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  "documentTitle": "Floor & Decor Holdings, Inc. (FND)",
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  "authorName": "Spruce Point Capital Management",
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  "notes": "The slide uses a narrative-heavy structure to draw parallels between FND and a historical bankruptcy case (Linens 'N Things) to undermine management credibility.",
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      "text": "Floor & Decor Appears To Be A Replay of Scandal-Ridden And Bankrupt Linens ‘N Things; Capex Is Anomalous And New Store Operating Costs Are Exploding",
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      "text": "new store operating costs: $310 million",
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      "text": "FND touts that its visually appealing, customer-friendly large store format... We believe FND’s shift foreshadows a similar disaster that befell LIN.",
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      "text": "Our research indicates that new stores are being opened in progressively lower median income markets, geographic challenges to growth are emerging, and new store operating costs are ballooning... This compares with historical store and selling operating expense of ~$6 million per store.",
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      "text": "Spruce Point repeatedly warns to avoid companies that consistently misforecast capex and provide inadequate disclosures... Off balance sheet legally binding lease commitments relative to forward 12-month new store openings has exploded to 17x.",
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