Nearly 13 percent of the Burger King restaurants in Germany are closing up shop.
Burger King announced last week that it was terminating contacts for 89 franchised locations in Germany after reports of poor hygiene and poor treatment of the staff, reports The Local. All locations were run by the largest franchisee in the country, Yi-Ko.
The termination was set in motion in May, when an undercover report revealed that the restaurants were serving expired food and violating sanitary standards. The Local reports that following the hygiene scandal, some improvements were made. However, new breaches emerged, including the franchisee withholding employees' holiday pay, bonuses and sick pay.
Actually they are burning cash at around $5 mln per quarter which would give them some more time to grow the business but investors would like to see positive cash flow AND higher growth rates. Remember the company has actually struggled during the last few quarters.
actually this will be a well deserved field day for shortsellers finally. Ctrip is facing brutal competition and has to lower margins just to hold its market share. Listen to the conference call replay to get an impression how bad things really are.
Q4 volume and margin guidance very disappointing. Actually a shame. Would expect shares to come in 20%+ today. Shorted in after hours.
EACH and EVERY company reports unaudited financials every quarter. Only the annual report is based on a full audit.
I don't care how the shares are doing going forward but clearly they look pretty much overextended here especially given the margin warning issued on the call. Will cover at $5 later this afternoon.
lol - you must be joking. At the current pace and with margins coming down again they won't be profitable even 2 years from now if ever. Q3 revenues actually were LOWER yoy even if taking out the sold product line. Would expect the shares to quickly fall into the red this morning.
won't touch the shares at all here
I shorted some more in after hours yesterday. Company again is sacrificing margins to grow revenues which already fired back on them last time. Cash burn remains too high to avoid another capital raise. With the shares trading at 52-week-highs the easy money has been made here.
Even if taking out the PCIe-business revenue was down 7% yoy. So much for that. The only gross margin guidance on the call was substantially down for next quarter. It is quite easy to expand revenues when sacrificing margins. That's pretty much the same strategy as ever.
And they actually guided for revenues to be up 5-16% next quarter so clearly they won't be up 34% as backlog usually consists of orders to be delivered during the next 12 months (not during the next quarter).
So everything you wrote has been proven wrong here.
Revenues are DOWN yoy actually and forward guidance is for revenues to go up 5% to 16% sequentially (but to be down yoy again). Remember also the giant cash burn and the lower gross margin guidance. If the shares would still be at $3 this might have been a good buy but at almost double that price the shares look pretty expensive here.
Actually they gave out the compare to FY14 when asked on the conference call and even in FY14 they delivered net new bookings north of 6% so the guidance actually points to very little yoy improvement if at all which of course is heavily disappointing. The company remains a severe underperformer and should be avoided at any cost.
Yeah - but revenues are growing pretty slowly and every million dollar in revenue translates into an equal amount of losses currently. They need to grow much faster AND reduce losses at the same time which won't work of course. They will have to come back to the market within the next 12-24 months.
What about the short term bond maturity on the balance sheet ? How will they address this issue ? No word on the conference call.
The conference call was - as always - not that convincing to say the very least. Q1 guidance is telling more of the same old story and full year FY15 margin guidance simply is a shame. Would expect the shares to give back their entire after hours gains tomorrow morning.
Valuation is clearly stretched here despite some positive news on the product front. Company guided down gross margins to around 52% next quarter so there will be another $20 million cash outflow. I don't think the company is fully financed here but I suspect they will use a further increase in the share price to do a secondary offering.
given the valuation investors will show little tolerance tomorrow
going through the results I can't find any kind of inflection point as results and guidance underperform competitors and the market by a large amount while margins remain a real shame for a software company. Shorted above $16 in after hours.