I don't own this one at this time, but it may be a winner some day.
GENK - growing Korean BBQ chain. About 60 locations in the US and they've opened 3 locations in Korea.
Interesting new bit is they've started selling their food supplies in 600 US supermarkets as of this month.
GEN Korean BBQ Expands Ready-to-Cook Line to 600 Grocery Stores With the Addition of 300 Safeway Grocery Stores
finance.yahoo.com
I don't know much about food sales, but 600 stores sounds like a lot.
Market cap is $91 million, $15m cash, $4m debt and trailing 12 months sales of $215m with an EBITDA margin of 16%.
I've been to their local restaurant twice and, well, it's Ok. Ha ha, not much of a recommendation.
But the financials look quite good.
Main problem for them is last Q same store sale declined by 7% year on year, producing annual sales growth of about 2% despite opening about 15 stores in the preceding year. They say the weak economy and immgration chaos is hurting their sales (illegals like Korean BBQ?), but they also say they have a flexible cost structure that helps them to adjust staffing to match sales and deliver 18% or so restaurant level EBITDA (which excludes head office and new store opening costs).
Some day I think it's a great value stock, I'm just not sure when. The Q3 vibe I get from restaurant stocks is the business stinks, so this one perhaps is good to put on the radar, but maybe it's also going to report a very so so Q3.
Or maybe not! |
