S P falling off the cliff today, WHATSUP !!, have they give up completely on the U S now, S P back to where it was over 3 years ago, WHATSUP !!
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S P falling off the cliff today, WHATSUP !!, have they give up completely on the U S now, S P back to where it was over 3 years ago, WHATSUP !!
It's been a month since they said they'd have a decision on the US in a "few weeks."
'Stock Takes' in the Herald today:
It's been a few weeks since BurgerFuel said it would give an update on its United States expansion plans in a few weeks.
But it looks as if several more may pass before investors receive more information on the move.
On June 14, while reporting its full-year financial result, the restaurant operator revealed its much-awaited US entry, leveraging a partnership with Subway-linked Franchise Brands, was facing further delays.
"At this stage we have not had confirmation from Franchise Brands as to their further involvement in [BurgerFuel] or not," the company said. "We will update the market as soon as this is confirmed, which we expect to happen in the next few weeks."
On Tuesday, a BurgerFuel spokeswoman said the process "at Subway's end" was taking longer than expected. "It's important to note that we are not viewing this as a negative. We hope to have an update for the market in a few weeks."
BurgerFuel shares - which hit a record close of $3.79 in November 2014, up from $1.50 before the US announcement - closed at $1.55 last night.
They're "not viewing this as a negative." So, is it a positive delay? Whether they go ahead with their US expansion seems to be totally out of their hands - how's that a good thing?
Why could they not inform the market that the announcement would be delayed?
Well at least Subway are thinking about it rather than an outright no, it'd be a good way of continuing the legacy of the Subway founder if Subway did choose to keep the pursuit alive.
Burgerfuel did say they expect to know in a few weeks so its not too material if its outside that time frame by a little. And coming from a company that barely ever communicates with its shareholders then its not surprising they will post anything unless it was considered material.
i think everyone is miss reading in the 'subway' part. It is a private equity fund majority funded, but not managed by the Subway founders. It is not subway or the subway founders who identified and bought into Burgerfuel. I may be wrong but that is my recollection from when the deal was first announced.
Have Franchise Brands just sold out?
For this disclosure,-- (a) total number held in class: 5,963,355 (b) total in class: 59,633,550 (c) total percentage held in class: 10.00% For last disclosure,-- (a) total number held in class: 29,816,775 (b) total in class: 59,633,550 (c) total percentage held in class: 50.00%
Looks like it... seems the US expansion is a dead duck then huh. This will hurt the SP short term I would guess....
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 BurgerFuelŽ 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.