Quote Originally Posted by BRICKS View Post
BRICKS says to all the OLD knockers of KFC eat your words.
Its the Mr Chips days all over again a large DIV increase should follow and just keep building in the years to come as in the past this is STOCK..
KFC - whoops sorry RBD - continues to march upwards (closed at $1.23 today) despite the market being down since I last posted. Therein lies a lesson for those who refuse to buy anything while the market is trending down. Not all shares slavishly follow the direction of the index.

I am not so sure that a large dividend increase will follow the increase in positive cashflow. The non cash goodwill writedowns will make the balance sheet look sicker and probably hasten the resolve of RBD to pay down debt.

At least the stemming of losses at Pizza Hut takes away the uncertainty around individual branches being saleable. RBD now has a choice with their debt reduction program. They can either sell Pizza Hut branches, or repay debt by diverting the improved cashflow in that direction rather than increasing the dividend (or both). Either way I think RBD will be in a substantially better position two to three years down the track when compared to now, even if sales growth stalls from now on.

SNOOPY

discl: hold RBD