Latest news with #RaykRiechmann
Yahoo
13-05-2025
- Business
- Yahoo
The ONE Group Hospitality Surges on Strong Execution – Exec Edge Research Update Report
By Rayk Riechmann The ONE Group Hospitality, Inc. (NasdaqCM: STKS) shares surged after it reported first quarter results, with revenue and profitability measures steadily improving. Following the acquisitions of Benihana and RA Sushi in 2024 (see our detailed initiation report) total revenues jumped and came in at $211.1 million, well ahead of Street estimates. The company also said comparable sales increased broadly across Benihana locations and STK restaurants saw strong transaction growth. Management continued the company's incremental growth strategy with the opening of six new restaurants since the first quarter of 2024 and already has plans for five to seven new venues coming in 2025. Restaurant-level EBITDA increased 50 basis points on the back of revenue growth and profitability improvements. G&A expenses increased nominally but improved 190 basis points as a percentage of revenue. Based on a successful merger integration, increasing adjusted EBITDA margins, and continuing sales growth, we believe this is one of many impressive quarters to come. Even with a positive share-price response, we remain bullish throughout Rayk@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Escape the Tariff Turmoil with Alliance Resource Partners – Exec Edge Research Initiation Report
Download the Complete Report Here By Rayk Riechmann As a leading natural resource firm based in heart of the US with an established domestic customer base, Alliance Resource Partners, L.P. (Nasdaq: ARLP) may offer the hedge against global trade uncertainty you have been looking for. ARLP operates a portfolio of coal mining complexes in the Illinois Basin and Appalachia, making it the second-largest coal producer in the Eastern U.S. The firm's unique vertically integrated business model includes prep plants, barge terminals, and loadouts. Offering tailored coal blends and flexible delivery options increases the perceived product quality and defends ARLP's domestic market share. Protection against economic uncertainty stems from an extensive multi-year contract book. With over 96% of expected sales volumes for 2025 already contractually committed, the firm's exposure to spot price volatility and demand fluctuation is limited. Earnings are widely shielded against rising tariff policy concerns, with only 9.6% of committed sales coming from export markets and limited foreign input materials needed to maintain operations. Best-in-class revenue diversification protects the top line against demand challenges amid a contracting domestic market. The legacy coal manufacturer has realized innovative value-creation opportunities within the Bitcoin industry, Oil & Gas royalty interests, EV infrastructure and tech solutions for mining and industrial firms. Management has shown a firm commitment to opportunistically exploring new industries while maintaining financial prudence with modest 0.6x net leverage. Notably, 6.7% of sales are now generated through high-margin income from ownership interests in oil and gas mineral rights and royalties. Perhaps surprisingly, ARLP operates a crypto-mining and hosting venture that holds 513 bitcoin and monetizes underutilized electricity by running 3,500 miners. Despite a challenging year, ARLP generated $383.5 million in FCF, underlining strong company fundamentals. Policy tailwinds under the Trump administration fuel optimism in the coal industry, which is expected to benefit hugely from rising energy demand for AI, Data Centers, and EVs. We believe that with its defensible business model and outstanding fundamentals, ARLP is positioned perfectly to capitalize on a favorable industry environment — marking a great entry point for growth investors. Even dividend investors get their money's worth, as ARLP has paid out $4.4 billion in tax-efficient cash distributions over the last 25 years. ARLP is the undiscovered safe-haven US equity investors have been looking for — that should pay out consistent returns for many years to come. Download the Complete Report Here Contact: Rayk@ Sign in to access your portfolio
Yahoo
07-05-2025
- Business
- Yahoo
Higher Returns with Aurora Cannabis
By Rayk Riechmann Investors want what they're on! Aurora Cannabis Inc. (Nasdaq: ACB), a federally-licensed producer of medical and consumer cannabis, is attractively positioned as an early leader in global regulated markets. ACB leverages a best-in-class brand portfolio to grow and sell products across all major cannabis categories. And it's translating to results: the company just delivered a top-down beat on strengthening industry tailwinds and expanding global sales. With a strong footprint in key medical cannabis markets in North America, Europe, and Australia, the company excels at meeting both patient and regulatory demands. This early adaptation of medical markets is already paying off with strong revenue growth and creates a first-mover advantage once these regions transform into recreational markets. Germany is close to creating a national legalized consumer market, and as other European nations follow suit, top-line growth could skyrocket. ACB is strategically positioned to rapidly expand into new markets within Europe as regulatory liberalization continues. Notably, a local presence in these markets mostly shields ACB from tariff-related uncertainty. Here's ACB's global presence in one glance: #1 in Canadian medical market share, #2 in Australia following the acquisition of MedReleaf Australia in 2024, #3 in Poland, and one of only three companies licensed to cultivate in Germany. Since June 2021, ACB has introduced 24 new proprietary strains, which drive yield, potency, and cost-efficiency. Newly engineered next-gen cultivars appeal to consumers with increased consistency and save up to 30% in per-unit costs. Both are key differentiators in the consumer and medical market. ACB's one-of-a-kind combination of regulatory expertise, brand architecture, and scientific innovation enables superior financial performance, as demonstrated in the top-down beat delivered in the latest quarter, driven mainly by a 51% increase in international medical cannabis revenue. The debt-free cannabis business has taken decisive steps to ensure profitable growth moving forward. By rightsizing its SG&A expenses and consolidating its manufacturing footprint, ACB delivered positive net-income for the second time in company history, as well as record adjusted EBITDA and FCF. Our bullish outlook for 2025 is fueled by improved company profitability and favorable external forces. ACB currently trades at a NTM price/sales multiple of 0.96x – a big discount to its own 3-year mean multiple of 1.51x, indicating that the stock price has not caught up to recent developments and is due for a rerating. What's more, ACB trades at a significant discount to almost all peers on an Ebitda basis.
Yahoo
01-04-2025
- Business
- Yahoo
The ONE Group Hospitality: Serving More Steaks and Shareholders with Benihana Deal
By Rayk Riechmann How about steak and a show for dinner and best-in-class growth for dessert? Investors can enjoy just that with The ONE Group Hospitality, Inc. (Nasdaq: STKS), operator of 167 full-service, experience-driven dining establishments under a mix of ownership models across 32 states and 12 countries. Demand for experiential upscale meals, also known as 'vibe' dining, is increasing, especially among higher-income households. STKS is perfectly positioned to benefit from this shift with an outstanding brand portfolio of STK Steakhouse and Kona Grill — along with , parent of world-famous Benihana (known for hibachi-side chef performances) and RA Sushi. Multiple forces fuel our bullish outlook for 2025. First is the $365 million Safflower acquisition last year, which drove a 100% rise in revenue and a 130% increase in Ebitda. Benihana brings more-than 80 venues to the STKS portfolio, which also has some franchise restaurants enabling asset-light expansion internationally. The margin profile of these restaurants is even better than the existing portfolio, which will help boost overall profitability. The deal also generated efficiencies: Adjusted G&A expenses and cost of sales declined as a percentage of sales, reflecting successful synergy realization. Diversification into digital and off-premise sales with Benihana (takeout and delivery 12% of revenue) and RA Sushi (20% digital and off-premise sales) balances the predominantly dine-in nature of STK and Kona Grill. To reach its long-term growth target of clocking $5 billion in system-wide revenue, the company devised a strategy focused on both financial prudence and growth. STKS plans to drive higher same-store sales, trim overhead costs, and expand its footprint through licensing and management deals. Throughout 2024, institutional owners such as Goldman Sachs, JPMorgan Chase & Co, and Jane Street have increased their ownership. Some made very substantial purchases, such as Deutsche Bank which increased its stake by 839%. For the moment, STKS shares are on sale. The company trades at an enterprise value, adjusted for debt, of just 5.2 times forward Ebitda. That's less than half the multiples commanded by Brinker International, Inc. and The Cheesecake Factory Inc. Guests are drawn in by sushi, steak, and seafood – and investors by an attractive valuation with plenty of growth levers in place. Appetites for delicacies and returns are satisfied equally. Click below to read our detailed initiation report. Contact: Rayk@ Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Rex 4Q Beats Top and Bottom Line, Expanded Capacity Set to Drive Growth
By Rayk Riechmann REX American Resources Corp. (NYSE: REX) beat EPS Street estimates by 133%, helping drive shares up 3.2% last week while the broader market struggled. On Wednesday REX announced 4Q results, with investors celebrating a top-down beat on the back of strong execution and volume growth. (Noteworthy is an increase in REX's core business, ethanol sales and gross margin improvement.) As highlighted in our 62-page initiation report (), the company is moving towards completion of key investment initiatives to increase production levels and establish carbon capture and compression operations. Rex is now budgeting a total of $220 million to $230 million for both projects combined. We expect an accelerated growth trajectory and top-line expansion as the above capacity comes online. A robust balance sheet, with no bank debt and $359.1 million in cash, positions REX for flexible investing in growth opportunities and potential share repurchases. The stock reacted positively to REX's latest earnings call but remains attractively valued. Click the link below to read our detailed quarterly update report. Rayk@ Sign in to access your portfolio
