Santa Fe Holding Company (SFHD) operates 24 Santa Fe Cattle Roadhouse restaurants across the Southern United States and Midwest. The company’s restaurants can be found in the following states: Alabama, Georgia, Mississippi, Indiana, Tennessee, Kentucky and Oklahoma. Santa Fe Cattle is planning an aggressive expansion with 12 new restaurants planned for opening in 2009, the company said. The Tennessee-based company has opened five new restaurants this year, including one earlier this month in Mississippi.
Santa Fe Cattle says it is one of the fastest-growing concept restaurants in the industry and is projecting revenues of $58 million in 2008, an increase of 70% over its 2007 financial performance. This could be noteworthy to potential investors as many restaurant chains are reporting declining sales and earnings in the face of a slumping economy. The company, created in 1996 and co-founded by Danny York, is also led by York, co-founder of the Logan’s Roadhouse steakhouse chain.
Santa Fe Cattle may have an advantage over its competitors in that it cuts and ages its beef in-house rather than having it delivered and pre-packaged. This may allow Santa Fe Cattle to reduce costs while increasing quality for consumers.
The company said it expects to have opened at least 44 restaurants by year-end 2009, and generate annual per store sales of approximately $3 million with expected revenues exceeding $100 million by year-end 2009. Santa Fe shares closed Friday at $1.80 each and trade about 4,500 shares daily, the average for the past three months.
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Santa Fe Holding Company (SFHD.PK) is a restaurant holding company. The company owns and operates a chain of 18 Santa Fe Cattle Co. “roadhouse” steak restaurants and 1 licensed store. Headquartered in Brentwood, Tennessee, its restaurants are located in Alabama, Georgia, Mississippi, Indiana, Tennessee, Kentucky and Oklahoma.
Santa Fe Cattle Co. restaurants separate themselves from competing roadhouse-themed chains with their high quality menu choices, which includes an exclusive blend of aged USDA Choice steaks and Chuck Wagon favorites, all created exclusively for Santa Fe Cattle Co. The menu offers a wide variety of Texas Hill Country influences from south of the border enchiladas and fajitas to hearty sausage, jalapeno corn bread, authentic flavored sauces and dressings.
Santa Fe Cattle Co was founded in 1996 by Danny York and David Wachtel who have over 18 years of restaurant chain management experience. Since Mr. York bought back ownership of the Santa Fe Cattle Company chain in 2003, he had revitalized the Santa Fe concept and increased average sales per restaurant to more than $2.6 million. With Mr. York’s expertise, the holding company has adopted a higher standard of service, convenience for customers, a casual eating experience, expert management, and competitive pricing to dominate the underserved, $10-$12 dining role of the steakhouse restaurant industry.
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Santa Fe Holding Company is a restaurant holding company that owns and operates a chain of 18 Santa Fe Cattle Co. steak restaurants and 1 licensed store. The unique restaurants differentiate from competitors by offering a menu of high quality choices.
The business model that is used by the company focuses on developing a network of casual dining steakhouse restaurants that provide exceptional service, quality food, and a fun dining experience at a reasonable cost.
Santa Fe’s management team has over 100 years combined experience in the restaurant business. Danny York, CEO of Santa Fe Holding Company, was one of the first to originate the casual family “peanuts-on-the-floor” steak house experience. In fact, he developed the concept and was largely responsible for Santa Fe’s initial success.
The Senior Analyst concluded the report stating, “Since 2003, the Company’s revenues have increased more than 286% and sales are forecast to reach $33 million in 2007. At the same time, the Company has significantly improved its operating performance by turning profitable and increasing average per store revenues by 65%. Moreover, with the planned expansion of the restaurant chain to 44 locations, we predict Santa Fe will exceeding $100 million in revenues by year-end 2009. As a result, we are initiating coverage of Santa Fe Holding Company with a Speculative Buy rating and a $4.75 price target.
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