Lone Star Steakhouse (STAR) Message Board

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Non-Tech : Lone Star Steakhouse (STAR)

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To: Arthur Marigold who wrote (114)	1/31/1998 10:05:00 PM
From: Shane M	Read Replies (1) of 175

"The whole group is moving up on low volume (see OSSI)." FWIW, I'm a holder of another small cap steakhouse Logan's Roadhouse (RDHS) and they announced solid results for the quarter on Friday. Despite everything we constantly hear about a tough, competitive environment, there are still companies out there that are able to shine through. RDHS has 10.4% margins for the quarter and 10.0% margins for the year (on 36% sales/share growth and no long term debt). These kind of numbers, as well as the strong margins still being put up by STAR (in spite of same store sales) don't fit the consensus view of a low margin, nearly commoditized industry. There are not alot of companies turning in margins of 10+%, and that certain restaurants like RDHS and STAR can get this level of profitability is to me a sign that they are stereotyped as "just another restaurant" when in actuality they set themselves apart from the crowd. Shane

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