Declining And Volatile RevenueSustained revenue declines reduce capacity to cover fixed restaurant costs and erode operating leverage. Over several months this undermines margin recovery, limits reinvestment in outlets or marketing, and complicates return to consistent profitability.
Negative Profitability And EPS CollapseNegative net margins and sharply negative EPS signal persistent operating losses. This structurally weak profitability constrains retained earnings, increases reliance on external funding for growth or dividends, and pressures long-term shareholder returns.
Erratic Operating Cash Flow And Zero FCFIrregular OCF and absence of free cash flow limit the firm's ability to fund capex, refurbish restaurants, or sustain dividends without external financing. Over months this raises refinancing risk and limits strategic flexibility versus better-cash-generating peers.