It appears that they overpaid for the chain-especially if it causes them to lose money. The Fuddruckers purchase out of bankruptcy, made sense, but this one (cheeseburger in paradise) is perplexing to say the least.
First Dallas increases its holdings from 7.8% to 8.3%. Do they know something the rest of us don't?
This one was just way overheated and needed to correct- it is now down 50 cents from yesterday's high, making the current price a decent entry point. A run to $15 by the end of the month is more than realistic.
During the last 3/4 of the company's current fiscal year, they plan on spending $35-$40 million. $14 m is dedicated to opening 6 new locations ( 3 paired) and starting construction on an additional 2 locations slated to open on 2015. The company also plans on spending $10 m on raw land purchases ( to build future restaurants) and $6 million on remodels. The balance of the cap ex will be to support current operations.
these guys paid $10.2 million and assumed $2.4 m in debt to acquire this 23 unit chain. On top of that, they also have to pay Jimmy Buffett ( yes-the singer himself) a royalty fee of 2.5% of all future sales. They have already closed three units, and the chain is a drag on earnings. Why would LUB management overpay for such a stinker chain? Anybody have any thoughts?
It appears these guys snagged about $20 million per year in new culinary business at a major Houston Hospital system. This contract is slated to commence the first week of March and is will be operated as a cost + fee manner.
Not sure why the stock has been on fire for the last 4 days, but I'll take it. If the shorts start to get anxiety ridden, we could see a squeeze develop and possibly reach $14 by the close.
how on earth did you find out about that occurrence? I don't see a single thing on the internet referring to that "supposed event". Usually the company is required to file with the SEC for something like that.
the math is: market cap/ annual sales..the answer is $38m/$134 m or .28
the company's sales are nearly 4 times its market cap
might go back to the mid $5's, but will certainly first reach the mid $6's. The shares look quite sweet now that they have broken north of their 200 day moving average line
finally the shares are seeing some strength. other stocks in the sector are not so lucky as both CLNE and WPRT are firmly in the red today. I guess this is a classic dead cat bounce.
the good news is that coke has taken a 10% stake, but bad news is: (1) the price per shares is 10% below the current price and (2) guidance was weak and (3) GMCR will see dilution until they buy the shares back
it seems apparent, that the Board or top management does not care too much about the stock price, but they should. The lower it gets, the more vulnerable the company becomes to a hostile takeover attempt. A change of ownership would likely mean, current management would be out of a job.