So, I didn't hear the CC myself, but I understand that they fell short on SSS--and broke a longstanding record of theirs--but had increased earnings. Now, they're really being hit hard in the market today. Isn't this an over-reaction? --SirTas
...I understand that they fell short on SSS--and broke a longstanding record of theirs--but had increased earnings.CEO Burns said on the conference call that the decrease in SSS was due to a difficult comp with last year's Q2, when the company had a special promotion going. Burns also said that the company is moving forward with the franchising concept, albeit cautiously. Apparently, many franchisees are having difficulty obtaining financing these days, he said. He wouldn't rule out providing financial assistance to qualified buyers. But my impression was that he is somewhat reluctant to take the company down this road. Just wondering, has anyone every been to an O'Charley's? (I haven't.) What are they like--somewhere in between a Chili's and an Outback?
What are they like--somewhere in between a Chili's and an Outback? We eat there pretty often. It's less "theme-y" than Outback, food is not as pricey. Probably more like a Chili's (hard for me to say that--I don't like Chili's at all!). You can get a very good steak dinner for under $15, with salad and fresh bread. They make their own dressings, soups, etc. and the fish has always been nice and fresh. The bar section usually does a good business. Management fixes problems pretty quickly (like over-cooked steak), and management presence seems a lot more that at the Chili's I've been to. I think it's similar to a Bennigans or a Houlihan, if that helps, but again, the prices seem maybe a buck or so less per item. They really aim for consumers who want value for $$ but also want good-tasting fresh food. You're not going to get creative chef specials, but it's good for people who just want a dependable meal, reasonably priced, and don't require their meal to be memorable or trendy. It's also fairly dieter-friendly.Sorry if I sound like an ad...I was a customer before I was a shareholder.Kathryn(darn...now I'm hungry)
Also, they serve alcohol, but I don't know whether Chili's or Outback does. I think that's a big plus. It can enhance the meal (for people who choose it). --And some people of course can just drink and not have any meal!As for fish--was that on the regular menu or was that some sort of special? DW really likes fish, but was disappointed not to see it on the menu when we went to O'Charley's. --SirTas
As for fish--was that on the regular menu or was that some sort of special? DW really likes fish, but was disappointed not to see it on the menu when we went to O'Charley's. The one here in WInston-Salem, NC has grilled salmon on the menu all the time, and grilled tuna as a special pretty frequently (they may have added the grilled tuna to the regular menu). I'm not a big fish-eater, but DH loves the salmon.Kathryn
Kathryn and SirTas – thanks for the info. I've been watching CHUX for a year or so but haven't bought the stock yet.I would think SSS should be pretty good this quarter (Q3). Last year's Q3 was impacted significantly by the events of Sept. 11, the company has said. That should make for an easy comparison. If SSS does somehow drop this quarter, I would think that's a sign of trouble. Listening to the CC, I was impressed that management seems to have a good focus on cost control, which is critical to success in this industry. The company has a hedging program that allows it to lock in costs on about 70% of items on the menu.
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