SAN FRANCISCO, Aug. 12 /PRNewswire/ -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens senior restaurant analyst Andrew M. Barish
today reiterated his Buy rating on Diedrich Coffee, Inc. (Nasdaq: DDRX). The
company, headquartered in Irvine, Calif., is the second-largest retailer of
specialty coffee with about 360 stores under the brand names of Diedrich
Coffee, Gloria Jean's, Coffee People and Coffee Plantation.
"We are reiterating our Buy rating on Diedrich Coffee," said Barish. "The
company reported nine-week-stub-period results, reflecting a change in fiscal
year-end from January to June, with revenues of $4.3 million and a loss of
$1.8 million or ($0.29) per share.
"While we were not carrying estimates for this period, we continue to be
comfortable with our current-fiscal-first-quarter 2000 loss estimate of
($0.04) and our profit forecast of $0.08 for fiscal 2000," said Barish.
"We expect key near-term catalysts to drive the stock price higher,
including the announcement of new-franchise-development deals and the initial
Diedrich coffeehouse-franchise-unit opening," said Barish. "We believe the
stock, now trading at about 23 times calendarized 2000 estimates, is a very
compelling investment opportunity, with a rapid earnings-per-share ramp
ahead."
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
BancBoston Robertson Stephens is a leading international investment
banking firm focused on growth companies. The firm's 55 equity and high yield
research analysts cover more than 600 companies. Additional information is
available upon request.
The information contained herein is not a complete analysis of every
material fact respecting any company, industry or security. Although opinions
and estimates expressed herein reflect the current judgment of BancBoston
Robertson Stephens, the information upon which such opinions and estimates are
based is not necessarily updated on a regular basis; when it is, the date of
the change in estimate will be noted. In addition, opinions and estimates are
subject to change without notice. This Report contains forward-looking
statements, which involve risks and uncertainties. Actual results may differ
significantly from the results described in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those discussed in "Investment Risks." BancBoston Robertson Stephens from
time to time performs corporate finance or other services for some companies
described herein and may occasionally possess material, nonpublic information
regarding such companies. This information is not used in the preparation of
the opinions and estimates herein. While the information contained in this
Report and the opinions contained herein are based on sources believed to be
reliable, BancBoston Robertson Stephens has not independently verified the
facts, assumptions and estimates contained in this Report. Accordingly, no
representation or warranty, expressed or implied, is made as to, and no
reliance should be placed on, the fairness, accuracy, completeness or
correctness of the information and opinions contained in this Report.
BancBoston Robertson Stephens, its managing directors, its affiliates, and/or
its employees may have an interest in the securities of the issue(s) described
and may make purchases or sales while this report is in circulation.
BancBoston Robertson Stephens International Ltd. is regulated by the
Securities and Futures Authority in the United Kingdom. This publication is
not meant for private customers. The securities discussed herein are not FDIC
insured, are not deposits or other obligations or guarantees of BankBoston
N.A., and are subject to investment risk, including possible loss of any
principal amount invested.
SOURCE BancBoston Robertson Stephens
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