Quote Originally Posted by noodles View Post
lol. Every time I read one of your posts, I need to work out if you are taking the piss. Clearly you are on this one...

Or maybe not. They did reach forecast. They are on a historical pe of 8.5. And they have had a tough second half because of high beef and lamb prices. They have even stated that things are looking up. Tasty dividend yield. Crickey, maybe I need to consider buying in again?

NO! Someone slap me.

That's better.

The the only reason they reached forecast was because of the acquisition. They failed to open 4 stores. They have given no guidance on opening more in FY15. Their focus now seems to be on acquisitions.
There business model is essentially to get the franchisees to sell as much as they can. That way VIL get there cut on the carcass purchases on the way through and a cut of all non meat sales. No blood on the VIL hands, just dirty fingers from counting the cash.

Take as much from the franchisees without causing too many to go broke is the optimum return for shareholders

Even that cheap milk the franchisees sold VIL probably collected a few cents while the franchisee sold at a cost.

So if meat sales are struggling what else can we get them sell. So expanding into veggies, condiments and all sorts of things helps VIL income. But if a Mad Butcher shop looks more like a 4 Square they might have problems.

Worry that Mad Butcher store numbers not going to plan but hard to find butchers with enough capital or ability to front up and set up a new shop.

Going into making patties is aligned to meat but a bit outside the business model. Making stuff has its inherent risks and I'd different to just collecting a cut on everything on the way through. No doubt they charge their franchisees more than enough to make the patties division quite a profit centre.

Nice clean business, just get the franchisees to do all the hard yakka