I knew in general terms but didn't know the actual numbers. Makes one wonder though why RBD isn't pursuing KFC businesses but then maybe they're not cheap enough - for a reason.
(Sigh... )for FY16 Annual Return
Adjusted EBITDA return on assets for KFC was 55%
Adjusted EBITDA return on assets for Pizza Hut was 29%
(Adjusted EBITDA being Concept EBITDA less G&A at brand level but before Support Office costs)
So yes the average PH store is less profitable but less costly to build... yes the return is only about half of a KFC but I would be happy with 29% return on segment assets.
Pursuing investment in buying more KFCs presumes that someone will sell them to you and at what multiple... the higher the multiple then the greater the level of goodwill you will pay for...
Still a lottery though as to what bonus one might get if one doesn't participate in the Retail Offer
The RBD lottery result came in this morning. The instos bought the remainder of the retail offer at $4.90. That represents a 20c premium for those small shareholders who did not take up their rights at $4.70. Surprisingly (to me) this was a lot of people. Only $26m of the $94m offered to small shareholders was taken up (just 28%). Effectively those shareholders who did not take up the offer have elected to sell their shares for $4.90, when equivalent shares, pre issue, had been able to be sold in the mid $5.50 bracket on market for several months.
Directors must be disappointed at the apparent 'thumbs down' given by small shareholders to their pacific expansion plans.
SNOOPY
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
The RBD lottery result came in this morning. The instos bought the remainder of the retail offer at $4.90. That represents a 20c premium for those small shareholders who did not take up their rights at $4.70. Surprisingly (to me) this was a lot of people. Only $26m of the $94m offered to small shareholders was taken up (just 28%). Effectively those shareholders who did not take up the offer have elected to sell their shares for $4.90, when equivalent shares, pre issue, had been able to be sold in the mid $5.50 bracket on market for several months.
Directors must be disappointed at the apparent 'thumbs down' given by small shareholders to their pacific expansion plans.
SNOOPY
I'm not sure you can say categorically it was a thumbs down... Alternatively:
Some of the small shareholders based on the initial book build for the institutions may have thought they were in for a 45 cent windfall based on the relatively small amount of shares available from the institutional offer and decided they'd just pocket the windfall right now;
Some didn't want to stump up with the $4.70 per share to increase their share holdings by 19.4%;
Some didn't understand the offer and just did nothing with the notices*;
There are a lot of shares out there with folk who invest on auto-pilot, they don't even open the letters from the share registry, never appoint a proxy and simply see the dividends appear in the account if they are lucky (you'd be surprised how many divvy cheques get returned with "gone no address" - I can only imagine how many of the AECT divvy cheques that never get deposited).
If you don't think that's possible then have a look at some of the old Annual Reports and see what happened to some of the employee share options - there were quite a few that were never exercised despite being well into the money.
Maybe it was also a case of the issue coinciding with Trumpophobia?
Possibly - although I'd observe that the SP this morning is $5.10, if the retail shareholders had taken up the $4.70 offer they'd be able to offload the shares they received for a 40 cent premium this morning instead of what they got through the rights offer of 20 cents. The insto's who went through the retail bookbuild will be marking to market and taking a nice gain to their KS and funds if the price holds up and the retail shareholders who took up the offer will be reasonably happy they took a punt and got rewarded for being proactive.
Originally Posted by macduffy
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