why do i still own this stock? because they have a great product. i guess i stay invested because of exactly the wrong reason... emotional. this company has out of control general and administrative expenses. an increase of 54% from 1999!!! thats disgusting!!! In 1999, G&A was already bloated terribly. even considering the $5.5 million for turning off the turnkey program, and a few other charges explained in the annual report, there is still $2 million of additional spending. God, these people just don't get it. A little belt tightening would go a long way on wall street. Your average restaurant franchise has 10% of revenues as G&A. BUNZ has a whopping 47% of revenues dumped into G&A.
At least Bunz is now honest and fully (or more than fully) accountable. Five years ago the accounting sucked and suckered investors. Now its cleaned up. The product continues to gain momentum and BUNZ will be considered the premium "fast food" establishemnt within one to two years. BUNZ is way ahead of the curve, giving (and expensing) FULL BENEFITS to all employees. Other restaraunt chains have yet to do so; they will need to do so or perish. Why? Because the work force is drying up, despite the so called rise in unemployment. BUNZis building a competent and reliable work force. Employee competence is becomming a scarce resource.
What have you (buccayew) been smoking? They finally suckered you in. How do you think the accounting got so screwed up in the first place? Why have they gone through aomething like 6 CFO's in the last 10 years? The Wooley's run Schlotzsky's. The CFO may change, but the CEO stays the same.
Schlotzsky's has tried to position themselves as "the premium 'quick service' (not fast food) establishment" for years. What makes you think they will do it in the next 1 to 2 years? Stores are closing as fast as others open. And they just don't seem to care. There is no momentum being gained in this company. At best they are standing still. Schlotzsky's may not be totally rudderless, but management does not seem to know which way to turn. Just look at their real estate programs over the last 5 years.
FULL BENEFITS to all employees? Maybe the office staff and corporate store employees have full benefits, but that is as deep as it goes. Again, there may be a few franchisees that provide these benefits, but they are few and far between. Remember, the corporate store employees represent a mere fraction of the total employees of all franchised stores. There is no way the sales of the vast majority of stores can support that kind of overhead. And I know for a fact that the franchisees I know do not provide FULL BENEFITS.
BUNZ may be building a "competent and reliable" workforce, but it is anything but that at the top.