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


To: Cytokine1 who wrote (3745)1/7/1998 8:32:00 PM
From: clark  Read Replies (1) | Respond to of 4704
 
My guess as a completely neutral observer is that long term prospects will be determined by Rain's plan on how to get their same store sales up (of course this is probably more than obvious to everyone). The slightly missed earnings is a symptom of getting back repeat customers. The normal things that come to mind would be additional advertising, promotions.....

I have never owned or shorted rain, but, with the drop in price (potential bargain?) it certainly is attracting my attention.



To: Cytokine1 who wrote (3745)1/7/1998 8:46:00 PM
From: Cody Goebel  Read Replies (1) | Respond to of 4704
 
Holy crap, all. If they had been off 5 cents, would the stock have gone to 0!! A post on the MF boards from today said that Paine Webber made positive comments about the company noting something like "the stores with the the sales declines still contributed $11mm in revs and a 20 percent contribution margin." They also apparently reiterated a $46 (pre split) year end 1998 price. God bless em.

Frankly, I'm still shocked. This stock got taken out and shot like companies that have missed earnings by factors or 2 or 3 times, not 1-2 lousy cents. I still cannot make heads or tails of the same store numbers because I cant tell how much is attributable to stores open from 1 to 2 years--these would seem to be the ones that should be expected to have the biggest drop offs.

Furthermore, an MF post also reported that Woodfield Mall is in trouble with stores in and around the mall going out of business. Even further and as was pointed out here, the 3 Chicago stores are likely cannabalizing each other. All this better be made clear in the conf call but thats a month away, I guess.