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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (77489)	4/28/2025 11:11:01 AM
From: carl1722	1 Recommendation Recommended By E_K_S Respond to of 78471

From what I can gather, comp sales has been trending down. Although it remained positive in 2024, comp sales growth was eroded by commodity inflation I find that BK would have minimal margin improvement through refranchising as its franchise mix is at 83.4% already, so management mentioned in its latest earnings call that its focusing on remodeling to drive franchise profitability Franchise revenue is what it earns from royalties and franchise fees -- significantly higher margins compared to company-owned stores ------------------- JACK's guidance of EBITDA less capex is $177m-$192m or $9.36-$10.15 per share. Adjusting for changes in working capital, interest, and taxes, then this number will be a lot less. "Another key focus is paying down debt through two main strategies. The first is selling some of the real estate it leases (land and building) to roughly 170 franchised restaurants. It will also suspend its dividend, which should result in annual savings of $35 million. Most of that will be put toward debt while the remainder will be for share repurchases." Annual div of $1.89/share + Book value of assets held for lease of $8.78/share + Proceeds from Del Taco vs. ~$90/share in debt