Santa Fe Holding Company is a restaurant holding company that owns and operates a chain of 18 Santa Fe Cattle Co. steak restaurants and 1 licensed store. The unique restaurants differentiate from competitors by offering a menu of high quality choices.
The business model that is used by the company focuses on developing a network of casual dining steakhouse restaurants that provide exceptional service, quality food, and a fun dining experience at a reasonable cost.
Santa Fe’s management team has over 100 years combined experience in the restaurant business. Danny York, CEO of Santa Fe Holding Company, was one of the first to originate the casual family “peanuts-on-the-floor” steak house experience. In fact, he developed the concept and was largely responsible for Santa Fe’s initial success.
The Senior Analyst concluded the report stating, “Since 2003, the Company’s revenues have increased more than 286% and sales are forecast to reach $33 million in 2007. At the same time, the Company has significantly improved its operating performance by turning profitable and increasing average per store revenues by 65%. Moreover, with the planned expansion of the restaurant chain to 44 locations, we predict Santa Fe will exceeding $100 million in revenues by year-end 2009. As a result, we are initiating coverage of Santa Fe Holding Company with a Speculative Buy rating and a $4.75 price target.
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