Nice quarter with the margin improvement, which is tough to do when prices are fixed right in the name. But what was the same store sales growth? 2.3%? The multiple is still way to high to justify that sort of growth.
I think this recent pop has to be an opportunity to sell, until the multiple comes down or they can demonstrate faster growth again.
Opportunity to sell? In this economy, they will get more business as people discover them. The CEO said that on average each customer was purchasing more "nuggets". This will continue to do fine as the economy struggles. They have already done so in the past.