Tuesday, February 13, 2007

Eatin' Bad In The Neighborhood

I despise Applebees (APPB). As a diabetic when I eat that stuff it sends my blood sugar up off the scales; even their salads must be soaked in some sort of super sugar water before it's served. The food quality overall is just lousy. Former SEC chairman Richard Breedan, now the head of Breeden capital, would like Applebees to enhance shareholder value. The company ahs said Uncle to Uncle Rich and is exploring options.

APPB is up 10%. But I'm already hearing the Nelson Muntz Ha ha! from analysts. Citi's LBO team has crunhed the numbers. They feel the company is worth no more $26.75 and that a recapitaliztion is more likely.

Earlier JP Morgan and BBNT both downgraded APPB.

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