Beware Waitr Holdings: A Public Market Dine And Dash

Spectacular near-term blowup in the making – awful competitive dynamics, slowing growth, sell side promotion exhausted, significant undisclosed litigation – all packaged nicely in the notorious SPAC structure.

Far better run and funded competitors such as Uber and DoorDash (SoftBank) are rapidly entering Waitr’s markets and the company’s recent results already reflect distress.

HedgeEye and Jefferies (hugely conflicted) caused a ~40% rip but with the Jefferies initiation falling flat (red close), we think run is done.

Business unraveling – after providing FY18/19 earnings guidance in a proxy filed November 2018, CFO “retired” and WTRH massively missed the FY18 earnings and refused to provide ANY FY19 earnings guidance.

10-K filed 3/15/19 didn’t disclose two major recent lawsuits – we suspect unwillingness to reiterate prior guidance is because of major wage legal problems – leverage+cash burn =  $1/sh TP.

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