DNUT: edging closer to value with FCF and EBITDA multiples expected to decline materially. + hype potential through Pokémon

I’m being serious (but of course speculative as well).

Edit: stock up 8% after Pokémon related searches went up 300% today.

Management has executed well on reducing debt, decreasing CAPEX, and unceasing margins. If you look through their last earnings you’ll

Debt/EBITDA multiples materially lower. Interest coverage, profit margins and cashflow increasing. If they achieve what they guide to, FY 2027 could see P/FCF and P/E of 3-4x and EV/FCF a of below 10 with:

1. Increasing high margin franchise sales. They still sit in the 40% range of system sales.
2. Regardless of GLP-1 etc. organic sales still increase above the inflation rate
3. Pokémon - check out the Charmander one…

KK’s original glazed sells well above 2 pounds in Tesco here in London. Dozens, of course, make it cheaper on a per unit basis even if it’s not “cheap” either. You can argue about price here but they always sell. Sometimes I fail to get one around midday…

Bought calls this week and buying more stock and loading up as well before the next earnings.

Let me hear your thoughts please