1 Restaurant = $51 Million
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 13 November 2024
⏱️ 32 minutes
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| 0:00.0 | I hope you're hungry. You're listening to Motley Full Money. |
| 0:12.8 | I'm Mary Long, joined live and in person today from a co-working office in Denver, Colorado, with Tim Byers. |
| 0:19.5 | Tim, thanks for being here with me this morning. |
| 0:21.5 | Thanks, Mary. Fully caffeinated, ready to go. |
| 0:24.0 | Fully caffeinated, ready to go. We've got a Thanksgiving lunch prepared for us after this, |
| 0:28.7 | I think, and to just wet our appetites even more, we're talking about three stocks that we'll |
| 0:34.7 | see if we get to the third. But what we've got lined up for us today are three |
| 0:38.4 | companies, all of which I know that you're big fans of, and they're all kind of food-related. |
| 0:43.2 | So with that, we can get right to it. First up, we got Kava reported earnings yesterday. |
| 0:49.1 | Earnings nearly doubled, turning out 15 cents per share in the third quarter. That's compared to |
| 0:53.6 | six cents a share a year ago. |
| 0:56.2 | Same store sales grew 18% during the quarter. Traffic also up nearly 13%. |
| 1:01.3 | Company now is targeting full year adjusted EBITA of $121 to $126 million. |
| 1:07.9 | That's adjusted pretty far up from what they previously had. |
| 1:11.7 | Wall Street is amped about this. Stock us up over 10% this morning last I checked. Any notes, sir? |
| 1:17.7 | I mean, it's unbelievable. They have, what I'll key on is that 18% increase in same store sales, |
| 1:26.8 | which is just absolutely bonkers. |
| 1:28.2 | For those who don't know what that means, you are essentially taking the sales per square foot |
| 1:35.2 | at every location, and then you're looking at the year-over-year difference in how they are performing. And up 18% like that |
| 1:47.8 | is just astounding. I mean, for context here, Mary, for a fairly well-established restaurant, |
| 1:55.2 | like 5% is awesome. 18% is outrageous. It just means that the existing locations are crushing it. The menu |
| 2:06.1 | must be doing great. People are coming in and enjoying Kava. So the argument here for Kaba is that |
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