They have made many operational and menu improvements to the company over the lat few years.They even have same store sales moving in the right direction.
The problem is that they are still bleeding cash.The sale of units to a franchisee last year was not at that much of a premium over replacement cost and was done because the company was in desperate need of cash.
At this point the company is in trouble unless they can turn around one aspect of the business that they have not had much success fixing,they need to attract new franchisees willing to bring their money to the table and open new units.If that does not happen the current shareholders will probably not end up being the beneficiaries of any turn around that comes down the pike, because without new units from franchisees, money will have to be raised not only for new units but to just survive as a company.
Very true. I believe sales figures should be released this week. Same store sales need to continue to grow and more importantly G&A costs need to be slashed. Cash fixed costs are way to high for the current base of stores.