Free Cash Flow Volatility And Weak ConversionAlthough operating cash flow improved, free cash flow has been inconsistent and materially below net income, suggesting recurring capex, working-capital swings, or timing effects. This limits sustained capacity for discretionary buybacks, higher dividends, or rapid reinvestment without drawing on reserves, reducing near-term financial optionality.
Modest Gross Margins With Cost SensitivityRelatively low gross margins increase exposure to food, commodity and labor cost inflation. Modest unit-level margins constrain the ability to absorb higher input costs without affecting profitability, requiring sustained pricing discipline or productivity gains to preserve long-term margin sustainability.
Moderate Returns On Equity And Slowing ROEStable but only mid-single-digit to low-teens ROE implies the business generates solid but not rapidly compounding shareholder returns. Slight ROE softening reduces the pace at which retained earnings can meaningfully accelerate equity growth, potentially limiting long-term return expansion absent higher margin or revenue acceleration.