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

To: John Carragher who wrote (3789)	1/9/1998 9:11:00 AM
From: SE	Respond to of 4704

Found this on the Yahoo boards and thought it would be welcome here. GO PACK GO! -Scott -------------------------- Subj: CNBC Interview By: IHeartRFC Date: Jan 8 1998 8:37 P.M PST Reply To: Msg. 264 by stevet1969 Ken Brimmer, Interim Prisident of RAIN, did an fine job on CNBC today. Even though he was interviewed by not one but two interviewers, he got his messge out to the "investing public" in a relaxed, self-confident, reassuring manner. The message he emphasized twice during the 6 minute interview was that although same store comps are down 11% at the 3 mall locations, this was not unexpected; that each Rainforest Cafe opens with "alot of hoopla" and runs at full capacity for the 1st year, comp down the second year, then stabalize and start to grow again; that each of the 3 down units are still producing $11 million in annual revenues even after an 11% decline - a formidable amount of business. Brimmer: "The 40% drop in the stock price is a very short term Wall Street reaction. The earnings announcement was a penny less than the consensus and actually fell within the range of analyst's estimates which were from .22 to .27. The 11% downward comp was only on 3 of our 13 units. We also have a unit at Walt Disney World which comped up 15% and produced more than $35 million in revenue." Question: "Is RAIN beginning to lose its appeal for repeat customers ?" Answer: RAIN puts an emphasis on food quality to bring people back and "when we survey our customers, our guests tell us that on a scale from 1 to 10, they give RAIN something like a 9 rating on their intent to return." $11 million, although down from the opening $13 million at each of the 3 locations still "adds up to a fare amount of appeal". Question: "With the postponement of the convertable offering, how is RAIN going to fund expansion ?" Answer: RAIN has $110 million in cash which is all it needs to fund current expansion plans. The additional $100 million was unneccesary but would have been used for a stepped up rate of expansion if opportunity for such expansion presented itself. (He stated that RAINs Institutional Investors expressed surprise when RAIN announced that it was going after another $100 million.) End of Interview.