Volatile Cash GenerationVolatile and recently negative free cash flow reduces the company's ability to self-fund openings, remodels or repay obligations without external financing. Persistent cash conversion issues can force dilutive capital raises or higher cost borrowing, constraining strategic initiatives over months.
Inconsistent ProfitabilityDespite top-line gains, net income and EBIT margins have been inconsistent, reflecting operational challenges or fixed-cost leverage. Weak or volatile profitability undermines retained earnings accumulation and raises execution risk for further expansion, affecting medium-term margin sustainability.
Equity InstabilityFluctuating shareholders' equity signals episodic losses, capital actions, or valuation swings that erode balance sheet predictability. This structural instability can limit borrowing capacity and investor confidence, making multi-quarter strategic planning and investment more difficult.