Burgerfuel

[kyanar]

Lost a massive amount today. Did I miss some big announcement?

[Crackity]

That is a large fall but it is on small volume.....

Maybe one of the other shareholders does not like Te Awamutu?

[silverblizzard888]

Lost a massive amount today. Did I miss some big announcement?

Was that a paper loss? Theres no announcement that did that, just Burgerfuel lacks liquidity that the jump between 3.20 buying and 3.50 selling can cause some panic and likely some profit taking by those who bought for less than $3

That is a large fall but it is on small volume.....

Maybe one of the other shareholders does not like Te Awamutu?

Haha thats the funniest one I've heard, coincidence or perhaps Te Awamutu didn't serve the right burger to a certain shareholder!

[Harvey Specter]

Lost a massive amount today. Did I miss some big announcement?

Only if you compare to the day before. Otherwise it is even or up.

Te Awamutu is an interesting one. Population is about 10k which is small. It think it is owned by existing franchisees so they will have some economies of scale at the back end and I assume rent is cheaper too. Hard to save on labour as they would pay just above minimum wage but you obviously don't need as many people if it isn't as busy. If it works out, you could see more roll out into the small towns.

[kyanar]

It think it is owned by existing franchisees so they will have some economies of scale at the back end and I assume rent is cheaper too.

Yup, same franchisee as two of the existing NZ Burgerfuels, and three in Australia (probably three of the four in Queensland)

[bucko]

https://nzx.com/companies/BFW/announcements/265535

great stuff, No debt, cash of $7.7m, profits up 30% and about to enter the US market

[kyanar]

What's the market's problem with BFW lately? It's lost ~15% of its value in the last week alone.

[silverblizzard888]

What's the market's problem with BFW lately? It's lost ~15% of its value in the last week alone.

Bordem I guess, when its raining money out there and you aren't getting wet being under the BFW umbrella people tend to leave. Look at ATM and KMD having their takeover offers, much more interesting than BFW who don't release much else, as much as its good company its how the share market works, time is money.

[bucko]

shouldn't be too much longer before they announce their first US site right? Am I right in assuming it would take about a month from finding a site to opening a store? or a bit longer?

[baller18]

Hmm... burgerfuel hopes to open 1000 stores in the usa in 8 years....
1000 stores really? I reckon 200 will be an incredible number?
Shake n shack in america only has 63! They are valued at 2.1billion, share price nearly reached $100 at one stage...
So, if burgerfuel could open 1000 stores by 2022 or something, well the market cap would be????