Great buy at $10 support. Management buying back another 1mm shares at the 8.4mm share level means we're going to have 7.4mm shares o/s in no time. The timing of this announcement (during 4Q) means they were seeing VERY positive trends in their owned and franchised restaurants. EPS estimates are well below what the 4Q is going to do based on same store sales trends and the lower share count. I really see this buyback program Q after Q being a setup for a management buyout with a smaller PE firm.
Only thing that could ping us is bearish commodity cost comments in the earnings release. BUT mgmt has already guided to 2011 and said their contracts have some small price increases that are expected and manageable.