Kona Grill, Inc. (Kona Grill) owns and operates 24 upscale casual dining restaurants in 15 states, in the United States. The Company's restaurants feature a selection of mainstream American dishes, as well as a variety of appetizers and entrees with an international influence, including a selection of sushi. The menu items also incorporate over 40 signature sauces and dressings that Kona Grill makes from scratch. The menu offerings are complemented by a full service bar offering an assortment of wines, specialty drinks and beers. The Company's menu is mostly standardized for all of its restaurants.
Kona Grill shares jump on upbeat outlook
(Reuters) - Kona Grill's (KONA.O) shares rose as much as 35 percent on Tuesday, a day after the American grill and sushi bar raised its outlook for the third quarter as promotions and an improved menu help it gain market share.
Kona -- which owns 24 restaurants after closing its underperforming West Palm Beach outlet last month -- is outperforming other casual diners and its strong sales growth will continue into the fourth quarter, Feltl and Co analyst Mark Smith said.
Smith raised his rating on Kona's stock to "strong buy" from "buy," citing strong current results and his outlook for growth through 2012.
"We are encouraged by the raised guidance and think Kona restaurants are seeing improved results after the emphasis on store level margins, restaurant remodels and recent price increases," Smith said in a note.
The restaurant chain, known for its sushi, has been adding items to its menu, like a selection targeting health-conscious people and has spent on marketing to boost sales.
"We believe customers are discovering the recent improvements to the menu," B. Riley analyst Conrad Lyon said in a note and kept his "buy" rating on the stock.
The company has also re-shuffled its top management this year by hiring restaurant industry veteran Michael Nahkunst as its interim CEO and promoting Larry Ryback to the position of chief operating officer.
On Monday, Kona forecast third-quarter revenue of $24.1-$24.2 million up from its prior forecast of $22.7-$23.7 million.
Analyst Smith also pointed to a recent pull-back in the company's share price as a reason for raising his rating on the stock.
The company's shares have lost almost a third of their value over the past month, excluding their gains on Tuesday. They were trading up $1.31 at $6.57, after touching a high o$7.10.
Most recent 10K (August 1, 2011) : http://biz.yahoo.com/e/110801/kona10-q.html (Sales growth doubled year over year)
Mutual Fund Ownership : http://moneycentral.msn.com/ownership?symbol=KONA&Holding=Mutual+Fund+Ownership
Insider Ownership : http://www.secform4.com/insider-trading/1265572.htm
Institutional Ownership : http://moneycentral.msn.com/ownership?symbol=KONA&Holding=Institutional+Ownership
Per last 10K August 1, 2011 ::
Authorized Shares (A/S) :: 15,000,000
Outstanding Shares :: 9,217,296