Just spent an hour with the 5/31 10Q. Nothing is trending well. Cliff ,Scott and Steve have to make some major changes. It is a tough industry w/o debt but with it good luck! Not long ,not short bailed a while ago. BTW some franchisees are looking to bail as well. Cheers
Remaining Shorts, whose conviction has been getting weaker and weaker - and remember, this is a 90 percent plus Institutional stock - literally cannot withstand another consensus beat next earnings report.
Institutions don't tend to trade on emotion. So if they think they're beat, they'll adjust, not dig in their heels.
And that 90 percent plus Institutional percentage of the float also means speculation about a takeover, by Biglari coming back or someone new coming in, is still very much on the table.
No one should mind this being a non-Retail stock. If all goes well, it will make it all the stronger. And indeed, new Targets as high as 15 have come in now. On a takeout, of course, that is wayyyyyyyy too low.