Negative ProfitabilityRecurring negative net and EBIT margins indicate the core operations are not yet profitable, limiting retained earnings and reinvestment capacity. Persistent operating losses can erode equity, force reliance on external financing, and constrain strategic investments over the medium term.
High LeverageA debt-to-equity ratio of 4.83 signals heavy reliance on debt financing, increasing interest and refinancing risk. In a cyclical restaurant industry, high leverage reduces flexibility to invest in growth or weather downturns and raises the chance of liquidity strain under adverse conditions.
Very Weak Return On EquityA negative ROE of -157.8% shows shareholder capital is being eroded rather than generating returns. This structural weakness undermines investor confidence, can limit access to low-cost capital, and suggests the firm must materially improve operations or capital structure to restore shareholder value.