Double-digit days for LP, O’Charley’s
Posted on November 5, 2009 at 2:57 pm
Shares of Louisiana-Pacific (Ticker: LPX) are basking in the afterglow of analyst praise and have extended the strong run that was cut short yesterday. Heading into the close, they’re up more than 17 percent.
Why O’Charley’s is up about the same amount is more of a puzzle. Yes, many industry players are having good days, but this Dow Jones chart shows Nashville-based O’Charley’s (Ticker: CHUX) is outpacting them by a factor of two to one.
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O’Charley’s walks the fine value line
Posted on October 29, 2009 at 2:28 pm
Jeff Warne, the CEO of O’Charley’s, this morning told investors and analysts that, in trying to drive traffic to his restaurants, his crew isn’t interested in deeply discounting the meals it offers now. Doing that instead of coming up with new offerings, he said, is simply “transferring value to the guest somewhat at the expense of the shareholder.”
“We’re trying to find the right balance between profitability and driving guests. It’s clear that value is the dominant message and we’re trying to do it in a profitable way.”
On what was otherwise a rather tame call – as is often the case when expectations are met – one moment of suspense came from Morgan Keegan analyst Robert Derrington, who pressed CFO Larry Hyatt on why the company wasn’t raising guidance for the full year when it beat its own third-quarter estimate. In keeping guidance flat, Derrington wondered, was the company implying that business is going to get worse?
Not quite, said Hyatt. But the consumer spending picture is very murky and the fourth quarter is generally on the slow side, so sticking your neck out on guidance just doesn’t make sense, especially when operating costs are pretty much fixed at this point.
“The fundamental question is sales. We don’t have any more visibility into fourth-quarter sales than we suspect anyone else does.”
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Analyst action: Psych Solutions, O’Charley’s
Posted on at 7:15 amSoleil Securites’ A.J. Rice yesterday downgraded shares of Psychiatric Solutions to ‘hold’ from ‘buy’ and slashed his price target to $22 from $33. The stock (Ticker: PSYS) lost almost a quarter of its value after a disappointing Q3 report.
Over at Morgan Keegan, analyst Robert Derrington has raised O’Charley’s to ‘outperform’ from ‘market perform’ citing the stock’s valuation and management’s operational plans. The restaurant chain (Ticker: CHUX) will report its earnings this morning; the Street is looking for a loss of 10 cents per share.
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A tell on O’Charley’s earnings?
Posted on October 26, 2009 at 7:29 amThat would be one way to interpret the sudden, negative and high-volume price action in shares of the Nashville-based restaurant company (Ticker: CHUX) in the last half hour of trading Friday. O’Charley’s will report its Q3 results on Wednesday morning. Analysts are looking for a loss of 10 cents per share.
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O’Charley’s knows where the beef is
Posted on October 21, 2009 at 10:41 am
A succcessful trial of a lower-priced sirloin meal has led O’Charley’s officials to put the item on its permanent menu. The move will be accompanied by several other prime rib offerings aiming to entice value-hungry diners. Shares of O’Charley’s (Ticker: CHUX) are up 30 percent from a year ago but flat since mid-August.
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O’Charley’s settles Wisconsin suit
Posted on August 19, 2009 at 9:17 amThe Nashville-based restaurant chain has reached a deal that removes a former franchisee from the picture by buying its stake in a joint venture for $50,000. (Search for Wi-Tenn.)
SEE ALSO: The action brought by O’Charley’s (Ticker: CHUX) in this case last year that pulled Boston Market into the legal proceedings
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It’s not just O’Charley’s
Posted on August 7, 2009 at 7:24 amIf it’s any comfort to O’Charley’s investors who had to stomach a big loss Thursday, the parent of the Chili’s, On the Border and Maggiano’s chains appears to be in worse shape. Brinker International reported second-quarter results that had costs come down nicely, but revenue numbers that were way off in part due to aggressive discounting. The latter has prompted a change in strategy.
Chili’s, the company’s largest restaurant brand, recently shifted its lead marketing draw to focus on more food at a higher price after an offer for less food at lower prices went sour.
Brinker shares (Ticker: EAT) fell 17 percent Thursday.
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O’Charley’s outsources some more
Posted on July 6, 2009 at 2:39 pmRestaurant company O’Charley’s Inc has entered into an agreement with Wisc.-based Reinhart FoodService to outsource its food supply and distrbution for its Ninety Nine chain of restaurants.
The agreement, valued at $6 million to $8 million, involves transferring O’Charley’s assets in Bellingham, Mass., where its current distribution center is, according to a news release. Reinhart plans to sublease and operate the center for less than a year, while it builds the existing capacity of its New Bedford, Mass., distribution center.
The company previously outsourced its distribution for both its O’Charley’s and Stoney River chains.
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Pay details for new O’Charley’s chief
Posted on June 5, 2009 at 8:33 amJeff Warne’s promotion announced yesterday will bring him a 34 percent raise and comes with a 150,000-share option package. The 48-year-old’s contract has an initial term of three years.
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O’Charley’s charging higher
Posted on April 24, 2009 at 11:37 amThere’s no apparent news and the volume isn’t outstanding, but an 18-percent jump on any day is nothing to sneeze at. O’Charley’s (Ticker: CHUX) has more than tripled since early March and is back to its November levels.
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Light in the casual-dining tunnel?
Posted on April 8, 2009 at 9:19 amA number of Tennessee-based restaurant stocks are trading significantly higher this morning after Ruby Tuesday said its expected 2009 loss will be smaller than previously expected. Maryville-based Ruby Tuesday (Ticker: RT) has spiked almost 50 percent, while O’Charley’s (Ticker: CHUX) is up 16 percent and Cracker Barrel (Ticker: CBRL) and J. Alexander’s (Ticker: JAX) have added at least 3 percent.
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Former O’Charley’s exec on the move with new concept
Posted on April 1, 2009 at 11:11 pmSteve Hislop, who left his post as president of O’Charley’s in late 2006, plans to “connect the dots” along I-65 with outlets of his $43 million Chuy’s chain, which now runs 13 locations in Texas.
Chuy’s popularity may be attributed to its kitschy, offbeat decor, featuring hubcap-lined ceilings and shrines to Elvis. “Our motto has always been, ‘If you’ve seen one Chuy’s … you’ve seen one Chuy’s,’” Hislop says, referring to the layout, which is designed to look as if dining rooms have been added over time.
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Browsing O’Charley’s proxy
Posted on March 29, 2009 at 11:25 pmThe restaurant chain’s preliminary proxy statement outlines some changes in how its top execs will be paid in 2009.
- Not surprisingly, the brass won’t get a salary raise this year. Search for ‘in light of economic conditions.’
- In addition, cash bonuses will be paid based on EBITDA growth, not per-share profits as in past years and stock grants are making way for time-based option grants. Search for ‘tie cash bonuses’ and scroll down a little for the options info.
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And now to double again…
Posted on March 23, 2009 at 1:40 pmO’Charley’s shares are up about 15 percent today on what looks like it will be above-average volume. The stock (Ticker: CHUX) has rallied from $2 to almost $4 since early this month.
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O’Charley’s a ’scorched-earth survivor’
Posted on March 16, 2009 at 3:14 pmRaymond James analyst Bryan Elliott says O’Charley’s has the history, brand awareness and financial staying power to be a survivor, even if the restaurant sector really goes down the tubes. Shares of O’Charley’s (Ticker: CHUX) jumped more than 7 percent to $2.81 today.
“Once valuations normalize, these are likely $5-7 stocks, and perhaps $10+, as each has $1.00 EPS power and sustained expansion potential in an economic recovery.”
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