II. Deluxe Chicken Inc. (INDIVIDUAL Report only, 50 points) Deluxe Chicken (DC) was established in 1989 by Sebastian Bony. delicious rotisserie-cooked chicken with fresh vegetables and other side through its own stores and franchisee stores, just like Kentucky Fried C (KFC). According to Seb, DC's strategy is to be "a home meal replaceme the New England and Mid-Atlantic regions. DC went through an impr expansion. At the end of 1991, the firm operated only 34 stores, w franchisee stores. But by the end of 1994, the total of stores (company- stores and franchise stores) had increased to 534 (491 were franchise sto was estimated that DC's franchise store can easily break even if its average revenue per store is higher than $23,000. According to Reuters, its price had risen steadily from $8 in November 1993 to $23 in March 1997. DC's auditor is a prestigious Big-8 accounting firm, Firehouse Young LL 1994 and 1995 fiscal year financial statements below were all audited nur but the 1996 numbers were unaudited. DC's excellent performance also impressed the Street. Stock analyst Mike of Silverman Sterling forecasted that DC's EPS would grow at an annual around 35% between 1997 and 2001 and gave a "strong buy" rating. rumored that the wealth management division of Mohan Stanley took a p 3% stake in this firm. Many hedge funds followed the rumor and added shares to their portfolios