Q: RECENT UPWARD MOMENTUM. WHAT ARE THE PROSPECTS? THANX
5i Research Answer:
We would be temper our expectations on a name like this. It has had a good run but as a restaurant consolidator is trading at 8X sales. It is small and trades on the CSE which likely adds to volatility. The company does carry a bit of debt as well. In fairness, they are trying to grow quite fast and appear to be signing a lot of franchise deals but restaurants are hard and have low margins so we would prefer to see some execution here as the franchises become operational.