RBD - Restaurant Brands

[okay]

Can't help wondering where she slept. Story a little embellished ?

The dailymail has some pics of her.

http://www.dailymail.co.uk/news/arti...boyfriend.html

[Beagle]

The dailymail has some pics of her.

http://www.dailymail.co.uk/news/arti...boyfriend.html

Thanks. I got a good laugh from some of the comments, here's my favourite

I want to give her a hug and tell her everything is gonna be okay... after she takes a bath and washes her hair. Then I'll go and make her a salad and help her detox!

[Snoopy]

Wow not a bad result seems people are caring less and less about their health, the SP has performed extremely well over the last few months

"Net Profit excluding non-trading items was also $11.5 million, up $2.7 million or 30.2% on the prior period."

Wow, where did this come from? The market got a shock too with the share price closing up nearly 5% today to $3.67, an all time high. Even with that share price jump the PE and yield still look OK. I thought I had far too many of these, before today.

"Brand EBITDA was up $4.4 million to $31.6 million. The bulk of the increase came from KFC, but all four brands delivered an improved profit performance."

<snip>

Looking at the KFC result alone

"EBITDA ($m) 26.2 22.8 +3.4 (+14.8%)"

KFC has been on a slow grind lower over the last few years, so this really is significant news.

"Not a bad result"? You are a hard man to please tosspot, or maybe just a little understated.

SNOOPY

[bull....]

Smart bringing all the carls jnr under there umbrella

[Harvey Specter]

Smart bringing all the carls jnr under there umbrella

$10m for 7 stores looks cheap to me. I assumed they have been trying form the start but had been blocked by unrealistic asking price.

[Beagle]

Does this mean I might finally be able to order a burger and chips at the Avondale Carl's Jr and they actually arrive hot...just once every second or third time would be a vast improvement on never being hot !!!
How do they consistently get it so wrong ?

[Rep]

$10m for 7 stores looks cheap to me. I assumed they have been trying form the start but had been blocked by unrealistic asking price.

Given that RBD has only managed to get CJ's profitable recently and they have critical mass of their bulk purchasing power, it's conceivable that a small operator like the Forsgrens would have struggled to produce a significant amount of positive cashflow and EBITDA from their 7 stores. So perhaps it was a 'stalking horse' for RBD while they watched their cash burn?

The purchase price might seem cheap but it depends on how many multiples of EBITDA that RBD paid for the business - although they will be factoring how adding another 7 stores does to their overall number of stores in terms of what they can do in terms of supplier leverage and critical mass for their marketing spend - so they are probably considering their future cashflow in terms of a larger cohort of stores and what RBD forecast they can produce from these stores with network synergy.

RBD took their materials warehousing and distribution in house recently so this will also mean more throughput for their CJs inventory and an opportunity to rationalise the supply chain if Forsgren wasn't using them (noting that the Forsgren Group established CJ's here before RBD got involved and initially anyway appear to have had set up their own supply chain given some stock issues around some of their openings)

Apart from RBD, there realistically aren't that many purchasers available either.

[bunter]

Back in March 13 RBD said CJ stores would be immediately profitable.
My notes say 400k/a NPAT per CJ store, when running well.

Those profits haven't been achieved yet - various excuses and explanations.

But if they can get CJ running well, there's good growth for RBD.

I thought the CJ sublicensing announcement was good news - mean there will be someone on-site who cares about the store.
FWIW, after their October announcement I revised dividend growth estimate to 12.5% pa and the fair value price to $5.28

[winner69]

Sales still chugging along nicely

Share price 4 bucks by next announcement I reckon

[winner69]

Carls sales are a bit of a worry though, esp in the context of this comment the brand has consolidated at post initial opening sales levels and is in a phase of building awareness and loyalty across the total network......

Averages weekly sales per store was only $33.2k which is way done on the $38.3k average over the prior three quarters (only 1 new store opening in that period)

Quite a big drop this quarter ......c'mon Russell get out there and drum up some more business. Things are meant to be booming, Stats NZ have recent sector sales up nearly 10%