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Fish Tacos Rock - Maybe the bid sticks



May 11, 2010 – Comments (3) | RELATED TICKERS: RUBO.DL

Mill Road Capital, a private equity firm, has bid $8.70 per share for Rubio's (RUBO).  Reuters reports that at least 24% of the shares, including those held by founder Ralph Rubio, are lined up to take the offer.

There are challenges to the offer and I hesitate to make predictions after the last two buyouts got rejected, but I think this one goes.

I should probably cut the risk and take the $8.50 Mr. Market is offering for my shares.  However, with cash returning ought point bupkus, I think I'll hang on for the pair of dimes still on the table.

Hopefully the new owners will kick expansion in gear and get some restaurants here in Northern Virginia - and bring back lobster burritos while they're at it.  Might even let Mill Road have my shares at a discount if they commit to that. :)

3 Comments – Post Your Own

#1) On May 11, 2010 at 8:56 PM, bullnada (< 20) wrote:


I live in SanDiego and have been to the original Rubios in Mission Bay. What I can tell you is the fish tacos suck compared to the way they used to be. I would say sell outs. They had a great business untill they started crunching numbers. Ive seen it happen a million times. Corporate comes in and its all about the bottom line. Forget quality and ruin your business. They took out all the fish tanks etc.

Ralph was on T.V. yesterday and the reporter asked if the new owners even new how o make a Baja fish taco.. I would take the money and run.  I have watched them destroy a cool business

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#2) On May 12, 2010 at 8:55 AM, rd80 (96.82) wrote:

Thanks for the comment.  I used to travel to the Camp Pendleton area fairly often, but haven't been there in a couple of years now.  Always looked forward to fish tacos and whatever seafood burrito specials Rubio's had on the menu.  Sorry to hear it's not what it used to be.

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#3) On May 14, 2010 at 2:53 AM, ikkyu2 (98.57) wrote:

Chipotle just moved to our town.  A week before its grand opening, the local indie fish taco joint burned to the ground.  Luckily it was fully insured.  What a peculiar coincidence of timing!  They are planning to rebuild, as anything but a fresh-mex joint, I guess.

2 weeks after the Chipotle opened, our local Baja Fresh closed up shop.

Ralph might well be getting out at the right time.  As for me I am pretty pleased with my CMG holding. 


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