RE:Added Friday, October 6, 2023, 1:58 PM ET
1358 ET - Diversified Royalty's acquisition of BarBurrito's royalty stream is worth the higher debt level, analysts John Zamparo and Nishant Rathi of CIBC say in a report. The C$72 million acquisition is paid almost entirely through debt, and the analysts say that this may be above some investors' comfort levels. However, they think that the addition should increase distributable cash flow per share by about 6%, and the exposure to the quick-service space should help better position the company for an economic slowdown. On the debt front, the company should be able to lower it by late 2024, according to the analysts. (adriano.marchese@wsj.com)