Burgerfuel

[whatsup]

Yeah deals dead, notice writes:

" Termination of all existing arrangements between FBLLC and BFW, including FBLLC's call options to purchase up to 23,853,420 ordinary shares in BFW from Mason Roberts Holdings Limited ("MRHL") (the majority shareholder of BFW)"

But entry will proceed:

https://www.nzx.com/companies/BFW/announcements/287714

"Burger Fuel Worldwide Limited (BFW) have today announced they will be proceeding with their plans to open in the United States. The first BurgerFuel® restaurant will be located in the mighty Midwest, which has been chosen following a detailed study of the United States and its potential for the brand’s success. "

Though provides a challenge now that they are going out on their own without the 'full' support of franchise brands to underpin success.

Looks like they are going to go the U S expansion on their own, heeeeeeemmmm, U S burgers taste totally different than the B F's burgers that we have here in N Z, maybe that's why they are not a such a great hit in Aussie!

[kyanar]

Looks like they are going to go the U S expansion on their own, heeeeeeemmmm, U S burgers taste totally different than the B F's burgers that we have here in N Z, maybe that's why they are not a such a great hit in Aussie!

I think they recently worked that out - for the first time they've introduced a range of burgers in Australia that uses 100% Aussie beef.

[whatsup]

I think they recently worked that out - for the first time they've introduced a range of burgers in Australia that uses 100% Aussie beef.

That maybe the case but they have markedly different burgers over there both in presentation, taste and size !

[Harvey Specter]

From the looks of it, Franchise Brands haven't sold, but have let their option to purchase more lapse (or waived it). Therefore they still own the 10% they previously own, but if they wanted to increase, would have to do on market.

Does anyone remember if that option had a fixed price? It might be they were out of the money.

[whatsup]

Looks like it... seems the US expansion is a dead duck then huh. This will hurt the SP short term I would guess....

What a complete s!uff this has been today IMHO the NZX should have put a T H in place while these 2 very important anns were digested by the market as there was some very confused trading today with the earliest trades, once the U S store opening were announced the market liked that ann and has acted accordingly, hope there is follow through with this as there would have been a very different approach in Aust with the ASX.

[silverblizzard888]

What a complete s!uff this has been today IMHO the NZX should have put a T H in place while these 2 very important anns were digested by the market as there was some very confused trading today with the earliest trades, once the U S store opening were announced the market liked that ann and has acted accordingly, hope there is follow through with this as there would have been a very different approach in Aust with the ASX.

Yes I agree its pretty bad of the NZX to release one notice at 8.47am that would be interpreted as dead fish in the pond and not going ahead and one that comes in at 10.03am after some transactions had already gone ahead that would counter the prior one. Either NZX messed up or Burgerfuel on material information (both flagged as price sensitive). In big cases they would be liable under action from the FMA, still is liable but since its not heavily traded then damage was limited to a few trades.

[Hectorplains]

"Although it could be possible for BurgerFuel to move forward in this market independently of Franchise Brands, we feel the potential support available from a large US-based organisation is essential to our success in this market and at this stage, we are not prepared to move forward without that support," the company said.

That was June. Two months later and that partnership is now no longer 'essential'? This just adds to their credibility issues...

Plenty of competition waiting for them too: http://theindyalist.cityvoter.com/be...s/indianapolis

[silverblizzard888]

"Although it could be possible for BurgerFuel to move forward in this market independently of Franchise Brands, we feel the potential support available from a large US-based organisation is essential to our success in this market and at this stage, we are not prepared to move forward without that support," the company said.

That was June. Two months later and that partnership is now no longer 'essential'? This just adds to their credibility issues...

Plenty of competition waiting for them too: http://theindyalist.cityvoter.com/be...s/indianapolis

That is what I meant above that FMA could prosecute them for saying something like that in June and making it material and then based on the first notice people will think the venture isn't going ahead and sell out and then 3 minutes after market open they release saying they will enter with the partnership. Thats credibility issue and lacking prudence too.

Yes I think competition will be tough. One thing I think they still don't do well is their chips, apart from the delicious aioli sauce, if you eat the chips its only ok by itself. I see your in Christchurch if you try Burgers and Beer chips, now thoses are excellent. Burgers are good, but same with the ones in the states so it'd come down to pricing and marketing. Burgerfuel have proven in a more competitive market like Australia that they underestimate the competition and didnt start well, so I feel US will be mind blowing for them unless they have learnt well.

[GTM 3442]

They will have picked up some smarts from the Middle East mall operations, where they are up against many of the major players.

With luck.

[Hectorplains]

https://www.nzx.com/companies/BFW/announcements/290037

Significant change in direction away from the franchise model. US debut not keeping them busy enough?