RBD - Restaurant Brands

[Snoopy]

I wonder how much of that is due to eps growth vs mutiple expansion

Over FY2014 I recorded a normalised profit of $18.8m and eps of 19.3cps. The share price as at 31st March 2014 was $2.93. This gives a backward looking PE ratio of:

$2.93 / $0.193 = 15.2


Over FY2020 I recorded a normalised profit of $49.8m and eps of 39.9cps. The share price as at 31st March 2020 was $13.30. This gives a backward looking PE ratio of:

$13.30 / $0.399 = 33.3

The PE ratio over this time has approximately doubled. So about half of your share price gains are due to earnings growth and half due to multiple expansion. There is some justification for the PE to ramp up. Back in FY2014 RBD was almost entirely domestically focussed, Since then we have moved into Australia, Hawaii and California to form a 'Pacific International' fast food group.

Obviously the opportunity for growth around the Pacific is far greater than just here. So you might argue a growth in PE is justified. It should please BP too as are we not only reducing the life span of New Zealanders, for some ecological benefit. We are tackling the life spans of those people from those desert areas of Australia and California that are, in environmental terms, more overpopulated than us. Making a good profit for shareholders and doing your thing for the environment sounds like a win/win to me.

SNOOPY

[Panda-NZ-]

Time to sell soon I think but I understand those who would like to hold longer.

[BlackPeter]

...

Obviously the opportunity for growth around the Pacific is far greater than just here. So you might argue a growth in PE is justified. It should please BP too as are we not only reducing the life span of New Zealanders, for some ecological benefit. We are tackling the life spans of those people from those desert areas of Australia and California that are, in environmental terms, more overpopulated than us. Making a good profit for shareholders and doing your thing for the environment sounds like a win/win to me.

SNOOPY

Hmm ... do I really come across as that cynical, or is this just what you want to read into my posts?

Anyway - apart from that, interesting analysis.

[percy]

Six years ago the trust I am a trustee of spent $50,000 buying 12,216 RBD shares.In the meantime we did receive some divies.Current market value of the RBD investment is $170,046.72.No intention of selling .

Above posted 12 days ago.
Market value at Friday's close was $180,796.80.an increase of $895.84 per day.

[Gunner]

Drive past taco bells in Christchurch today. Big que out the door. Some people really need to get a life.

[CraftyBeer]

Drive past taco bells in Christchurch today. Big que out the door. Some people really need to get a life.

Queues still? I'd like to know what the Taco Bell profit margins are like - food costs should be cheaper just because mainstay items like tortillas and beans are so cheap. Also much easier to store and keep tortillas than hamburger buns. Lots of complaints on Reddit at the prices compared with USA but RBD seem to have been smart just to price at about the same costs as other QSR offerings - perhaps a little cheaper.

[winner69]

Above posted 12 days ago.
Market value at Friday's close was $180,796.80.an increase of $895.84 per day.

Good stuff eh percy

I've held mine since 2008/2009 when snoopy convinced me they were really cheap at round $1

Suppose they are a 14 or 15 bagger now.

[percy]

Good stuff eh percy

I've held mine since 2008/2009 when snoopy convinced me they were really cheap at round $1

Suppose they are a 14 or 15 bagger now.

Well done,to both you and Snoopy..

[Rawz]

Good stuff eh percy

I've held mine since 2008/2009 when snoopy convinced me they were really cheap at round $1

Suppose they are a 14 or 15 bagger now.

That's awesome.

I purchased my first lot Dec 21 at $11.90.
Hope to be posting in 13-14 years about a 14 or 15 bagger.

[winner69]

Jeez RBD closes at $15,00

Is that an all time high?

Might get to $20.00 by end of next year