uWink Inc. (UWKI)

[Jews4Kapler]

Just to clarify, from Diedrich's release:

"As previously announced, the Company will close its Diedrich Coffee and Coffee People company-owned locations as part of its plan to focus on strengthening its wholesale business and related distribution channels including franchise locations. The Company will retain the Diedrich Coffee and Coffee People brands for its wholesale and franchise operations. To this end, the Company announced on September 14, 2006 that it entered into an agreement to sell up to 40 of its 47 company-owned Diedrich Coffee and Coffee People locations to Starbucks Coffee Company for up to approximately $13.5 million."

That price will include a lot of PP&A along with the leasehold agreements. Unless they were long-term leases signed at rates that are below what they could command in the current environment, owning a lease on a building is worth very little, and often nothing. As Bushnell has said, you can have thousands of underperforming restaurants for the price of taking on the lease. Bottom line: having lots of restaurants doesn't necessarily make something worth a lot of money. It's what the returns you can earn with them that matters. uWink will earn better returns than most restaurants, imho. Zac