Originally Posted by
Rep
Even if they make the best burgers and fries that still doesn’t make them immune to the reality that they need to make a decent return. The IPO prospectus was full of hype (benchmarking themselves as having aspirations to being a world leading QSR brand) and thin on forecasts.
The governance over the years being lacklustre and lots of touting of overseas expansion: Australia (nah didn’t work), Mid East (ok for a while but not really) and then into the USA where they have drowned in a sea of mid market offerings after their onshore partner decided to do something else.
They might do okay during the recession - so long as they manage the balance between value and profitability - but for a long time their credibility around expansion prospects into other markets looks a bit like their prospectus - glossy, colourful and lacking substance.
Happy to be proved wrong but a lot of funds have been tossed at chasing rainbows to date.