MTY Food (MTY) fell 7%, giving some of Monday’s ~15% gain back after the company confirmed it initiated a strategic review that could end in a sale. The decision follows years of underperformance…

… driven by the company’s recent push into corporate stores through M&A, which has weighed on margins given the economics are worse than the franchising business.

More recently, concerns over the health of the U.S. consumer (roughly two thirds of revenue) have added additional pressure - with sales down in the prior two quarters...

… pushing shares towards a trough EBITDA multiple that likely has private equity circling, given recent interest in platforms like Papa John’s, Dave’s Hot Chicken, and Denny’s. Taking the ~9x NTM EBITDA multiple Denny’s was clipped at…

… and handicapping it ~10% for MTY’s relative complexity, I wouldn’t be surprised to see the equity valued at ~$1B+. Let’s see.