Scottsdale, Arizona-based restaurant chain
Kona Grill Inc.
) recently inked a lease agreement for 6,649 square feet of space
at The Village at Meridian in Boise, Idaho. This is done with the
clear intent of opening a new restaurant in the region to capture
its emerging opportunities. Financial terms of the agreement have
not been disclosed.
The Village at Meridian is considered as one of the most
important commercial projects developed in the state of Idaho.
The first phase of the lifestyle development project will occupy
nearly 500,000 square feet of space for retail, entertainment,
restaurant and office. It is slated to open in the fourth quarter
Kona Grill chose this particular space as this area is
strategically positioned in the heavily populated and lucrative
area of Boise. The opening of the restaurant is likely to
generate employment for 100 people.
The opening of the new restaurant underscores the company's
intention to expand its business across several locations; which
will eventually lead Kona Grill to achieve its long-term goal of
boosting its growth.
Kona Grill owns and operates 23 high-end casual dining
restaurants across 16 states in the United States. In third
quarter 2012, Kona Grill missed Zacks Consensus Estimates on both
lines and witnessed a slowdown in sales. However, bottom line
improved year over year due to the company's efficient cost
The company had entered the third quarter by exercising a 1.1%
pricing on new menus after 14 months. Despite this price rise,
the company has failed to improve their revenues in the reported
quarter owing to the uncertain economy.
Kona Grill, which competes with the likes of
BJ's Restaurants Inc.
), currently retains a Zacks #3 Rank (Hold). We currently have a
long-term 'Neutral' recommendation for the company.
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KONA GRILL INC (KONA): Free Stock Analysis
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