Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL)

CAPS Rating: 3 out of 5

The Company owns, franchises or licenses various restaurant concepts.

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Player Avatar ayaghsizian (97.16) Submitted: 10/10/2013 8:53:30 PM : Outperform Start Price: $17.18 BAGL Score: -28.61

With only a $307 million market cap, I have to give it a thumbs up. I know they have huge debt and struggling growth but if they can build a few stores and make money on most of them, then their PE will reflect that and will become a 1-2 billion dollar company. I don't like the fact that David Einhorn is a majority shareholder because as an investor he makes decisions like paying special dividends and ongoing dividends instead of those that a founder would make like building more stores and buying back shares. I don't think paying dividends is in the best interest of the long term shareholders. A small company should focus on growth and cleaning up it's balance sheet. That being said, it is a good company at a good price. I will invest a small amount of real money.

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