John,
Yes, I saw this in the reuter's release about PHL yesterday. Specifically mentioned RAIN as one of the reasons revenues were down in the article. Figured this was a setup for a theme restaurant drop today, and this covered others like RAIN and DANB, also. Today's drop isn't a long-term issue, and if RAIN keeps on bringing in the earnings and managment does what it needs to, today's prices are going to seem very cheap in the long haul. It is possible that the whole theme restaurant industry may crash, and this looks to be the concern on the street(or at least drop quite a bit), but I don't believe this to truly be the case(as more competition, the cream rises and the lessers don't all survive). It looks like RAIN should be able to cover the 1.20 est. for the year(98) without a lot of difficulty if the revenues at currently opened units don't drop significantly and the other units come on line in relatively expedient fashions, especially with the add-in of the next Disney store, likely in 3/98. Remember that this past year was looking at earnings in the .70s with a lot of drawing units not having been opened all that long, and all of these will be opened for the entire year this go-round.
Now it's time for RAIN management to give us something good to eat for a change, such as a coo.
Regards,
Marshall |
