Burgerfuel

[silverblizzard888]

Article on the owner of Hungry Jacks in Aus, his take is go where the opportunity is!

http://www.nzherald.co.nz/business/n...555&ref=NZH_fb

[Raz]

In Burgerfuel management you have a team of cautious managers watching each step they take, heck company has no debt and even sticks mostly to a franchising plan to hedge out risk. I like their creative marketing and brand build up, though I haven't found them faultless though:

I'd like to see more stand-alone stores going forward given they have a built brand in NZ and possibly owned by the company too.
I'd like to see meal package combos presented better to consumers (think KFC, McDonalds, Wendys, Carls Jr) thats how you really sell extra product.
I'd like to see a 'permanent' fish burger on the menu somewhere too.
I'd like better communications with shareholders, preferably quarterly.
I'd think packaging could be more refined, a lot of large bags for burgers and meal bags being used for small items. (Not sure if there are any cost advantages though it seems wasteful in a way.

Given Burgerfuel has identified they have a product that does well in low burger competitive markets and high value perception of NZ beef you'd think they should be opening in countries that follow the NZ and Middle East approach, why aren't countries in Asia on the map before AUS and US? They do say money is made doing business when and where no one else is.

NZ ideas can be great, though most just don't know how to sell. Usually expect consumers to like their product and throw money at them.

You really need to know your market..a lot of micro-markets large enough in the US to make a NZ company a fortune yet no need to aim for a national presence.

[Sideshow Bob]

"The verdicts in....."

http://www.nzherald.co.nz/business/n...ectid=11870567

[whatsup]

In Burgerfuel management you have a team of cautious managers watching each step they take, heck company has no debt and even sticks mostly to a franchising plan to hedge out risk. I like their creative marketing and brand build up, though I haven't found them faultless though:

I'd like to see more stand-alone stores going forward given they have a built brand in NZ and possibly owned by the company too.
I'd like to see meal package combos presented better to consumers (think KFC, McDonalds, Wendys, Carls Jr) thats how you really sell extra product.
I'd like to see a 'permanent' fish burger on the menu somewhere too.
I'd like better communications with shareholders, preferably quarterly.
I'd think packaging could be more refined, a lot of large bags for burgers and meal bags being used for small items. (Not sure if there are any cost advantages though it seems wasteful in a way.

Given Burgerfuel has identified they have a product that does well in low burger competitive markets and high value perception of NZ beef you'd think they should be opening in countries that follow the NZ and Middle East approach, why aren't countries in Asia on the map before AUS and US? They do say money is made doing business when and where no one else is.

NZ ideas can be great, though most just don't know how to sell. Usually expect consumers to like their product and throw money at them.

Silver, PLUS a Queenstown, Wanaka, Picton, Dunedin, Franz Joseph, possible Te Anau presence even if it means company owned as apparently no franchisee wants to take on a franchise, I fail to see why there is no/minimal S Is presence as that's where the tourists/back packers head and love !!

[silverblizzard888]

Silver, PLUS a Queenstown, Wanaka, Picton, Dunedin, Franz Joseph, possible Te Anau presence even if it means company owned as apparently no franchisee wants to take on a franchise, I fail to see why there is no/minimal S Is presence as that's where the tourists/back packers head and love !!

I think Burgerfuel prefers to see itself as a local brand chasing after local customers and at a lower risk model. Tourist places can be rather risky as those places tend to be high in rent cost, low in staff availability and volatile due to fluctuation in tourist numbers. I think in the future they will establish it, but currently they don't have the capital to take the risk and prefer building up a loyal customer base locally so they have guaranteed repeat business.

[bucko]

Are they looking at an acquisition or launch of a new brand? I noticed several mentions in the announcement today referring to new opportunities within our outside of the Burgerfuel brand..

"The board will be considering all options for continued
expansion within the New Zealand Market, both inside and outside the
BurgerFuel brand."

[Harvey Specter]

Are they looking at an acquisition or launch of a new brand? I noticed several mentions in the announcement today referring to new opportunities within our outside of the Burgerfuel brand..

"The board will be considering all options for continued
expansion within the New Zealand Market, both inside and outside the
BurgerFuel brand."

No idea but if the US doesn't pay off, I would say any future global expansion is dead in the water. Therefore future growth has to come from NZ and there is only a limited number of stores before the market is saturated. However, introduce a new brand and they can utilise the Head Office and supply chain over more stores - Maybe a mexican franchise like Mexicali?

As an example, see what Restaurant Brands has done - 4 different franchise under one roof. (Though I am sure most investors would prefer if it was just KFC, the others not doing that great).

[Gambler]

The share price hasn`t really responded that great to the USA openning. BFW has sadly failed to inform the market what their real vision is. They are obviously thinking about branching out but is it food, coffee or other hopsitality business? I am hoping the next announcemnet won`t be in December again and they will keep the market more infomed this year. Can the price stagnation be due to the low volume of shares available for trading? The daily trade volumes hardly ever go above 2-3k? I anticipate a share issue this year that will dillute shareholder holdings even more.

I`m close to break even price and when I bought I was planning to hold until 2021. I truly hope they have a sustainable business model and they will be around for a long time. I`ll monitor them closely for the next 12 months and if they don`t start providing more transparency I might bail out.

[Leftfield]

Good luck Gambler, BFW has been in a downtrend since June 2015, but as per the attached chart a positive 100/200 day MA 'golden' crossing may happen soon with a possible swing back into an uptrend. I suspect much depends not just on the opening of the first US store, but the market is waiting to see evidence that BFW can be profitable in the US.

You are right to review your investment regularly and be prepared to bail-out should BFW not deliver.

(Disc - I don't hold BFW, I think there are better prospects elsewhere.)

Attachment 8922

[bucko]

After doing a quick google search I am quite optimistic on the first results from the US store, the reviews on Yelp and the article content all show good promise.

I think they have nailed the marketing there, every article talks about the sustainable practices of BF, grass fed beef?! In America?! WHaaaaaa

(Not much in article content but what can you expect from a single store opening in a city that size?)
http://www.indianapolismonthly.com/d...g-burger-fuel/
http://www.indystar.com/story/entert...nts/381959001/
https://nz.yelp.com/biz/burgerfuel-indianapolis-8