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

To: Phil(bullrider) who wrote (389)	3/24/1999 9:50:00 AM
From: Hank	Respond to of 10293

Phil, Your points concerning CBRL are valid. That is why I have said it is worth watching but not necessarily buying right now. It looks as if it could go a lot lower from here before heading North again. I do find it unusual that they aren't saying what the extra funding is for but I can only assume it must be for the expansion. I don't think the restaurants are nearly as pervasive as many larger chains. Therefore, if their expansion plans are as aggressive as I'm told they are, then it's not surprising that they can't totally fund the expansion with current cash flows. MCD surprised even Warren Buffett by showing that a relatively mature restaurant chain can still yield impressive returns if it's managed correctly. If MCD (which also caters to the lower income group) can do it, then certainly it's possible that a much smaller chain like CBRL can do it. The question I have yet to answer is- Is CBRL management skilled enough to pull it off? Hank