Noodles & Company looked like it might be the perfect pasta IPO, but sadly has a few flaws that keep it from being the next Chipotle (NYSE: CMG). Everyone is always looking for the next Chipotle and each new restaurant chain going public makes us hope this is the one. Noodles & Company comes close but falls a little short. It may still be investment-worthy depending on the opening price.
Chipotle is more »
Ignite Restaurant Group (NASDAQ: IRG) is a recent IPO listing in May 2012. The business has two separate concepts: Joe’s Crab Shack and Brick House Tavern + Tap. Joe’s is the biggest part of IRG’s business with 129 restaurants and Brick House has 15 restaurants. Both of them are casual dining.
IRG hit a high of just over $19 shortly following the IPO. By mid-July it dropped to more »
There are a few ways a restaurant chain can increase revenue: they can open new restaurants, increase traffic, and increase prices for menu items. In short, earnings will grow if they can manage expenses and increase margins. Biglari Holdings (NYSE: BH) failed to do all of these last quarter, and with a minimal revenue increase earnings per share fell.
Steak ‘n Shake/Western Sizzlin's (restaurant operations only) revenue grew more »
Williams-Sonoma (NYSE: WSM) has been around for 57 years, starting with one store in Sonoma, California. While the brand is far from a new, fast-growth concept, they continue to add to the Williams-Sonoma stable of brands for growth.
The company acquired Pottery Barn in 1986 and expanded the concept into Pottery Barn Kids stores in 2000. West Elm was launched in 2003. WSM has seven concepts with bricks-and-mortar stores. PBteen more »
Aeropostale (NYSE: ARO) can still be filed in the dead letter office two years after the turnaround was supposed to take place. Back in the first quarter of 2011, CEO Tom Johnson was doing a post-mortem after a disappointing back half of 2010 and an ugly Q1 2011, and concluded that the fashion was wrong. At the time he remarked it was “crystal clear” what the fashion missteps were and more »
How do we find the next Chipotle (NYSE: CMG) early in the growth phase? Out of the billions of bytes that have been written about the company, what can we pick out that will point us to the next great restaurant chain?
The best restaurants have:
- Food that creates high traffic -- at present high-quality ingredients are a successful fast casual concept
- Positive same store sales -- higher is better
- Traffic increases more »
Panera Bread Company (NASDAQ: PNRA) locates in urban, suburban, strip mall, and regional malls. Like Chipotle (NYSE: CMG), the restaurants lean towards high quality ingredients well prepared. The menu highlights antibiotic-free chicken, whole grain bread, organic and all-natural ingredients, with zero grams of artificial trans-fat per serving. There are three business segments: company owned bakery-cafes, franchises, and dough distribution to franchises and company stores.
The concept is part quality food more »
ConocoPhillips (NYSE: COP) is in the midst of reinventing itself and is attempting a transformation into a pure E&P company that will exchange downstream refinery and chemical segments for accelerated organic growth in its North American holdings. Refocused capital spending and emphasis will be on developing the acreage they have in US shale, Gulf of Mexico and Canadian properties. To that end they spun out Phillips 66 in a more »
Core Labs (TSXV: CLB) revised guidance down for the third quarter 2012, pre-announcing they would be missing their numbers in early October. This is a rare misstep for them and the market reacted swiftly by shaving 21% off the share price. Since October, rig counts in the U.S continue to decline and are down by 23, while Canada increased rig count by 34.
Core is in the oil services more »
Tronox Incorporated was spun off from Kerr-McGee in 2006 along with a high debt load and a lot of legacy environmental liabilities. The company was a producer of titanium dioxide (TiO2). Titanium dioxide is critical to paint and coatings and is the secret ingredient that allows paint to cover and hide surfaces. In 2009, Tronox declared bankruptcy, unable to pay debt and environmental obligations and emerged in February 2011 sans more »
Textainer (NYSE: TGH) has been operating since 1979 and has grown to be the largest lessor of cargo containers with a total fleet of more than 2.4 million units -- 1.9 million of those are owned by TGH. The company has around 400 shipping line customers that lease its cargo containers. When a company is in the business of leasing equipment over a wide geographic territory, it’s critical more »
Clean Harbors (NYSE: CLH) cleans things up. The company is one of the larger environmental service companies in North America providing maintenance of industrial plants, expertise in handling environmental disasters, waste disposal and hazardous waste. The company also has a strong presence in energy on both the exploration and production sides. Clean Harbors was founded in 1980 by Alan McCoy who is still the CEO today.
In the 1970s and more »
The highlight of Q2 has to be this exchange from the conference call.
Anson Beard – Private Investor—Advisory Director of Morgan Stanley
Sam, you're not answering the question. Did you write off last year's $9 million? Is that a correct end of the year? You set a preserve for $15 million. You're reversing $6 million. Did you write off $9 million? Just yes or no.
Sam Yu more »
Prosafe (NASDAQOTH: PRSEY.PK) currently owns 11 of 18 semi-submersible accommodation rigs (floatels) after divesting their one accommodation jack-up. They will take delivery of a new harsh environment semi-sub be delivered in the second quarter of 2014. That will increase the worldwide fleet of harsh water semi-subs to 8 (Floatel will add one more to its fleet in 2014). It’s a small market and even with only 18 semi-subs more »
The business of operating the Steak ‘n Shake and Western Sizzlin’ restaurants has taken a back seat this quarter to Biglari’s Cracker Barrel (NASDAQ: CBRL) obsession. He is now in a proxy fight for two board seats for Phil Cooley and himself.
Biglari Holdings (NYSE: BH) according to the 13F has the following holdings:
Unrealized gains were $53 million, mostly on one security and that would be Cracker Barrel more »
GameStop (NYSE: GME) appears to be entering its senescence but it may turn out to be a graceful, extended exit if investors are lucky. This is a no-growth story in spite of the ever-increasing billions of dollars spent by gamers. With technology evolving and the competition sharpening its knives, GameStop's business is disappearing. Amazon (NASDAQ: AMZN) has been especially tough competition with promotional pricing and a wide selection of more »
Aeropostale’s (NYSE: ARO) share price has benefited from a history of giving lowball guidance and then over-delivering on results. This is not an unusual tactic and companies giving conservative guidance are not anathema to investors. Conservative guidance is preferable to promising results the company has no hope of seeing. Gratification is often immediate as the share price increases on optimistic guidance, but a disappointed market will mercilessly kill a more »
Most retailers have given up on announcing monthly same store sales and revenue, but the Buckle (NYSE: BKE) continues to steadfastly update analysts and investors every month. This creates some short-term angst and lowers expectations when the news is bad.
The Buckle crossed below its 200 day moving average of $43 when revenue at stores open at least a year was nearly flat in May, missing analyst expectations. Same store more »
Capacity growth now—building for the future
Carbo (NYSE: CRR) sells fracking proppant to oil & gas producers, and brisk activity in E&P is critical to their success. The current low price/oversupply in natural gas has upset the flow of their business and the price per share is dropping. Business is manufacturing and selling ceramic proppant and resin-coated sand for use primarily in fracking. Carbo also provides its popular more »
Broad and shallow is beautiful in boutiques -- in people not so much.
Francesca’s (NASDAQ: FRAN) is a broad, shallow, semi-fast retailer that is in the midst of some rather amazing growth.
Broad, shallow refers to a big selection of merchandise but a small inventory of each of the items. Francesca’s says the strategy creates a sense of newness and exclusivity. When the consumer does not see a six-foot more »
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