The Pantry, Inc. (NASDAQ:PTRY)

DeepSouthValue (< 20) Submitted: 8/3/2007 1:41:34 PM : Start Price: $31.89 PTRY Score: -53.98

Excellent management and a track record of performance

AtomicDoom (39.53) Submitted: 7/1/2007 9:20:27 PM : Start Price: $46.23 PTRY Score: +63.77

The price is right: Lower PE accounts for lower growth and margins than its industry peers.

NetscribeRetail (95.38) Submitted: 1/19/2007 7:40:35 AM : Start Price: $50.73 PTRY Score: -72.48

The Pantry, Inc. operates a convenience store chain in the southeastern United States. The company’s stores offer a selection of merchandise, gasoline, and ancillary products and services. As of September 2006, the company operated 1,493 convenience stores in 11 states under select banners, including Kangaroo Express, Handy Way, Quick Stop Depot, Food Chief, Pantry, and Mini Mart. The company’s gasoline operations have the provision of a mix of branded and private brand gasoline at 1470 stores. Approximately 40% of its stores are located in coastal, resort or tourist destinations.

The Pantry operates in a highly competitive industry. The industry’s results are affected by the volatile crude oil and domestic wholesale petroleum markets. The market is shared by a number of convenience stores, supermarkets, gasoline service stations, and other similar retail outlets. The Southeast market in USA is extremely fragmented with the company garnering 12% market share. Also, changes in consumer preferences, spending trends, growth rates for automobiles, trends in travel and tourism have an impact on earnings.

The Pantry is actively pursuing a policy of acquisitions and store upgrades in order to boost growth and improve revenue. It has been posting an average revenue growth of 27% for the past 8 quarters. During 2006 the company incurred a capital expenditure of $97 million towards remodeling of existing stores and acquisitions of 115 stores. Total revenues for financial year 2006 witnessed an increase of 25%, thanks to a 10% rise in gasoline retail price and valuable acquisitions.

For year 2007, the company has projected a capital expenditure of nearly $115 million for remodeling 200 stores, increased its IT spending and plans to acquire 100 more stores. While a larger-scale acquisition appears challenging given market fragmentation, the company currently has a very strong pipeline of opportunities in the southeast region.

msbdove (31.03) Submitted: 12/17/2006 5:00:02 PM : Start Price: $47.91 PTRY Score: -70.96

PTRY's been on a buying binge that'll have them owning every mom and pop gas station/pit stop from savannah to seattle. the stock price belongs closer to 60!

streettothetop (< 20) Submitted: 12/7/2006 3:42:05 AM : Start Price: $48.53 PTRY Score: -71.57

low pe strong company UP UP UP

Whoop04 (92.77) Submitted: 10/13/2006 9:31:30 PM : Start Price: $59.00 PTRY Score: -80.46

10/2006

94

Earnings Per Share (EPS) Rating
91
Relative Price Strength (RS) Rating
78
Industry Group Relative Strength (Grp RS) Rating
A
Sales + Profit Margins + ROE (SMR) Rating
A
Accumulation/ Distribution (Acc/Dis) Rating
B+

chrispw (< 20) Submitted: 10/8/2006 3:36:25 PM : Start Price: $56.05 PTRY Score: -80.55

PTRY has been good to shareholders, up 700% in 5 years, and 60% in the past year. Still, sales & earnings are growing, and today's TTM P/E is under 15. Margins are below industry norms, so there's more room to grow earnings. Asset turnover / leverage is off the charts, with ROE better than 30%. Debt is high, but coming down. Interest coverage only about 2x. Also, Institutions own nwarly all the float (95%). PTRY is not without risk, but should continue to reward.

twelveby12 (79.26) Submitted: 10/4/2006 5:40:37 PM : Start Price: $57.00 PTRY Score: -80.91

more stations,+ on same store sales

glennv9122 (21.05) Submitted: 9/17/2006 10:05:18 AM : Start Price: $54.01 PTRY Score: -82.09

fdo