One Hour Analysis: Monarch Casino & Resort ($MCRI) What’s Not to Like? Debt Free, Shareholder Friendly, Free Cash Flowing Machine.: Market Data Price: $68.00 per share Market Capitalization: $1.28B Net Cash: $34M Enterprise Value: $1.25B TTM EBITDA: $174M EV/EBITDA Multiple: 7.2X Summary: Monarch Casino is one of the most conservatively run public gaming companies. Since 2009, and excluding the impact of Covid shutdowns in 2020, the company has maintained a debt-to-equity ratio of less than 1X a
June 20, 2024, 3:11 p.m.
UNPRECEDENTED TURNOVER OF CEOs IN THE RESTAURANT INDUSTRY – WHAT’S IT ALL ABOUT?: The turnover in the CEO position in the restaurant industry in the last three years has been extraordinary. Since 2021, twenty-one CEOs at 35 of the largest publicly held restaurant companies we follow have been replaced, including nine in 2024, the highest number in at least seven years. To put this in perspective, from 2017 to 2020, only ten CEOs were replaced in total. There is no doubt that the distortions with
June 5, 2024, 2:34 p.m.
One Group Hospitality (STKS) - One Hour Analysis: Quick Thoughts on Benihana Acquisition. Building an attractive acquisition candidate by acquisition?: On March 26th One Hospitality Group Announced the acquisition of Safflower Holdings Corp., the owner of Benihana Inc., a leading operator of highly differentiated experiential brands that owns the only national teppanyaki brand in the U.S. and also owns RA Sushi. The transaction was valued at $365M. Investors reacted favorably with the stock risi
April 3, 2024, 3:58 p.m.
One Hour Analysis: Driven Brands Holdings ($DRVN), Road Kill or Road to Redemption?: Driven Brands Holdings Inc. (DRVN) – $13.46 Huck Looking for Investment Ideas THE AUTOMOTIVE CARE INDUSTRY Driven Brands operates in an industry that has many similar characteristics as the restaurant industry, including the sale of needs-based services that are relatively recession resistant. The automotive care industry is a $390B a year industry with strong tailwinds. There are currently over 285M cars on the
Feb. 25, 2024, 5:37 p.m.
Summary of Q3 Public Restaurant Conference Calls: Main Themes Commodity Inflation is moderating significantly. Beef prices are expected to continue to increase 4-6% All other commodities are expected to be FLAT to DOWN. Chicken prices declined significantly in the quarter. Higher sales and moderating inflation boosted gross margins
Nov. 18, 2023, 8:09 p.m.
Dave & Buster’s Entertainment ($PLAY) Management Sees Potentially $1B+ in Incremental EBITDA in 2025, Will Investors? One Hour Analysis: In the past, we have been skeptical of Dave & Buster’s ability to grow profitably. However, in the last year the company acquired Main Event (merger presentation can be found here), had a significant turnover in upper management and hosted an Investor Day that laid out a path for $1B in additional EBITDA by 2025. The company is currently valued at
Sept. 15, 2023, 2:44 p.m.
NOODLES & COMPANY ($NDLS) – Time to Grow or Time to Sow?: THE COMPANY The concept is differentiated, serving (at more than 461 locations) a wide variety of noodles, pasta, soups, salads and appetizers at lunch and dinner, every dish made to order. The average expenditure per person is a modest $12.50, from a menu that can be enjoyed inside the 368 company and 93 franchised restaurants, taken to-go, or by delivery. The Company aims to eliminate the “veto vote” by satisfying the preferences of a w
Aug. 2, 2023, 6:45 p.m.
