Declining Revenue TrendAn 18.2% revenue decline reflects loss of sales momentum and likely market share. Over months this erodes scale benefits, increases unit fixed-cost burden, and makes margin recovery harder as volume-driven leverage dissipates, pressuring long-term profitability unless top-line stabilizes.
Negative Operating Cash FlowPersistent negative operating cash flow undermines liquidity and forces reliance on external financing or asset sales. Over a multi-month horizon this constrains reinvestment, limits ability to service debt, and elevates default or restructuring risk absent a sustained improvement in cash generation.
High LeverageSignificant leverage reduces financial flexibility and increases interest and refinancing risk. Structurally, high debt magnifies downturns in restaurants demand and limits capital for growth or margin improvement, making recovery dependent on rapid cash-flow turnaround or external recapitalization.