I was somewhat let down by this latest earnings report.
The company just can't seem to catch a break or get ahead of difficulties. Of course, neither can this country...
If you back out the asset charge, EBIDTA is up somewhat. Sales are up. We may be on the cusp of improved earnings though. If sales continue up AND there are no asset charges, earnings should go up SIGNIFICANTLY in proportion to additional sales.
If COGS is truly going down, earnings should improve. If the new locations open well, this company will be doing better.
I don't think there is any danger of the dividend being cut/eliminated. There is over $10MM of cash, with no debt. I would be VERY interested to know what the cash balance is the last week of December, if it has gone up.
I wish management had given a little bit more guidance on the opening of the new locations. I was under the impression that the first location would have been open by now. Are the other three locations also slipping behind schedule.
No mention was made of the stock buyback. I would have liked a brief explanation of this.
Nothing was mentioned of SSS in various markets. I am interested to see how Florida & Atlantic City is doing.
I did not get a chance to participate in this conference call as I was in a business meeting.
I am going to start participating in the next conference call.
Thanks very much for your report and analysis. I agree that with new stores coming open in the near future the possibility of higher revenue is there. But I have no idea of the costs of operations or the likely margins possible at these new locations once operations begin. I'm hoping Clyde will really bring 'em in cause there's no shortage of places to eat in NYC .
I am worried that they cited COGS as a significant factor in recent profitably especially because they chose not to raise prices. Does that mean that they have too much competition nearby so they can't risk raising prices? Or the dining market can't bear the increases? Or--I'm hoping--the portion sizes were too much to begin with.
Recently sold my stake but looking forward to buying more at lower prices.