In my experience in these types of franchises, I believe that the issues with EBITA are a direct result of carrying the 150 to 200 stores that they are going to close. If you have a close look at the report, costs have risen massively and while they do not go into detail, my belief is that the costs are directly related to the dud stores.
So the simple solution is to close those stores and raise the EBITA. This business will be a much different story in 12 months time.
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