I also can't convince myself Korean chain restaurants are a good idae, but they seem to be doing OK. KRUS is a rotating sushi chain restaurant, with automation, I've been to eat there and they are both packed and super popular. It's easy for me to believe KRUS (which is the US version of a massively successful Japanese chain restaurant) will succeed long term.
But KRUS is more than double GENK's valuation.
It sort of does make sense to me that one Korean chain restaurant will - over time - beat out lots of Mom and Pop Korean restaurants, due to economies of scale, and eventually (perhaps) brand name.
But I also can't say the GENK story is as convincing to me as the KRUS (rotating sushi chain) story.
I do like that the stock valuation gives us some cushion. But in any quarter perhaps sales disappoint, and boom - the stock just gets crushed. But the opposite also could happen (GENK continuously meets growth targets, and the valuation increases from the current level). I guess the low valuation gives some comfort, but it's hardly a slam dunk.
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JACK - I just breezed the last Q earnings release, and It's not clear exactly what's going on. They've got company stores, franchise stores, and I don't even see a quarterly sales number. So....no idea what it's valuation is. |
