TSX:SRV.UN - Post by User
Comment by
logicandinertiaon Jun 21, 2019 8:18am
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Post# 29848470
RE:Financials did not merit
RE:Financials did not merit I think there should be some concern. Total stores have declined somewhat over the past year, Jack’s price points are already high (two appetizer and two drinks = +$60), so menu price increases can’t be relied upon , and I worry that price points are already holding back traffic. Scaddabush has worked and the new menu is exciting, but Canyon Creek just can’t compete against the Keg. More spending seems to be on existing restaurants than opening new ones, which is fine, but as we see in latest Sir Corp results (-6%), there is some interim pain. Sir used to be an outlier with regards to maintaining positive compassion while others declined. They have reverted to the mean.
The one restauranteur in canada that is that is holding up is Keg (and A&W). A simple formula (meat and potatoes), good service and surprisingly little decent competition over past 20 years.
SIR remains a well run business but at a bit of a cross roads now. Perhaps now may be an interesting time for Fowler to sell it...