>>Is there some financial wizard out there who can enlighten with objective and educated analysis?<<
I'm not a wizard, Larry. However, one need not be a wizard to notice there is no earnings growth.
The indivudual stores seem to be doing quite well from a Peter Lynch perspective (I eat there and like it, people I talk to like the place, they seem to be doing good business, etc), but the company is not making a profit. Revenues are not increasing per store, and do not show any sign of doing so in the future. Any future revenue growth is premised on opening more and more outlets, but it's still not clear that will get KKRO into the black, and if it does, that margins will be anything more than nominal.
My take: they lack a killer instinct. Two years ago, they had a wide-open shot at the single best take-out location on the West Coast, at the corner of Church and Market streets in San Francisco. It was empty for over a year. Boston Market took it instead. I say it's time for some brass-knuckled marketing along the lines of McD or Pepsi. They'd know what to do with the franchise. |
