5 Reasons to Buy Bob Evans Farms (BOBE)

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Reason #4 to Buy Bob Evans - Less Competition

Recessions are not necessarily a bad thing. The weak companies will fail while the strong survive. During a long period of expansion, it is only natural to saturate a market with too many offerings. In the restaurant business, that was certainly the case. There were simply too many choices for too few customers. Now with many locations closing and some going out of business, the competitive landscape has changed. The beautiful thing is that supply may contract, but demand stays constant. As such, those restaurants that survive the recession will see more custumers. In addition, while demand is growing in the early stages of a recovery, companies having overexpanded at the end of a growth cycle will be reluctant to open new stores. All and all, the environment will benefit BOBE. The company is clearly a survivor, and the lack of competition from fewer players will support future growth.

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