JAX has held up well and appears to be very undervalued by the market (considering their owned RE and sales), but their earnings are very disappointing. I am concerned that they have not been able to reduce their operating expenses (or obtain better leverage from improving sales). With only a single digit profit margin before G&A, it is very hard for them to earn a reasonable profit and then when you consider their significant capital investment in each location it gets worse.
Any chance that JAX can convert a failed restaurant into a profitable J Alexander’s location and therefore not spend as much capital on opening each location? How about them buying/merging with another small operator?
Regarding being sold – if the company ever received a serious offer would not the Board have to consider the offer, therefore Mr. Stout can not prevent the company from being sold. What happens when Mr. Stout retires?
Finally I remain a little surprised that E. Townes Duncan remains on the Board even though he has sold a lot of stock over the past few years.