(RFG) Donut King ++ BB's Coffee

[robbo]

Retail Food Group -- (RFG)--

[ Donut King Australasia @ NZ & also Franchisor/ Licencee Distributor Corporate Group - (RFG) - who do own/control the Donut King ... Trade Mark; and also .... the .... BB's Coffee establishment network, ... 'vis- a- vis'... both Franchise Networks, .... in .... Australia and New Zealand. .... ]

( Retail Food Group . >> ASX Code: RFG )

Donut King & BB’s Coffee.

Is Retail Food Group ( ASX Code: RFG) the next big "franchise" growth stock like say .... Domino s Pizza (ASX Code: DMP) .... ?

Yep, imo only, I think so, & frankly; at least ..... on my own analysis .....

And.... what is more.....

.... >>> ..... imo, with even greater "yummy" []upside ....

More facts and detail re: (RFG) very soon ..…. ( promise !)-


Just some “food …. (Donuts actually ) ) & crownies for thought -- from, …….. The Pub. ”

Kindest Regards,

Robbo

DISCLAIMER
Views expressed in this email and/or internet correspondences, are my tentative thoughts and opinions only. These views are not to be read as being, or forming…. any form of a recommendation; of any sort whatsoever. Rather, they just simply personal opinions, and are NOT financial advice. Furthermore, these views are unwarranted and ought not to be read, as other than personal opinion and speculations, and are not warranted in any way whatsoever, either expressed or implied, for their accuracy, veracity, or likely predictive outcome. Furthermore, these comments are highly subjective and prejudiced by the writers own opinions and outlook. Therefore these views may be prone to errors, as they have not been checked by a third party, and are possibly incomplete and/or inaccurate. The opinions expressed here; are strictly on a “Without Prejudice” basis only. These personal subjective thoughts herein expressed, are only one view among many, and at best; are only the author’s whimsical thoughts, impressions, and intuitions. Obviously, as with all opinions, they are open to discussion and refutation, as well as consideration of other interpretations and review. For any investment decision, always do your own separate investigations and research, and always seek your own qualified and authorized third party independent financial advice.

Kindest Regards,

Robbo

[robbo]

Retail Food Group. (RFG).

**


>> .... Maybe, .. it is now time, ..... To get Your Donuts, while they are Fresh & Hot .... [] . ....


(RFG) imo, Might Be Ready to take off very Soon ....

(Donuts, Cafes ....and soon Coffee Manufacturing System Rollout.)

Hi gals & guys,

Note last few days; that Donut King etc-- ie: (RFG) shares increasing, in Volumes Traded ..... through (RFG)..... these last few days; and that the volume increase is ....very Significant. [^]


In this respect; it does appear, that Funds/Instos have been quietly building a (RFG) Holding and strategic Position, since only last Thursday..... while it is still "off the Radar" a bit .....

This fact is in conjunction with even yet more Director Buying of Ordinary (RFG) Shares, --- "On Market".

And, re (RFG), btw ....>>>> Was wondering;..... if someone knows how to .....down load .....the Latest (RFG) Prelimnary Report (seven pages) and post it here at Share Trader--- well that would be much appreciated and very good. [?]

Below is an overview, for those interested, of what Retail Food Group (RFG) is.... all about.

---------------------------------------------------------------


Retail Food Group Limited (RFG) is a leading Australian retail food brand manager and franchisor. It is the franchisor and intellectual property owner of the Donut King and bb's café franchise systems.


As at 31 March 2006, the company has a network of 327 outlets including 261 Donut King outlets, 41 bb's café outlets in Australia and an additional 25 bb's café outlets in NZ. Total Network sale for FY2005 was in excess of $139m. The number of chain outlets in the fast food retailing sector has grown by 52.3% from 2001 to 2005.


RFG operates "full format" franchised business. Under the full format franchising, the franchisee is contractually bound to operate the business according to systems, formats and operational standards specified by the franchisor and pay a royalty based on sales turnover of the franchise outlet. Thus, RFG provides the blue print for the franchise operations as well as directs the overall marketing strategy for the brand.

Donut King:

Donut King operates within the "impulse buy", "reward" and "treat" segments of the food retailing sector. Donut King is Australia's largest specialty donut and coffee chain. Donut King also offers a product range extending to a broad range of food products including savories and other snack foods. Donut King outlets are typically located in shopping centres and are positioned in high traffic flow areas.

BB's Café:

bb's café operates within the "time out", "relaxation" and "meeting place" segment of the food retailing sector. BIS Shrapnel research showed that in 2005, bb's café was the 6th largest coffee chain in size in Australia in terms of number of outlets. The repositioning of bb's café from a muffin and snack destination to a specialty coffee and light meal provider over the last 3 year period is reinforced by the brand's position as the third largest Australian founded café concept.
------------------------ end of Summary -----------------------


Kindest Regards,

Robbo

DISCLAIMER
Views expressed in this email and/or internet correspondences, are my tentative thoughts and opinions only. These views are not to be read as being, or forming…. any form of a recommendation; of any sort whatsoever. Rather, they just simply personal opinions, and are NOT financial advice. Furthermore, these views are unwarranted and ought not to be read, as other than personal opinion and speculations, and are not warranted in any way wh

[robbo]

Retail Food Group (RFG)

Donuts (Donut King) , Cafes (BB' S) and Coffee Manufacturing System.

In the last post I forgot to mention; that for (RFG) the latest June, 2006 Net Profit After Tax was: $5.94 Million Dollars -- (ahead of all forecasts) -- the market Cap is only, #56 millions, and the NPAT from continuing Operations .....is now, $6.49 million dollars.

And yep, those numbers, are .... Net.

On the above basis, the PE for Retail Food Group (RFG)-- is only about : PE 8 - 9.

What did strike me was... when recently, doing a comparo on NPAT, earnings, and PE verus Market Cap ......with Dominoes Pizza (DMP).....

My own conclusion,from that (DMP) comparo.... is that (RFG) is an absolute rare bargain.

Kindest Regards,

Robbo

PS. if you are new to this (RFG) thread, you might ...... find my previous post ......(on this thread (RFG)---) ..... very interesting .... 'vis- a -vis' ..... what is now, imo "brewing" for RFG investors. ........

DISCLAIMER
Views expressed in this email and/or internet correspondences, are my tentative thoughts and opinions only. These views are not to be read as being, or forming…. any form of a recommendation; of any sort whatsoever. Rather, they just simply personal opinions, and are NOT financial advice. Furthermore, these views are unwarranted and ought not to be read, as other than personal opinion and speculations, and are not warranted in any way whatsoever, either expressed or implied, for their accuracy, veracity, or likely predictive outcome. Furthermore, these comments are highly subjective and prejudiced by the writers own opinions and outlook. Therefore these views may be prone to errors, as they have not been checked by a third party, and are possibly incomplete and/or inaccurate. The opinions expressed here; are strictly on a “Without Prejudice” basis only. These personal subjective thoughts herein expressed, are only one view among many, and at best; are only the author’s whimsical thoughts, impressions, and intuitions. Obviously, as with all opinions, they are open to discussion and refutation, as well as consideration of other interpretations and review. For any investment decision, always do your own separate investigations and research, and always seek your own qualified and authorized third party independent financial advice.

Kindest Regards,

Robbo

[tommy]

Great thread robbo,

I bought RFG too after the great announcement but the market has completely ignored it! Cannot believe it, the price level at the moment is absolutely rediculous.

They need to do an investor presentation to wake up the market, they only listed recently so obviously many investors do not even know that this company exists.

Keep up the good work mate, I totally agree with you on this one[:I]

[robbo]

Retail Food Group (RFG)

Hi Tommy,

Reflection:

Donut King (RFG) is really for some folks, imo, .....

>>> a PARADOX!!

What do I mean?

Well it is almost too easy....

You get too much easy Value, in a Defensive stock... is Too Obvious, (so it must "not" be true).....

Let us instead find something more complicated ..... hmmmm [?]

Kindest Regards,

Robbo

[ohmyme]

Gees Robbo you are good at picking them. I have a big holding in RFG as well now, latest market research tells me that selling donoughts is a cracking business. I also know a few people who own some stores and they say its like printing money.

Anyway you look at it, RFG is cheap. With a forecast dividend of 6c for 06/07 they are sitting on a dividend ratio of 7.5% Fully Franked!!!

Short term price target for me is $1.20 places it on a forward PE ratio of around 12 I think and dividend yield of 5%(will have to check my notes when I get home).

Thanks for sharing mate.

cheers.

[robbo]

Retail Food Group.(RFG)

Hi guys,

Looking at the (RFG) depth....

seems the Donut and Coffee Cat ....is now very

nearly.....almost ...

"Ze Cat is Out of the Bag"

Kindest Regards,

Robbo

[tommy]

Hi robbo and ohmyme,

Yeah, looking better by the day! This stock is a bargain under $1... can't believe it's still in this price range though.

It might take quite a while to reach market cap of $100 million at which point the dynamics will change... How long do you think it will take robbo?

[robbo]

Retail Food Group (RFG)

Good question; and an intriguing one Tommy?

It really is All about SYSTEMS"--Franchise Systems that is....

Talking to some ..... "Cluey Stock Analyst Cat" --just the other day, over a Crownie and a Coffee and a Donut as it so happened-- (Seriously I was....) ... and this dude ......had a Genius Insight about (RFG) ....


The Genius Insight was this:


And that is that these guys (RFG) will probably not limit themselves to "Sytematizing--franchise systematizing that is..."--

(1) Donut King and (2) BB's Coffee and (3) Coffee Roasting

But will also strategicaly target other under exploited Retail or other Categories that could be Value Added to a significant high and scalable Degree ..... (mouth watering possibilities)-- [][]

(B) Another point re your last post too Tommy....

Re Market Cap ceiling of $100 millions??

Q.1.---What is the :current" undilutued Market Cap of Dominoes (DMP)?

Q.2. What was the Revenue and Profit Growth of (DMP)for just this most recent 12 months-- in a relatively so called mature market like Pizzas ??

Gotta fly, Back soon.....

Kindest Regards,

Robbo

[tommy]

Robbo,

Thanks for your feedback mate, here are a couple of not so recent articles about RFG:

http://www.theage.com.au/news/Busine...012527800.html

Donuts drive Retail Food Group profits

August 22, 2006 - 3:04PM


Newly-listed Retail Food Group Ltd, which runs the Donut King network, says it is confident of achieving its 2006/07 net profit target.

Retail Food, which opened 15 new Donut King stores in 2005/06, posted a 76 per cent lift in net profit to $5.9 million.

Earnings before interest and tax (EBIT) was $10.5 million - 18 per cent above the prior year and exceeded the prospectus forecast by $400,000.

Chairman John Cowley said Retail Food had performed strongly during the past 12 months, meeting or exceeding the growth and performance targets outlined in its prospectus.

"The company has been able to exceed its prospectus forecast as a result of higher franchise and other revenues, together with lower than forecast corporate expenses," Mr Cowley said.

"In particular, franchise revenue growth was driven by new outlet openings and increases in average weekly outlet sales," he said.

By June 30, 2006 Retail Food had 332 franchised outlets, including 265 Donut King outlets and 67 bb's cafe outlets.

"Based on these strong results, we are confident of achieving the 2006-07 EBIT forecast detailed in the prospectus of $11.7 million and 2006-07 net profit after tax forecast of $7.4 million," Mr Cowley said.

He said the store opening program is already well advanced to realise net store growth of 21 stores, mostly in the Donut King network, thereby achieving the prospectus forecast of 353 outlets by June, 30 2007.

At 1450, Retail Food Group shares were five cents higher at 79 cents.


__________
http://www.qbr.com.au/index.cfm?stor...p=displaystory

Retail Food Group profit exceeds prospectus forecasts
Wednesday 23 August 2006

Newly-listed Australian retail food brand franchisor Retail Food Group has announced a net profit after tax of $5.9 million – up 75.74% on the previous corresponding period.

The company’s net profit after tax from continuing operations (the basis upon which the capital raising was successfully undertaken in June 2006) was $6.4 million an increase of $1.5 million on FY2005 or 31.4%.

EBIT (earnings before interest and tax) from continuing operations of $10.5 million was 18% above the FY2005 result and exceeded prospectus forecast by $400,000.

The EBIT for the 12 months ending 30 June 2006 was generated from total network sales across its Donut King and Australian bb’s café systems of $143.1 million, an increase of 10.42% on the previous year and equal to the Company’s prospectus forecast.

As at June 30, 2006, Retail Food Group had 332 franchised outlets, including 265 Donut King outlets, an increase of 15 stores on the previous year, and 67 bb’s café outlets, a decrease of two stores on the previous year.

Consistent with its prospectus, the Directors have not recommended the payment of a final dividend for the year ended June 30, 2006.