Monday, May 13, 2013

Chanticleer Holdings, Inc. (HOTR) Represents Safer Way to Invest in Global Marketplace


When the KonLin Research & Analysis Corp. put out a positive follow-up report on Chanticleer Holdings, a joint owner of privately held Hooters of America (HOA) and independent developer of international Hooters restaurants, the report highlighted several notable advantages offered by HOTR as an investment in the global marketplace. Although it points out that consumer spending in emerging markets around the world is projected to increase to $30 trillion by 2025, it suggests that a safe approach, represented by Chanticleer Holdings, has important benefits.

First of all, Chanticleer has wisely minimized its risk by investing in different geographical areas. The company currently owns, in whole or in part, 6 Hooters restaurants, representing Australia, South Africa, and Hungary, and also has franchisee rights covering parts of Brazil. The fact that various parts of the world remain in economic flux, dealing with debt issues and different phases of economic restructuring, calls for a geographically diversified approach which Chanticleer offers. The company is targeting areas of favorable demographics and growth potential, but touches 4 continents to buffer against unexpected challenges. This allows the company to continue its expansion plans with greater confidence.

Last year Chanticleer doubled its number of restaurants, and is now moving forward with securing a key site in Rio de Janeiro, Brazil, as well as opening a restaurant in Pretoria, South Africa. The company’s Campbeltown, Australia, location is already showing a profit, bolstering confidence in the new Surfer’s Paradise, Australia, location. In Europe, their Budapest Hooters is opening its outdoor patio for the first time, adding over 140 seats, in time for tourist season. Chanticleer believes that it can reasonably grow to over 75 restaurants, and that’s just with their current territories.

The report also points out that Chanticleer, with its minority ownership interest in privately held Hooters of America, is the only way to invest in the iconic Hooters brand. HOA is an operator and franchisor of over 412 Hooters restaurants in 28 countries, and Chanticleer’s CEO, Mike Pruitt, sits on HOA’s Board of Directors.

In addition, the report emphasizes Chanticleer’s healthy balance sheet, with cash and equivalents of $1.7 million, and with 10% of shares outstanding being held by insiders.

For additional information on Chanticleer Holdings, visit www.ChanticleerHoldings.com

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