McCormick & Schmick's Seafood Restaurants
Altman Z-Score, Trailing 12 Months: 1.68
Altman Z-Score, Last Fiscal Year: 1.81McCormick & Schmick's Seafood Restaurants (MSSR) McCormick & Schmick's remained in the danger zone with a Z-Score of 1.68, decreasing from a score of 1.81 in the last fiscal year. Clearly management knows there's a problem. McCormick & Schmick's officially put itself up for sale in early May following a rejected takeover bid in April. McCormick & Schmick's said it was considering a sale as one option for maximizing shareholder value. In April, Landry's Restaurants founder and CEO Tilman J. Fertitta offered to acquire McCormick & Schmick's for $137.2 million, but the seafood restaurant chain rejected the unsolicited bid, saying it undervalued the company. At the time, Fertitta said he would pay $9.25 per share for each McCormick & Schmick's share he did not already own, a 30% premium to the target's closing price of $7.12 the day before the offer was made. Fertitta's offer was made through a unit of Landry's, which has been acquiring novelty restaurant brands such as the Bubba Gump Shrimp and Oceanaire seafood restaurants and Claim Jumper steakhouses. Landry's traded publicly until 2010 when Fertitta took it private for $1.4 billion. Fertitta already owns a 10.1% stake in McCormick & Schmick's, making him the seafood chain's third-largest shareholder.
On June 1 Landry's extended its $137.2 million offer until July 29.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts