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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (684)	4/25/2005 6:02:10 PM
From: HarkHerald	Read Replies (1) \| Respond to of 7243

Roadhouse Grill under takeover speculation. Two excerpts below, one from Spartan research and the other regarding investment banking activity, Question is at what price would they be absorbed by their bigger brethern. International exposure is a plus. Takeover of Grll is forming. Who is it going to be? Lonestar, Outback, Texas Roadhouse> Who knows but its on the wire now. Investment bankers moving in. They just did a retainer agreement for quite a large fee for the cfo, so looks like some money could be behind these strategic alternatives Check out the below investment banker news. Roadhouse Grill Announces Engagement of J.H. Chapman Group, L.L.C. Monday April 25, 4:05 pm ET POMPANO BEACH, Fla.--(BUSINESS WIRE)--April 25, 2005--Roadhouse Grill, Inc. (Pink Sheets:GRLL - News) today announced that it has engaged the investment banking firm of J.H. Chapman Group, L.L.C. to explore strategic alternatives for the Company. The J.H. Chapman Group, which was founded in 1982 and is headquartered in Rosemont, Illinois, is the leading investment banking firm specializing in the food industry. About Roadhouse Grill Roadhouse Grill, Inc., based in Pompano Beach, Fla., owns and operates 68 full-service, casual-dining restaurants and has 11 franchised or licensed restaurants. The Company's restaurants, which offer a "rambunctious" style consistent with Roadhouse Grill's motto: "Eat, drink and be yourself," are located in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, New York, North Carolina, Ohio and South Carolina. For more information or to locate a Roadhouse Grill near you, call 954-957-2600 or visit roadhousegrill.com. -------------------------------------------------------------------------------- Contact: Roadhouse Grill, Pompano Beach Michael Brant, 954-957-2600 mbrant@roadhousegrill.com -------------------------------------------------------------------------------- Source: Roadhouse Grill, Inc. Spartan Research "The other alternative, as mentioned on the street, was to sell out to Lone Star. Lone Star's balance sheet is virtually debt free, and last year the company's adjusted net income increased 52 percent to $27.7 million, or $1.15 per share, compared with $18.2 million, or 69 cents, the previous year. Lone Star hired investment banking firm UBS Warburg last year to look at possible acquisitions. Teaming up with Roadhouse would give Lone Star a way to expand its presence in Florida and break into the competitive South Florida market. Lone Star currently has only 13 restaurants in Florida, concentrated primarily on the west coast and Central Florida, and only one store in the tri-county area. Roadhouse has 35 restaurants in Florida, 13 of them in Miami-Dade, Broward and Palm Beach counties. "It would make perfect sense as a real-estate deal," said Michael Smith, a restaurant analyst with Fahnestock & Co. "They could convert the restaurants to Lone Star. It would be a fairly cheap way to expand."