MCsweet: re: RAIN. Yes, given some of the finance numbers I scan for, RAIN could work. I've passed on RAIN (I'll think some more now about it now though). I had thought earlier about RAIN vs. DANB. As Brendan mentioned, these restaurants are very expensive and so, that is a drawback because it takes a lot of volume of sales to pay for them. Risky because there are plenty of examples where costly buildings/sites have lead to restaurant bankruptcy. On the other hand, the expense could be a competitive advantage -- to spend that kind of money successfully, the company had better be structured to have access to capital as well as skill in selection and construction.
I passed on RAIN because 1) I couldn't figure why people would keep coming back to them; 2)it seemed they were making more money on their T-shirts than on their food. And as Brendan mentions also, food quality was iffy. (That was my impression, not supported by any facts that I have.) DANB, on the other hand, also has costly restaurants, but seems to get repeat business for entertainment (again that's just my guess). RAIN could be a value stock: DANB surely isn't. I decided to go with DANB. Paul Senior |
