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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Bob Trocchi who wrote (383)	3/23/1999 9:02:00 PM
From: Phil(bullrider)	Read Replies (1) \| Respond to of 10293

Bob, CBRL, I have a couple of problems not yet discussed. First, there are a "lot" of restaurants already in existence. If they were making money, the cash flow should fuel expansion. So why are they asking for $250 million in new money without specifying what the money will be used for? Second, the restaurants seem to appeal to the people of average incomes, therefor the prices of meals will need to stay competitive for the chain to hold on to the "loyal" customers. If they raise prices to improve the bottom line, I believe the customers will become loyal to another chain. It's not always the same people that are willing to sell at a loss, but it always seems to be someone that is willing to. Do I think that CBRL is a good investment? Only time will tell. I have an aquaintance that was impressed with the trend and the crowd of customers enough to invest. He asked for my opinion. I told him I was somewhat leary of restaurant chains, because they appeared to be fads. I further told him that it seemed to me that the chains, even while "in style", never seemed to return much in shareholder value. Then, when the fad had faded, it seemed that the shareholders were the ones left "holding the bag". This discussion took place a couple of years ago when CRBL was around $24 per share. I did not follow it too closely, but see that it was over $40 per share early last year. If he had sold at the right time, he could have made some money. I doubt he did, though, since he was a buy and hold investor. My point? I'm still watching. Have fun, Phil