SSS are important, no doubt. But every restaurant is having the same run of sales, so it's not remarkable. Texas Roadhouse just proffered SSS guidance similar to RT's for the upcoming year, for example. So while I get the concern, it's hard to say that's a definitive investment knock, because if that were the case, you wouldn't own a restaurant stock right now, and they'd all be at $0.00. The whole industry is experiencing what typically happens in a recession...lower sales. This shouldn't be shocking. It's a trailing indicator, and frankly, the stock is ALREADY discounting this "news."

On a qualitative basis, I actually think they did a great job with the store refresh...it differentiates them from the Applebees and Chilis folksy atmosphere, and I think the lower price point casual dining segment needed it. I think the new menu will help...I think it gets rolled out today.

But I don't invest qualitatively, and I am not a restauranteur. So my qualitative take is meaningless.

Your "don't tell me EPS" comment is too flippant. It is ALL about the CASH FLOW...every stock is, no matter what. So EPS/cash flow is the most relevant investment point. Not so much EPS, given that the company has a large amount of non-cash depreciation expense (which depresses reported EPS), but I'm here because I'm getting a 25% free cash flow yield currently. They will generate about $1.40 in FREE cash flow this year and likely next. It is assumed to be flat. To me, I'll buy a 25% cash yielding stock all day and night. Why? Becuase there is plenty of margin for error here. Let's say I'm completely wrong, and free cash flow falls 50% from this point. I still get a 12.5% yielding stock. Given that this stock has seen declining cash flow for 3+ years now, it's hard to imagine much further diminution...given that this is a franchise that has some legs and a fairly extensive history for a casual dining chain.

I don't know when business will pick up, and I don't know when the recession will end and folks will go back to restaurants. All I know is that it WILL happen eventually, and there are worse places to be than sitting waiting with a 25%+ yielding stock. That I can guarantee. And frankly, given the robust cash yield and modest debt level (it is modest and highly manageable, bears), I could see this thing getting sold in the next 1-2 years as well.

Frankly, I'm here because I don't see really any downside at this point, and potentially explosive upside (M&A, but really just intrinsic value). Call me crazy. I've been called worse, but I've had a great 2 years investing, and so I think I have a bead on this market and this stock.

I appreciate your civility, by the way. Honest questions always encouraged, even if you think my answers are BS.

Regards,

Raven