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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (2833)	5/29/2001 2:17:56 PM
From: Robert Douglas	Read Replies (2) \| Respond to of 4691

I'm going to take a look at JBX. I haven't done much work on fast-food, but my research into "casual dining" leads me to believe that there is a good future for these stocks. The trend of eating out more along with the increase in disposable income augurs well for spending in this area. In the casual dining sector there doesn't seem to be a glut of restaurants, like in years past. Is this the case in fast-food?

To: Moominoid who wrote (2833)	6/4/2001 10:07:13 PM
From: Shane M	Respond to of 4691

David, thanks for posting about JBX. I almost didn't even look because I've eaten at one and while it was OK didn't really seem to distinguish itself from the crowd. If anything JBX seems to be a value play to me - probably would buy it for a 30-50% appreciation with the intent to sell. I compared to a few companies like McDonalds, Wendy's, and YUM, and here's what I see: It's revenues growth is solid and sustainable at around 12%. As you mentioned there is expansion opportunity. It's growing faster than the above mentioned. Debt load is comparable to the others. ROE/ROA is superior despite comparable debt loads. I don't know the restaurant industry well enough to know if this is an indication that JBX really is _not_ comparable to McDonalds, Wendy's, YUM - whether JBX presents and apples/oranges comparison. If they are comparable, I'm not concerned about the margin expansion. There's more upside to margins, and the margins are recovering from a couple of negative growth years in the mid 90s. (Was this due to the e-coli scare I have them associated with?). Valuations by most measures are at the low end of the spectrum. Again, to me it's sortof a "me too" restaurant, so should I purchase this would be more of value based buy with clear intent of selling after my price target is hit. FWIW, Shane