A good post and agreed you have highlighted a key issue that FCF was roughly neutral (slightly negative actually) after lease payments.
Current assets are way below current liabilities. In my view it is likely that they will be forced to raise capital to deal with their looming debt due in September. There's always a chance that they will manage to refinance, however if they do the interest rate is likely to be high.
The value of their intangibles requires improved profitability and cashflow to hold up going forward, as a neutral cashflow doesn't support a $200m+ intangibles value.
If their businesses start booming perhaps I'll eat my words, the next year or so doesn't look like it will be an easy win though with inflationary pressures on franchisee costs and the real possibility that people will reduce their discretionary spending at these outlets.
RFG Price at posting:
9.1¢ Sentiment: Sell Disclosure: Not Held
(20min delay)