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Strategies & Market Trends : Value Investing

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From: Elroy7/16/2025 2:18:56 PM
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GEN Korean BBQ expands with new outlet in Texas

finance.yahoo.com

Some day this stock is going to work. They keep opening restaurants using cash on hand and operating cash flows, eventually the EBITDA should grow above head office fixed costs and new restaurant opening expenses, and then growth = either growth in free cash flows, or accelaration of new store openings.
Don't know when that turning point will occur, but at the rate they're opening stores it's gotta happen.

They said they think they will exit 2025 at about a $300m annual sales run rate. Market cap today is $130m. I don't know if they'll meet that target, but even if they only get to $270m, it's still market cap = 0.5x sales, which seems low for a company growing sales 15%+ year.

They have an ongoing share repurchase, and paid a one time 3 cent dividend recently. So they are (it seems) more concerned about the share price than GRVY.....
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