This Restaurant Business Could Fall By One Third

Profits are lower than they were 19 years ago. They could go lower still.

💡 Highlights:

• This restaurant business has seen better days. Operating income is down over the last ten years, and below pre-financial crisis peaks.

• Yet investors are pricing in a turnaround with the stock up 70% over the past year.

• The problem is that inflation and the competitive environment have helped sales. This remains a pressured brand in a pressured industry.

• We think a short trade can gain 30%+ in a reasonably short space of time.

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