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: Dwight Griffin who wrote (4110)	3/24/1998 5:00:00 PM
From: Dylan	Read Replies (1) \| Respond to of 4704

Good question. As far as opening expenses, I believe that Palisades has been under construction for so long that it was already accounted for mostly. Also my estimate of 50 million for one month is low and should account for that. And for Disney AK, I have offset opening expenses charged to this quarter with any revenues. They said they will charge other opening expenses to next quarter. The model that Dave Jones has come up with is based on receipt numbers. $40 in revenue/receipt and $5 in after tax profit/receipt. Obviously this is a very simple model and subject to fluctuations in margins. Therefore it may be appropriate to downgrade those values for Gurnee and Woodfield and a few of the other Mills locations. I also felt that my estimates for the locations where I don't have receipt numbers were conservative. And franchising I realize I made a mistake..... calculated revenue as profit. So that should probably be cut in half. However, some locations were not open all of Q4, London is becoming busier and busier, and I believe this quarter is the best time for travel to Mexico. So I will revise my estimate to 200 for franchising, and Gurnee to 175 and Woodfield to 255 for lower margins. This leaves us at 4766/27185, still 17.5 cents per share. So where else should I be cutting the fat if we are still well above estimates??? The model does not separate retail from restaurants, but the $40 estimate accounts for this as a certain percentage of receipts are retail. -Dylan