Has Russel earned his million bucks bonus yet
Wasn't it 40 days over 4 bucks or something
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Has Russel earned his million bucks bonus yet
Wasn't it 40 days over 4 bucks or something
So Collins is up 90% since 15th February 2015? Ah well, good on shareholders who took that ride. Over more years the outperformance (if any) against RBD is perhaps not so good. I think we can both agree that generally both have been more than satisfactory investments over more recent times.
SNOOPY
RBD has both ends of the market covered, if the down turn comes people will go for the cheaper option for takeaways and buy more pizza's if not KFC and carls will do well
Is this share close to peaking, or do people expect to see continued performance in line with historical gains?
As a shareholder I would say the best growth years are over. There will be a big one off charge this year in recognition of Russel's $1m - after tax - bonus. Operationally everything is coming together in a most favourable way. KFC is going better than ever. Even dear old Starbucks is looking better. And most of the low hanging fruit from the Pizza Hut turnaround and sell down are picked.
So I predict a steady dividend , increasing in line with inflation. That means no big share price gains. But the dividend yield would suggest no great share price falls either. I intend to continue to hold.
Growth over and above inflation will depend on how the roll out of Carl's Junior goes, and any new food chains management decide to develop. Management's record in this regard is patchy.
SNOOPY
Taco Bell is very good product & process...amazed it never has come here...
Pizza Hut, KFC and Taco Bell are all master franchise brands owned by YUM foods in the USA. Restaurant Brands were set up with a strong position in KFC and Pizza Hut already established in New Zealand. Come franchise renewal time, YUM I think it is fair to say become rather unhappy with RBD's performance in NZ. IIRC there was talk of letting RBD continue to hold the PH and KFC franchises for another ten years, but without the previously expected right of further renewal. This wake up call was enough to galvanise RBD management into action. They embarked on a nationwide project of KFC refurbishment (only now approaching completion) and Pizza Hut transformation from a dine in restaurant chain,with takeaway option, to a takeaway deli style chain only. In recent years RBD has become more of a darling of master franchise holder YUM, pointing the way for how to turn around other overseas markets.
Before RBD took on Carl's Junior, they were actively evaluating Taco Bell. At last year's AGM, Chairman Ted said that Taco Bell was again under consideration for NZ. However, I am not sure that Taco Bell is a 'natural' for downunder. The Taco Bell brand lasted eight years in Australia before it was pulled in 2005. Thus I regard Taco Bell as not the potential cash cow in NZ that some see. I am sure a couple of restaurants could be made to work in Auckland. But that hardly justifies the cost of setting up a national chain.
It is probably politically a good move for YUM to see that RBD keeps reevaluating Taco Bell. I don't think YUM wants to upset RBD these days. And if YUM farmed out Taco Bell to another operator, Russel and Ted might get upset. I sincerely hope that Taco Bell does not come to NZ,as RBD does not need the distraction, whether they end up operating Taco Bell in New Zealand or someone else is the operator. All in all, I think Harvey's comment that 'RBD has first right of refusal', is probably the best way of thinking about it. But the best outcome, I believe, for RBD will be if Taco Bell does not come here.
SNOOPY