valuedontlie Posted June 2, 2017 Share Posted June 2, 2017 This is tiny, illiquid, and swings wildly with every trade but feels like a reasonable bet to me... Bagger recently spun off from Diversified Restaurant Holdings (SAUC). It's a plain vanilla burger-focused casual dining concept with 18 locations (down from 24 in 2014). It was viewed as a garbage barge coming out of SAUC. Losses were $26.6m and $11.4m in 2015 and 2016 on sales of $27.7m and $20.7m. SAUC founder and ~42% owner Mike Ansley stepped down as CEO of SAUC to run Bagger and so far results have been better than expected: Q1 same stores sales +0.4%, restaurant-level EBITDA of $185k (3.6% margin), FCF of $200k... Lots not to like still as overall sales are declining and EBITDA is not yet breakeven (though cash burn slowing/stopped)... Stock is at $0.15 and swings wildly... 26.7m shares out makes for a $4m cap less $2m net cash = $2m EV. That's 0.1x ev/sales. There is no plan to open new locations and the focus is 100% on profitability. Other crappy restaurants like RT/BBRG have fairly consistent 6-7% EBITDA margins and trade at ~0.3x ev/sales though they carry a decent amount of leverage... Management thinks they are at a trough in sales per unit (~$1.1m) and have a goal of $1.5-1.6m (not realistic). Even a modest increase to $1.2m per unit gets you $21.5m in sales + 5% margins = $1.1m in EBITDA. G&A + capex guided to ~$2m combined for 2017 so $1.1m EBITDA would be low-teens restaurant-level EBITDA margin, nothing heroic. At 0.3x ev/sales and 5x EBITDA gets you $0.28-0.32/share for 90-100% from here... worth a flier on a guy who has done this before... Also, SAUC has backstopped the company with another $1m in cash funding if needed and has guaranteed most Bagger operating leases... Here's the Q1 filing if interested: https://www.sec.gov/Archives/edgar/data/1685311/000149315217004959/form10-q.htm Link to comment Share on other sites More sharing options...
DTEJD1997 Posted June 2, 2017 Share Posted June 2, 2017 This is tiny, illiquid, and swings wildly with every trade but feels like a reasonable bet to me... Bagger recently spun off from Diversified Restaurant Holdings (SAUC). It's a plain vanilla burger-focused casual dining concept with 18 locations (down from 24 in 2014). It was viewed as a garbage barge coming out of SAUC. Losses were $26.6m and $11.4m in 2015 and 2016 on sales of $27.7m and $20.7m. SAUC founder and ~42% owner Mike Ansley stepped down as CEO of SAUC to run Bagger and so far results have been better than expected: Q1 same stores sales +0.4%, restaurant-level EBITDA of $185k (3.6% margin), FCF of $200k... Lots not to like still as overall sales are declining and EBITDA is not yet breakeven (though cash burn slowing/stopped)... Stock is at $0.15 and swings wildly... 26.7m shares out makes for a $4m cap less $2m net cash = $2m EV. That's 0.1x ev/sales. There is no plan to open new locations and the focus is 100% on profitability. Other crappy restaurants like RT/BBRG have fairly consistent 6-7% EBITDA margins and trade at ~0.3x ev/sales though they carry a decent amount of leverage... Management thinks they are at a trough in sales per unit (~$1.1m) and have a goal of $1.5-1.6m (not realistic). Even a modest increase to $1.2m per unit gets you $21.5m in sales + 5% margins = $1.1m in EBITDA. G&A + capex guided to ~$2m combined for 2017 so $1.1m EBITDA would be low-teens restaurant-level EBITDA margin, nothing heroic. At 0.3x ev/sales and 5x EBITDA gets you $0.28-0.32/share for 90-100% from here... worth a flier on a guy who has done this before... Also, SAUC has backstopped the company with another $1m in cash funding if needed and has guaranteed most Bagger operating leases... Here's the Q1 filing if interested: https://www.sec.gov/Archives/edgar/data/1685311/000149315217004959/form10-q.htm I am kicking myself for not getting some SAUC! I can do some leg work on this, as I've driven past some Bagger Dave's in my day to day business... Am I correct in that the company now has no debt? I am looking at their location list and it appears that they are in some very good locations...at least at first glance. There ain't no location on 8 mile road or Gratiot... Most locations are in Michigan. Michigan is doing reasonably well now, climbing out of a multiyear depression/recession. Of course, if Michigan is doing well, the economy is probably at it's end and about to collapse... Looks like they've got some killer deals...$5.95 for a burger & fries on Tuesday. That looks pretty darn good! Looks like a lot of emphasis on beer & micro-brew stuff. Probably a good strategic move as beer is probably very high margin... $4mm market cap? No debt (leases though) and 18 locations in non "mad max" areas? You most certainly could not build out these locations for $225,000 a piece... I'll have to take a close look and will try and eat at a few. Anybody else looking at this? Link to comment Share on other sites More sharing options...
DooDiligence Posted June 2, 2017 Share Posted June 2, 2017 This is tiny, illiquid, and swings wildly with every trade but feels like a reasonable bet to me... Bagger recently spun off from Diversified Restaurant Holdings (SAUC). It's a plain vanilla burger-focused casual dining concept with 18 locations (down from 24 in 2014). It was viewed as a garbage barge coming out of SAUC. Losses were $26.6m and $11.4m in 2015 and 2016 on sales of $27.7m and $20.7m. SAUC founder and ~42% owner Mike Ansley stepped down as CEO of SAUC to run Bagger and so far results have been better than expected: Q1 same stores sales +0.4%, restaurant-level EBITDA of $185k (3.6% margin), FCF of $200k... Lots not to like still as overall sales are declining and EBITDA is not yet breakeven (though cash burn slowing/stopped)... Stock is at $0.15 and swings wildly... 26.7m shares out makes for a $4m cap less $2m net cash = $2m EV. That's 0.1x ev/sales. There is no plan to open new locations and the focus is 100% on profitability. Other crappy restaurants like RT/BBRG have fairly consistent 6-7% EBITDA margins and trade at ~0.3x ev/sales though they carry a decent amount of leverage... Management thinks they are at a trough in sales per unit (~$1.1m) and have a goal of $1.5-1.6m (not realistic). Even a modest increase to $1.2m per unit gets you $21.5m in sales + 5% margins = $1.1m in EBITDA. G&A + capex guided to ~$2m combined for 2017 so $1.1m EBITDA would be low-teens restaurant-level EBITDA margin, nothing heroic. At 0.3x ev/sales and 5x EBITDA gets you $0.28-0.32/share for 90-100% from here... worth a flier on a guy who has done this before... Also, SAUC has backstopped the company with another $1m in cash funding if needed and has guaranteed most Bagger operating leases... Here's the Q1 filing if interested: https://www.sec.gov/Archives/edgar/data/1685311/000149315217004959/form10-q.htm I am kicking myself for not getting some SAUC! I can do some leg work on this, as I've driven past some Bagger Dave's in my day to day business... Am I correct in that the company now has no debt? I am looking at their location list and it appears that they are in some very good locations...at least at first glance. There ain't no location on 8 mile road or Gratiot... Most locations are in Michigan. Michigan is doing reasonably well now, climbing out of a multiyear depression/recession. Of course, if Michigan is doing well, the economy is probably at it's end and about to collapse... Looks like they've got some killer deals...$5.95 for a burger & fries on Tuesday. That looks pretty darn good! Looks like a lot of emphasis on beer & micro-brew stuff. Probably a good strategic move as beer is probably very high margin... $4mm market cap? No debt (leases though) and 18 locations in non "mad max" areas? You most certainly could not build out these locations for $225,000 a piece... I'll have to take a close look and will try and eat at a few. Anybody else looking at this? Yes Last years 10K Looks like they had plans of expanding Bagger Daves when they were a part of SAUC but stalled. Decent unit economics. Mike Ansley CEO had a 60% or so stake in the IPO (does he still?) (edit: he's also the CFO) Your impression of as many locations as possible would be awesome. Link to comment Share on other sites More sharing options...
atbed Posted June 2, 2017 Share Posted June 2, 2017 This is tiny, illiquid, and swings wildly with every trade but feels like a reasonable bet to me... Bagger recently spun off from Diversified Restaurant Holdings (SAUC). It's a plain vanilla burger-focused casual dining concept with 18 locations (down from 24 in 2014). It was viewed as a garbage barge coming out of SAUC. Losses were $26.6m and $11.4m in 2015 and 2016 on sales of $27.7m and $20.7m. SAUC founder and ~42% owner Mike Ansley stepped down as CEO of SAUC to run Bagger and so far results have been better than expected: Q1 same stores sales +0.4%, restaurant-level EBITDA of $185k (3.6% margin), FCF of $200k... Lots not to like still as overall sales are declining and EBITDA is not yet breakeven (though cash burn slowing/stopped)... Stock is at $0.15 and swings wildly... 26.7m shares out makes for a $4m cap less $2m net cash = $2m EV. That's 0.1x ev/sales. There is no plan to open new locations and the focus is 100% on profitability. Other crappy restaurants like RT/BBRG have fairly consistent 6-7% EBITDA margins and trade at ~0.3x ev/sales though they carry a decent amount of leverage... Management thinks they are at a trough in sales per unit (~$1.1m) and have a goal of $1.5-1.6m (not realistic). Even a modest increase to $1.2m per unit gets you $21.5m in sales + 5% margins = $1.1m in EBITDA. G&A + capex guided to ~$2m combined for 2017 so $1.1m EBITDA would be low-teens restaurant-level EBITDA margin, nothing heroic. At 0.3x ev/sales and 5x EBITDA gets you $0.28-0.32/share for 90-100% from here... worth a flier on a guy who has done this before... Also, SAUC has backstopped the company with another $1m in cash funding if needed and has guaranteed most Bagger operating leases... Here's the Q1 filing if interested: https://www.sec.gov/Archives/edgar/data/1685311/000149315217004959/form10-q.htm I am kicking myself for not getting some SAUC! I can do some leg work on this, as I've driven past some Bagger Dave's in my day to day business... Am I correct in that the company now has no debt? I am looking at their location list and it appears that they are in some very good locations...at least at first glance. There ain't no location on 8 mile road or Gratiot... Most locations are in Michigan. Michigan is doing reasonably well now, climbing out of a multiyear depression/recession. Of course, if Michigan is doing well, the economy is probably at it's end and about to collapse... Looks like they've got some killer deals...$5.95 for a burger & fries on Tuesday. That looks pretty darn good! Looks like a lot of emphasis on beer & micro-brew stuff. Probably a good strategic move as beer is probably very high margin... $4mm market cap? No debt (leases though) and 18 locations in non "mad max" areas? You most certainly could not build out these locations for $225,000 a piece... I'll have to take a close look and will try and eat at a few. Anybody else looking at this? I would be interested to hear what you think of the concept as well. There are some interesting interviews with Mike on YouTube, though they are dated. Link to comment Share on other sites More sharing options...
valuedontlie Posted June 5, 2017 Author Share Posted June 5, 2017 https://seekingalpha.com/article/4078755-good-things-come-3s-daves-got-3x-bagger-burgers-beer Link to comment Share on other sites More sharing options...
vox Posted June 5, 2017 Share Posted June 5, 2017 The company's been burning cash on operating activities at the rate of $2.73 million, $8.9 million, and $7.9 million in 2014, 2015, and 2016, respectively. Sure, they've been restructured and had positive operating activities cash flow for a quarter, but even in the 2017Q1 period, if you remove the changes in operating assets and liabilities, they would have had operating cash flow loss of $80,000. Does the stock have any value if sales remain flat? It seems like there are an awful lot of assumptions being driven on one quarter's worth of data. Link to comment Share on other sites More sharing options...
DooDiligence Posted June 5, 2017 Share Posted June 5, 2017 Largely from 2016 10K (where you see "") “As of March 9, 2017, there are approximately 443 holders of 26,670,786 shares of the Company’s common stock.” Me - Ansley owns 41.7% as of 2016 10K. “DRH contributed $2 million in cash to Bagger to provide working capital for Bagger’s operations and is a guarantor for certain of Bagger's lease obligations.” —— “As of December 25, 2016, we operated 19 Company-owned restaurants, all of which are leased properties. Sixteen of these restaurants are in Michigan, two are in Ohio and one is in Indiana. On January 9, 2017, we closed one restaurant located in Grand Rapids, Michigan. The assets at this location were fully impaired in fiscal year 2016 and no additional loss was incurred in conjunction with the closure.” 18 restaurants now (15 in MI, 1 in IN & 2 in OH) (below) http://www.uglymule.com/images/01-units.png ----- 1 unit opened in 2016 cost $362K & 6 units came to $300K in 2015 (sunk costs) http://www.uglymule.com/images/04-opening-sunk-costs.png ----- It cost them about $982K per unit to shut em down (below) http://www.uglymule.com/images/02-Impairments.png ----- Stopped unit expansions (below) http://www.uglymule.com/images/03-expansion-stopped.png ----- Concentrating on profitability before thinking about expanding. “We plan to drive top and bottom line growth through the achievement of positive same-store-sales in comparable restaurant locations and the successful implementation of cost reduction initiatives at the restaurant and support level. We closed 11 underperforming locations in 2015 and another one on January 9, 2017 where we determined that sustainable top and bottom line growth would be difficult to achieve, allowing us to focus on those locations where our growth opportunities are the strongest.” “In 2012, we launched online ordering and recently launched table side ordering devices that allow servers to create orders and send orders to the kitchen while standing with the customer. We believe the table-side ordering will help decrease serving time and increase customer turnover and satisfaction since these devices also accommodate credit card swipes so that the card never has to leave the customer’s sight.” “We are constantly assessing new technologies to improve operations, back-office processes and overall guest experience. This includes the implementation of mobile payment options, advanced programming of kitchen display units, tablet-based wait-listing applications and a mobile-based loyalty program.” ----- Tiny Float from customer Loyalty http://www.uglymule.com/images/05-loyalty-float.png ----- Unqualified statement from BDO USA LLP (FWIW) ----- This is where I left off & went to a Brit Floyd concert. Before the concert we had dinner at a Beef O'Bradys (sucked) & it caused me to stop expanding my look into Bagger Dave's. The time was worth the effort though (establishing methods for looking at things & how to record the work.) Link to comment Share on other sites More sharing options...
Sunrider Posted June 6, 2017 Share Posted June 6, 2017 One question - how does a company with 18 restaurants at $1m a pop and 6% EBITDA margins (can they get there?) cover its listing and public company costs? 18m x 6% = 1m EBITDA at co level, public co/central costs = 200k?, so 800k? Are those reasonable estimates? At 800k EBITDA it's of course cheap but I remember all that discussion on the SYTE board re need to get more capital because cost of being public co etc etc. Any views appreciated. Thanks - C. Link to comment Share on other sites More sharing options...
hillfronter83 Posted June 6, 2017 Share Posted June 6, 2017 One question - how does a company with 18 restaurants at $1m a pop and 6% EBITDA margins (can they get there?) cover its listing and public company costs? 18m x 6% = 1m EBITDA at co level, public co/central costs = 200k?, so 800k? Are those reasonable estimates? At 800k EBITDA it's of course cheap but I remember all that discussion on the SYTE board re need to get more capital because cost of being public co etc etc. Any views appreciated. Thanks - C. Isn't EBITDA by definition already net of such costs? Link to comment Share on other sites More sharing options...
Sunrider Posted June 6, 2017 Share Posted June 6, 2017 I used restaurant level EBITDA - based on figures mentioned here and SA, so those costs wouldn't necessarily be in there (they may, however, depending on how the authors thought about it, hence I'm asking the question ... as well as wether 200k of public co costs is realistic or too low). C. Link to comment Share on other sites More sharing options...
DTEJD1997 Posted June 11, 2017 Share Posted June 11, 2017 Hey all: Turns out I was mistaken previously! There is indeed a location on Gratiot ;D Instead of 8-mile, it is at Gratiot at 23-mile road...I don't get that far out that often, and I was SHOCKED at the level of development that far out. Standard, bustling suburbia, lots of strip mall type stuff. Reasonably affluent too. I went in to the restaurant about 2 PM, it was not busy...but still there were several tables of people. Of course, I was seated immediately. I knew ahead of time what I wanted to get so I ordered right away. I was offered a taste test of the "house" soda, and thought that was a nice touch. My food was delivered reasonably quickly, and "in good condition". I got the bacon & cheddar burger with fries. The burger was EXCELLENT, better than what I expected. The serving size was big, so I was full from the meal, and I can eat a lot. The burger was better than Wendy's, Five Guys, and just about anywhere else. The fries were good, but to be honest, I didn't see what the big deal was...I've had better fries elsewhere, but they were certainly acceptable. If they were just a bit "crispier", they would have been a LOT better. Another great thing might be to put "flavored" salt on the table, maybe something like Lawry's? There were dipping sauces offered, but they were extra cost, and I didn't think I would like them, so I did not get one. The house soda was OK, nothing special. I will order it again, but will try different flavors and will get different flavors. I did not get dessert as I was full. I was reading my copy of Barron's and took my time, perhaps about 30 minutes. My waitress was pretty good. The restaurant appeared to be well staffer. Other diners seemed to be served reasonably quickly. One thing was that the restaurant was exceptionally well laid out. Clearly it was custom built to be this specific "theme" and idea. The restaurant was EXCEPTIONALLY clean, actually it appeared to be one of the cleanest/neatest places that I've been in. They definitely get an "A" in that area. The price was a little high, but not outrageously so. I thought the soda was a bit much though, was it $2.95? They sometimes run specials. On Tuesday I think the "basic" burger & fries is $5.95, which would be an AWESOME deal. The restaurant was well decorated with lots of local memorabilia. There is a full bar, with liquor. There were lots of offerings of craft beer. I might try some on my next trip. What was also interesting was that more people were coming in as I was eating. When I left, the restaurant was actually busier than when I went in. I was surprised at that as I would think the time I went would be one of the slowest of the day. So the restaurant appears to be properly planned/laid out, well staffed by competent workers. Food quality was high. Value for money was decent. Crisp up the fries and lower the price of the "house" soda and I would give it very high marks indeed. One problem though is how do they stand out against the competition? I would certainly eat at Bagger Dave's over say Ruby Tuesday or Applebees...but I'm not going to go 15 minutes out of my way to do so. At this particular location, there were MANY different competitors from Mom & Pop 1 off local restaurants, regional competitors, and national competitors. I also would only eat at Bagger Dave's if I've got some time...this is not a 5-10 minutes in & out type place. You've probably got to have about 1/2 hour for your meal (maybe 20 minutes). So they are a good/competent competitor in a VERY crowded market. Of course, at different locations, the competition might not be as intense. Overall, the experience was slightly better than what I was expecting. I will be back. Link to comment Share on other sites More sharing options...
DooDiligence Posted June 11, 2017 Share Posted June 11, 2017 One problem though is how do they stand out against the competition? I would certainly eat at Bagger Dave's over say Ruby Tuesday or Applebees...but I'm not going to go 15 minutes out of my way to do so. At this particular location, there were MANY different competitors from Mom & Pop 1 off local restaurants, regional competitors, and national competitors. I also would only eat at Bagger Dave's if I've got some time...this is not a 5-10 minutes in & out type place. You've probably got to have about 1/2 hour for your meal (maybe 20 minutes). So they are a good/competent competitor in a VERY crowded market. Of course, at different locations, the competition might not be as intense. Overall, the experience was slightly better than what I was expecting. I will be back. Thanks for the color DTE! A Google street level view show Corporate headquarters (a modest rental unit in a multi tenant structure) located right across the street from a Slabtown Burgers (with more as you pan around the area.) you're right, there does seem to be a lot of burger boutiques in the region (hell, in the country for that matter.) Nice promotional vidi stream on Twitter / YouTube / Social Media (I assume they do all these in house & if so, production costs would be minimal.) They stated in the last call that they have no intention of expanding until they get a handle on profitability (probably no hurry to get in until they get traction on the bottom line.) What I have difficulty with is the sunk costs (it's expensive to start one up & it's REALLY expensive to shut one down.) I'm gonna look at Fogo de Chão again (I made fun of it before but after a quick read with a different set of eyes...?) I think Fogo has pricing power due to their differentiation & they're already profitable & expanding. Link to comment Share on other sites More sharing options...
DTEJD1997 Posted June 11, 2017 Share Posted June 11, 2017 One problem though is how do they stand out against the competition? I would certainly eat at Bagger Dave's over say Ruby Tuesday or Applebees...but I'm not going to go 15 minutes out of my way to do so. At this particular location, there were MANY different competitors from Mom & Pop 1 off local restaurants, regional competitors, and national competitors. I also would only eat at Bagger Dave's if I've got some time...this is not a 5-10 minutes in & out type place. You've probably got to have about 1/2 hour for your meal (maybe 20 minutes). So they are a good/competent competitor in a VERY crowded market. Of course, at different locations, the competition might not be as intense. Overall, the experience was slightly better than what I was expecting. I will be back. Thanks for the color DTE! A Google street level view show Corporate headquarters (a modest rental unit in a multi tenant structure) located right across the street from a Slabtown Burgers (with more as you pan around the area.) you're right, there does seem to be a lot of burger boutiques in the region (hell, in the country for that matter.) Nice promotional vidi stream on Twitter / YouTube / Social Media (I assume they do all these in house & if so, production costs would be minimal.) They stated in the last call that they have no intention of expanding until they get a handle on profitability (probably no hurry to get in until they get traction on the bottom line.) What I have difficulty with is the sunk costs (it's expensive to start one up & it's REALLY expensive to shut one down.) I'm gonna look at Fogo de Chão again (I made fun of it before but after a quick read with a different set of eyes...?) I think Fogo has pricing power due to their differentiation & they're already profitable & expanding. You guys are certainly welcome. I always appreciate other members "on the ground experiences", so I try to reciprocate when I can. I think what makes BDVB interesting is that it is selling for such a discount to it's book value. Of course, it was a LOT more interesting at $.15/share than it is at $.25/share... In hindsight, BDVB should never have been opened...but at the current point in time, you are buying the assets for 1/2 or less of the cost to open it, so it is a different equation. Another interesting aspect of this is that it is a turn around. In a few years, if they can get things turned around, who knows? they might trade a premium to book! Stranger things have happened. Also, the balance sheet seems to be OK if they can get SSS and profitability turned around. They've got a $1mm backstop if they need it from the parent co. So BDVB is a high risk, high return type situation. ################# I also have been looking at FOGO. In my opinion, FOGO is a quality operation all the way around. I have not taken a position, as I want to get in at a lower point. I've eaten at some of their locations and they have a great product. Link to comment Share on other sites More sharing options...
Guest jeffswaldron Posted June 20, 2017 Share Posted June 20, 2017 What do you all think their PP&E is conservatively worth? Any advice as to the best way I could find out for myself? Link to comment Share on other sites More sharing options...
DTEJD1997 Posted June 21, 2017 Share Posted June 21, 2017 What do you all think their PP&E is conservatively worth? Any advice as to the best way I could find out for myself? I would say that it is almost impossible to say what their PP&E is worth... Used Fryolators are probably worth $.40 on the dollar. Used seating & chairs & pictures & such is MAYBE worth $.10 on the dollar. Perhaps a better way to look at it is that how much would it cost to build out/replace it? Another way to look at it is what level of revenue are they getting on the capital investment? What level of earnings (if any) might they make. It is very, very clear that a lot of capital (relative to market cap) has been spent to build up this company. At present quotes, I think the company is just under 1/2 of conservative, depreciated book value. If by some odd chance, the company had to cease operations tomorrow, and liquidate everything, shareholders would probably get a fraction of current quote. The only real value is as an operating concern. At least, that is my opinion... Link to comment Share on other sites More sharing options...
DooDiligence Posted June 21, 2017 Share Posted June 21, 2017 What do you all think their PP&E is conservatively worth? Any advice as to the best way I could find out for myself? I would say that it is almost impossible to say what their PP&E is worth... Used Fryolators are probably worth $.40 on the dollar. Used seating & chairs & pictures & such is MAYBE worth $.10 on the dollar. Perhaps a better way to look at it is that how much would it cost to build out/replace it? Another way to look at it is what level of revenue are they getting on the capital investment? What level of earnings (if any) might they make. It is very, very clear that a lot of capital (relative to market cap) has been spent to build up this company. At present quotes, I think the company is just under 1/2 of conservative, depreciated book value. If by some odd chance, the company had to cease operations tomorrow, and liquidate everything, shareholders would probably get a fraction of current quote. The only real value is as an operating concern. At least, that is my opinion... Yep, it costs a lot more to close 'em than to open 'em. Link to comment Share on other sites More sharing options...
atbed Posted June 21, 2017 Share Posted June 21, 2017 What do you all think their PP&E is conservatively worth? Any advice as to the best way I could find out for myself? I would say that it is almost impossible to say what their PP&E is worth... Used Fryolators are probably worth $.40 on the dollar. Used seating & chairs & pictures & such is MAYBE worth $.10 on the dollar. Perhaps a better way to look at it is that how much would it cost to build out/replace it? Another way to look at it is what level of revenue are they getting on the capital investment? What level of earnings (if any) might they make. It is very, very clear that a lot of capital (relative to market cap) has been spent to build up this company. At present quotes, I think the company is just under 1/2 of conservative, depreciated book value. If by some odd chance, the company had to cease operations tomorrow, and liquidate everything, shareholders would probably get a fraction of current quote. The only real value is as an operating concern. At least, that is my opinion... +1 Link to comment Share on other sites More sharing options...
Guest jeffswaldron Posted June 22, 2017 Share Posted June 22, 2017 Thanks for the responses. Anyone have any thoughts on Mike Ansley as a CEO? What are his incentives here? Also, why is this company public? This company seems like such an awful idea that it has me intrigued... because I am usually wrong. Link to comment Share on other sites More sharing options...
DTEJD1997 Posted November 8, 2017 Share Posted November 8, 2017 Hey all: Anybody still watching/looking at this thing? I check in on it every few days... Looks like it collapsed the other day, down 63% to about a nickel a share. Over a million shares traded, about 6% of the company? Obviously, so(body) wanted out... I believe this precipitous drop is a reaction to their latest quarterly report. They took a several million dollar write down due to a couple of impaired locations. Also looks like revenue is RAPIDLY going the wrong way, down about 20%. With collapsing revenue, cash flow is way down, there are no earnings. With SAUC being under SEVERE pressure, I am going to guess that now BDVB is in serious trouble unless they can turn things around quick fast & in a hurry. Link to comment Share on other sites More sharing options...
Guest Cameron Posted November 8, 2017 Share Posted November 8, 2017 Hey all: Anybody still watching/looking at this thing? I check in on it every few days... Looks like it collapsed the other day, down 63% to about a nickel a share. Over a million shares traded, about 6% of the company? Obviously, so(body) wanted out... I believe this precipitous drop is a reaction to their latest quarterly report. They took a several million dollar write down due to a couple of impaired locations. Also looks like revenue is RAPIDLY going the wrong way, down about 20%. With collapsing revenue, cash flow is way down, there are no earnings. With SAUC being under SEVERE pressure, I am going to guess that now BDVB is in serious trouble unless they can turn things around quick fast & in a hurry. From a quick read of the 10Q it looks like it says they are going to burn through all their cash within the next 12 months and have no way of raising capital. Link to comment Share on other sites More sharing options...
DTEJD1997 Posted November 8, 2017 Share Posted November 8, 2017 Hey all: Anybody still watching/looking at this thing? I check in on it every few days... Looks like it collapsed the other day, down 63% to about a nickel a share. Over a million shares traded, about 6% of the company? Obviously, so(body) wanted out... I believe this precipitous drop is a reaction to their latest quarterly report. They took a several million dollar write down due to a couple of impaired locations. Also looks like revenue is RAPIDLY going the wrong way, down about 20%. With collapsing revenue, cash flow is way down, there are no earnings. With SAUC being under SEVERE pressure, I am going to guess that now BDVB is in serious trouble unless they can turn things around quick fast & in a hurry. From a quick read of the 10Q it looks like it says they are going to burn through all their cash within the next 12 months and have no way of raising capital. I thought they could get another $1mm from SAUC if they needed it? Of course, SAUC is under stress themselves... I guess they shut down another 3 locations....1 lease was up, 1 is up at the end of the year, and another had 6+ months to go. Things must really be falling apart if they are going to blow through all their cash in upcoming 12 months. It will also make it hard to retain talent, especially as time progresses. I never took a position, other than eating some of their burgers. I'll be sorry to see them go, they had an above average product. Link to comment Share on other sites More sharing options...
Guest Cameron Posted November 8, 2017 Share Posted November 8, 2017 Hey all: Anybody still watching/looking at this thing? I check in on it every few days... Looks like it collapsed the other day, down 63% to about a nickel a share. Over a million shares traded, about 6% of the company? Obviously, so(body) wanted out... I believe this precipitous drop is a reaction to their latest quarterly report. They took a several million dollar write down due to a couple of impaired locations. Also looks like revenue is RAPIDLY going the wrong way, down about 20%. With collapsing revenue, cash flow is way down, there are no earnings. With SAUC being under SEVERE pressure, I am going to guess that now BDVB is in serious trouble unless they can turn things around quick fast & in a hurry. From a quick read of the 10Q it looks like it says they are going to burn through all their cash within the next 12 months and have no way of raising capital. I thought they could get another $1mm from SAUC if they needed it? Of course, SAUC is under stress themselves... I guess they shut down another 3 locations....1 lease was up, 1 is up at the end of the year, and another had 6+ months to go. Things must really be falling apart if they are going to blow through all their cash in upcoming 12 months. It will also make it hard to retain talent, especially as time progresses. I never took a position, other than eating some of their burgers. I'll be sorry to see them go, they had an above average product. I have no idea, first time I've read anything on the company. Link to comment Share on other sites More sharing options...
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