grow to nearly 2,000 restaurants nationwide,
Rubio’s is slowing store growth in the im-
mediate future in order to preserve capital
and focus on operational excellence.
Although Rubio’s management is taking
steps to overcome the challenges they face,
there are a number of issues to be considered
regarding current strategy and future
growth:- Is Rubio’s expansion plan feasible?
- Is the Rubio’s concept transferable to
other regions of the country? If yes,
where should expansion efforts be
focused?- What other markets and distribution
channels could Rubio’s penetrate? (For
example, university campuses, frozen
foods in grocery stores, etc.) - Is franchising a good option?
- What are other possible solutions to off-
set the drop in stock price?
Rubio’s: Home of the Fish Taco (B) 463Income Statement
(in millionsexcept
per-share amounts.)
Revenue
Cost of goods sold
Gross profit
Gross profit margin
SG&A expense
Operating income
Operating margin
Total net income
Net profit margin
Diluted EPS ($)Dec-00
$ 95.7
$ 32.6
$ 63.1
65.9%
$ 61.9
$ 1.2
1.3%
$ (0.2)
—
$(0.03)Dec-99
$ 67.9
$ 23.0
$ 44.9
66.1%
$ 42.0
$ 2.9
4.3%
$ 1.7
2.5%
$ 0.20Dec-98
$ 44.5
$ 15.0
$ 29.5
66.3%
$ 28.8
$ 0.7
1.6%
$ 0.9
2.0%
$ 0.14Balance sheet
(in millions)
Cash
Net receivables
Inventories
Total current assets
Total assets
Short-term debt
Total current liabilities
Long-term debt
Total liabilities
Total Equity
Shares Outstand.(mil.)Dec-00
$ 1.3
$ 1.4
$ 2.0
$12.1
$52.3
$ 0.0
$ 7.7
$ 0.0
$ 9.3
$43.0
8.9Dec-99
$ 3.5
$ 0.8
$ 0.6
$12.9
$50.0
$ 0.0
$ 5.8
$ 0.0
$ 6.9
$43.1
8.9Dec-98
$ 0.8
$ 0.3
$ 0.4
$ 4.5
$25.8
$ 0.7
$ 5.9
$ 1.1
$ 7.8
$17.9
1.0EXHIBIT 1 Abbreviated Annual Financials
SOURCE: Information from http://www.hoovers.com.Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr
99 99 99 99 00 00 00 00 00 00 01 0118
16
14
12
10
8
6
4
2
0Closing price ($)EXHIBIT 2 Rubios Historical Stock Price