On the Cheesecake Factory CAKE thread, we have been discussing CKR as a way to diversify our holdings in CAKE. CAKE, in case you don't know, is a very nice, upscale restaurant with 20 some locations and a 20 some page menu. We think it is quite opposite of CKR, with the exception that both are profitable. Here is what we have discussed so far:
<<D--What do you think of ckr (CKE Rest.--Carls's etc.)as an alternative/diversification to cake.>>
<Sorry for the slow reply, William. I have been away for the holidays. Regarding CKR, I think they are doing quite well due to their ad campaign (If it doesn't get all over the place, it doesn't belong on your face) which features Dennis Rodman and others. I am not sure if their success is a short term fad or a long term success story. I remember awhile ago (maybe 10 years) that the owner of CKR did some weird things with his profits, but I am guessing that management has changed since then. CKR is regarded highly by many, but I am not sure if it has a lot of room to grow after the next year or two. I would expect fast food chains to do better during weak economic timesrather than strong times, but their growth rate has been quite good lately. I am not sure if thisis only due to their purchase of other chains (Hardee's and Taco Bueno). I would expect it to normally do the opposite of CAKE for the reasons I've stated, but it mightbe close to a high so I am not sure.
-Dylan>
Obviously these opinions are based mostly on general perception and knowledge without respect to fundamentals, so if someone on this thread could tell us what makes CKR special, we would appreciate it very much. Thanks, Dylan |
