GPSHOH 7% 08/31/2028

GPS Hospitality Holding Company LLC

Credit, Consumer


Publicly traded companies mentioned herein: Carrols Restaurant Group Inc (TAST), Restaurant Brands International Inc (QSR), Yum! Brands Inc (YUM)

Highlights

The presenter is long the 7% secured bonds due Aug. 2028 for GPS Hospitality (GPSHOH), the No. 3 franchisee of Burger King restaurants. GPS owns approximately 400 Burger Kings, 60 Pizza Huts, and 20 Popeyes across 13 states. The company has built a reputation as a strong operator with the ability to control costs more effectively than peers. For example, proprietary internal systems can measure individual store performance in precise 30-minute increments. The presenter characterizes the long call as a compelling margin recovery story with a potential one-year IRR of 16% - 17%. 

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Idea Discussion

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