Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Author: SirTas Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35  
Subject: news... Date: 9/19/2003 10:16 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
from http://finance.lycos.com/qc/news/story.aspx?story=35725749

Applebee's (NASDAQ:APPB) considers itself to be the largest "casual dining concept" in America, (not to be confused with fast food), both in terms of number of restaurants and market share. You want to be really good if you are going to go head-to-head with these folks. This summer, shares of O'Charley's (NASDAQ:CHUX), which competes with APPB, were cut in half after the restaurant operator reported a drop in same-restaurant sales. For the 26 weeks ended in June, revenues rose 21% to $488.9 million and net income rose 7% to $44.8 million.

Cut in half??!! Well, the price dropped significantly. (And it's dropping significantly today too.)

--SirTas
Print the post Back To Top
Author: kh Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32 of 35
Subject: Re: news... Date: 9/19/2003 10:00 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
As I recall, the stock dropped "only" 20-30% the day in August when quarterly results were released.

Looks like CHUX is close to signing up its first franchisee, Meritage Hospitality Group (MHG). The deal is subject to MHG getting financing. MHG is a Wendy's franchisee and would have exclusive rights to develop stores in Michigan.

Perhaps this will become the growth strategy going forward--use franchises in new markets like Michigan and stay with company-owned stores in CHUX's existing markets? Who knows.

http://biz.yahoo.com/prnews/030910/dew020_1.html

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev Thread | Next Thread
Advertisement