Opportunity: October 2023
Brands We All Know, Masked by a Corporate Name That Most Don’t
Introduction
Over the years, we’ve seen many great consumer brands—even ones that are household names—overlooked or underappreciated by investors when the brand is hidden behind an unfamiliar corporate name. This month’s Opportunity Report features one such company. In our view, this company has something on the menu for many different types of investors:
Its strong growth prospects coincide with a swelling unit count, domestically but also (and especially) abroad, where there is a long runway for footprint expansion.
It has a compelling plan to turn around the financial performance of an underachieving business and has shown material improvement in the early innings of its effort.
It boasts a recent talent upgrade at a C-suite position after having brought in one of the best in the business, with a demonstrable track record of unlocking value for shareholders.
Its fee-based franchise business model allows for low capital requirements and substantial cash generation.
Its equity is inexpensive relative to its peers’.
It sweetens the pot with an attractive dividend.