RBD - Restaurant Brands

[duncan macgregor]

NITA, That is why i disclose my buys at the time not after the event. It shows that i have enough confidence in my buy system to risk egg on my face. Sell stop losses are not set at a rigid 5% in a long trend up. When in profit you lower them. Its only an insurance policy to protect your profits you play with your winnings not your savings. I see at a glance what i am buying or selling the market tells me. Macdunk

[Nitaa]

Have you considered my buy and hold system. I have enough confidence in my stock selection that i dont need to worry about a stop loss. If it drops below 5% they always go above my entry price. I dont want to be kicked out of quality stocks only to buy back at a higher price.

ps. no good for aussie speccys, you will get killed my friend

[duncan macgregor]

Have you considered my buy and hold system. I have enough confidence in my stock selection that i dont need to worry about a stop loss. If it drops below 5% they always go above my entry price. I dont want to be kicked out of quality stocks only to buy back at a higher price.

ps. no good for aussie speccys, you will get killed my friend

NITA, The overseas markets are plummeting in a downward spiral or havent you noticed?. I more than doubled my money last year, which mostly sits in the safety of a secure bank at the moment.
To not have a tight stop loss on everything before this next crash shows of how unaware you are of the risk.
The American economy is doomed, the markets will take a big hit you are sitting duck material with your i am always right arrogance. Look at what happened to poor SNOOPY, he not only is so right he buys more when the market tells him he is wrong.
The market tells us a crash comming up. the market is never wrong its only you and i that gets it wrong sometimes.
To argue against life boats being necessary on the unsinkable Titanic was an equally stupid arguement, put out by some. Stormy seas are upon us NITA you have no life boats bleating on about what a fine ship you are sailing, oblivious to the reality of your situation. When the storm is over, i will be back picking up the wreckage selling back to another group of enthusiastic sailers, who no doubt will have learned nothing. Macdunk

[BRICKS]

NITA, The overseas markets are plummeting in a downward spiral or havent you noticed?. I more than doubled my money last year, which mostly sits in the safety of a secure bank at the moment.
To not have a tight stop loss on everything before this next crash shows of how unaware you are of the risk.
The American economy is doomed, the markets will take a big hit you are sitting duck material with your i am always right arrogance. Look at what happened to poor SNOOPY, he not only is so right he buys more when the market tells him he is wrong.
The market tells us a crash comming up. the market is never wrong its only you and i that gets it wrong sometimes.
To argue against life boats being necessary on the unsinkable Titanic was an equally stupid arguement, put out by some. Stormy seas are upon us NITA you have no life boats bleating on about what a fine ship you are sailing, oblivious to the reality of your situation. When the storm is over, i will be back picking up the wreckage selling back to another group of enthusiastic sailers, who no doubt will have learned nothing. Macdunk

RUN for your lives Mc Duck says the world is DOOMED< DOOMED and he is praying for SNOOPY to save his sole from the dreaded broker fees good to have a DILL around..
Save RBD PLEASE...

[duncan macgregor]

BRICKS, The world is not doomed. The only thing doomed is your financial investing strategy or lack there off. Prepare for a nice shock in tomorrows market my friend you deserve every thing coming your way. Global markets down 3% on average over night which was very predictable. Your market in NZ is closed LUCKY YOU EH?. Dreaded broker fees might have been more rewarding than whats this will end up costing you. When you get run over no worries mate i like buying roadkill. Macdunk

[BRICKS]

new lows

lower and lower it goes


65c possible? I remember buying when Bob Jones came on TV saying they were a bargain...64c from memory...good trade it was.

YOUR worrying needlessly these are bargain prices but the KIWI`s are just to frighted to back a good horse and its a wee wile before the final results come out with the div results..

[JMKC]

BRICKS, you mean the div comes out at the same level, but because the stock has $hat itself the yield looks better? Nice logic.

[BRICKS]

BRICKS, you mean the div comes out at the same level, but because the stock has $hat itself the yield looks better? Nice logic.

Good to see that your listening and you could be right who knows but you got to own the shares to COLLECT.. the div..

[Snoopy]

Actually, Pizza Hut was the mainstay in terms of profit growth. Up until 2-3 years ago, KFC was not profitable, and it was Pizza Hut (and to a lesser extent given its relative size Starbucks) that was underpinning performance. Happy to find the old annual report if you would like, or perhaps you could look through all the reports you clearly have on your bedside table?

I have transferred your post from the MCH thread JKMC, I hope you don't mind as it was off topic over there.

The figures below represent the total performance of RBD over the last five years. Those figures in black are taken from the appropriate annual report. The figures in blue are the ones I have estimated.



I don't claim these tables are 100% accurate. Indeed if you look at the 'tax' column you will see that the individual tax attributable to the business units when summed do not add up to the total tax paid.

There are reasons for that. I am not sure exactly how RBD organizes their affairs for tax. But I am fairly sure RBD is not split into only three sub companies exactly as I have assumed. Furthermore in the real tax accounts there are tax credits carried across from business year to business year. Whereas my tabled tax is calculated on a one year operational basis. Nevertheless I don't think I am too far away from capturing the operational *after tax* performance of the company, as opposed to the EBITDA figures and sales figures that the company likes to announce.

When you see the real after tax figures, taking into account head office costs, you can understand why the company only wants you to see the EBITDA unit results!

Perhaps you were swept away by the RBD PR machine JMKC, when they went on in glowing terms in the early 2000s about the growth of Pizza Hutt NZ? What RBD never emphasised, of course, was the level that growth was coming from!

In any event, this table should put to bed any myths about Starbucks and Pizza Hut N.Z. supporting the company in past years. It is KFC that is easily the most profitable franchise of the three, by an order of magnitude over both the others. KFC has had some not so good years (in relative terms). But to suggest that KFC in New Zealand has ever made a loss in NZ is just plain wrong. Even leaving aside the disastrous Pizza Hut N.Z. experience of FY2007, the after tax amounts earned by both Starbucks and Pizza Hut N.Z. have been pitiful. And I won't even mention the disaster that was Australia. Although I have presented the Oz results for completeness in shaded grey, I have not added them into the overall company performance figures because they are historic now.

You talk about "market power". Pizza Hut has ZERO market power (think Dominos, Hell, Tempt).

Pizza Hut has half as many again outlets compared to both Dominos and Hell Pizza. They are the largest Pizza chain in the country bar none. I don't think your claim JMKC that PH has 'zero market power' is credible.

Starbucks has limited mkt power (certainly less than it used to given the consumer shift away from a) their brand and b) mass produced coffee.

While I accept that some no longer find Starbucks 'cool', I don't agree there is an overall consumer shift away from the brand. The overseas tourists in particular seem to love it.

KFC has SOME mkt power, however this is only in fried chicken. You cannot tell me that with the current push away from obesity and foods with large amounts of saturated fats that you think KFC is a growth business?!?

The revamp of KFC stores has certainly grown KFC in EBITDA terms (albeit only back to where is was in FY2003). But higher borrowings means the interest expense has actually reduced after tax profit for the 'KFC sub unit' verses five years ago. I think that KFC could be a modest growth prospect if company debt was reduced. No one goes to KFC for a 'healthy meal', but there are now healthier KFC options. Choosing mashed potato over chips and skinless chicken over traditional recipe, for instance.

SNOOPY

discl: hold RBD

Postscript: 2008 results added March 2009

[duncan macgregor]

[QUOTE=Snoopy, KFC has had some not so good years (in relative terms). But to suggest that KFC in New Zealand has ever made a loss in NZ is just plain wrong.

The revamp of KFC stores has certainly grown KFC in EBITDA terms (albeit only back to where is was in FY2003). But higher borrowings means the interest expense has actually reduced after tax profit for the 'KFC sub unit' verses five years ago. I think that KFC could be a modest growth prospect if company debt was reduced. No one goes to KFC for a 'healthy meal', but there are now healthier KFC options. Choosing mashed potato over chips and skinless chicken over traditional recipe, for instance.

SNOOPY

discl: hold RBD[/QUOTE] SNOOPY when will you ever learn?. When this dog sold its kennel to lease it back to fund a holiday in Australia, the shares shot up to $1-70.
Anyone with half a business brain would have known that was a bad move. You can borrow money cheaper on property than any other means, especially if you borrow money to do up the landlords premises at a million bucks a store.
Regardless of all this fundamental stupidity that the gullible swallowed, the shares have downtrended to exactly half in less than three years. Anyone holding long term only shows how little they understand the real world of good business.
The only thing going for it is the dividend, which to me looks like bait on a hook for the gullible to swallow hook line and sinker. Who gives a sh*t about mashed potatoes for petes sake you are going down the gurgler. Macdunk