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Granite City Food & Brewery Ltd. Message Board

  • watercenters watercenters Oct 22, 2008 12:57 PM Flag

    Why is the price of this stock at 50 cents and change?

    I went into the St. Louis location for the first time for lunch last week and they seemed to be doing a decent lunch. Fast casual upscale kind of lunch crowd was in there. I liked it enough to look up the company. I was amazed to see this co's stock price zooming straight down from the 6's to 4's to .50! Wow! What's the deal here? I would have guessed that with this ecomony, their business model would allow them to sell great beer at prices much lower than the competition and still make a go of it.

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    • Cliff notes version:

      Grew too fast, couldn't manage growth,
      High commodity prices put sector in the crapper,
      Now choking on a mountain of debt with subpar store level margins.

      A great concept in serious financial trouble.

      Company has been VERY quiet about operations. Not a good sign.

      • 2 Replies to honda4everrrr
      • Yea, very quiet. Was looking at this one as a potential buy and started talking with managers at various stores. One I spoke with was venting to me about Darius' wife (he's the COO now?) who he said is some kind of a "HR and marketing consultant" and was paid over $120,000 in 2008 by GCFB. They are laying into him hard to cut costs and he's not happy about her making twice what he does and he has been unable to find out what it is she does. It appears that they already have an HR director. Info is there on the GCFB website so he must know what he's talking about. Funny thing to do when you are hemorrhaging cash.

      • And, this recession ain't going to be kind to the overleveraged/undercapitalized. It sounds like an interesting chain. Wish I had one in my area. But, it needs to reorganize under Chapter 11.

    • You mean 50 cents as opposed to ZERO?

      You need to read the company's financial statements and look at its balance sheet. Then, you will see why it trades where it does.

1.51-0.0900(-5.62%)Jun 28 1:10 PMEDT