While the management team is definantly more experienced than Country Star's there is a similarity in the hype without (evidently) the performace. It is a good thing that they have $20 Mil in cash on the balance sheet as they will probably need it to make it 2 or 3 more years.
I drove by Dave's in Minnetonka last Sunday Evening. The parking lot was packed. Good sign. My girlfriend ate there last night. It was packed. Good sign. During the slower 1st qtr. Good sign. But, it is the honeymoon phase for Minetonka. Uncertain sign. I-35 location lacks the atmosphere of Hayward or Minnetonka. Bad sign.
Dave's is pumping out an awful lot of money on expansion and it showed in their 4th qtr. earnings warning. Bad sign. There will be plenty of red ink before they turn the corner. They have a lot of cash in the war chest, but the money spigot is running wide open. Administrative overheads are high. Bad sign.
Pork futures went down today. Good sign.
4th and 1st qtrs. are slower. Bad sign. 2nd and 3rd qtrs. are coming. Good sign.
Dave's should be available for less than 10 for a while. No need to buy in right now.
I've eaten at three DAVE locations--La Crosse, Roseville, and the orignal Famous Dave's in Hayward, WI. La Crosse seems to be doing well,location may be a bit ify, but seems to busy most of the time. DAVE converted and expanded an old Hardee's location for this one. I think DAVE has a lot of upward potential, but agree that it shouldn't be boughten for at least another two quarters or until they show some upward momentum.
This company is far from CAFE in a number of areas..... locations, management, product, and fundamentals ...... In addition DAVE is very accessible to it's stock holders while CAFE has closed itself behind it's doors.
This company has been very aggressive in it's expansion efforts - a little too aggressive from the last financials -- that does not mean it should be compared to a dog like CAFE --
The fundamentals are still in place for this company to be successful -- good product -- good locations -- good management -- At the price it is at now -- we should be strongly considering this as a can't miss