Josh Arnold
Long/short equity

The Pantry, Inc: Crippling Debt And Secular Declines Mean Lower Prices Ahead

The Pantry, Inc. (NASDAQ:PTRY) is a chain of convenience stores in the southeastern US that offers food, beverages, services, fuel and other products under the Kangaroo Express name. The company operated 1,568 locations as of the end of the second quarter of fiscal 2013; a metric which has stagnated of late due to profitability issues. The stock has been largely range bound for the past year and with shares currently fetching just over $12, they are towards the bottom end of that range. With profitability issues and massive amounts of debt, I'll argue here that the discount to stated book value is warranted and that there is likely more downside to come for PTRY.

In order to determine...

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