Author Topic: KONA - Kona Grill  (Read 45782 times)

peridotcapital

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Re: KONA - Kona Grill
« Reply #160 on: November 10, 2017, 08:26:07 AM »
So much for the margin ramp-up in 2017. With the balance sheet in the state it is and the fact they can't move off of 10-11% margins, the business isn't really viable. Maybe they limp along for a year or two, but without free cash flow they appear dead.


DTEJD1997

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Re: KONA - Kona Grill
« Reply #161 on: March 26, 2018, 06:16:52 AM »
Hey all:

Anybody still watching KONA?

Stock price has done shockingly well, about $2/share.

They came out with earnings (lack thereof) the other day.

SSS were down 6.5% for the 4th quarter.

Their revolving line of credit has been amended.  It will shrink as time progresses.  Over the course of this year, it will shrink by 4 million.

KONA managed to get rent concessions in 5 of their locations.

They are not going to open ANY company owned locations in 2018.

I am surprised the stock price is as high as it is.  I figure they have a couple of quarters to get things turned around.  They have to find about $4mm in free cash flow for their line of credit this year.  The lenders are putting the squeeze on these dudes.

KONA is tied to malls.  Malls are getting squeezed.  If KONA is not making money now, I find it hard to see how they will in the future.

I think this thing is a zero for shareholders.

DTEJD1997

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Re: KONA - Kona Grill
« Reply #162 on: January 12, 2019, 01:07:03 PM »
hey all:

Anybody still watching this? 

The co-ceo resigned the other day.  Mr. Schussler is resigning!  He enjoyed his years of service and turning around KONA,  I have enjoyed my years of service as a director of Kona Grill and enjoyed working with Marcus Jundt as co-CEO in helping revitalize the Kona Grill brand.

He did a good job of revitalizing Kona Grill?

On the other hand, KONA's stock price is doing shockingly well, at $1.11/share.

SSS sales were DOWN 14.1 for the latest quarter, loss is $.39/share.

At the risk of repeating myself, hard to see how this is NOT a zero.
« Last Edit: January 13, 2019, 08:03:08 AM by DTEJD1997 »

Foreign Tuffett

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Re: KONA - Kona Grill
« Reply #163 on: January 12, 2019, 03:58:05 PM »
hey all:

Anybody still watching this? 

The co-ceo resigned the other day.  Mr. Schussler is resigning!  He enjoyed his years of service and turning around KONA,  I have enjoyed my years of service as a director of Kona Grill and enjoyed working with Marcus Jundt as co-CEO in helping revitalize the Kona Grill brand.

He did a good job of revitalizing Kona Grill?

On the other hand, KONA's stock price is doing shockingly well, at $1.11/share.

SSS sales were DOWN 14.1 for the latest quarter, loss is $.39/share.

At the risk of repeating myself, had to see how this is NOT a zero.

Insofar as I can tell, management's basic strategy was to differentiate their concept from the competition by investing heavily in store appearance (fish tanks, etc). That's a tough row to hoe.

Excluding the 2 franchised restaurants, they have 44 restaurants in 22 states (including HI) + Puerto Rico. Being so geographically dispersed probably hampers their marketing efforts, while also ensuring that G&A costs stay high as a % of sales.


DTEJD1997

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Re: KONA - Kona Grill
« Reply #164 on: January 22, 2019, 10:16:51 AM »
Hey all:

Here is an interesting article featuring the current CEO of KONA:

https://www.nrn.com/casual-dining/kona-grill-ceo-recession-could-mean-bloodbath-restaurants?

He is predicting that a LOT of restaurants are going to go under in the next recession.  Also, interesting that he thinks too much capital has flowed into the sector.

Definitely worth the 2 minutes to read if you have any interest in this name or sector.

awindenberger

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Re: KONA - Kona Grill
« Reply #165 on: January 26, 2019, 05:39:00 PM »
Hey all:

Here is an interesting article featuring the current CEO of KONA:

https://www.nrn.com/casual-dining/kona-grill-ceo-recession-could-mean-bloodbath-restaurants?

He is predicting that a LOT of restaurants are going to go under in the next recession.  Also, interesting that he thinks too much capital has flowed into the sector.

Definitely worth the 2 minutes to read if you have any interest in this name or sector.

I imagine he thinks he can turn things around at Kona and they can be survivors given his statements? You've been predicting zero for a while and its hard to see how that doesn't happen right now, but I guess Q4 earnings will be interesting to see.

DTEJD1997

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Re: KONA - Kona Grill
« Reply #166 on: March 29, 2019, 12:04:48 PM »
Hey all:

Here is an interesting article featuring the current CEO of KONA:

https://www.nrn.com/casual-dining/kona-grill-ceo-recession-could-mean-bloodbath-restaurants?

He is predicting that a LOT of restaurants are going to go under in the next recession.  Also, interesting that he thinks too much capital has flowed into the sector.

Definitely worth the 2 minutes to read if you have any interest in this name or sector.

I imagine he thinks he can turn things around at Kona and they can be survivors given his statements? You've been predicting zero for a while and its hard to see how that doesn't happen right now, but I guess Q4 earnings will be interesting to see.

Looks like it is probably over with.  CEO is stepping down, and they are exploring sale of the company.

Million dollar question is do the shareholders get anything?  I'm going to guess NO or very little as it appears to be a forced sale/liquidation?

bsned2

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Re: KONA - Kona Grill
« Reply #167 on: March 31, 2019, 03:28:36 PM »
I have been away from this board for a while, just coming back.  Still learning.

I just read this whole 17pp thread and it is fascinating!  Thanks everyone.  As a former Hollywood type, the best way for me to understand investments is as stories and this one is a good one, albeit with an unhappy end.  But hey in movies I like a downbeat ending!  Not so much on Wall Street.

Now on to find a few upbeat love stories to invest in.  Thanks!

DTEJD1997

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Re: KONA - Kona Grill
« Reply #168 on: April 17, 2019, 11:08:11 AM »
hey all:

Looks like the end is hear for KONA.  Massive losses, closing restaurants, letting employees go, and perhaps most important of all, they are now in violation of their debt covenants.  Please see:

https://www.bizjournals.com/phoenix/news/2019/04/17/kona-grill-could-seek-bankruptcy-protection-amid.html?ana=yahoo&yptr=yahoo

The article states that common shareholders are likely to get nothing, but yet the stock is up $.02 today.  Perhaps short covering & speculators?

Unless something tremendous happens, I think that there is no doubt they are now headed for BK.  Just a question of time.

peridotcapital

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Re: KONA - Kona Grill
« Reply #169 on: April 17, 2019, 11:19:41 AM »
hey all:

Looks like the end is hear for KONA.  Massive losses, closing restaurants, letting employees go, and perhaps most important of all, they are now in violation of their debt covenants.  Please see:

https://www.bizjournals.com/phoenix/news/2019/04/17/kona-grill-could-seek-bankruptcy-protection-amid.html?ana=yahoo&yptr=yahoo

The article states that common shareholders are likely to get nothing, but yet the stock is up $.02 today.  Perhaps short covering & speculators?

Unless something tremendous happens, I think that there is no doubt they are now headed for BK.  Just a question of time.

Can't really short it, and not a lot of liquidity, but buying Sep $2.50 puts for $2 seems interesting...