quote:
Originally posted by Snoopy
Quote:
quote:Originally posted by Onthemoney
Yum don't need to make a play. All they need to do is not renew the franchise licenses.
Even if RBD made no profit YUM would still be raking in the cash. Because they are paid via a percentage of RBD store turnover. YUM will never make a play for RBD. Why should they? The existing situation is the ideal position for YUM. They are using other people's capital (RBD shareholders) to generate their own profits, regardless of the profitability of that other people's business! The old 'something from nothing' trick. It is a pretty attractive business model.
Incidently for those wanting to find out more about 'YUM Brands Inc.', the restaurant franchise company listed on the New York Stock Exchange, I have just given them a going over on the 'Focus Investment Group' on 'that other channel'.
SNOOPY