The major problem is that they lose money on every burger sold. They have negative net margins. That was never sustainable. It's not quite like a scaling busine

The major problem is that they lose money on every burger sold. They have negative net margins. That was never sustainable. It's not quite like a scaling business ala Amazon where you can eventually stop expanding and collect profits. Their entire production process is cost intensive, even if the marginal cost shrinks over time, it is still a loss. So, this was/is no surprise.