Is this RR in position to benefit from the flow of materials into the region to rebuild from Hurricane Sandy. If so I am guessing that's already baked in? Sorry, I just started following this stock and am not familiar with its geography
Likely to dump 16" or more in areas and clear out retail inventories of snow blowers. Manufacturers inventories already low from Sandy effect. Expect production and shipments of engines to blower manufacturers to be strong though March.
Sentiment: Strong Buy
Cougar, take off the blinders. Blockbuster used to be a killer concept at one time too. Tastes change, markets get crowded, inflated multiples deflate in a hurry. Be objective - this performance is not sustainable, with so many headwinds!!!!
John, why do you only value Qdoba at $175mm - this is just over $300k per restaurant compared to almost $7mm per with CMG. Investors see the CMG franchise as 20X more valueable than Qdoba?
This is not an article its an advertisement. FH doesn't do articles on companies unless they advertise with them!
Typical of the mindset of the investors that have pumped this POS up to these levels. News Flash - "Splits don't create value" still 50 times PE and still valued at $7 million per store.
Here's a thought - at current market cap each store is valued at $7 million. With your option each store will be valued at almost $9 million. Not bad for something that costs $250,000 to open and generates about $150,000 per year in net income. Haven't we learned enough about bubbles? Like everything else the last fool in is the biggest loser!
Chipotle has 1,000 stores and a $7 biliion market cap. Jack owns 525 Qdobas and has a $1.2 market cap. Let's get silly and assume a Qdoba is also worth $7 million per location - that's $3.6 billion alone. First of all CMG is wildly overvalued, but when JACK unlocks the value of the Qdoba franchise......!
Opened a store this week a block from the local Wild Wings - packing people in. I'm more of a real sports guy than a racing fan, but the wings were better and a better value - roughly the same 16 sauces. Not a clear winner in the wing wars, but clearly another competitor vying for a piece of a shrinking pie. I think they now have 50 stores and an agressive growth plan which appears to focus on existing Wild Wing markets. The competition in this market is intense and sadly, most of the new competion is going to be late for the party; but nonetheless will spoil the fun for everyone in attendance.
If you're still at the party and can leave with a pretty girl - do so now - staying late and drinking them pretty is a bad idea.
I have been long this stock a number of times - I recently left the table again. I actually like the food and love the concept. Here are the trends that worry me. I visit many sports bars - every one of them is noticeably slower on game days then in previous years. There is new competitition every month - every bar is equipped with tv's and promotes the game theme. Largest markets Ohio (Bengals, Browns, LeBron, Buckeyes), Texas (Cowboys and Texans), Illinois (Bears will always suck) have been out of contention. Price increases and smaller portions are starting to pee me off (I still go - just not as often). No Olympics this year. These things should impact the December quarter - and if I am wrong and they were solid despite these trends, I would be worried about the NFL and NBA lock-outs. Bottom line - too much downside and what I see as very little upside at these levels.
This thread doesn't deserve any attention - but this "bozozep64" clearly needs some marketing 101. Let's keep it simple, there are commodities (a raw chicken for $.69/lb - you could buy this, carve it up and prepare your wings and save yourself a couple of bucks - important if you work at Kmart and live in a trailer); there are products (raw chicken wings for $1.39lb. - same scenario as above only you don't have to cut it up); there is what we call service (Meijer's cooks and sauces your wings and charges you $4.99/lb. -you take them home and heat them up with you budweiser and watch NASCAR from you faux leather recliner); and then there is what marketers refer to as an experience (wings cooked for you with your choice of a sauce, live sports and real people you can socialize with - no 900 number charges).
"It's the expereince stupid" - like it or not it is hot with the under 30 demograhic. A similar demo to CMG which was just received a huge upgrade today - college kids and young professionals are spending again.
Up to 25% of each restaurants success is tied to the success of the local sports teams. 15% of these restaurants are in Ohio (Buckeyes, Bengals and LeBron); over 10% in Texas (Cowboys, Texans, Horns, TCU), 8% in Indiana (Colts, Pacers, Butler, Notre Dame, Purdue), 7% in Illinois (all teams suck); Minnesota (Vikings), Wisconsin (Packers, Badgers, Bucks), Missouri, Virgina and Florida are also major markets. All of the teams shown in italics are enjoying better years than last. The NFL playoffs will be a killer compared to last year based on the location of the teams involved. Discretionary incomes are down - people may put off buying that new snowblower, but they won,t stop watching their favorite team in their "happy place". If you don't get this, you don't understand this stock and should be in some other investment. If you are shorting this you are clearly an ignorant fool. I am not not trying to change your mind, I love shorties and I love the squeeze!
I don't think HD sells BGG portable generators, although I would think BGG distributors experienced similar results. I think the better impact is going to come after everyone gets their power back and decides that they are never going to go through that sh!t again and subsequently invests in the propane standby models - these are big ticket items.
You're an idiot - you know nothing about this company! You've been working for some local distributor for 20 some years, you hate the fact that Airgas has moved into your market and is eating your lunch. Your days are numbered - you should be calling on your customers instead of trash talking on this website.
Cisco did this and was successful, but they started with a good core business, which provided them the capital and stability to do it.
Yes, I was exagerating the problem; but this company still sorely needs some sort of sustainanable catalyst - tell what will it be?
Why is this so exciting - 32 units at $25K is about $800K in revenues. 25 more deals like this in the quarter and they might actually break even. I am long the stock and have been for years, but we need a steady stream of this type of news. This is just another tease. I really thought they could use the oil prices as a catalyst, especially at community and city colleges. How much gas could be saved in just one year at one college if students had the option to take in lectures from home. Why haven't they done a better job of promoting the environmentally responsible slant to this product. We need lobbyists and tax credits - oh yeah, universities don't pay taxes. This does dovetail with Obama's policy proposals - make education more affordable and attainable and reduce dependence on foreign oil.