ecial 'Restaurant Industry' Edition of The Wall Street
Transcript
Monday, January 4, 1999 04:14 PM
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NEW YORK--(BUSINESS WIRE)--Jan. 4, 1999--Leading analysts examine the
Restaurant industry in the just-published edition of The Wall Street Transcript, a vital
review for investors and companies.
1) An in-depth roundtable forum featuring four distinguished analysts: Dean Haskell of
EVEREN Securities, Allan Hickok of Piper Jaffray, David Rose of Jefferies &
Company, and Craig Weichmann of Morgan Keegan. The panel discusses stock
performance, consumer spending trends, recession-resistant sectors, capacity
reductions, innovative employment and recruitment strategies, labor relations,
turnaround situations, and access to capital. Because the capital markets have closed
to many in the sector, Haskell states, "It makes sense to scale back growth and to
make sure that your growth is being financed through internal capital sources, whether
that's sale of assets, internally generated cash flow, or the prudent use of debt.
Successful growth companies attract capital and talent. So we think that a good growth
company can and should be looking at ways to finance its growth."
Looking forward, Weichmann asserts, "I think that moving to multi-concept operators
will be the wave of the next decade in this sector. The problem has been that one of the
highest profile companies, a multi-concept chain, hit a brick wall a couple of years
ago."
Other topics addressed by this eminent panel: M&A trends, dual branding, company
specific risks, pricing outlooks, unit growth, discounting & promotions, rising brands,
new IPO offerings, and the future outlook for the sector.
The panel offers several investment recommendations, including: Dave & Buster's
(Nasdaq:DANB), Ruby Tuesday (NYSE:RI), and Buffets (Nasdaq:BOCB), about which
Hickok declares, "We're looking for a catalyst there, but it's one of our defensive picks.
Country Buffet is probably the value leader in America in terms of quantity, quality and
selection. If we do worry about a recession, then here's a terrific trade-down story,
because you literally cannot find a better value in America."
2) An "Off-the-Record" survey of analysts and industry experts, who praise and/or
criticize 14 Restaurant companies and managements, includes several
recommendations and a few admonishments. High marks to Jack Greenberg at
McDonald's (NYSE: MCD) because "He's going to really bring back the
entrepreneurial spirit to the company."
An ovation for Howard Schultz of Starbucks (Nasdaq:SBUX) as "a true visionary" and
"the prototype of a CEO in the year 2000 when you can balance capitalism with
philanthropy and also empower your employees."
But, another restaurant management team misfires with a specialist who says, "The
company was focused on high unit growth at any expense. They didn't develop the
infrastructure inside the corporation."
3) Restaurant Stocks Damon Brundage J.P. Morgan Securities. An extensive
interview in which he states, "You raise prices in this industry at your own perilwere
likely to see chains trying to increase the average check, but doing it by introducing
new, higher quality products that you can charge more for rather than explicitly raising
prices."
4) Restaurant Stocks Stacy Jamar Salomon Smith Barney. A comprehensive interview
in which she declares, "I have more buy/outperform-rated stocks in this industry now
than I have had in the five years that I've followed this group."
Other companies mentioned in this special 38-page Restaurant Industry section
include:
Applebee's (Nasdaq:APPB), Avado Brands (Nasdaq:AVDO), Boston Chicken
(OTC:BOSTQ), Brinker (NYSE:EAT), Cheesecake Factory (Nasdaq:CAKE), CKE
(NYSE:CKR), Consolidated Products (NYSE:COP), Cracker Barrel (Nasdaq:CBRL),
Darden (NYSE:DRI), Diversifoods (Nasdaq:QDIN), Einstein (Nasdaq:ENBX),
Foodmaker (NYSE:FM), Friendly Ice Cream (Nasdaq:FRND), Garden Fresh
(Nasdaq:LTUS), Landry's Seafood (Nasdaq:LDRY), Lone Star (Nasdaq:STAR),
Morton's (NYSE:MRG), O'Charley's (Nasdaq:CHUX), Outback (Nasdaq:OSSI),
P.F.Chang's (Nasdaq:PFCB), Papa John's (Nasdaq:PZZA), PepsiCo (NYSE:PEP),
Planet Hollywood (NYSE:PHL), Rainforest Cafe (Nasdaq:RAIN), RARE Hospitality
(Nasdaq:RARE), Schlotzky's (Nasdaq:BUNZ), Shells Seafood (Nasdaq:SHLL),
Shoney's (NYSE:SHN), Star Buffet (Nasdaq:STRZ), TRICON (NYSE:YUM), and
Wendy's (NYSE:WEN).
For information on how to obtain a copy of this issue, see twst.com
or call (212) 952 - 7433. The Wall Street Transcript does not endorse the views of any
interviewee nor does it make stock recommendations.
The Wall Street Transcript is a premier weekly investment publication serving serious
long-term investors for over 35 years. The Transcript publishes industry roundtables
and interviews with Wall Street analysts, money managers, and company CEOs, and
is read by top money managers, brokers, and individual investors.
CONTACT: The Wall Street Transcript
800-246-7673
twst.com
Quote for referenced ticker symbols: YUM, WEN, STRZ, STAR, SHN, SHLL, SBUX,
RI, RARE, RAIN, QDIN, PZZA, PHL, PFCB, PEP, OSSI, MRG, MCD, LTUS, LDRY,
FRND, FM, ENBX, EAT, DRI, DANB, COP, CKR, CHUX, CBRL, CAKE, BUNZ,
BOSTQ, BOCB, AVDO, APPB
© 1999, Business Wire |
