Josh Arnold
Long/short equity

Bravo Brio Restaurant Group: Poor Metrics And Unjustified Valuation

Bravo Brio Restaurant Group (NASDAQ:BBRG) is a relatively small but growing chain of upscale chop houses under the Bravo Cucina Italiana and Brio Tuscan Grille brand names. The company has experienced some poor earnings in recent years and comparable store revenue has stagnated. Back in February, I wrote a piece about how I think BBRG should spin off its Bravo restaurant chain in order to create shareholder value. My thesis at the time, which I still believe to be true, was that Bravo is a chain that has stagnated for years and in fact management has focused nearly 100% of its growth ambitions on Brio and left Bravo to fester. While I agree with this strategy, as Brio...

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