Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : RAINFOREST CAFE -- Ignore unavailable to you. Want to Upgrade?

To: Tony C. who wrote (3570)	12/3/1997 6:59:00 PM
From: Dennis Vail	Read Replies (1) \| Respond to of 4704

Tony, >Can someone tell me if this is good or bad ?< Right now its mostly confusing and very very surprising. I wish I would have gotten home sooner so I could call headquarters on this because as recently as May, Berman was calling RAIN overcapitalized. So what's changed since then? With no further facts I can see a few possible explanations. 1) RAIN in the the process of ramping up expansion from a 50% five year growth rate to close to a 100% rate. That would be interesting in the short-term but I don't know how wise that is in the longterm. 2) RAINs going to open alot more tourist- centric stand alone Icon Units like Chicago and the proposed one in NY Times in a very short-time. Perhaps the logic would be they cost more to open but the same store sales numbers show in the long run this is the best way to go. Perhaps they are considering this on a worldwide basis and plan to open units themselves next year or so in Paris, Tokyo, Berlin, Rio de Janiero, etc. as well as every major tourist trap in this country and all the international Disney parks. 3) Maybe they are giving up on franchising the international units and plan to open and run the units themselves as they know the right way to do it and can see that the profits there for the taking. 4) Maybe they are going to do a Rainforest character movie or video and they need the cash horde for that. And the one none of us wants to hear 5) Robinow been cooking the books and it really costs 2 or 3 times as much to open every unit or Brimmer resigned but first awarded himself $100 million in serverance pay and skipped to a small island off of Madagascar or whatever mightmare malfeasance one's cares to conjure up. Anyway, there BETTER be a explanation forthcoming from the company soon if they haven't already explained it to the analysts. Regards, Dennis

To: Tony C. who wrote (3570)	12/3/1997 10:37:00 PM
From: Dennis Vail	Respond to of 4704

All, RAIN filed a 80 apge S-3 (Prospectus) at Edgar to day. These updated expansion plans were in there among other good stuff: EXPANSION PLANS AND SITE SELECTION The following table sets forth certain information about the Company's planned Units, all of which are subject to existing leases except where otherwise indicated: APPROXIMATE RESTAURANT DATE PLANNED TO BE UNIT LOCATION SQUARE FOOTAGE SEATS OPENED ---- -------- -------------- ---------- ------------------ Domestic Aventura Mall................. Miami, FL 21,500 350 Fourth Quarter 1997 MGM Grand Hotel & Casino(1)... Las Vegas, NV 20,000 400 Fourth Quarter 1997 Palisades Center.............. West Nyack, NY 22,500 375 First Quarter 1998 Ontario Mills................. Ontario, CA 20,000 350 Second Quarter 1998 Disney's Animal Kingdom(1).... Orlando, FL 34,000 550 Second Quarter 1998 Cherry Creek Mall............. Denver, CO 23,000 375 Third Quarter 1998 Towsen Town Center(2)......... Baltimore, MD 18,000 325 Third Quarter 1998 Menlo Park Mall(2)............ Edison, NJ 20,000 350 Third Quarter 1998 Great Lakes Crossing.......... Detroit, MI 20,400 325 Fourth Quarter 1998 South Center Mall(2).......... Seattle, WA 17,000 325 Fourth Quarter 1998 Burlington Mall(2)............ Burlington, MA 17,500 325 Fourth Quarter 1998 Times Square(1)(2)............ New York, NY 30,000 600 First Quarter 1999 International Eaton Center.................. Vancouver, Canada 18,000 325 Third Quarter 1998 Festival Walk(2).............. Hong Kong 17,500 350 Third Quarter 1998 KLLC Center(2)................ Kuala Lumpur, Malaysia 17,000 350 Third Quarter 1998 Mundo E....................... Mexico City, Mexico 14,000 250 Fourth Quarter 1998 Toronto(2).................... Toronto, Canada 17,500 325 Fourth Quarter 1998 ------------------------- (1) Designates Icon Units. (2) The Company has executed letters of intent or is negotiating leases with respect to these Units. Regards, Dennis