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

To: Evan Dimmer who wrote (3698)	1/6/1998 6:48:00 PM
From: Kirk Pearson	Respond to of 4704

Rainforest Cafe Announces Preliminary Fourth-Quarter Results Tuesday January 6, 4:21 pm Eastern Time Company Press Release MINNEAPOLIS--(BUSINESS WIRE)--Jan. 6, 1998--RAINFOREST CAFE, INC. (National Market - RAIN), today announced that based on a preliminary analysis of its operations, it expects to report earnings for the fourth quarter ended December 28, 1997, in the range of $0.23 to $0.24 per share compared with $0.15 per share in the same period a year ago. Preliminary fourth quarter sales are expected to approximate $34.5 million, an increase of 71 percent from $20.2 million for the fourth quarter last year. For the three units open more than 18 months, comprising the comparable store sales base, sales declined approximately 11% from the same quarter in 1996. In addition, fourth quarter sales for the company's units at Tysons Corner Center I, Sawgrass Mills and South Coast Plaza, which are not included in comparable unit sales, were less than expected. Construction delays beyond the company's control also resulted in lower than anticipated fourth quarter sales at Aventura Mall in Miami, Florida and MGM Grand Hotel and Casino, Las Vegas, Nevada. The company's unit at the MGM Grand Hotel and Casino opened December 18 and was open for only 11 days of 1997. The MGM Grand unit has averaged daily revenues in excess of $50,000 for the period from December 18, 1997 through January 4, 1998, which includes the seasonally strong New Year's period. ''While fourth quarter sales at Tysons, Sawgrass and Woodfield Mall units were less than expected, each of these units contributed more than $11 million in sales for 1997, with unit-level operating profits for the year projected to achieve the company's target of 20 percent of sales. At the current anticipated sales levels these units deliver attractive returns,'' noted Lyle Berman, Rainforest Cafe Chairman and Chief Executive Officer. Berman added, ''In addition, we were very pleased with the contribution of our unit at Walt Disney World, Downtown Disney Marketplace, that is not included in the comparable store sales base and which recorded an increase in sales of 15 percent in the fourth quarter compared to the same period in 1996. Total 1997 sales for the Downtown Disney Marketplace unit exceeded $35 million. We are looking forward to the opening of our second Disney World unit, concurrent with the opening of the Disney Animal Kingdom theme park in April of this year.'' Statements regarding estimated results are preliminary and based on partial information and management assumptions. The company plans to announce its complete fourth-quarter and year-end results the week of February 9, 1998. The information in this release including information regarding expected revenues and net income per share is forward looking and preliminary. Actual results for the year and the quarter may differ depending on a number of factors, including accounting adjustments made during the course of closing the year. For a more detailed discussion of factors that affect the company's results, interested parties should review the company's SEC reports including the Rainforest Cafe, Inc. Annual Report on Form 10-K for the year ended December 29, 1996 and quarterly reports form 10-Q for the periods ended March 30, 1997, June 29, 1997 and September 28, 1997. RAINFOREST CAFE, INC. develops, owns and operates combination restaurant/retail facilities offering a stimulating and entertaining rain forest theme providing visitors with ''A Wild Place to Shop and Eat(R)''. RAINFOREST CAFE, INC. common shares are traded on the NASDAQ National Market under the symbol RAIN. RAINFOREST CAFE is also located on the world wide web at rainforestcafe.com. Contact: Rainforest Cafe, Inc. Mark Robinow, 612/945-5400 rainforestcafe.com

To: Evan Dimmer who wrote (3698)	1/6/1998 7:00:00 PM
From: Dylan	Respond to of 4704

It is difficult to trust after hours numbers as most do not have access to such trading. Many stocks change drastically after hours but then show no such influence the next day. In this case, I think that RAIN has been beaten up for awhile now, and I find it hard to believe that many didn't already know or expect this disappoinitng news. I don't see RAIN falling much more because it seems like it has already taken a hit for this information. I hope this isn't just wishful thinking. -Dylan

To: Evan Dimmer who wrote (3698)	1/6/1998 7:34:00 PM
From: Alan Bershtein	Read Replies (2) \| Respond to of 4704

>>Is this a buy at open, or will it head lower as the day goes on?<< IMHO, buying at the open is too risky. However a price of 28 does seem quite tempting. Per Zacks, RAIN is expected to earn $1.30 per share in 1998. A price of 28 means RAIN is trading at 21.5 times 1998 earnings. I view that as a bargain for a stock expected to grow earnings 42% annually over the next 5 years. I hope they elect to hold off selling the convertibles until the stock price recovers. Good luck whatever you decide to do. Regards, Alan