SCOTTSDALE, Ariz., Feb. 3 /PRNewswire-FirstCall/ -- In light of this week's history-making IPO of Chipotle Mexican Grill, Creative Eateries Corporation (BULLETIN BOARD: CEAT) , 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."
Kokopelli Franchise Company, LLC has sold 61 Kokopelli franchises since the concept's inception, with 58 of these restaurants in various stages of completion in such markets as Toledo, Ohio; Detroit, Michigan; Portland, Oregon; and Phoenix, Arizona.
Each Kokopelli Sonoran Grill franchise is expected to generate annual royalties of more than $50,000, or more than $3,000,000 per year in gross revenues from all 61 units sold to date. Creative Eateries Corporation maintains a 50/50 profit sharing agreement with Franchise Capital Corporation in Kokopelli Franchise Company, LLC, and plans to continue the marketing and expansion of this franchise concept.
About Kokopelli Sonoran Grill
Kokopelli Sonoran Grill was founded in Phoenix, Arizona, in 1997 and differentiates itself from other fast-casual chains by serving made-to-order big burritos, tacos, fajitas, and other Sonoran favorites made with authentic, hand-blended Sonoran spices.
Kokopelli specializes in many menu items found in full service Mexican restaurants, such as Sonoran Garlic Steak, Grilled Chicken Sedona, Margarita Shrimp, Chili Colorado, beer and frozen-margaritas, as well as beans slow cooked every day and never refried, a full line of salads, and tortillas steamed to order -- all served "platter" style. Kokopelli uses only the freshest ingredients, no additives or preservatives, and offers complete dine-in and take-out service in high volume retail centers and other high traffic commercial locations throughout the United States.
About Creative Eateries
Creative Eateries Corporation is a full-service franchise development company that targets emerging and undervalued franchise concepts. The company is introducing a line of new restaurant brands focusing on the emerging "fast-casual/full-service" dining segment. Creative Eateries will provide the necessary elements to grow these brands by owning or partnering with existing restaurant companies, thereby owning equity directly in these brands, and by providing the concepts a total Franchise Program.
This formula is the result of several years of development to provide the tools and support needed to create and sustain a successful restaurant franchise with above average per store returns. Creative Eateries is traded publicly on the NASDAQ Electronic Bulletin Board under the trading symbol CEAT. For additional company and franchise information, please visit http://www.creativeeateries.com/.
Legal Notice Regarding Forward-Looking Statements: Forward-looking statements in this news release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this news release that are not strictly historical statements, including without limitation, management's plans and objectives for future operations and management's assessment of market factors, and statements regarding the strategy and plans of the company and its strategic partners, constitute forward-looking statements. These forward-looking statements are not guarantees of the company's future performance and are subject to a number of risks and uncertainties, such as our ability to meet our obligations in partnership agreements, success in acquiring new concepts, funding acquisitions, and successfully adapting and franchising these concepts, and could cause the company's actual results in the future materially to differ from the forward-looking statements.
© 2006 PR Newswire
