also supporting such a wonderful family-oriented cause,' said Eric Houseman, Red Robin president and chief operating officer. 'We invite everyone to come to Red Robin and enjoy one of our more than two dozen high-quality gourmet burgers to support the National Center for Missing & Exploited Children as we open our newest restaurant in Manassas.'
Red Robin focuses its philanthropic support on local and national causes that promote the health, welfare and education of children, families and citizens in the communities it serves. Because Red Robin is all about kids and families, its ongoing partnership with NCMEC has continued to grow through the company's new restaurant openings and additional programs such as 'The Next Gourmet Burger Kids' Recipe Contest' since 2006.
The 5,690-square-foot Manassas Red Robin(R) restaurant will seat 198 guests. Red Robin has 15 additional restaurants in Virginia, including two locations in Chesapeake and one each in Ashburn, Chantilly, Charlottesville, Christiansburg, Dulles, Fairfax, Fredericksburg, Glen Allen, Newport News, Richmond, Roanoke, Virginia Beach and Woodbridge.
For more information about Red Robin and to find additional restaurant locations, please visit http://www.redrobin.com.
About Red Robin Gourmet Burgers, Inc. (Nasdaq: RRGB)
Red Robin Gourmet Burgers, Inc. (http://www.redrobin.com), a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., serves up wholesome, fun, feel-good experiences in a kid- and family-friendly environment. Red Robin(R) restaurants are famous for serving more than two dozen insanely delicious, high-quality gourmet burgers in a variety of recipes with Bottomless Steak Fries(R), as well as salads, soups, appetizers, entrees, desserts, and signature Mad Mixology(R) Beverages. There are more than 380 Red Robin(R) restaurants located across the United States and Canada, including corporate-owned locations and those operating under franchise agreements.
About the National Center for Missing & Exploited Children(R) (NCMEC)
NCMEC is a 501(c)(3) nonprofit organization dedicated to helping protect children from abduction and sexual exploitation. NCMEC's congressionally mandated CyberTipline, a reporting mechanism for child sexual exploitation, has handled more than 570,000 leads. Since its establishment in 1984, NCMEC has assisted law enforcement with more than 138,400 missing child cases, resulting in the recovery of more than 121,500 children. For more information about NCMEC, call its toll-free, 24-hour hotline at 1-800-THE-LOST or visit http://www.missingkids.com.
SOURCE Red Robin Gourmet Burgers, Inc.
Source: PR Newswire (May 5, 2008 - 12:59 PM EDT)
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