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Strategies & Market Trends : Rande Is . . . HOME

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To: vagabond who wrote (48317)3/2/2001 9:09:18 AM
From: Rande Is  Read Replies (1) of 57584
 
Vagabond, from a purely subjective consumer point-of-view. . . .I don't see much to this fast food chain. But Krispy Kreme was pumped with air and a very low float and reached triple digits. So if I were interested in trading AFCE, I would look carefully at the public float and the trading volume. . . and play it like a momo.

Church's and Popeye's chicken have been getting competition from the likes of the Kentucky Fried Colonel, Chick-Fil-A, Mrs Winners, Boston Market and Hardee's. . . not to mention every grocery store with boxes of chicken for about $3 or $4 bucks. I don't see this as a rapidly expanding biz.

Seattle Coffee and Cinnabon are more successful, but if their franchises were expanding rapidly, the company would not need to file for Public Offering. And there are only 140 Seattle Coffee stores. . . like a drop in the bucket of debt. . . .yet that is perhaps the most promising franchise in the company's portfolio. Cinnabon has already saturated U.S. malls and I have yet to see anyone stand in line to buy from them.

My favorite franchise of their operation was a little known company called Chesapeake Bagel. . . .divested in 3rd Qtr of 1999. This is a fickle market for fast food franchises. . . one day we are crazy over pizza pockets, the next its bagels. . . then its scones. . . then its pitas. . . . then its biscotti.

I just don't see this company making many new marks in the market.

In my opinion, the first fast-food company to figure out a way to guarantee the well-doneness of a turkey burger will be the one to make the next big splash.

Rande Is
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