BAGL - Einstein Noah Restaurant Group

[Guest hellsten]

Thought I would open a thread about Einstein Noah Restaurant Group, because David Einhorn owns 62.81% of the company and it seems cheap compared to its peers.

 

Google Finance:

Einstein Noah Restaurant Group, Inc. (ENRGI) is an owner/operator, franchisor and licensor of bagel specialty restaurants in the United States. ENRGI operates under the Einstein Bros. Bagels (Einstein Bros.), Noah’s New York Bagels (Noah’s) and Manhattan Bagel Company (Manhattan Bagel) brands. ENRGI operates in three business segments: the Company-owned restaurants segment, the manufacturing and commissary segment, and the franchise and license segment. The Company-owned restaurants segment includes the restaurants that it owns. The manufacturing and commissary segment produces and distributes bagel dough and other products to its Company-owned restaurants, licensees and franchisees and other third parties. The franchise and license segment earns royalties and other fees from the use of trademarks and operating systems developed for the Einstein Bros., Noah’s and Manhattan Bagel brands.

 

Has anyone here looked at the company?

[siddharth18]

History from an article on SA:

 

The company IPO'ed in June 2007 for $18 per share. At the time of the IPO, David Einhorn's Greenlight Capital owned almost 100% of the company (Greenlight Capital owned the corporate bonds of BAGL when it went into chapter 11 bankruptcy and received the stock through the reorganization. Einstein originally went into bankruptcy in 2000 after loaning too much money to franchisees). After the IPO, Greenlight Capital owned approximately 60% of the company, retaining its majority shareholder stake. Obviously, the timing of the IPO did not end up being ideal. After the market crash of 2008-2009, the stock did not return to its IPO price until late 2012. To date, Greenlight Capital is still the majority shareholder, though Greenlight did file a shelf registration in March of this year in order to have the ability to sell all or a portion of their stake in Einstein Noah.