Hey Everybody interested in this stock- I just received this from Damex - Please read but proceed with caution when investing on OTC: I just got burnt on BAAT - Have fun Investing
The theme restaurant market has proven to be one of the most popular and fastest growing segments of the $300 billion U.S. restaurant industry. JOES is in the growing segments of the $300 billion U.S. restaurant industry. JOES is in the process of establishing a new chain of theme restaurants called Eat at Joe's; a 1950's style diner concept featuring popular breakfast, lunch, and dinner dishes at affordable prices with a visually appealing "50's" atmosphere and extensive merchandising opportunities. JOES restaurants will be opening in shopping malls, airports, and non-traditional locations worldwide.
Eat at Joe's want to attain the same household name status as Planet Hollywood and Hard Rock Cafe. We at Damex think they can do it.
Sales for the restaurant industry increased 50% during the past ten years as Am ericans are spending 44% of their food dollar away from home (a percentage that has increased steadily from 25% in '96) and their desire to eat casually without spending a lot of money uniquely positions JOES as the theme-based restaurant chain. The Eat at Joe'sconcept takes advantage of the public's growing appetite for fun dining experiences. JOES also fills a perceived gap in the marketplace for reasonably priced restaurants that offer wide menu selections,consistent quality, and quick service, but without the "feel" of a fast food outlet. In addition JOES restaurants are designed to appeal to a wide range of demographic groups, including families that are interested in having an affordable dinner out in a casual environment, as well as individuals of all ages seeking friendly service at reasonable prices and for those who wish to takeout. Moreover, theJOES concept has been formulated in three different size configurations; allowing the flexibility to operate profitably in small, medium and large retail sizes.
The company is focusing on placing units in high visibility high-traffic locations, including shopping malls, airports, and densely populated "main street" settings. Currently planned operations center around the Philadelphia metropolitan
area, eventually extending north to New York and Connecticut, and south to Maine and Delaware. JOES is positioned to become a fast growing restaurant chain and anticipates having 14-18 additional JOES operating by the end of this year.
The first JOES restaurant opened at the Shoppes at Penn Food Court,adjacent to the University of Pennsylvania campus and is 40% a head ofprojections and profitable, while its Cherry Hill Mall restaurant unit that opened in December is already 12% ahead of projections. Furthermore, JOES restaurants at Philadelphia International Airport (rank #23 of the nation's top 100 airports) will be accessible to well over 20 mil. potential customers per year and is due to open in the next 60 day.
Conservatively, assuming the opening of only 12 units, JOES should achieve for FY'98 sales of $15 mil. with $3 mil. to the
bottom line. With an additional 10 units opening in FY's 99, it can conservatively estimate $36 mil. in sales with approximately $5.2 mil.in net income after taxes.
The company maintains a healthy balance sheet and anticipates raising an additional $6.5 mil. by the end of the IQ. Of the 12,733,428 shares outstanding, insiders hold approximately 45%. The stock came down from over 5 and successfully tested last year's reaction low where we would not hesitate purchasing for a 1st
objective up into the 3-4 area, especially since on a unit by unit basis JOES is profitable. The JOES concept takes advantage of the publics growing appetite for fun dining experiences while capitalizing on the 50's nostalgia craze. The growing popularity of theme restaurants, as well as growth in the 'take-out' segment of the restaurant industry, are both expected to contribute significantly to the success of the company's operations.
Shares Outstanding: 12.5 Million
Shares in Float: 6.8 Million (Insiders own 5.6 Million)
We at Damex believe this is going to be a real winner. The Konlin Letter issued a buy recommendation with a target price in the 9-10 area.
Contact Information:
Broker and Investor Relations contact:
Dave Wood, ICS Communications, Inc. (800) 964-8007
Company contact:
Joe Fiore, CEO (914) 725-2700
virtualir.com
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