Free cash flow remains deeply negative at -$4.3M in 2018Q3, highlighting a structural inability to generate surplus cash despite the company's significant capital expenditure profile.
| Cash from Operations | -1.93M | -12.63M | 60.17M | 83.82M | 141.02M | 11.11M | -3.9M | -18.57M |
| Operating CF Margin % | - | -2.75% | 11.94% | 16.78% | 30.88% | 6.08% | -2.8% | -18.32% |
| Operating CF Growth % | 1714% | -120.99% | -28.22% | -40.56% | 1169.29% | 385.16% | 79.02% | - |
| Net Income | -38.7M | -45.55M | 35.61M | -29.79M | 37.79M | -14.79M | -22.98M | -36.09M |
| Depreciation & Amortization | 21.29M | 66.6M | 78.6M | 84.26M | 68.57M | 9.15M | 7.75M | 6.52M |
| Stock-Based Compensation | 24.02M | 11.7M | 0 | 0 | 0 | 14.1M | 8.76M | 8.38M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -83.66M |
| Other Non-Cash Items | -106.03M | 6.54M | -48.51M | 34.1M | 3.89M | -139.25M | 11.39M | 2.62M |
| Working Capital Changes | 97.5M | -51.91M | -5.54M | -4.75M | 30.77M | 141.9M | -8.82M | 83.66M |
| Change in Receivables | -594K | 1.31M | 50.65M | -5.23M | 396.95K | -1.74M | -2.56M | -3.84M |
| Change in Inventory | -955.43M | -3.11M | 4.77M | 5.15M | 2.14M | -78.18M | -84.31M | 0 |
| Change in Payables | -773K | -4.09M | 972.85K | -1.58M | 4.73M | 1.97M | 92K | 722K |
| Cash from Investing | -333.18M | -1.31M | -12.18M | -44.45M | -32.29M | -10.51M | -12.73M | -12.21M |
| Capital Expenditures | -6.99M | -1.38M | -11.99M | -44.51M | -32.51M | -6.85M | -8.59M | -9.92M |
| CapEx % of Revenue | 3.05% | 0.3% | 2.38% | 8.91% | 7.12% | 3.75% | 6.18% | 9.79% |
| Acquisitions | -151.76M | 0 | -189.91K | 0 | 0 | -1.7M | -4.14M | -3M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -3.33M | 62.93K | 0 | 61.24K | 216.87K | -1.96M | 0 | 705K |
| Cash from Financing | 263.92M | 44.32M | -76.83M | -81.57M | 22.96M | 145.3M | 9.17M | 89.52M |
| Debt Issued (Net) | 0 | -9.38M | -66.64M | -70.12M | 30.57M | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 67.33M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.75M |
| Share Repurchases | -160.78M | 0 | 0 | 0 | 0 | -232.02M | -85.86M | -93.41M |
| Other Financing | 263.92M | -13.63M | -10.19M | -11.45M | -7.6M | 145.3M | 9.17M | 91.27M |
| Net Change in Cash | -71.24M | 30.38M | -28.88M | -50.08M | 131.68M | 146.16M | -7.54M | 58.73M |
| Free Cash Flow | -8.91M | -14M | 48.17M | 39.31M | 108.51M | 4.26M | -12.49M | -28.49M |
| FCF Margin % | -3.89% | -3.05% | 9.56% | 7.87% | 23.76% | 2.33% | -8.98% | -28.11% |
| FCF Growth % | -311.55% | -129.07% | 22.54% | -63.77% | 2447.24% | 134.12% | 56.18% | - |
| FCF per Share | -0.19 | - | 1.01 | 0.83 | 2.28 | 0.09 | -0.26 | -1.08 |
| FCF Conversion (FCF/Net Income) | 0.23x | 0.24x | 1.83x | 27.94x | 4.22x | -0.75x | 0.17x | 0.51x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Negative Operating Cash
According to historical cash flow statements, MasterBeef Group consistently exhibits a profound disconnect between net losses and operating cash flow, with OCF/NI ratios frequently fluctuating in negative territory, suggesting that reported earnings are not supported by underlying cash generation from the company's core restaurant operations.
The persistent gap between net income and operating cash flow indicates that the company's accounting losses are not merely non-cash accounting artifacts but reflect genuine operational cash burn. Investors should monitor this divergence, as it suggests that the business model struggles to convert its revenue base into sustainable liquidity.
As reported in financial statements, MasterBeef Group's free cash flow trajectory remains deeply negative, with FCF margins reaching as low as -11.7% in 2018Q2, highlighting a structural inability to generate surplus cash after accounting for necessary capital expenditures required to maintain its Hong Kong outlet footprint.
The consistent failure to achieve positive free cash flow suggests that the company's expansion strategy is currently value-destructive. This trend warrants further investigation into whether the capital intensity of the AYCE model is fundamentally incompatible with the current competitive landscape in Hong Kong.
Based on reported figures, MasterBeef Group maintains a consistent capital expenditure profile, with CapEx/Revenue ratios peaking at 7.9% in 2016Q2, which appears disproportionately high given the company's inability to translate these investments into positive operating cash flow or meaningful revenue growth in recent periods.
The ongoing investment in property and equipment suggests management is prioritizing physical expansion despite the lack of operational profitability. This capital allocation strategy may be exacerbating the company's cash burn, as these assets fail to generate the returns necessary to offset their depreciation and maintenance costs.
Analysis of cash flow disclosures reveals that stock-based compensation has risen to $7.6M as of 2018Q3, a significant non-cash adjustment that masks the true extent of the company's cash burn and complicates the assessment of management's alignment with shareholder interests during this period of financial distress.
The reliance on stock-based compensation as a significant component of the company's financial structure may be obscuring the severity of the cash flow deficit. Investors should be wary of how these adjustments impact the perceived quality of earnings, as they do not alleviate the underlying pressure on the company's cash reserves.
Quick answers to the most common questions about buying MB stock.
MasterBeef Group (MB) generated $-12.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MasterBeef Group (MB) reported negative free cash flow of $14.0M in 2025, indicating capital requirements exceeded cash from operations.
MasterBeef Group (MB) spent $1.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.