Phone just pinged - RBD has just hit the (very arbitrary) price alert I set of $6.50. :scared:
Down 57% in the last year!! :scared::scared:
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Phone just pinged - RBD has just hit the (very arbitrary) price alert I set of $6.50. :scared:
Down 57% in the last year!! :scared::scared:
Its in a wicked downtrend. You'd be brave to buy in now during this downtrend and with the margin pressures RBD face.
What is the market pointing to with RBD - an ongoing large hit to the bottom line
that takes out any possibility of further dividend and further major supply
pricing pressures / staffing pressures in play ? :)
What is likely with further inflationary pressure on discretionary loot on the loose ?
Has anyone any insight into why Finaccess went to a 75% holding instead of going to 90% and de-listing RBD....?
Tax or OIC issue?
Some might have assumed they were intending on using the listed shares as a currency for further market consolidation or retaining the listing to amalgamate a larger entity.
With the severe price decline one wonders if the minorities could be taken out shortly.... if the strategy was to use the shares as a currency, and is no longer as attractive, due to the recent market malaise.....?
Retail disposal income issues ahead ?
Labour issues ?
Supply chain issues ?
Multiple market issues exposures.
Don't know I would be that brave with the approaching treacherous economic conditions
some sectors of Retail are already experiencing in the local goldfish bowl :)
Does anyone else think RBD is still overvalued in light of the year long decline. Going off the previous acquisition and making some adjustments I don't feel current share price is reflective what their true value is.
I have always thought about that. If that is the case I am guessing buyout offer will about 20% premium on market price. Good luck picking the bottom imo I still think it is overvalued even with the year long decline.
DMP down ~20% at open this morning on a poor result; wonder if similar impacts for RBD...
As inflation, through increases in labour costs, food input costs, and energy, rapidly affected the Group’s uniteconomics, management moved quickly to adjust customer-facing pricing to protect franchisee profitability andsustainability. Initially Domino’s intent was to ‘earn’ additional pricing from customers through a ‘More for More’strategy, whereby customers would be encouraged to trade into additional, or higher ticket, items that would delivervalue for customers and additional earnings for stores.This resonated well with customers, but as cost increases continued unabated, Domino’s took additional steps topass through these costs to consumers. It was anticipated that pricing changes implemented at the end of Q1 woulddeliver an improvement of earnings in Q2. However, while the initial customer response was pleasing, some of thismargin improvement unwound in November as repeat purchases were affected, particularly in markets where orderfrequency is not as high (for example Japan and Germany).
In 2011 RBD sales were $325m and NPAT was $24m
Eleven years on for 2022 sales are $1,239m and NPAT is $32m
So $900m more sales and only $8m more profit
Something wrong somewhere
did they have borrow up to bolt on the new whole country franchises elsewhere ?
Rising interest rates wont help going forwards
then to find the readies for a dividend or two :)
Supply issues / costs, rising employment costs & issues etc coming through in latest results
impacting bottom line
Covid has got nothing to do with it. If anything they benefited from it.
From what I can gather, they took a gamble with debt funded expansion(more than normal). It backfired as in short their margins are being squeezed for many reasons and the company needs to be repriced due to int rates. Leverage only works when there are favourable factors.
https://www.nzherald.co.nz/business/...K6Y2WGWRS54HU/
Stock Takes: What’s behind Restaurant Brand’s billion-dollar valuation slump?
(Premium Content)
cabbage not lettuce ?
Something else that won't help their shareprice:
http://nzx-prod-s7fsd7f98s.s3-websit...811/390079.pdf
NZTX do you have access to the article. I would be interested to read it.
Anyway I thought I would give myself a exercise to figure out the current fair value. I was going through the previous reports, I noted the following.
"KFC New Zealand acquisition
In September 2020 the Group acquired a KFC store in New Zealand for $3.2 million. The store contributed sales of $0.9 millionand net profit after tax of $0.1 million in the consolidated statement of comprehensive income. The acquisition gives rise to$2.7 million of goodwill."
I accept interest rates have gone up significantly since. But they paid $3.2mill for npat of $100K. Seems abit excessive even back in that period. Am I missing something here??.
I don't know whether it was intentional or not to structure it with $2.7mill of goodwill (amortise large sums down the line).
SP seems to be turning a corner . ? 50 might cross the 200......
Meeting didn’t go well today?…