The best barometer on how much DAVE is growing on the sales side is to look at system wide sales. This includes restaurant sales at company owned restaurants and sales at franchise restaurants thereby representing the total amount of money spent on meals at all Famous Daves locations. For the mathematically challenged like Bony I have done the math for them. Company owned restaurant sales were flat from 2004 to 2005 at around $89 million (although 2004 included an extra week). Franchise sales are not directly reported but can be calculated based on the franchise royalty income which is about 5% of sales. In 2004, DAVE had $7.35 million in royalty income from about $147 million in sales. In 2005, DAVE had $10.4 million in royalty income from $208 million in sales. Adding the company and franchise sales together for system wide sales gives $236 million in 2004 and $297 million n 2005. This shows a 26% overall increase in the amount of restaurant sales at Famous Daves. Combine this with the 35% EPS increase and you see a solid growth stock.
I would consider that a bad investment since they sold those same shares at $6 just two years before in a private placement. They were supposed to use that money to grow the business. Instead, they bought back those shares at a higher price.
"The board is telling the market that their own restaurants aren't worth risking capital."
You're right on that. They were flush to build new. Remember, repurchases reduce the number of shares outstanding and boosts the company's EPS and ROA. It help hide some of G&A. The impact of the 2.1% increase in G&A was almost criminal. Do the numbers yourself and ask yourself how that impacted EPS.
I still say this sends a negative message. Stock re-purchases are typically for mature companies flush with cash, not for some relative start-up. Why aren't they investing in building more company restaurants to drive growth? The board is telling the market that their own restaurants aren't worth risking capital.
If they don't see a good return on their own restaurants, why should anybody else?
"He/she is just like George Bush - just keep shooting yourself in the foot..."
At least he's not like Cheney shooting people in the face. Too bad Cheney had 6 deferments - if he would have served he'd have learned how to handle a gun. Even Bush's military experience is so questionable.
Still dreaming? You do realize that your continued non-value postings are having a negative effect on those who support your views of Dave's. Just look at George Bush - just keep putting your foot in your mouth with nonsense and look what its done to his political party. Maybe they haven't taught you that yet in night class.
By the way, how's Dorthy?
Could EatMyRibs be the person behind Dave's mascot, Wilbur The Pig?
Seems like EatMe is so determined to prove me wrong. I suppose when he/she is done with his/her night classes, he/she will realize how wrong he/she is. All kids go through a learning process, so just give him/her time. I'm sure the rest of the board realizes he/she brings no value to the board, especially when you use Dorthy, Dave's Receptionist, as your source of misinformation. He/she is just like George Bush - just keep shooting yourself in the foot and making fools of his/her supporters (or in this case, Dave's management). I'm sure he/she will take this information to night class and ask for assistance on figuring out the meaning. Everyone on the board realizes that when you constantly dodge legit questions on Dave's performance, that it's the equivalent of saying you agree with the assessments. Unfortunately, he/she is nieve to the truth.
"Cary, why don't you go home and beat off Bony"
Your a slime of the worst kind screting a mucous substance worse than a slug on this board. Does your mother know you talk like this little boy? I bet she would be very proud of your contribution to this board.
I do feel very sorry for you.