Tuesday, March 19, 2013
Lululemon vs Cheescake!
So let's just think about this logically.
How many times do you shop at Lululemon in a year?
Well let me phrase that another way--How many times do you eat at Cheesecake Factory in a year?
So do the math. CAKE has market cap of $1.8 billion, and they have 177 stores. So Wall Street values a Cheesecake store at $10 million each.
So do the math again. LULU has a market cap of close to $10 billion, and they have 201 stores. Wall Street values their yoga stores at $50 million each!
Do you know anyone in their right mind that would buy a Lululemon store for $50 million?
So why then, would you buy the stock??
Posted by Palmoni at 3:17 PM