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Technology Stocks : Rubio's Darn Good Fish Tacos (RUBO)

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To: Christopher Gates who wrote (32)8/20/2000 1:08:30 PM
From: Bruce R. Schlake  Read Replies (1) of 34
 
I have never owned any Rubio's stock because I don't like the restaurant business as an investment, but I am very familiar with the operation. Electricity is one concern but not the most important item in that press release. It was mentioned that new stores are cannibalizing sales of old stores. Doesn't this mean that too many restaurants are being built? Another problem is the barriers to entry. There are no patents here. Nearly anyone can open a Mexican restaurant across the street, charge lower prices, give away free chips or extras and take sales away. I have noticed that this has happened in many places. The only choice for Rubio's is to spend more on marketing in an attempt to distinguish itself from the competition, potentially reducing profits even more. This is a tough situation and a real tough business to make big profits and good stock appreciation. Good luck!
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