Morton’s plays up brand at Piper Jaffray conference
Morton’s Restaurant Group, Inc. (NYSE: MRT) management touted its strong brand recognition during its presentation at the 27th annual Piper Jaffray Consumer Conference in New York this afternoon.
“I like to use the analogy of Tiffanys,” Morton’s CEO, Thomas Baldwin, told onlookers. “There are lots of jewelry stores, but only one blue box. That’s how we think of ourselves. [There’s] only one Morton’s.”
Also at the presentation, management laid out four major growth initiatives for the restaurant, including expanding its Bar 12-21 business and its Boardroom business, as well as pursuing disciplined new restaurant growth.
“We perceive solid domestic and international demand opportunities,” Baldwin said.
Morton’s Bar 12-21, which is a bar featured in new and remodeled restaurants, presents new revenue opportunities for the restaurant, said Baldwin. Specifically, the restaurant has identified 48 opportunities across the United States to expand its bar business.
Much of Morton’s recent historical growth has stemmed from its Boardroom business. Private dining rooms equipped with nine-foot satellite-run TVs have increased Board Room utilization to 52% from 50%.
Morton’s management’s current EPS growth target for 2007 is 17.5%. Management expects to increase its operating margin by 30-40 basis points based on the average check, guest traffic, Bar 12-21 and their Boardrooms. Strong brand recognition and operational uniformity have enabled Morton’s to excel in the past, company officials said. Wachovia expects earnings of $0.89 per share for fiscal 2007, and $1.08 in 2008; up from $0.81 in 2006.
The world’s self-proclaimed largest owner/operator of upscale steakhouses said it intends to make considerable investments in Asia—most notably expanding into Shanghai and Beijing. “Asia will be a tremendous growth opportunity for Morton’s,” said Baldwin. Morton’s is currently in the process of finalizing construction on its new restaurant in Macau, China, to be located in the Venetian Hotel. This branch is scheduled to open August 22.
“In china we’re listed as one of the best places to work and we’re proud of that,” said. Baldwin.
In the presentation, Morton’s also said that:
• It reopened its Italian restaurant chain called Trevi in February 2006
• 78% of its business stems from dinner sales
• 29% of sales are derived from alcohol, two-thirds of which are from wine
