RRGB might look to acquire Fuddruckers. This 180 unit chain could be stolen as cheap as $65 million. RRGB might also enjoy its franchise revenue stream
Fuddruckers is a takeover candidate and its 180 locations could be gobbled up for just $60 million. Will HABT be the suitor?
This puppy could easily attract a buyout premium of 25%. That would catapult the shares near the $6.00 mark and put a smile on the face of shareholder's.
The company anticipates to open 8 more locations within the next 12 months. A combo location in two weeks (Jackson Mississippi). A Koo KOO Roo conversion to a Fuddruckers in March ( Santa Monica, Ca.), and five Cheeseburger in Paradise conversions to Fuddruckers. These additional stores should add a nice revenue stream.
Four managers at one time, can be expensive-no wonder Luby's is struggling to make a profit. The good news is there are plenty of areas to make vast improvements ( this is an example of one of them). thus moving the needle in the right direction.
If this sucker gets to $5.00 or so, I will be backing up the truck. The maximum downside at that level, is a mere 50 cents, but the upside is four times that amount. The risk vs reward is indeed compelling to the long
sorry, I guess it wasn't very encouraging after all. I assumed it was (early in the am) because the shares showed some strength. I guess the market is now telling us otherwise.
The 2015 Annual Shareholder's Meeting just adjourned. Very Encouraging stuff.
Luby's needs to think outside the box, so they can find a way to move the needle enough, to please a very fickle Wall Street.