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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