Well, incredibly, rfg have finally turned an accounting profit....

Well, incredibly, rfg have finally turned an accounting profit.
On a FCF basis, they were roughly cashflow neutral, excluding the acquisition of Beefys. So still not generating any significant cash. This is due to movements in working capital offsetting the profit. Even assuming cash will follow profits there is some growth in profits priced in at current market cap.
From a balance sheet perspective the acquisition of Beefys is quite risky. It will need to pay off for them unlike their previous acquisitions as they've paid $10m for a business with negative net tangible assets. Having said that I do actually really like Beefys pies and the one store I've been to is usually busy.