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Non-Tech : KKRO Koo Koo Roo

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To: deep_rough who wrote (242)	11/13/1997 8:44:00 PM
From: Fred Ayres	of 479

Good comments Gary. I have concerns about KKRO short term. I have no idea what the earnings will be like. We all know there is a 4.8 million dollar charge this quarter. I am guessing revenues will be up, as usual. Long term I think KKRO will be a big winner. Unlike Hamlet which had little growth ove the years, and a food concept that was static, KKRO has a hit with the health- replacement-meal. I have heard that KKRO is opening close to one new restaraunt per week. I think Larry's comments are true of restaurants throughout the system. Yesterday, in the afternoon I passed by the San Vicente location. It was packed. In the past when I spent time to count cutomers over a 20 min period I got a number of 60. Bear in mind this was for the lunch hour. I do not expect the volume is constant throughout the day. Based on numbers of $2 million per location in revenue. I calculate about $38,500/week or $5,500/day. Each meal comes out to about $8. I come up with 690 customers/day at a typical location. This number seems reasonable as an average. I'll see what KKRO does tomorrow and most likely buy if it goes lower. Anyone know about earnings? when do they come out?? Fred

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