MAIN's 10Q is quite disturbing if you ask me. In Q1 of 2003 our nation went to war. All Restaurants suffered and MAIN posted -1.2% same store sales comps versus Q1 2002.
Q1 of 2004 had the TGIF Atkins advertising as well as the 2 for $19.99 marketing. Sales were up a whopping 5%. I am not very impressed by that. Applebees sales were up 8%.
But MAIN's management has decided that one quarter of 5% same store sales increase justifies bonuses. How nice!
From the 10Q >>> "General and administrative expenses increased as a percentage of revenue to 4.2% for the three months ended March 29, 2004, from 3.7% for the comparable quarter in 2003. The increases were primarily related to an increase in our accrual for bonuses as a result of improved performance in the quarter ended March 29, 2004"
As for the increase in payroll and benefits >>> "combined with an increase in bonus expense as a result of new bonus programs for our stores and stronger restaurant performance for the three months ended March 29, 2004 "
I don't see any increase in performance. It was simply a bounce back from a very poor Q1 in 2003. 8 cents in eps versus 8 cents eps when you have a 5% same store sales increase is inexcusable.
Obviously Management thinks they have done a great job. Not bad taking a $3 stock and 7 years later turning it into a $2 stock. Or how about taking it from $6 in 2002 to 70 cents in 2003.
Anyone here attending the June 8th shareholder meeting?
They have not completed the management makeover yet. Throwing Bart out is a good start and you all know my opinion on what needs to happen next. Hell, even Schmeck is upset. Me, I just sit here on the edge of the pond waiting for the water to cool some more before I take a gulp. Learned my lesson last time. Meanwhile I will just sit here and watch all the poor people who have been in for a while suck more and more pond water. What ever happened to that Stuart Gee?