Kona Grill's CEO Resigns (revised) - Analyst Blog
June 16 2011 - 8:17AM
Zacks
Scottsdale-based
Kona Grill, Inc. (KONA) recently
announced that its Chief Executive Officer (CEO) and President Marc
A. Buehler has resigned to pursue other opportunities.
Buehler joined the American grill and sushi bar company as the CEO
and President in November 2009 and took all possible measures to
improve the company’s top line and narrow losses. However, during
his tenure, the company posted a profit only once.
Until a permanent CEO is selected, Kona Grill has decided that
Michael A. Nahkunst, a member of the company’s board, will serve as
the interim CEO. Nahkunst boasts an experience of 35 years in the
restaurant industry and has previously served as the chief
operating officer of
The Cheesecake Factory Inc
(CAKE) and
BJ's Restaurants Inc (BJRI).
Nahkunst also held a senior position at
Brinker
International Inc (EAT) and played a key role in
developing the restaurant concept during his tenure of 17 years.
Presently, Nahkunst is a principal at Bailiwick Capital Partners, a
financial advisory and investment firm focused on retail and
restaurant projects.
The company’s search for the new CEO has begun. However, given the
experience of Nahkunst, we believe he will do justice to the
position and guide the company favorably.
In the recent first quarter 2011 results, the company reported a
loss of 1 cent, which was better than the Zacks Consensus Estimate
of a loss of 4 cents and the year-ago quarter loss of 10 cents.
However, the company experienced a 12.3% upside in restaurant sales
on the back of higher same-store sales (up 7.6%). Despite higher
commodity pressure, the company’s restaurant operating margin
expanded 14.0%.
For the second quarter of 2011, Kona Grill estimates earnings in
the range of 2 cents to 4 cents and restaurant sales between $24.0
million and $25.0 million.
Kona Grill currently operates 25 restaurants in 16 states,
including Arizona, Colorado, Florida and Texas.
We currently retain a Zacks #2 Rank, which translates into a
short-term Buy rating on the stock. We also reiterate our long-term
Outperform recommendation.
(We are reissuing this article to correct a mistake. The
original article, issued earlier today, should no longer be relied
upon.)
BJ'S RESTAURANT (BJRI): Free Stock Analysis Report
CHEESECAKE FACT (CAKE): Free Stock Analysis Report
BRINKER INTL (EAT): Free Stock Analysis Report
KONA GRILL INC (KONA): Free Stock Analysis Report
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