RBD - Restaurant Brands

[Halebop]

Even I'd agree they have lifted their game but from such a low base isn't much reason to celebrate. They never seem to get their stars to align and luck, unfortunately, has very little to do with that.

[Halebop]

RBD is largely bollocks.

That's what I was saying too!

[Halebop]

[Originally Posted by hiawatha
I don't know how to edit quotes.]

hiawatha

Aww you kidder you

[duncan macgregor]

"Sale & lease back" has been a textbook method of financing ever since I can remember, so it's hardly 'dumb'. The reason for the decline in the share price is not that, but rather the lack of success of their foray into Australia, coupled with strong competition in the local pizza market.
hiawatha

Sale and lease back is the dumbest method of raising finance ever. The banks lend money cheaper than sale and lease back regardless of the market cycle. Property increases in value by about 10% pa on average plus the landlord has his cut, the banks are about five pc below all that at any given time. Macdunk

[Halebop]

I know how to edit quotes. At least, I've just worked it out. However, I'm not so small minded as to want to bother.
hiawatha

Oh I already knew you weren't small minded when you slapped your "bollocks" on the post

[Halebop]

Maybe. But what does it do to a company's capital gearing ratio?

I appreciate someone might think "Capital Management" is bollocks but this company's gearing ratio would have been just fine if it's long term cash flow exceeded dividends. Be of assistance if some more of its investments actually managed to exceed cost of capital too. The sorts of areas where bollocks stuff like strategy, operational excellence, CEO selection, board quality and all the rest come in.

[Dr_Who]

It is actually a good business model to sell the building and lease it back, cos RBD is not a property business but rather a food business. The problem is that the incompetant management team blew it all away going into Aussie with blindfolds on. Did they not learn from mistakes of other NZ companies who when galloping overseas and lost all the marbles?

[duncan macgregor]

[I appreciate someone might think "Capital Management" is bollocks but this company's gearing ratio would have been just fine if it's long term cash flow exceeded dividends.]

Well, may be it would have. However, I was thinking of what the company's gearing would have looked like after it had borrowed large amounts from the the bank, as Macdunk suggested, to finance the Victorian purchases.

hiawatha

When you borrow money to buy a new business the new business is supposed to show enough profit, and a bit more to cover that cost. If not then you dont do it. When you own a business property that increases in value by over 10% per year giving you free rental for a cost of on going maintanance its cheaper to borrow against it than sell and lease back.
Its also a folly to sell then lease back then spend one million dollars a store doing them up. The deals were done by total business incompetants, who obviously were out of their depth better employed boiling the chook out the back. Anyone that argues against that has never been in business with no practical knowledge of business reality. Macdunk

[BRICKS]

MEANWHILE good to see hiawatha, Halebop, lizard & new boy Dr Who back talking as usual in circles about the past of RBD its what going to happen from now on which is the concern and including DIVIDENS..

[duncan macgregor]

MEANWHILE good to see hiawatha, Halebop, lizard & new boy Dr Who back talking as usual in circles about the past of RBD its what going to happen from now on which is the concern and including DIVIDENS..

That BRICKS is the one statement that you have made that makes sense well done. The only problem is have they still got the decision makers that have run the company down to this low level still making decisions. If the answer is yes then dont hold your breath. The company was in a good position before it sold its property, and headed for Australia. A good little company with a roof over its head, is better than a bad big company with no material assets.
Macdunk