RBD - Restaurant Brands

[Snoopy]

So Note 5 says they made a loss of $1.664m selling stores with $3.192m of booked goodwill attached. (Note 8 suggests originally about $13m but written down over prior years).

The entire amount was not 'written-off' but as a result of the sales the amount of goodwill owned by the company decreased.

The buyers paid more than $2.484m for PP&E valued by RBD at $958k so the buyers were willing to pay at least $1.5m for goodwill which appears as cold-hard cash.

Thanks for the analysis PT. It starts to make sense when put like that. Buyers willing to pay more than asset value is not bad news. However, I don't think RBD management are quite off the hook. The buyers payed RBD $1.5m in goodwill and as a result the goodwill on the books at RBD reduced by $3.192m.

That still means $3.192m - $1.5m = $1.692m of goodwill has been taken off the books yet not paid for. Does that not represent a $1.692m loss for shareholders, based on the audited goodwill valuation of AR2012?

SNOOPY