Restaurant Finance Across America
Whither Independents
Restaurant analysts and pundits have been predicting the demise of the independent restaurant operator for many years. In the current recession, you would think that more independent owners would be closing their doors. But no, independent owners are showing their resilience by opening restaurants in space formerly occupied by chain operators. ...more
Shareholders 1 Marcus Jundt 0
Embattled CEO Marcus Jundt resigned on Friday, May 15th as Chairman and CEO of the money-losing Kona Grill. Nothing in the company announcement addressed his employment contract which was signed only four days prior to his resignation and provides Jundt with a salary of $329,000 per year.
Kona Grill Web Site May 15, 2009 
The Slapdown of Marcus Jundt
The shareholders of Kona Grill voted Marcus Jundt out as Chairman of the company and overturned the Company's recently enacted poison pill.
Yahoo Finance May 5, 2009
TGI Friday's fires the first shot in the casual dining price war!
TGI Friday's has decided to start the summer casual dining season with a $5.00 sandwich and salad offer. Watch out Applebee's and Chili's and all of you public restaurant companies. The price war is on.
USA Today April 30, 2009
Marcus Jundt, Kona CEO, loses cool on quarterly conference call
Marcus Jundt lost his cool in a quarterly conference call discussing Kona's recent quarterly results. In a most bizarre call, Jundt was pressed (and baited) by Mill Road Capital's, Thomas Lynch. Read it here on Seeking Alpha or listen to it on the company's web site at http://phx.corporate-ir.net/phoenix.zhtml?c=191864&p=irol-irhome
Seeking Alpha April 29, 2009
J.H. Chapman's Annual Census predicts tight capital situation will improve
David Epstein, an investment banker who specializes in restaurant transactions, predicts the tight capital situation which exists today will improve somewhat by the end of the year or early 2010 which should allow for more traditional merger and and acquisition activity. Attached is Epstein's 2008 annual census, a comprehensive guide to acquisition activity in the restaurant business.
J.H. Chapman & Co. April 13, 2009
Brian Wesbury predicts quick end to the recession
Economist Brian Wesbury feels the Fed's aggressive moves to pump liquidity into the financial system is having its desired effects. Wesbury expects spending on home sales, retail sales, auto sales, oil and other commodity prices to rise in the next few months.
Brian Wesbury April 6, 2009
Casual dining stores need to close more stores to reach equilibrium with declining sales
According to a report in Nation's Restaurant News, Morgan Stanley restaurant analyst says that casual-dining chains should close a net of 1,200 locations or about 7 percent of segment capacity, to restore a supply and demand equilibrium with restaurant consumers.
Nation's Restaurant News March 17, 2009
The freeze in SBA lending should end soon
The Treasury plans to temporarily raise the SBA guarantee to 90 percent and waive fees of as much as $75,000 that are paid by borrowers. The SBA currently guarantees payment on 85 percent of a loan up to $150,000, and as much as 75 percent on loans of more than $150,000. The Treasury announced that it has also hired an investment manager who will be authorized to purchase securities backed by guaranteed portions of 7(a) loans packaged on or after July 1, 2008.
US Treasury March 16, 2009
Mill Road Capital charges Kona Grill with misrepresentations and fiduciary breaches in financing
Mill Road Capital describes itself as practicing "Berkshire Hathaway" style investing principles investing in businesses that generate cash and consistently earn above-average returns on capital. What the investing firm is doing messing around with Kona Gril is anyone's guess? Mill Road charges that the recent $1.2 million note deal that Kona made with certain shareholders failed to identify James Jundt, the father of CEO and Chairman Marcus Jundt, as the primary investor. Mill Road charges that Kona offered and granted materially better financing terms to the insiders.
PR Newswire March 11, 2009
Outback looks to retire debt at a discount
OSI Restaurant Partners, the parent company of Outback Steakhouse, is attempting to repurchase up to $483 million in outstanding 10% notes that are currently trading at a large discount to par value. The company announced that the offer is being conducted as a modified Dutch auction with an acceptable bid price range of $225 to $275 per $1,000 principal amount of the notes. OSI said it will pay up to $73 million, excluding accrued interest. The Company currently has $488.2 million aggregate principal amount of the notes outstanding.
Business Wire February 18, 2009
Beware of Jim Cramer's recommendations
Is it any surprise that Jim Cramer's stock predictions underperform the market?
Barrons February 8, 2009
Even Buffalo Wild Wings has troubled franchisees
The company that owns the Buffalo Wild Wings in Clearwater, Florida has filed or bankruptcy.
Tampa bay Business Journal January 22, 2009
You can hear the banks tightening the credit
The Federal Reserve's Senior Loan Officer's Survey found that 80 percent of domestic banks had tightened their lending standards on commercial real estate loans over the past three months. The survey also reported that 80% of domestic banks cited an increase in their use of interest rate floors in floating-rate loan agreements during 2008.
Federal Reserve Senior Loan Survey February 2, 2009
President Obama to the credit crunch rescue
President Barack Obama promised lower interest rates and credit flowing to small business once again.
Marketwatch.com January 31, 2009
Jim Rogers sends a wake-up call on U.S. economy and commodities
The government is printing money and propping up everyone. This leads to high inflation says Jim Rogers. Commodities will be the place to be because there is limited supply.
Youtube January 19, 2009
Piper Jaffray goes to court to collect fees
Piper Jaffray has filed suit against Buca to collect a brokerage and advisory fee in connection with the recent sale of the company to Planet Hollywood.
Minneapolis St. Paul Business Journal January 9, 2009
Franchisee closes it doors; cites lack of financing to remodel as reason
Golden Corral franchisee, Jim Clark, said he finally closed his restaurant in Clovis, New Mexico partly because of his inability to sell the restaurant because of a requirement that the new buyer bring the restaurant up to its current standards. Clark said he didn't have the money or financing to remodel it either.
Clovis News Journal, January 3, 2009
Kona agrees to sell common at $1.19 per share to CEO's father; investor objects to deal.
Kona has agreed to sell common shares at $1.19 per share to James Jundt, father of the company's CEO, Marcus Jundt. A Kona investor has objected to the deal in the attached letter.
Reuters January 2, 2009
Don't cut out the future...the economy will eventually turn
All restaurant and franchise owners and executives should read this piece by economist Irwin Kellner. "Studies show that those companies that keep their names before the public in bad times are more likely to be remembered by their customers when the good times return. And this means maintaining, if not increasing, expenditures that promote the company and its brands in the usual media, as well as experimenting with new formats."
Irwin Kellner MarketWatch December 15, 2008
