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  "documentTitle": "Bob Evans Farms, Inc. (BOBE)",
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  "authorName": "Sandell Asset Management",
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  "presentationDate": "2013-09-01 00:00:00",
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  "notes": "The slide uses external citations (Ruby Tuesday, CL King, Stephens Inc., 10-K) to validate the $722.9M valuation estimate.",
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      "text": "$722.9 million works out to $1.50 million per owned restaurant, which is significantly below the Company's stated cost to build a new restaurant.",
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      "text": "We believe our $722.9 million estimate of Bob Evans' real estate value is conservative (See 4/26/13 CL King research report: \"The company's real estate could be worth another $800MM - $1B\" and 1/30/13 Stephens Inc. research report: \"We are upgrading BOBE...due to what we view as a cleaner story for investors with improving margins, good underlying sales momentum in its core businesses and nearly $900 mil. in real estate value\".)",
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      "text": "The valuation on the previous page assumes an incremental rent expense equal to 6.0% of owned restaurant revenue that is capitalized at a 7.0% cap rate, which is conservative compared with lower cap rates witnessed in recent restaurant sale-leaseback transactions.",
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      "text": "$722.9 million works out to $1.50 million per owned restaurant, which is significantly below the Company's stated cost to build a new restaurant. As noted on page 4 of the Company's 10-K for the fiscal year ended April 29, 2011: \"In fiscal 2011, it cost approximately $2.3 million to build a new stand-alone Bob Evans restaurant, including the land.\"",
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      "text": "We have availed ourselves of outside expert tax guidance and we believe, given the stated book value of the Company's land holdings, along with the significant expenditures associated with the Company's restaurants, that the tax impact in a sale-leaseback transaction would not be prohibitive.",
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      "text": "real estate value: $722.9 million",
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      "text": "\"We have now finished our sale-leaseback program, which resulted in the completion of transactions on 37 restaurants, resulting in $83 million of gross proceeds at average cap rates under 6.7%, including cap rates in the range of 6.25% on our most recent transactions.\" — Ruby Tuesday July 24, 2013 earnings conference call. \"The company's real estate could be worth another $800MM - $1B\" — CL King research report. \"We are upgrading BOBE...due to what we view as a cleaner story for investors with improving margins, good underlying sales momentum in its core businesses and nearly $900 mil. in real estate value\" — Stephens Inc. research report. \"In fiscal 2011, it cost approximately $2.3 million to build a new stand-alone Bob Evans restaurant, including the land.\" — Bob Evans 10-K for the fiscal year ended April 29, 2011.",
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      "text": "Bob Evans Farms, Inc. - Enhancing Shareholder Value",
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      "text": "Step 2 (cont'd)- Extract Value from Real Estate via Sale - Leaseback Transaction",
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