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Non-Tech : KKRO Koo Koo Roo

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To: Labrador who wrote (225)10/30/1997 12:52:00 PM
From: Fred Ayres  Read Replies (2) of 479
 
Bob,

You mean the Forbes article? Yes that is rather old. BOST did have positive earnigs, however they were lower as you pointed out. To me, the news suggests the BOST concept of francises is failing. The news also mentions that BOST is considering purchasing all stores so that they are company owned. Bear in mind that KKRO has all company owned stores and a partnership in Canada. It's unsettling the KKRO has gone this long without becoming profitable. I still hold 1100 shares down from 3100 earlier in they year. I did make some money during the summer when the stock went up to the 7s and I still feel confident KKRO will succeed in time. KKRO looks to be making progress. The company appears to investigate carefully where it will open new restaurants. With the exception of the Denver location that was shut down earlier this year the strategy appears to be working. Based on increasing revenue from new stores I would be interested in know what the break even point is-- the critical mass needed to generate enough cash to at least break even... is that 10, 20, or 30 stores from now?
With over 40 stores in the chain, including Hamlet, KKRO is becoming a sizeable operation. And remember with new opennings KKRO IS growing.
If someone could run the numbers it would be helpful... by the way aren't earnings expected at the end of this month?

Fred
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