RBD - Restaurant Brands

[Silverlight]

The question is though, are you saying you cannot program a coffee machine to do a cup of coffee right, for most people? Do you give your barista special instructions, or do you leave everything up to them?

SNOOPY

There are a lot of variables, however in a controlled environment you probably could, but the perception of vending machine coffee vs real espresso could be quite damaging to brand image.

In the interest of 'research' I will have a visit today and buy a latte, and watch with anticipation as it is made, and report back on the experience.

[CJ]

Snoopy. some of it is perception. I know people who go to coffee shops ratehr than use the free work machine (high quality machine that grinds on demand) because they perceive it to be better.

Some is luxury. The coffee is a treat. If it is just a push button brew, why not do it at home/work instead.

some of it is coffee snobs. a machine cant do it as well as a person (wrong but only because not programed to how they want it. the manchine will be more consistant)

[emearg]

So other than the coffee thing, which has always been pretty small beer compared to the chicken thing, what else is driving people away from this share? PE is 8.1 (according to NZX.com) which seems pretty cheap. Is it Pizza Hutt? Or the risk of them buying something new and not running it properly? Are their dividends sustainable? All thoughts appreciated

[CJ]

They are in the process of rolling out a new brand so that will be capital intensive ($3m per store I think I read) and that is directly head to head with MCD and BK. At least KFC has something unique.

Other than that, I would have through it was a pretty solid stock. People will keep buying regardless of the economy.

Disc: hold and wonder why it is dropping too.

[bung5]

are the dividends generally fully imputed?

[iceman]

are the dividends generally fully imputed?

Yes they are bung5. Big turnover in this stock today but unfortunately it continued its downward trend !

[KJ]

So other than the coffee thing, which has always been pretty small beer compared to the chicken thing, what else is driving people away from this share? PE is 8.1 (according to NZX.com) which seems pretty cheap. Is it Pizza Hutt? Or the risk of them buying something new and not running it properly? Are their dividends sustainable? All thoughts appreciated

You need to look ahead to the coming years profit when thinking of PE- I think that the market may doubt that the $20m forecast will be met.Time will tell.

[emearg]

You need to look ahead to the coming years profit when thinking of PE- I think that the market may doubt that the $20m forecast will be met.Time will tell.

Yes their future doesn't look as bright as it did two years ago, but still not bad thanks to KFC. I will wait a while I think for it to bottom out. No rush to buy in my opinion.

[iceman]

Yes their future doesn't look as bright as it did two years ago, but still not bad thanks to KFC. I will wait a while I think for it to bottom out. No rush to buy in my opinion.

Agree emearg that future is questionable and possibly not as good as it was a couple of years ago. But the Co has significantly recuced debt and has indicated increased dividend payments as share of profits. So as long as this downtrend doesn't continue for much longer, I am happy to continue being overweight in RBD

[iceman]

Hopefully we are out of the downtrend ! See ACC has added another million shares this week.