Quidditch Acquisition Inc. has a relatively small operating scale in the intensely competitive fast-casual segment. The company's single brand (Qdoba) focus offers limited menu diversity and exposes performance to fluctuations in the price of certain commodities, such as avocados. Though the company has reported sequential improvement in comparable sales growth during the first quarter of fiscal 2019, performance in the last-12-month period was choppy with some pressure on profitability from strategic investments. We believe there is still a lot of work to be done and continue to see execution risk on the company's initiatives to improve operating performance. We believe the company will prioritize investments towards improving its business in the near-term over shareholder distributions based on limited progress on
