Old news..but I didn't see it already posted....
Eat At Joes, Ltd. Receives Strong Buy Recommendation From Widely Followed Low-Priced Stock Analyst
CHERRY HILL, N.J.--(BUSINESS WIRE)--Feb. 10, 1998--
The KonLin Letter
Technical & Fundamental Analysts - Market Timing
Low-Priced Stocks
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 (OTC BB: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.
Sales for the restaurant industry increased 50% during the past 10 years as Americans 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 new theme-based restaurant chain. The Eat at Joe's concept 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, the JOES 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 Maryland 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% ahead of projections 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 (ranked No. 23 of the nation's top 100 airports) will be accessible to well over 20 million potential customers per year and is due to open in the next 60 days. Conservatively, assuming the opening of only 12 units, JOES should achieve for FY '98 sales of $15 million with $3 million to the bottom line. With an additional 10 units opening in FY '99, it can conservatively estimate $36 million in sales with approximately $5.2 million in net income after taxes.
The company maintains a healthy balance sheet and anticipates raising an additional $6.5 million by the end of the 1Q. 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 first 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 public's 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. Buy for an ultimate target up into the 9-10 area.
Statements about the company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward looking statements" within the meaning of Sections 27A of the Securities Act of 1933, Section 21F, of the Securities Exchange Act of 1934. The company intends that these statements be subject to the safe harbors created thereby.
CONTACT:
ICS Communications
Dave Wood, 800/964-8007, Broker and Investor Relations
or
Joe Fiore, CEO, 914/725-2700
virtualir.com
KEYWORD: NEW JERSEY
BW1517 FEB 10,1998 |
