Down again getting ready to add to my position. Probably tommorrow morning. Did no one hear that they were going to make numbers? You believe this man who obviously favors outback to lone star. Outback that has missed its last two quarters and lone star who has beat estimates. Who do you think runs a better company? Ask yourself people do you believe someone who is paid to promote a stock (outback) which says its an accumlate from a buy after the second quarter of bad earnings. Lowers lone star to a neutral which is going to make earnings or better and made better last quarter. Then says its a competetive market. It is competetive and which company do you think is doing better in this enviroment. I'll give you a hint its not outback. Anyway enough venting. Just remember that to texans (most) their word is their bond. Here is the post for the downgrade.
Subj: Article
Date: Tue, 25 Mar 1997 22:32:33 EST
from yesterday ...
NEW YORK -(Dow Jones)- Shares of Lone Star Steakhouse & Saloon Inc. continued to fall in sympathy with another restaurant operator and because of a lack of improvement in same-store sales, analysts said. Shares of the Wichita, Kan., restaurant owner fell $1.875, or 7.3%, Monday to end at $23.75 on volume of 1.95 million, compared with average daily volume of 688,966. Earlier, the shares hit a new 52-week low of $22.625. The previous low of $24.625 was set Oct. 28, 1996. Monday's decline followed Friday's drop of $2.375, or 8.5%, to $25.625.
The stock has fallen in sympathy with Outback Steakhouse Inc., which set a 52-week low Friday, analysts said. Outback said Friday that it expected first-quarter earnings to be 10% to 12% shy of analysts' estmates of 40 cents to 41 cents a share. The company cited a decline same-store sales during the period stemming from difficult comparisons, reduced trading days, a 2% decline in the
average customer bill and soft sales in Florida. Lone Star's same-store sales have been down an average 4% year-over-year for the past few months, said Raymond James & Associates analyst Michael Fineman. The number of customers coming into the restaurants and the average customer bill have both fallen, he said. Although there has been no indication that this same-store-sales trend will turn around, Lone Star management is confident that it will be able to meet earnings expectations, Fineman said. However, "I think there's a lot of risk given the very competitive environment," Fineman said.
Fineman downgraded Lone Star to neutral from accumulate Friday, while maintaining his 1997 earnings estimate of $2.10 and his 1998 projection of $2.60.
There are growth opportunities for Lone Star, particularly in the West Coast market and with its upper-priced menu, said Jefferies & Co. analyst David Rose. In addition to its moderately priced Lone Star
restaurants, the company operates Del Frisco's Double Eagle Steak house, with an average check of about $60, and Sullivan's Steakhouse, with an average check of about $35.
The company is also adding new appetizers and entrees to stimulate increased sales, said Rose, who has a buy rating on the stock. |
