The CEO that resigned last week is a major concern. He was supposed to be the savior for DAVE's and was the reason the stock was where it was. DAVE is trading at 35x earnings and its same-store sales are negative and their franchisee's are not happy with the company. The stock isn't a good value until it gets into the low teens. Currently being run by a hedge fund manger and a board who has no restaurant operating experience.
That is the new marketing slogan they could use to promote the dual use proposition of restaurant through dinner, strip-club at night idea I have read about here for 2 years. I think it's a winner.
funny how one off all street broker dealer was touting this stock and ed's turnaround capabilities when the stock was trading above 30. in the land of the blind, everyone is blind. i would like to find a reason to put money behind this company but i'm wating til the option prices, i mean the common stock prices, get closer to fair value. right now, volatility is mispriced because i don't foresee any catalysts along the way, just spin stories.
Now is the time for some stronger restaurant chain to make a hostile takeover. At this market cap, they won't even have to have a board meeting to approve it. This stock has been a total dog and Ed is not the savior some of you have suggested he would be.
I think if they want to remain independent, they need to consider that late night strip club idea that was out here a few years back. Would create great margin bar revenues without an increase in fixed costs.
The answer is that Ed is not going to turn it around. He has now been there a year and the effects of the discounting that preceded him are gone. They have turned over all their Board members and all but one of the executives and are running with contractors as they try to get everyone left convinced to move to their new HQ in Chicago.
Most of the employees are looking for jobs elsewhere and Ed has alienated the franchisees. He has no growth strategy and has cut all he can. Long tenured restaurant managers are bailing and food quality is not improving.
Sentiment: Strong Sell
Revenue decreased to $34.1 million from $35.7 million, primarily reflecting a comparable sales decrease
Comparable sales for Company-owned restaurants open 24 months or more decreased 4.0%
Franchise royalty revenue of $4.0 million declined
cash flow margins declined by 650 basis points primarily as a result of an increase in operating expenses.
General and administrative expenses increased by approximately $1.0 million
Net loss was $2.5 million compared to net income of $1.9 million for the fourth quarter
net loss per share was $0.35 compared to net income per diluted share of $0.25
Ed Rensi, CEO of Famous Dave's commented, "The Company's top line sales performed in line with our expectations for both the fourth quarter and fiscal 2014. We expect to continue to face top line sales headwinds until the middle of the second quarter of 2015."
How is McDonalds doing? Someone please explain how in the world they are going to to turn this train wreck around. Reni appears to be making it worse. A lot worse. Luckily the stock is trading the complete opposite from the fundamentals. I guess based on the HOPE that Rensi is a genius.
Appleton is Joe McCathy territory but also hosts Lawrence University which is Wisconsin's answer to the Ivy League a real duality.