No. of Recommendations: 4
I’ve said enough on this one, so just replying to note I increased my position on Friday ($68 and change).
I read the heyday of 2020-2023 as an aberration. Margins and profits are down from 2019, and I don’t expect margins to fully recover to their 2019 mark.
I think they eventually fix what can be fixed and some of the cyclical issues (hot labor market, cash strapped sub 40k consumers) normalize. Operating margins returning to something like 6-6.5% percent will make it a profitable decision (8.3% in 2019 if memory serves). But they’re in a tight spot, no doubt.
