Retail-eating places company · DE · FY ends Feb · Revenue $2.10B · 4.09% margin · -$101M FCF
Operating margin is thin at 4.09%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 1.4% YoY. Margins deteriorated 6.2pp alongside, both lines moving the wrong way.
ROIC dropped from 6.44% to 2.06%, capital efficiency is deteriorating. Negative free cash flow of -$101M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$2.10B
▼ -1.4% YoY
Net Income (TTM)
-$49M
▼ -183.5% YoY
Op. Margin
4.09%
▼ -6.2pp YoY
ROIC
2.06%
▼ -4.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$101M
▲ +53.8% YoY
Op. Cash Flow (TTM)
$291M
▼ -6.9% YoY
Net Debt
$3.20B
Cash & Equiv.
$17M
5Y CAGR: +36.9%
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