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Congratulations to Chanticleer!


Parsad
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I cannot comment.  I'm sure things will be disclosed as time goes by.  It's just great news for Mike, who has worked very hard to get this done, while making sure Chanticleer stayed afloat over the last couple of years.  The coolest thing is that Robert Brooks wishes in making Hooters a strong brand, with as strong a balance sheet, will be executed going forward. 

 

And it couldn't have happened to a more decent group of guys.  Some of you have met Joe Koster and Matt Miller over the years in Omaha, etc, and I think you'll agree Mike picked two great guys to lead the investment side at Chanticleer. 

 

Cheers!

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The only regret I have, is that we sold a good chunk of our Chanticleer shares through the last part of the year to realize the long-term tax losses.  It was the only investment we had with long-term losses that could offset all of the long-term gains we had from our sale earlier in the year of Biglari Holdings. 

 

We planned on buying back our shares in the New Year, but because of the 30-day wash rule, we couldn't.  And now, as soon as this announcement came out, we have no chance of getting back in anywhere near the same price.  C'est la vie!  I'm just happy it worked out in the end for Chanticleer.  Cheers!

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I haven't received a mailing on the Rights Offering, but my understanding from the online filing is that there has NOT been a date disclosed for when the Rights will hit account holders of CCLR.

 

What is a subscription right?

 

A:            Each subscription right entitles the holder of the subscription right the opportunity to purchase one Class A Offered Warrant and one Class B Offered Warrant at the exercise price of $0.04.  The Class A Offered Warrant entitles the holder to purchase one share of our common stock at $5.50, for a period of 5 years following __________, 2011.   The Class B Offered Warrant entitles the holder to purchase one share of our common stock at $7.00, for a period of 5 years following __________, 2011.  The subscription rights are non-transferable.  The Offered Warrants to be issued pursuant to this offering are non-transferable following their issuance and through their expiration date.

 

A holder may exercise any number of his subscription rights or he may choose not to exercise any subscription rights at all.

 

For example, if you own 1,000 shares of our common stock on the Record Date, you will be granted one subscription right for every share of our common stock you own at that time, representing the right to subscribe for Class A Offered Warrants to purchase up to an aggregate of 1,000 shares of our common stock and Class B Offered Warrants to purchase up to an aggregate of 1,000 shares of our common stock.  If you hold your shares in the name of a broker dealer, custodian bank, trustee or other nominee who uses the services of the Depository Trust Company, or DTC, then DTC will issue one right to the nominee for every share of our common stock you own at the Record Date.

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I'm glad Chanticleer doesn't seem to be levering up. They are minority shareholders in the deal.

 

I wonder what type of store count the PE shops are modeling over the next few years?

 

I'm very impressed that Mike Pruitt got a right of refusal on such a small loan ($5) in relation to the size of Hooters of America in 2006. Anyone know the back story on this? It seems Brooks had liquidity problems... Were Brooks and Pruitt friends?

 

"I am pleased to finally complete this transaction and fulfill the vision I discussed many times with Mr. Brooks," said Mike Pruitt, president and chief executive of Chanticleer. "The management team has done an amazing job of building the company and the brand despite limited resources."

 

Maybe Brooks connected with the name--Chanticleer?

 

Chanticleer (SHON-ti-clear) comes from Chaucer's Canterbury Tales. More specifically, he comes from the Nun's Priest Tale, a story within Canterbury Tales. The Chanticleer is a proud and fierce rooster who dominates the barnyard. As Geoffrey Chaucer described him: "For crowing there was not his equal in all the land. His voice was merrier than the merry organ that plays in church, and his crowing from his resting place was more trustworthy than a clock. His comb was redder than fine coral and turreted like a castle wall, his bill was black and shone like a jet, and his legs and toes were like azure. His nails were whiter than the lily and his feathers were like burnished gold." With all of his splendor and great looks, Chanticleer is also greatly feared and mightily respected by all.

 

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Both were on the Board of Trustees at Coastal Carolina University.  Robert Brooks was a mentor and father-figure to Mike, and both thought very highly of each other.  Mr. Brooks wishes were for Mike to consolidate all of the Hooter's restaurants and strengthen the brand. 

 

You never know who you will meet and how they will influence your life in this business.  I'm a living example of that too!  Cheers!

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Yup, that would be the goal.  I don't think they are going to take an overly activist approach, but they will use the excess cash flows to buy other businesses. 

 

Initially, I think they will just try and get the Hooter's franchise humming.  Really, if they can implement the managerial expertise at Texas Wings into the HOA restaurants, and expand it to the other Hooter's restaurants and franchisees they may acquire, then it could become a formidable restaurant chain with powerful branding.  But first steps first.  Cheers! 

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Given Pruit's abilities as a value investor, I am wondering if he will have a "Biglari" type role as capital allocator or investment advisor for unused free cash flow?????

 

Any comments?

 

I think people are way to focused on this, and ignore alot of high quality businesses.

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