Don't get me wrong now. You might be right. Do some DD and go back and study CMG. BROS is where they were at when they IPO'd. In a way. I loved em, took a hit on ipo day, bought back in and sold around $62. I have have never been to a BROS, but it does seem like a hot story. I do like the model fwiw. Keeps labor costs way low. As opposed to SBUX's model. Good coffee is good coffee. #2 traded commodity worldwide, behind oil.
CMG and DPZ are what made me start looking for the next hot restaurant stock. Many don't realize, but DPZ was actually the 2nd fastest growing stock after NFLX in the previous decade. I thought I might find something more under the radar than these high flying overpriced tech stocks. I was also looking at KRUS as I know a lot of people like sushi, it's very successful in Japan, and the reviews tend to be positive. However, it's too small and unprofitable right now for me to trust that it will be successful in this country.
Honestly. I think it'lll be ok, if you can stomach the greater tide. The overall markets are gonna do what they're gonna do. Now with that said, again,... I have never been to one. I don't know if it was Peter Lynch or someone else that said never buy a restaurant stock until you've actually tasted it. I did that with CMG back in the day, and then I listened to Cramer. He hated it when it came out. Bashed it at $42. Effing STUPID on my part. I knew what I knew, and that stuff was GOOD! Look at how pricey it still is. I think there might be lots of parallels here. Dig into CMG. Study its charts. Fwiw, I've been looking at this one too. Made several calls, so far no one I've called has been to one. I REALLY want a first hand report, all books aside, because the potential growth is there in a big way. SBUX needs a little disruption.
Remember Photo-Bugs? They were like little kiosks that sat in parking lots where you'd drop your film off to be developed. This is what these are. Coffee kiosks in shopping center parking lots. Cheap to build and cheap to staff. And apparently the coffee is wicked good. They're up and down the west coast, and they just opened a few in Texas. 500 stores in total. Cash-cows. For them to reach 2500 stores in say 7 years as they expand east is not much of a stretch. As long as they can scale their alleged quality.
What do you think of SHAK? Stock has been a dud since its IPO. However, they plan to open 50 more locations in 2022 and are going to add drive thrus at many locations. One chain that has failed miserably since its IPO is Potbelly (PBPB). They were pretty popular in my office in NYC, but they can't make money.
Let me get back to you on this one. It's tricky. Up till now I've only sat back and observed, Josh Brown loves it, I do know that. I need to visit one first.
Came across this yesterday:- (The Daily Upside) REAL ESTATE Drive-Through Lanes Came Back in a Big Way, They’re Here to Stay If you come to a fork in the road, odds are it might have been left there by someone who just exited the drive-through. New data shows demand for grabbing a meal without leaving the comfort of the driver’s seat has been transformative for the real estate of restaurants, especially after the pandemic made drive-through restaurants an even bigger part of life. Paying a Premium to Serve Premium Coffee Last year, the sales of restaurant, pharmacy, and bank properties in the US reached a record $12 billion, or 43% more than pre-pandemic 2019, according to real estate data firm CoStar Group. Thanks to a bidding war for car-friendly real estate, properties outfitted with drive-through lanes can demand rents 10% to 20% higher than typical lots, and are being sold at a premium: • According to CoStar, the search for drive-throughs has pushed the average property sale to $392 per square foot last quarter, 7% higher than the same quarter in 2019. • Chipotle Mexican Grill only opened its first drive-through in 2018 — it now has 355 and, of the 78 restaurants it opened last quarter, 86% have drive-throughs. Oregon-based drive-through chain Dutch Bros, which serves coffee and energy drinks, saw 50% more traffic last year compared to before the pandemic, according to Placer.ai. Franchise Fracas: Brian Katz, CEO of broker Katz & Associates, told The Wall Street Journal he leased a property for 20% higher than its asking price after four franchise operators from the same fast-food chain all put in bids.