Research

WTRH – Market expectations are for a positive inflection in Uniform ROA, but management may be concerned about revenues, pricing, and dine-in

December 23, 2020
  • Waitr Holdings Inc. (WTRH:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with an 8.8x Uniform P/E. At these levels, the market has expectations for profitability to positively inflect, but management may be concerned about revenue growth, their pricing power, and the new dine-in capabilities
  • Specifically, management may lack confidence in their ability to sustain revenue growth and they may have concerns about their driver base. In addition, they may be exaggerating the potential of their new dine-in capabilities in expanding the business and the macro tailwinds they see. Finally, management may lack confidence in their ability to maintain pricing power and their competitive advantages