MSSR - News and Analysis from Seeking Alpha 'MSSR' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/symbol/mssr Chain Restaurants Q2 Earnings: What's Going On? http://seekingalpha.com/article/156468-chain-restaurants-q2-earnings-what-s-going-on?source=feed 156468 Chain Restaurants, Q2 2009: What is Happening?
Most of the chain restaurant earnings for the quarter are now in, but it will be interesting to watch Burger King (BKC) on August 25. This quarter, virtually all companies beat analysts estimates based on commodity and other cost structure reductions, all of which essentially fall 100% through to the bottom line.
So beating projections on cost decreases is good but should be no surprise in this sector right now.
Sales and traffic gains were much more elusive, with only really McDonald’s (MCD), Chipolte (CMG), Steak N Shake (SNS) and Buffalo Wild Wings (BWLD), posting full quarter gains. Of these, we know SNS’s and CMGs sales components (traffic, average check, sub components mix and price), with Chipolte with a 6.5% (biggest anywhere) price increase effect and 3.5% negative traffic, while Steak N Shake experienced a 8.4% negative mix effect but increased traffic a whopping 13.4%, for a same store sales gain of 5%. WEN gets an honorable mention, with July Wendy’s sales up if you back out breakfast.
The Steak N Shake moves were the most dramatic in the publicly traded chain restaurant universe. I grew up in Indianapolis, and know them well. Many of their midwestern markets were long waiting for a nostalgia/founding year based, low priced promotions. Their Q1/Q2 promotional themes were $.15/$.79 steak burgers, 4 meals under $4, steak burger/fries/drink for $2.89).
SNS' menu and operations look more focused based on my May 2009 swing through that area, and SNS did deliver a $3.8M profit for the quarter, versus a year ago loss, or about a $.07/share gain over the consensus estimate. When the 10Q is filed, more examination will be possible. The announced August 13 Western SNS/Western Sizzling merger (no proxy yet) does not seem to be an operational play, but a G&A cost reduction play. But, again, lets see the numbers.
A group of chains isn’t discounting or not as much, as a core strategy: CKR (Carl’s Jr), Cheesecake Factory (CAKE), Panera (PNRA), Chipolte (CMG), and now, Red Robin (RRGB). Like retailer Abercrombie and Fitch (ANE) until they threw in the towel Friday, these companies are concerned about maintaining long-term brand integrity by not discounting. This group will bear watching. However, the importance of absolute price level is easily seen in the chain restaurant results, with all of the high-end operators such as Ruth Chris (RUTH) Morton’s (MRT), and McCormick and Schmick’s (MSSR) comp sales down about 20%.
But the non-discounters aren’t as badly off as Abercrombie, with 30% same store sales declines two quarters straight, and operating margin down to 3.9%
Two very recently released future oriented restaurant operations industry operators and other industry professional’s surveys essentially are wiggling slightly negative:
  • The well written and designed RBC Operator and Investor Survey, by Restaurant Analyst Larry Miller, points to 50% of operators noting sales will not improve in August, versus 46% stable, versus 4% noting an absolute improvement expected. More downward pressure on the average check and mix shifts are expected, and fast fooders a bit more pessimistic.
  • The National Restaurant Association’s Expectations Index (surveys 6 months out) is at 99.0, down 70 bpts. from May, and the second consecutive monthly decline. After falling dramatically for months, the index had wiggled up earlier this year.
Disclosure: No stock positions
]]> Mon, 17 Aug 2009 06:37:00 -0400 John Gordon John Gordon submits:
Chain Restaurants, Q2 2009: What is Happening?
Most of the chain restaurant earnings for the quarter are now in, but it will be interesting to watch Burger King (BKC) on August 25. This quarter, virtually all companies beat analysts estimates based on commodity and other cost structure reductions, all of which essentially fall 100% through to the bottom line.
So beating projections on cost decreases is good but should be no surprise in this sector right now.
Sales and traffic gains were much more elusive, with only really McDonald’s (MCD), Chipolte (CMG), Steak N Shake (SNS) and Buffalo Wild Wings (BWLD), posting full quarter gains. Of these, we know SNS’s and CMGs sales components (traffic, average check, sub components mix and price), with Chipolte with a 6.5% (biggest anywhere) price increase effect and 3.5% negative traffic, while Steak N Shake experienced a 8.4% negative mix effect but increased traffic a whopping 13.4%, for a same store sales gain of 5%. WEN gets an honorable mention, with July Wendy’s sales up if you back out breakfast.
The Steak N Shake moves were the most dramatic in the publicly traded chain restaurant universe. I grew up in Indianapolis, and know them well. Many of their midwestern markets were long waiting for a nostalgia/founding year based, low priced promotions. Their Q1/Q2 promotional themes were $.15/$.79 steak burgers, 4 meals under $4, steak burger/fries/drink for $2.89).
SNS' menu and operations look more focused based on my May 2009 swing through that area, and SNS did deliver a $3.8M profit for the quarter, versus a year ago loss, or about a $.07/share gain over the consensus estimate. When the 10Q is filed, more examination will be possible. The announced August 13 Western SNS/Western Sizzling merger (no proxy yet) does not seem to be an operational play, but a G&A cost reduction play. But, again, lets see the numbers.
A group of chains isn’t discounting or not as much, as a core strategy: CKR (Carl’s Jr), Cheesecake Factory (CAKE), Panera (PNRA), Chipolte (CMG), and now, Red Robin (RRGB). Like retailer Abercrombie and Fitch (ANE) until they threw in the towel Friday, these companies are concerned about maintaining long-term brand integrity by not discounting. This group will bear watching. However, the importance of absolute price level is easily seen in the chain restaurant results, with all of the high-end operators such as Ruth Chris (RUTH) Morton’s (MRT), and McCormick and Schmick’s (MSSR) comp sales down about 20%.
But the non-discounters aren’t as badly off as Abercrombie, with 30% same store sales declines two quarters straight, and operating margin down to 3.9%
Two very recently released future oriented restaurant operations industry operators and other industry professional’s surveys essentially are wiggling slightly negative:
  • The well written and designed RBC Operator and Investor Survey, by Restaurant Analyst Larry Miller, points to 50% of operators noting sales will not improve in August, versus 46% stable, versus 4% noting an absolute improvement expected. More downward pressure on the average check and mix shifts are expected, and fast fooders a bit more pessimistic.
  • The National Restaurant Association’s Expectations Index (surveys 6 months out) is at 99.0, down 70 bpts. from May, and the second consecutive monthly decline. After falling dramatically for months, the index had wiggled up earlier this year.
Disclosure: No stock positions

Complete Story »]]> ANF BKC BWLD CAKE CKR CMG MCD MRT MSSR RRGB RUTH SNS WEN John Gordon Restaurant Profits Eaten Up by Recession http://seekingalpha.com/article/143136-restaurant-profits-eaten-up-by-recession?source=feed 143136

When Americans get stressed out, one thing they do is eat. But apparently not enough.

The dismal economy has punished retailers, with companies like Circuit City and Linens ’n Things going extinct and dozens of others losing money. Now it’s hitting their cousins in the restaurant industry, too. The Bennigan’s and Steak & Ale chains were early casualties, going belly up last summer. This year, with Americans cutting back on spending, sales at restaurants could fall by 10 percent or more. Analysts don’t expect widespread closures, but some chains are likely to close unprofitable outlets, cut back on service, and look for other ways to reduce costs.

]]> Mon, 15 Jun 2009 04:12:52 -0400 Rick Newman Rick Newman submits:

When Americans get stressed out, one thing they do is eat. But apparently not enough.

The dismal economy has punished retailers, with companies like Circuit City and Linens ’n Things going extinct and dozens of others losing money. Now it’s hitting their cousins in the restaurant industry, too. The Bennigan’s and Steak & Ale chains were early casualties, going belly up last summer. This year, with Americans cutting back on spending, sales at restaurants could fall by 10 percent or more. Analysts don’t expect widespread closures, but some chains are likely to close unprofitable outlets, cut back on service, and look for other ways to reduce costs.


Complete Story »]]> DENN IHP KKD MCD MRT MSSR Rick Newman Performance Review of Our Swing Trading Signals http://seekingalpha.com/article/141906-performance-review-of-our-swing-trading-signals?source=feed 141906 I am pleased to say that the results have been pretty good. As you can see in the following chart, there isn't a loser among the "Strong Buy" Swing Trading Signals:

SymbolNameDate of SignalOriginal PriceMost Recent PriceGain/Loss
ARSTArc Sight, Inc.5/16/2009$14.85$18.1922.0%
KIRKKirkland's, Inc.5/16/2009$6.19$9.5654.0%
DBRNThe Dress Barn, Inc.5/16/2009$14.23$16.5817.0%
ONCYOncolytics Biotech, Inc.5/19/2009$1.65$1.682.0%
HOOKCraft Brewers Alliance, Inc5/23/2009$1.96$2.076.0%
KKDKRISPY KREME DOUGHNUTS5/26/2009$3.45$3.635.0%
PENNPenn National Gaming, Inc.5/26/2009$30.39$32.106.0%
AIGAMERICAN INT'L GROUP, INC6/4/2009$1.64$1.714.0%
MSSRMcCormick & Schmick's Seafood Restaurants, Inc.6/4/2009$6.50$6.754.0%
NBXHMorgan Stanley6/4/2009$5.50$5.500.0%

During this time when these signals were being generated, we have sort of had the wind at our backs. The market has been going through a bit of a trading range, which is good for this kind of signal, and early during this last week we had a breakout above the range. These factors helped the gains in the list above.

]]> Mon, 08 Jun 2009 05:17:07 -0400 Trade Radar Operator Trade Radar Operator submits:

I am pleased to say that the results have been pretty good. As you can see in the following chart, there isn't a loser among the "Strong Buy" Swing Trading Signals:

SymbolNameDate of SignalOriginal PriceMost Recent PriceGain/Loss
ARSTArc Sight, Inc.5/16/2009$14.85$18.1922.0%
KIRKKirkland's, Inc.5/16/2009$6.19$9.5654.0%
DBRNThe Dress Barn, Inc.5/16/2009$14.23$16.5817.0%
ONCYOncolytics Biotech, Inc.5/19/2009$1.65$1.682.0%
HOOKCraft Brewers Alliance, Inc5/23/2009$1.96$2.076.0%
KKDKRISPY KREME DOUGHNUTS5/26/2009$3.45$3.635.0%
PENNPenn National Gaming, Inc.5/26/2009$30.39$32.106.0%
AIGAMERICAN INT'L GROUP, INC6/4/2009$1.64$1.714.0%
MSSRMcCormick & Schmick's Seafood Restaurants, Inc.6/4/2009$6.50$6.754.0%
NBXHMorgan Stanley6/4/2009$5.50$5.500.0%

During this time when these signals were being generated, we have sort of had the wind at our backs. The market has been going through a bit of a trading range, which is good for this kind of signal, and early during this last week we had a breakout above the range. These factors helped the gains in the list above.


Complete Story »]]> AIG ARST DBRN HOOK KIRK KKD MSSR ONCY PENN Trade Radar Operator Ruby Tuesday Trims the Fat http://seekingalpha.com/article/114307-ruby-tuesday-trims-the-fat?source=feed 114307 An article in Fortune via CNN Money that looks favorably upon the Darden (DRI) restaurant chain [see Darden's latest quarterly conference call here], notes the formidable problems facing the restaurant industry:

After years of expansion and development, the restaurant industry is in danger of overbuilding, especially within the casual dining segment, which includes sit-down restaurants such as Applebee's (DIN), Chili's (EAT), Ruby Tuesday (RT) and [Darden's] Olive Garden... Bennigan’s and Steak & Ale chains went bankrupt in July.

]]> Mon, 12 Jan 2009 05:52:19 -0500 SA Editor Judy Weil An article in Fortune via CNN Money that looks favorably upon the Darden (DRI) restaurant chain [see Darden's latest quarterly conference call here], notes the formidable problems facing the restaurant industry:

After years of expansion and development, the restaurant industry is in danger of overbuilding, especially within the casual dining segment, which includes sit-down restaurants such as Applebee's (DIN), Chili's (EAT), Ruby Tuesday (RT) and [Darden's] Olive Garden... Bennigan’s and Steak & Ale chains went bankrupt in July.


Complete Story »]]> ARKR BAGL BJRI CKR DIN DRI EAT FRS GOOG ICF IYR LNY MAXE MRT MSSR PEZ RT VCR XLY YHOO SA Editor Judy Weil Can Costco Save America's Malls? http://seekingalpha.com/article/111006-can-costco-save-america-s-malls?source=feed 111006 Costco talks about some interesting trends in this downturn. From Costco Wholesale Corp.'s FQ109 conference call:

For once, a positive sign for malls:

We continue to think that there’s plenty of opportunity in the US and Canada. We think that, our bet is if we’re in six or seven malls right now, and when I say we’re in malls, we’re usually in the parking lot with a breezeway entrance into the mall. In some instances, one example would be in Atlanta Cumberland Mall, they literally, the mall owner tore down I think it was the JC Penny and then we redid the parking lot and we have a gas station and a full Costco with no direct attachment other then a breezeway into the mall.

]]> Tue, 16 Dec 2008 16:00:31 -0500 SA Editor Judy Weil Costco talks about some interesting trends in this downturn. From Costco Wholesale Corp.'s FQ109 conference call:

For once, a positive sign for malls:

We continue to think that there’s plenty of opportunity in the US and Canada. We think that, our bet is if we’re in six or seven malls right now, and when I say we’re in malls, we’re usually in the parking lot with a breezeway entrance into the mall. In some instances, one example would be in Atlanta Cumberland Mall, they literally, the mall owner tore down I think it was the JC Penny and then we redid the parking lot and we have a gas station and a full Costco with no direct attachment other then a breezeway into the mall.


Complete Story »]]> ARKR BAGL BJ BJRI CBL CKR CLI COST DRI FRS GGP LNY MAXE MRT MSSR SNS SPG TGT UDR WMT SA Editor Judy Weil McCormick & Schmick’s Q3 2008 Earnings Call Transcript http://seekingalpha.com/article/107107-mccormick-amp-schmicks-q3-2008-earnings-call-transcript?source=feed 107107 McCormick & Schmick’s (MSSR)

Q3 2008 Earnings Call

November 5, 2008 5 pm ET

]]> Thu, 20 Nov 2008 12:31:09 -0500 McCormick & Schmick’s (MSSR)

Q3 2008 Earnings Call

November 5, 2008 5 pm ET


Complete Story »]]> MSSR Raw Data Report: Bob's Big Boy, McCormick & Schmick's, Landry's, Macaroni Grill http://seekingalpha.com/article/94591-raw-data-report-bob-s-big-boy-mccormick-schmick-s-landry-s-macaroni-grill?source=feed 94591 Each day, Wall Street is flooded with stock research offering a multitude of conflicting investment opinions. As such, TickerMine is not in the business of providing more opinions. We believe that accurate raw data points can be used to gain insight in to the stock selection and valuation process.

Dinner Is the Busiest Time of Day at Big Boy (TRY)

]]> Tue, 09 Sep 2008 06:54:22 -0400 TickerMine TickerMine submits:

Each day, Wall Street is flooded with stock research offering a multitude of conflicting investment opinions. As such, TickerMine is not in the business of providing more opinions. We believe that accurate raw data points can be used to gain insight in to the stock selection and valuation process.

Dinner Is the Busiest Time of Day at Big Boy (TRY)


Complete Story »]]> EAT LNY MSSR TRY TickerMine Raw Data Report: McCormick & Schmick's, Carl's Jr., Noah's Bagels http://seekingalpha.com/article/93676-raw-data-report-mccormick-schmick-s-carl-s-jr-noah-s-bagels?source=feed 93676 Each day, Wall Street is flooded with stock research offering a multitude of conflicting investment opinions. As such, TickerMine is not in the business of providing more opinions. We believe that accurate raw data points can be used to gain insight in to the stock selection and valuation process.

McCormick & Schmick's Seafood Restaurants' (MSSR) Prices Might Be too High, Survey Says

]]> Wed, 03 Sep 2008 06:33:24 -0400 TickerMine TickerMine submits:

Each day, Wall Street is flooded with stock research offering a multitude of conflicting investment opinions. As such, TickerMine is not in the business of providing more opinions. We believe that accurate raw data points can be used to gain insight in to the stock selection and valuation process.

McCormick & Schmick's Seafood Restaurants' (MSSR) Prices Might Be too High, Survey Says


Complete Story »]]> BAGL CKE MSSR TickerMine McCormick & Schmick’s Seafood Restaurants, Inc. Q2 2008 Earnings Call Transcript http://seekingalpha.com/article/91432-mccormick-amp-schmicks-seafood-restaurants-inc-q2-2008-earnings-call-transcript?source=feed 91432 McCormick & Schmick’s Seafood Restaurants, Inc. (MSSR)

Q2 2008 Earnings Call

August 6, 2008 5:00 pm ET

]]> Mon, 18 Aug 2008 09:22:19 -0400 McCormick & Schmick’s Seafood Restaurants, Inc. (MSSR)

Q2 2008 Earnings Call

August 6, 2008 5:00 pm ET


Complete Story »]]> MSSR More Replacement Tickers for Reshaping David Merkel's Portfolio http://seekingalpha.com/article/83921-more-replacement-tickers-for-reshaping-david-merkel-s-portfolio?source=feed 83921 Readers have suggested some additional tickers for me.  Here they are:

General Electric (GE), Mircosoft (MSFT), Bristol-Meyers Squibb Co. (BMY), Boeing (BA), American National Insurance Co. (ANAT), Kansas City LIfe Ins. Co. (KCLI), and Deere & Co. (DE).

]]> Mon, 07 Jul 2008 07:24:38 -0400 David Merkel David Merkel submits:

Readers have suggested some additional tickers for me.  Here they are:

General Electric (GE), Mircosoft (MSFT), Bristol-Meyers Squibb Co. (BMY), Boeing (BA), American National Insurance Co. (ANAT), Kansas City LIfe Ins. Co. (KCLI), and Deere & Co. (DE).


Complete Story »]]> ABD ABG ACE ACGL AEG AEL AFG AGII AIG AMCP ANAT ASI AUO AWH AWI AXA AZ BA BBI BBW BC BKI BMY BWINA BWINB BWS BZ CAB CHB CINF CMRG CNO CONN CPHL CRH DE DSITY.PK EBF EIHI FFG FMR FNF GBE GE GIII GLRE GNW GT HALL HMN HSTX IHC IMOS IN INDM ING IPCR KB KCLI KEP KGFHY.PK KPPC LFGRQ.PK LGGNY.PK LIZ LNY LPL M MERC MGAM MIG MIGP MRH MRT MSFT MSSR MTE MW MYSZY.PK NP NSANY NSIT NYM OB OSK OXM PAG PCCC PEUGY.PK PL PMACA PNX PSS PTP PTRY RCL RE RNR ROCK RSC RT RUSHA RUSHB RUTH SAH SEAB SEOAY.PK SHG SIGI SMLC SSCC SSI SUR SWCEY.PK SWM THG TI TIP TRH TUES TWGP UFCS UFS UNM UPMKY.PK USMO UTR VOXX VR WF WHR XL ZFSVY.PK David Merkel McCormick & Schmick’s Seafood Restaurants, Inc. F1Q08 (Quarter End 03/29/2008) Earnings Call Transcript http://seekingalpha.com/article/76234-mccormick-amp-schmicks-seafood-restaurants-inc-f1q08-quarter-end-03-29-2008-earnings-call-transcript?source=feed 76234 McCormick & Schmick’s Seafood Restaurants, Inc. (MSSR)

F1Q08 Earnings Call

May 7, 2008 5:00 pm ET

]]> Wed, 07 May 2008 23:54:09 -0400 McCormick & Schmick’s Seafood Restaurants, Inc. (MSSR)

F1Q08 Earnings Call

May 7, 2008 5:00 pm ET


Complete Story »]]> MSSR McCormick & Schmick's Seafood Restaurants Q3 2007 Earnings Call Transcript http://seekingalpha.com/article/53324-mccormick-schmick-s-seafood-restaurants-q3-2007-earnings-call-transcript?source=feed 53324

McCormick & Schmick's Seafood Restaurants, Inc. (MSSR)

Q3 2007 Earnings Call

]]> Wed, 07 Nov 2007 22:11:48 -0500

McCormick & Schmick's Seafood Restaurants, Inc. (MSSR)

Q3 2007 Earnings Call


Complete Story »]]> MSSR 13 Extremely Oversold Consumer Stocks http://seekingalpha.com/article/50190-13-extremely-oversold-consumer-stocks?source=feed 50190 Clearly there is a lot of investor angst in the Consumer Discretionary sector. As this is October, a month traditionally that begins the season where professional investors attempt to reap those tax-losses and purge their year-end holdings of embarrassing mistakes, I wanted to see if there are any babies in the proverbial bathwater. The list below, generated using StockVal, includes stocks with current prices above 5, market capitalizations in excess of $100mm, PE below 20, Price/Book below 3 and Total Debt to Capital below 20%. Most importantly, they are all extremely oversold, based upon a measure of current price to trending price. In other words, these stocks are beaten down but don’t appear on the surface like they are terminal:

click to enlarge

]]> Wed, 17 Oct 2007 08:29:00 -0400 Alan Brochstein ab analytical servicesAlan Brochstein, CFA submits:

Clearly there is a lot of investor angst in the Consumer Discretionary sector. As this is October, a month traditionally that begins the season where professional investors attempt to reap those tax-losses and purge their year-end holdings of embarrassing mistakes, I wanted to see if there are any babies in the proverbial bathwater. The list below, generated using StockVal, includes stocks with current prices above 5, market capitalizations in excess of $100mm, PE below 20, Price/Book below 3 and Total Debt to Capital below 20%. Most importantly, they are all extremely oversold, based upon a measure of current price to trending price. In other words, these stocks are beaten down but don’t appear on the surface like they are terminal:

click to enlarge


Complete Story »]]> AAN CHS COLM CWTR DSW KCP MSSR MW PLCE RCRC SCVL SHOO SMRT Alan Brochstein Restaurant Sector Stock Picks: BJ's Restaurants, McCormick & Schmick's http://seekingalpha.com/article/29907-restaurant-sector-stock-picks-bj-s-restaurants-mccormick-schmick-s?source=feed 29907 On March 19, The Wall Street Transcript interviewed Michael D. Smith, CFA, Restaurant Analyst at Oppenheimer & Co. Inc. Key excerpts, including his favorite sector picks, follow:

TWST: Who is at the top of that list?

]]> Mon, 19 Mar 2007 03:52:13 -0400 The Wall Street Transcript On March 19, The Wall Street Transcript interviewed Michael D. Smith, CFA, Restaurant Analyst at Oppenheimer & Co. Inc. Key excerpts, including his favorite sector picks, follow:

TWST: Who is at the top of that list?


Complete Story »]]> BJRI MSSR The Wall Street Transcript Morton's Restaurant Group IPO Analysis, Comparison to RUTH and MSSR (MRT, MSSR, RUTH) http://seekingalpha.com/article/8404-morton-s-restaurant-group-ipo-analysis-comparison-to-ruth-and-mssr-mrt-mssr-ruth?source=feed 8404 MRT) plans on offering 9 million shares at a range of $14- $16. The offering size will be bumped to 10.35 million shares if the over-allotment is exercised. Insiders are selling 3 million shares on the deal. Wachovia is lead underwriting the deal, co manager is Piper Jaffray. Post- offering, assuming over- allotment is exercised, MRT will have 17.45 million shares for a market cap mid- range of $262 million. Approximately 90% of IPO proceeds will be utilized to pay down and restructure debt, with roughly 10% going to Castle Harlan for a management fee termination.

This is the 2nd go round for Morton's as a public company. Than publicly traded Morton's(with symbol MRG) struggled mightily in the 2001 economic downturn, and was bought out in the summer of 2002 by Castle Harlan for $94 million in cash and considerations. Castle Harlan outbid Carl Icahn for Morton's. At the time Morton's was reeling, being hit by double digit same store sale decreases in the midst of the 2001/ 2002 economic downturn. Morton's, much like RUTH was/ is dependent on heavy corporate spending, which dried up quickly during those years. Morton's at the time of the buyout had $10 per share in debt with dwindling cash flows, potentially headed for financial trouble. The buyout itself added to Morton's stock price as it was trading at a sub $50 million valuation before the Castle Harlan/ Carl Icahn bidding war. At the time of buyout Morton's owned and operated 66 restaurants.

]]> Thu, 02 Feb 2006 10:43:58 -0500 Bill Simpson Bill Simpson submits: Morton's Restaurant Group, Inc. (MRT) plans on offering 9 million shares at a range of $14- $16. The offering size will be bumped to 10.35 million shares if the over-allotment is exercised. Insiders are selling 3 million shares on the deal. Wachovia is lead underwriting the deal, co manager is Piper Jaffray. Post- offering, assuming over- allotment is exercised, MRT will have 17.45 million shares for a market cap mid- range of $262 million. Approximately 90% of IPO proceeds will be utilized to pay down and restructure debt, with roughly 10% going to Castle Harlan for a management fee termination.

This is the 2nd go round for Morton's as a public company. Than publicly traded Morton's(with symbol MRG) struggled mightily in the 2001 economic downturn, and was bought out in the summer of 2002 by Castle Harlan for $94 million in cash and considerations. Castle Harlan outbid Carl Icahn for Morton's. At the time Morton's was reeling, being hit by double digit same store sale decreases in the midst of the 2001/ 2002 economic downturn. Morton's, much like RUTH was/ is dependent on heavy corporate spending, which dried up quickly during those years. Morton's at the time of the buyout had $10 per share in debt with dwindling cash flows, potentially headed for financial trouble. The buyout itself added to Morton's stock price as it was trading at a sub $50 million valuation before the Castle Harlan/ Carl Icahn bidding war. At the time of buyout Morton's owned and operated 66 restaurants.


Complete Story »]]> MRT MSSR RUTH Bill Simpson