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Aug 25, 2021
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TL;DR Freshii is a deep value play rebounding after strict government lockdowns with the sexiest balance sheet I've ever seen
Freshii (FRII) is one of the fastest growing fast service restaurants whose stock has been beaten down during the pandemic due to government lockdowns. Freshii operates in over 300 locations across 85+ cities in 20 countries.
Their concept is healthy meets fast food and it's a trend that has been gaining steam as more people are focusing on healthy eating. The good news is they have a recognizable brand. The bad news is that it is recognized as tasting like crap according to Reddit.
All that matters is the financials. Based on their latest Q2 filing there is 58M in Assets and 19M in Liabilities. The company has no debt and has 38M sitting in cash. Over 65% of its assets are cash! Based on 26,363,074 Class A voting shares that is a book value per share of about a $1.50. And with the stock trading at $2.11 that's a P/B of 1.40. Tim Hortons is obviously much larger, but parent Restaurant Brands International P/B of 4.64 gives you a sense of just how cheap Freshii stock actually is.
The fact that they have so much cash and no debt gives me a lot of comfort in buying the stock and holding for the long term. Remember what Peter Lynch used to say..."A company can't go bankrupt with no debt".
Disclosure: I love buying deep value stocks and put my money where my mouth is with over 300K in the stock.
Freshii website - https://www.freshii.com/
Freshii Annual Reports - https://freshii.inc/financial-information/Financial-Reports/default.aspx