Creative Eateries Corporation (OTCBB: CEAT)

Dear Reader,

Today’s profile is a little different from the gritty natural resource and homeland defense plays we’ve been publishing about for the last few months. This one might just be one you can literally sink your teeth into.

That’s because today’s featured company, Creative Eateries Corporation (OTCBB: CEAT), is a diverse restaurant franchise development business that is targeting one of the fastest growing sectors of the hospitality business… casual dining.

Recent sales figures (samples below) for casual eateries like Olive Garden and Red Lobster are turning heads while others mentioned below secured Strong Buy nods from analysts. The trend of these good-food-fast but not fast-food style restaurants appears to have substantial traction.

Enter now Creative Eateries’ philosophy of locating what they believe to be undervalued franchise concepts and partnering with them to explode the brand using their expertise and central leadership and perhaps you’ll decide to take a moment to examine the profile below.

Chances are, you’ve dined at one of the places mentioned in our editorial and will be heading to another casual eatery soon. Or perhaps our profile can showcase the only sector of the market where you can put your money where your mouth was. 

Take a moment to read today’s StockUpTicks profile on Creative Eateries.

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About Creative Eateries Corporation

Creative Eateries Corporation ("CEAT"), a franchise development company organized to capitalize on the new, growing demand for "fast-casual/full-service" restaurants in North America. CEAT works closely with established affiliate American Restaurant Development Corporation to minimize the risk in it's portfolio and maximize the potential of CEAT franchises in the market. 

CEAT is poised to take advantage of this new phenomenon by targeting emerging and undervalued restaurant/franchise concepts and becoming equity partners and growth development agents in every brand. 

By leveraging the skilled team of restaurant and franchise development professionals at CEAT, management is committed to bringing the deep operational expertise of its staff to concepts that have regional,  national, and international potential.

Creative Eateries intends to grow each brand through: establishing turn-key franchise models, expanding the number of locations, and by providing guidance and financial consultation to each brand. 

CEAT currently has five up-and-running brands and one of the five already has 61 franchises sold. 

Creative Eateries has the necessary elements to grow each concept’s business quickly and successfully by actively spearheading the concept’s direction, and influence and control management strategy. 

The Creative Eateries project management team has a customized daily, weekly and monthly project planner, leading new store management and franchisees through the development process and opening of a unit. 

This control strategy  operates as a dynamic tool that management and franchisees refer to for step-by-step, detailed guidance. This improves revenues by efficiency and reduces mistakes and cost overruns common during the launch of a franchise unit. 

The management of Creative Eateries Corporation feels that each concept will be uniquely positioned to become a premier level franchise, well above the competition. Building on the current strengths of product quality and menu, combined with superior branding, packaging and retail locations, management at CEAT carefully leads each restaurant concept into the full potential of its "Brand" growth. 

The Casual Restaurant Sector

The casual dining world opened 2006 with a bang.  A number of large, mid, and small-cap companies were given coverage by analysts that demonstrate a healthy sector with growing earnings and revenues.

Darden, the world's largest casual restaurant chain, garnered the most analyst attention. Its Italian-themed Olive Garden restaurant chain saw a 6 percent increase in December same-store sales while Red Lobster posted a 3 percent increase. Same-store sales, a closely watched gauge of a retailer's health, measure sales at stores open at least one year.

Andrew M. Barish, an analyst with the Bank of America, lifted his target price for the stock to $40, from $38, saying Darden appears to have "everything lined up for a strong 2006," thanks to a continued sales momentum expected to drive double-digit earnings per share growth. Among the other investment banks that raised their earnings guidance for Darden were: UBS, Piper Jaffray, Wachovia Securities, KeyBanc and Morgan Keegan.

Regional steakhouse Steak-n-Shake Co. received a boost from CL King & Associates, which lifted its rating on the stock to "Strong Buy" from "Accumulate" on favorable valuations. Analyst Michael W. Gallo noted same-store sales comparisons should improve in the second, third, and fourth-quarters following a challenging two-year period. He also said several new products current in testing, such as premium burger toppings, are expected to be rolled out early this year and could jump-start same-store sales.

Looking ahead, Gallo expects Steak n Shake to expand nationally over the next five years, with significant opportunities to grow the brand via franchising. Steak-n-Shake shares were up 95 cents, or 5.7 percent, to $17.55 on the news. 

And Yum Brands Inc., parent of fast food chains Taco Bell, KFC and Pizza Hut, received a ratings upgrade from JP Morgan.  Analyst John Ivankoe lifted the stock to "Overweight" from "Neutral," saying its China operations are starting to lap easier year-earlier results. Shares closed in the $49 range on the news. 

The CEAT Portfolio of Restaurants

Q’s, House of Barbecue. Q's is a family style full-service/fast-casual restaurant concept positioned closer to casual dining than the typical fast-casual format. The Q’s, House of Barbecue is designed for end-cap and/or in-line locations with the typical square footage being 3000-4200 sq./ft, and seating for 70-125 inside and an additional 30 seats in a patio setting. 

During the lunchtime-hours customers will order their food and be given a number card to place on the table. The expediter will then deliver the food order to the table. This gives the feel of a full service restaurant with a wait staff, without the time it takes to order from a waiter/waitress and having to leave a tip. The design and décor has a feel of a clean, fresh, and fun environment.  The seating is comfortable and a perfect setting for a family meal or a quick weekday lunch. The lighting is bright and the ceiling is high to allow for an open feeling. In the evening the restaurant will turn itself into a full-service restaurant giving the servers a chance to recommend appetizers and beverage upgrades, making the average dinner check higher than that at lunch. Q’s House of Barbecue has 9 “Combination Meals” feeding from 4-30 individuals that are all packaged in high quality take-out containers, designed to maintain the quality of the product. 
 
 

Fit & Healthy Market Café

Fit & Healthy Franchise Company, LLC., is a franchise company developing a chain of restaurants specializing in “Organic” foods with the emphasis on “healthier” choices for the consumer. 

While no company offers the same set of solutions as Fit & Healthy, the closest competition comes from companies such as Know Fat-Lifestyle Grille and Fitness Café, which offer high-protein, low-carb dining and vitamins, minerals, and energy bars under a single roof. Fit & Healthy maintains a highly defensible position based on industry expertise and reputation, a proprietary database of franchisees, appeal to a large and underserved market, integrated online and offline solutions, predictable and recurring revenue streams, and established relationships with potential clients and partners. The competitive landscape further validates the Fit & Healthy value proposition and opportunity to gain traction in the market rapidly. 
 

Don Allio’s Italian Kitchen

Don Allio’s is a Roman-inspired Italian Bistro offering delicious seafood, meat and vegetable pastas all made-to-order in the customer’s full view, grilled fish, rotisserie chicken, individual thin crust pizza, salads, soups, paninis, homemade desserts and a wine list to complement our food are the reasons everyone will enjoy frequenting Don Allio’s. Of course our mouth-watering fresh-baked breads are a crowd pleaser too. Don Allio’s is positioned closer to casual dining than the typical fast-casual format. This will position Don Allio’s to average more than $20-per-person daylong check average, with a solid lunch business with an $8-$9 average check. Don Allio’s is designed for end-cap and/or in-line locations with 1/4th of the cost for a typical freestanding building. The typical square footage is 2800-3200 sq./ft, with seating for 85-110 inside and 30 in a patio setting. 

Don Allio’s offers a unique niche in dining. As a full-service/fast-casual restaurant, it is positioned well above its competitors with regards to atmosphere, quality and convenience. It has centered itself on the growing health trends created by the baby boomer generation and in association with well-known and internationally accepted products, Italian Bread, Pasta and Pizza. Don Allio’s will deliver on all the important elements of value, quality, price and convenience differentiating the Company from chain operations.  There is no national player who has entered the “full-service/fast-casual” fresh-baked bread/pasta/pizza segment providing Don Allio’s a great opportunity to capture a large market-share before others enter into this arena. 

The design and décor has a feel of a clean, fresh, and sophisticated environment.  The seating is comfortable and a perfect setting for a family meal or a quick weekday lunch. The lighting is bright and the ceiling is high to allow for an open feeling. In the evening the restaurant will turn itself into a full service restaurant giving the servers a chance to recommend appetizers and beverage upgrades, making the average dinner check higher than that at lunch. Don Allio dishes are also available to be taken out in high quality take-out containers, designed to maintain the quality of the product.

Kokopelli Sonoran Grill, founded in Phoenix in 1997, specializes in Sonoran/Mexican cuisine featuring to-order big-burritos, tacos, fajitas, and other Mexican favorites. Kokopelli differentiates itself from other fast-casual chains such as Chipotle, Qdoba, and Baja Fresh by serving hand-blended Sonoran spices, with dishes that include Grilled Salmon with Mango Salsa, Steak Verde with Tomatillo Salsa, Pollo Colorado with Cheese and Peppers, beer, wine and frozen-margaritas.

The Kokopelli menu and prep line is designed for fast service, allowing for a strong lunch business with an $8 - $9 average check. The typical square footage is 2200-2600 sq. ft. with seating for 65 – 85 inside and 30 in a patio setting. It is design for end-cap/or in-line locations to reduce the cost, allowing a relatively inexpensive start-up cost for the franchisee. There have been 73 Kokopelli franchises sold, to 10 Franchisees, In Charlotte, NC; Detroit, MI; Reno & Las Vegas, NV; Portland, OR; Orange County & Riverside County, CA, and in the Greater Phoenix market.

Comstock Jake’s first store, which will be open in early November, 2005 is a fast-casual/full service family style dinner house concept. Jake’s is designed for end-cap/in-line locations with the typical square footage being 2,800 to 3,600 sq. ft., and seating for 80 – 135 inside, and 30 in a patio setting. The principal feature of the mining theme, family-style restaurant is their Good American Food, such as Chicken Pot Pie, Real Potato French Fries, Beef Turnovers, Meatloaf/Mashed Potatoes & Fixins’, Buttermilk Fried Chicken, Homemade Soups & Breads, Wedge of Iceberg, Stuffed Tomato’s, Cedar Plank Salmon w’ mustard, Buttermilk Biscuits, & Onion Rings; and then, heartwarming deserts to satisfy food cravings – Bread Pudding, Warm Chocolate Cake, Homemade Apple Pies, Root Beer Floats.

During the lunch-time hours customers will order their food and be given a number card to place on the table. The expediter will deliver the food order to the table, giving the feel of a full-service restaurant with wait staff, without the time it takes to place an order with a waiter/waitress and having to leave a tip. The restaurant will have very comfortable seating, a perfect place for a family meal, or a weekday lunch. In the evening the restaurant will turn itself into a full-service restaurant giving the servers a chance to recommend appetizers and beverage upgrades, contributing to a higher average dinner check than that for lunch. Comstock’s dishes are also available to be taken out in high quality containers designed to maintain the quality of the product.

Recent News From CEAT

SCOTTSDALE, Ariz., Feb. 3 /PRNewswire-FirstCall/ -- In light of this week's history-making IPO of Chipotle Mexican Grill, Creative Eateries Corporation (OTC Bulletin Board: CEAT - News), a full-service franchise development company focusing on the emerging fast-casual dining segment and Kokopelli Sonoran Grill, announced today that Chipotle's IPO success calls attention to the comparable market opportunity for other, similar concepts in the growing fast-casual restaurant space.

Rousing investors with its mostly organic menu as much as its rapid growth since its founding in 1993, shares of the thriving chain of 489 fast-casual Mexican food restaurants exactly doubled on their first day of trading to close at $44.00. The performance was a triumph for parent company McDonald's and marks the best opening-day gain by a U.S.-based new issue since late 2000, according to Thomson Financial. It also was the second-best opening day for a restaurant chain IPO, trailing only the 143 percent gain by Boston Chicken -- since renamed Boston Market -- in 1993.

"Tremendous similarities exist between the Chipotle and Kokopelli concepts, not only in the type of food and focus on all-natural ingredients, but in the business models themselves," said Creative Eateries CEO Frank Holdraker. "Both concepts will capitalize on the exponential growth projected for the fast-casual sector over the years to come, but because there are only three Kokopelli locations, whereas Chipotle has nearly 500, we believe there is an opportunity for investors to get in on the ground floor and create substantial leverage with an investment in CEAT."

To read the entire release and disclaimer, click HERE

Press Release 
Source: Creative Eateries Corporation
Friday January 27, 7:00 am ET

SCOTTSDALE, Ariz., Jan. 27 /PRNewswire-FirstCall/ -- Creative Eateries Corporation (OTC Bulletin Board: CEAT - News) today announced the third planned franchisee opening of the Kokopelli Sonoran Grill restaurant concept. Scheduled to be launched on February 6 in Toledo, Ohio, the store is one of the 61 franchises sold since the concept's inception. Other restaurants in various stages of completion include locations in Detroit, Michigan; Portland, Oregon; and three in the Greater Phoenix area.

"Kokopelli Franchise Company, LLC has received significant interest from restaurant developers who see the upside potential of the quality fast casual dining experience that the Kokopelli brand represents," said Creative Eateries Corporation Chief Executive Officer, Frank Holdraker.

"With each Kokopelli Sonoran Grill franchise expected to generate annual royalties of more than $50,000, which equates to about $3,000,000 per year in gross revenues for the company, the coast-to-coast growth of Kokopelli is an extremely positive achievement for the company and its shareholders. Creative Eateries Corporation maintains a 50/50 profit sharing agreement with its partner in Kokopelli Franchise Company, LLC, and plans to continue the expansion of this franchise concept, increasing the value of our investment and providing growth at a manageable pace," added Holdraker.

To read the entire release and disclaimer, click HERE

Press Release 
Source: Creative Eateries Corporation
Thursday January 26, 7:00 am ET

SCOTTSDALE, Ariz., Jan. 26 /PRNewswire-FirstCall/ -- Creative Eateries Corporation (OTC Bulletin Board: CEAT - News) today announced the third planned franchisee opening of the company's Kokopelli Sonoran Grill restaurant concept. To be launched on February 9 in Toledo, Ohio, the store is one of the 61 franchises sold since the concept's inception. Other restaurants in various stages of completion include locations in Detroit, Michigan; Portland, Oregon; and three in the Greater Phoenix area.

"Kokopelli Franchise Company, LLC has received significant interest from restaurant developers who see the upside potential of the quality fast casual dining experience that the Kokopelli brand represents," said Creative Eateries Corporation Chief Executive Officer, Frank Holdraker.

To read the entire release and disclaimer, click HERE

The CEAT Management Team

Mr. Holdraker is President and Chief Executive Officer of Creative Eateries Corporation. He is also President of Kokopelli Sonoran Grill, a fast-growing food concept with existing locations in Arizona, and units under development in California, Oregon, Nevada, Michigan, Ohio and North Carolina. Mr. Holdraker was President/Owner of Franklin & Associates from 1989-2004, a full service concept development company. He helped develop for La Salsa, Fresh Mexican Grill their franchise program, the manufacture of proprietary products and the establishment of purchasing and distribution procedures. From 1986-1989 Mr. Holdraker was President and CEO of Ponderosa, Inc., a 750-unit steakhouse chain. >From 1980-1986 he was Senior Vice President of Coulter Enterprise, a major multi-state Pizza Hut franchisee. Prior to that he was Vice President of Pizza Hut from 1974-1980.

Mr. Allio is Executive Vice-President and Chief Operation Officer of Creative Eateries Corporation. He is also President of Don Allio’s Italian Kitchen, a new corporate owned Italian Concept, and will be responsible for the whole undertaking of this operation. Mr. Allio is responsible for all Operations and Training Programs for Creative Eateries Corporation. From 1982 – 1983 Mr. Allio was Director of Worldwide Training & Operations, and Dean of Hamburger University (1984 – 1986), for McDonald’s Corporation. In 1987 he was promoted to Regional Vice-President at McDonald’s. His responsibilities were in charge of 350 corporate restaurants in Kansas, Nebraska, Missouri, Iowa and Oklahoma, leading the team in operations and mainly improving sales and profitability in that division.

Mr. Walsh is Executive Chef and General Manager of Creative Eateries Corporation. Mr. Walsh was the former Executive Chef, Administrator, and Cordial Hospitality Host for Kendall-Jackson Wine Estates in Sonoma County, California. His duties with Kendal-Jackson included the development of a world-class wine center for entertaining their top echelon clientele. It included a production garden and “organic” sensory garden used to educate the public and major accounts including the Ritz Carlton, Walt Disney, and other large chains with the emphasis on food-wine pairings. Mr. Walsh previously developed a specialty gourmet retail market, wine bar and restaurant in Santa Barbara, California. Prior to that, he was Executive Chef and Production Manager for a 450-seat restaurant production facility and catering service in San Francisco. Mr. Walsh has received Awards from The James Beard Foundation, Chaine des Rostisseurs and named Top Ten Chefs of the Nation by Rolling Stones Magazine. Mr. Walsh has hosted Special Wine and Food Pairing Dinners at Sonoma Wine Auction, Napa Valley Wine Auction, Ritz Carlton Hotel, James Beard House and Wine Spectator Magazine. He was the long-time recipe tester for Julia Childs and Jacque Pepin. His education includes Chef Apprenticeship-Tourneau Designation, The Hotel Ritz, Paris, France.

Mr. Neild is President & Chief Executive Officer of American Restaurant Development Corporation, and is also Chief Executive Officer of Investment Capital Corporation, a small venture capital firm. Founder, CEO and Director of National Scientific Corporation, a semiconductor parts designer in Arizona; Intercell Corporation, a wireless parts designer and manufacturer, based in Colorado; and, Clearly Canadian Beverage Corporation, a very successful retail specialty bottled water company. He is a past Director of AdZone Research, Inc. of Long Island, New York. He has extensive knowledge in Mergers and Acquisitions and has personally been responsible for raising hundreds of millions of dollars for companies he has served. Mr. Neild, who is a Certified Management Accountant, has held a number of senior financial positions in three Fortune 500 companies. 
 

Financial Highlights For CEAT

To Contact CEAT

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Register to attend the conference FREE: Click Here then enter this conference referral code CKCC20065.

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