The story here is LBB seller had to be paid a portion in shares due to lack of cash!! Now this has overhead resistance as they try to liquidate! $1.00/gallon gas at the pump will push this higher. HOTR needs to post a profit, otherwise I am not sure what the catalyst is here??? Cost of labor is increasing, as is food, as is fuel??? Simply adding more units does not help until they can post a profit!!! It is that simple! If HOA was about to be sold that would be a catalyst IMHO, but that does not appear to be an option in the near term!
This is the reason Hotr is trading for a buck! They are both a franchisee and franchisor. If they would focus solely on being a franchisor then they would be valued differently!!!!!!!!!!!! They generate a lot of their revenue as a franchisee, a franchisee in food service with passive management and all the risk = very little value!
A few rode the pump, but it never came close to expectations! Now watching for the dump! They may not be able to pull this off and the longs are nervous! This may be headed to $1.00 with increasing labor and the likelihood of higher prices at the pump soon! You don't make money buying other peoples restaurants!!
The acquirer could very well become the acquired. Market capitalization of approximately $53M with 1/4 that amount in cash? VSLR just got taken out. SLTD is now a fast growth, small capitalization target!