Recent News
In January 2026 the chairman disclosed open-market purchases totaling 2,221 Class B shares across early-December trades. Early December 2025 coverage noted rising relative-strength ratings for both Class A and Class B shares and highlighted improving price performance, while commentary flagged no immediate technical buy zone and cited flat EPS with roughly 10% reported sales growth in the most recent quarter.
Technical Analysis
Directional indicators show mixed but biased downside: DI+ sits at 19.38 and trends lower, a bearish signal, while DI– at 20.81 displays a dip-and-reversal pattern that the indicator rules associate with renewed selling pressure. ADX reads 14.46, reflecting no established trend and limiting follow-through risk from the directional split.
MACD at -1.03 and described as a peak-and-reversal indicates bearish momentum; the MACD sits below the signal line (signal = 3.65), reinforcing declining momentum rather than a fresh bullish crossover.
MRO registers 9.67 and trends down; the positive MRO implies price sits above the model target and therefore carries potential for a corrective move lower if momentum persists.
RSI at 53.36 with a peak-and-reversal pattern points to a neutral-to-weak momentum state leaning lower after a short-term peak; the reading avoids oversold/overbought extremes but aligns with other momentum signals suggesting limited upside conviction.
Price structure shows the close at $375.02 below the 12-day EMA ($394.41), the 20-day average ($399.24) and the 26-day EMA ($397.21), while remaining above the 200-day average ($325.27). Short-term moving averages and Ichimoku components (Tenkan: $394.99; Kijun: $424.48) sit above price, indicating short-term resistance clustered in the $395–$425 area and favoring range-bound to lower action unless momentum reverses.
Bollinger bands place price inside the 1x band range ($385.48–$413.00), implying limited immediate volatility expansion; recent volume metrics show above-average trading (10-day avg ~117,821 vs. latest volume 129,844), which supports conviction in directional moves when either momentum or fundamentals shift.
Fundamental Analysis
Operations delivered $99.74 million in revenue and $39.06 million gross profit, producing a gross margin of 39.17%, which sits above the industry peer mean of roughly 32.49%. Operating margin reached 9.12% but trails the industry peer mean of ~12.25%.
EBIT registered a loss of $5.215 million, translating to an EBIT margin of -5.23%; that compares unfavorably to the industry peer mean margin of about 11.98% and the peer median near 9.83%, though the company’s margin sits comfortably above the industry peer low of roughly -20.91%. QoQ and YoY dynamics show material deterioration: EBIT margin declined about 107.83% QoQ and about 110.52% YoY, reflecting operating volatility and one-time items that depressed operating profitability versus recent periods.
Net income totaled a loss of $5.291 million; EBITDA remained positive at $4.33 million, implying operating cash generation before non‑cash and non‑recurring items. Free cash flow stands at $22.30 million with a free-cash-flow yield of 2.15%, above the industry peer mean of about 0.39%, but free-cash-flow growth shows contraction (down ~43.46% YoY), signaling less expansionary cash generation versus prior periods.
Balance-sheet metrics show robust liquidity: $272,485,000 in cash and $369,169,000 in cash and short-term investments, a current ratio of 282.70% and a cash ratio of 258.23%, providing a substantial cushion for operating cycles. Receivables and inventory turnover remain normal for the restaurant segment (receivables turnover ~4.71; inventory turnover ~14.61), and the cash-conversion-cycle sits at about -14.18 days, indicating efficient working-capital turns relative to typical peers.
Leverage presents nuance: total debt approximates $347.17 million with debt-to-assets of 32.16%, below the industry peer mean of ~76.17% and the peer median, while debt-to-EBITDA sits at 80.2x—an elevated multiple that reflects depressed EBITDA and warrants monitoring if operating cash declines. Interest coverage reads -2.23x, signaling negative coverage driven by current operating losses at the EBIT line.
Valuation metrics sit below peer averages: price-to-book at 1.79 versus a peer mean near 8.85 and price-to-sales around 10.40 versus a peer mean near 23.68, consistent with WMDST’s determination that the stock appears under-valued on a relative price basis given balance-sheet strength and cash reserves. Enterprise multiple shows an elevated 234x, a function of current market cap and low operating earnings; reconcile this against strong cash holdings when considering enterprise-value-based comparisons.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-07 |
| NEXT REPORT DATE: | 2026-02-06 |
| CASH FLOW | Begin Period Cash Flow | $ 33.5 M |
| Operating Cash Flow | — | |
| Capital Expenditures | $ -8.95 M | |
| Change In Working Capital | $ 9.3 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 239.7 M | |
| End Period Cash Flow | $ 273.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 99.7 M | |
| Forward Revenue | $ 27.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 60.7 M | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 90.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 39.1 M | |
| EBITDA | $ 4.3 M | |
| EBIT | $ -5.21 M | |
| Operating Income | $ 9.1 M | |
| Interest Income | — | |
| Interest Expense | $ 2.3 M | |
| Net Interest Income | $ -2.34 M | |
| Income Before Tax | $ -7.55 M | |
| Tax Provision | $ -2.26 M | |
| Tax Rate | 29.939 % | |
| Net Income | $ -5.29 M | |
| Net Income From Continuing Operations | $ -5.29 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ -1.86 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.1 B | |
| Intangible Assets | $ 76.2 M | |
| Net Tangible Assets | $ 504.0 M | |
| Total Current Assets | $ 404.1 M | |
| Cash and Short-Term Investments | $ 369.2 M | |
| Cash | $ 272.5 M | |
| Net Receivables | $ 21.2 M | |
| Inventory | $ 3.9 M | |
| Long-Term Investments | $ 12.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 27.8 M | |
| Short-Term Debt | $ 20.9 M | |
| Total Current Liabilities | $ 143.0 M | |
| Net Debt | — | |
| Total Debt | $ 347.2 M | |
| Total Liabilities | $ 499.2 M | |
| EQUITY | ||
| Total Equity | $ 580.3 M | |
| Retained Earnings | $ 640.1 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 187.01 | |
| Shares Outstanding | 3.103 M | |
| Revenue Per-Share | $ 32.14 | |
| VALUATION | Market Capitalization | $ 1.0 B |
| Enterprise Value | $ 1.0 B | |
| Enterprise Multiple | 234.406 | |
| Enterprise Multiple QoQ | 1947.665 % | |
| Enterprise Multiple YoY | 2975.673 % | |
| Enterprise Multiple IPRWA | BH: 234.406 high: 190.151 median: 155.361 mean: 130.432 low: -123.294 |
|
| EV/R | 10.176 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.86 | |
| Asset To Liability | 2.162 | |
| Debt To Capital | 0.374 | |
| Debt To Assets | 0.322 | |
| Debt To Assets QoQ | 121.411 % | |
| Debt To Assets YoY | 1837.349 % | |
| Debt To Assets IPRWA | high: 1.761 mean: 0.762 median: 0.355 BH: 0.322 low: 0.009 |
|
| Debt To Equity | 0.598 | |
| Debt To Equity QoQ | 181.067 % | |
| Debt To Equity YoY | 2407.46 % | |
| Debt To Equity IPRWA | high: 5.029 mean: 0.694 BH: 0.598 median: 0.577 low: -1.807 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.787 | |
| Price To Book QoQ | 17.183 % | |
| Price To Book YoY | 98.514 % | |
| Price To Book IPRWA | high: 11.273 median: 10.033 mean: 8.847 BH: 1.787 low: -0.864 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 10.397 | |
| Price To Sales QoQ | 16.411 % | |
| Price To Sales YoY | 73.517 % | |
| Price To Sales IPRWA | high: 42.809 median: 26.401 mean: 23.685 BH: 10.397 low: 0.237 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -161.48 | |
| Forward PE/G | — | |
| Forward P/S | 38.075 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 123.074 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.103 | |
| Asset Turnover Ratio QoQ | -13.651 % | |
| Asset Turnover Ratio YoY | -4.944 % | |
| Asset Turnover Ratio IPRWA | high: 0.425 median: 0.224 mean: 0.217 BH: 0.103 low: 0.008 |
|
| Receivables Turnover | 4.713 | |
| Receivables Turnover Ratio QoQ | 2.092 % | |
| Receivables Turnover Ratio YoY | 5.712 % | |
| Receivables Turnover Ratio IPRWA | high: 147.269 median: 30.434 mean: 26.131 BH: 4.713 low: 0.156 |
|
| Inventory Turnover | 14.611 | |
| Inventory Turnover Ratio QoQ | 2.589 % | |
| Inventory Turnover Ratio YoY | -1.925 % | |
| Inventory Turnover Ratio IPRWA | high: 61.844 mean: 19.137 BH: 14.611 median: 8.017 low: 0.944 |
|
| Days Sales Outstanding (DSO) | 19.36 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -14.181 | |
| Cash Conversion Cycle Days QoQ | 1.286 % | |
| Cash Conversion Cycle Days YoY | -5.609 % | |
| Cash Conversion Cycle Days IPRWA | high: 10.518 median: 5.16 mean: 1.354 low: -8.282 BH: -14.181 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.382 | |
| CapEx To Revenue | -0.09 | |
| CapEx To Depreciation | 0.0 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 795.2 M | |
| Net Invested Capital | $ 816.1 M | |
| Invested Capital | $ 816.1 M | |
| Net Tangible Assets | $ 504.0 M | |
| Net Working Capital | $ 261.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 2.582 | |
| Current Ratio | 2.827 | |
| Current Ratio QoQ | 104.523 % | |
| Current Ratio YoY | 91.714 % | |
| Current Ratio IPRWA | high: 4.054 BH: 2.827 median: 2.686 mean: 2.345 low: 0.245 |
|
| Quick Ratio | 2.799 | |
| Quick Ratio QoQ | 107.743 % | |
| Quick Ratio YoY | 94.388 % | |
| Quick Ratio IPRWA | BH: 2.799 high: 2.632 mean: 1.602 median: 1.318 low: 0.19 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 80.177 | |
| Cost Of Debt | 0.693 % | |
| Interest Coverage Ratio | -2.231 | |
| Interest Coverage Ratio QoQ | -106.947 % | |
| Interest Coverage Ratio YoY | -108.081 % | |
| Interest Coverage Ratio IPRWA | high: 56.842 mean: 7.459 median: 6.219 BH: -2.231 low: -17.322 |
|
| Operating Cash Flow Ratio | 0.219 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 39.725 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 25.003 % | |
| Revenue Growth | -0.876 % | |
| Revenue Growth QoQ | -114.908 % | |
| Revenue Growth YoY | 8.82 % | |
| Revenue Growth IPRWA | high: 4.142 % median: 1.869 % mean: 1.102 % BH: -0.876 % low: -14.622 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 39.167 % | |
| Gross Margin QoQ | 0.159 % | |
| Gross Margin YoY | 1.34 % | |
| Gross Margin IPRWA | high: 48.853 % BH: 39.167 % mean: 32.493 % median: 25.208 % low: 0.705 % |
|
| EBIT Margin | -5.229 % | |
| EBIT Margin QoQ | -107.83 % | |
| EBIT Margin YoY | -110.516 % | |
| EBIT Margin IPRWA | high: 27.788 % mean: 11.984 % median: 9.83 % BH: -5.229 % low: -20.911 % |
|
| Return On Sales (ROS) | 9.12 % | |
| Return On Sales QoQ | 47.477 % | |
| Return On Sales YoY | -81.659 % | |
| Return On Sales IPRWA | high: 27.861 % mean: 12.247 % median: 9.795 % BH: 9.12 % low: -15.482 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 22.3 M | |
| Free Cash Flow Yield | 2.15 % | |
| Free Cash Flow Yield QoQ | -51.014 % | |
| Free Cash Flow Yield YoY | 215.712 % | |
| Free Cash Flow Yield IPRWA | high: 4.283 % BH: 2.15 % mean: 0.39 % median: 0.256 % low: -3.849 % |
|
| Free Cash Growth | -43.463 % | |
| Free Cash Growth QoQ | -111.93 % | |
| Free Cash Growth YoY | -68.204 % | |
| Free Cash Growth IPRWA | high: 250.173 % mean: -29.769 % BH: -43.463 % median: -46.982 % low: -347.626 % |
|
| Free Cash To Net Income | -4.215 | |
| Cash Flow Margin | 0.0 % | |
| Cash Flow To Earnings | -5.905 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -0.545 % | |
| Return On Assets QoQ | -109.056 % | |
| Return On Assets YoY | -114.2 % | |
| Return On Assets IPRWA | high: 7.903 % mean: 1.492 % median: 1.128 % BH: -0.545 % low: -9.078 % |
|
| Return On Capital Employed (ROCE) | -0.557 % | |
| Return On Equity (ROE) | -0.009 | |
| Return On Equity QoQ | -110.552 % | |
| Return On Equity YoY | -117.085 % | |
| Return On Equity IPRWA | high: 0.235 median: 0.019 mean: 0.007 BH: -0.009 low: -0.178 |
|
| DuPont ROE | -0.905 % | |
| Return On Invested Capital (ROIC) | -0.448 % | |
| Return On Invested Capital QoQ | -105.184 % | |
| Return On Invested Capital YoY | -98.408 % | |
| Return On Invested Capital IPRWA | high: 6.942 % median: 3.797 % mean: 3.579 % BH: -0.448 % low: -7.241 % |
|