I thought about $3 as well - remember thinking at the time that Pumpkin Patch share price was going to overtake WHS and it may have briefly.
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I thought about $3 as well - remember thinking at the time that Pumpkin Patch share price was going to overtake WHS and it may have briefly.
The lowest in the last 5 years was on 13 May 2005 when WHS closed at 3.06
Don't think it ever did but it was close.Quote:
quote:Originally posted by tim23
I thought about $3 as well - remember thinking at the time that Pumpkin Patch share price was going to overtake WHS and it may have briefly.
BET it was clear that Halie never bought that stock as well, Halie the biggest non holder in NEW ZEALAND.. [8D]Quote:
quote:Originally posted by Halebop
Bricks you might want to check on the low price of WHS, your recall is not quite as clear as you imagine.
It's true there are many companies I don't hold. Consequently I've missed out on such standout value plays as Restaurant Brands, Evans and Tate and Smiths City.Quote:
quote:Originally posted by BRICKS
...Halie the biggest non holder...
O modest Halie lets look at Smiths City a company that increases its store numbers & floor plate along with cum div year by year and BRICKS is now in at a very low entry PRICE.. a true NZX INVESTMENT..Quote:
quote:Originally posted by Halebop
It's true there are many companies I don't hold. Consequently I've missed out on such standout value plays as Restaurant Brands, Evans and Tate and Smiths City.Quote:
quote:Originally posted by BRICKS
...Halie the biggest non holder in New Zealand...
There are not many of them.. [8D]
Halebop you forgot Feltex
Those Evans & tate ETW are atill worth 15 centsQuote:
quote:Originally posted by Halebop
It's true there are many companies I don't hold. Consequently I've missed out on such standout value plays as Restaurant Brands, Evans and Tate and Smiths City.Quote:
quote:Originally posted by BRICKS
...Halie the biggest non holder...
69 so your in ETW good luck, Bricks got out a very long time ago at a PROFIT.. and timie23.5 never in Feltex but bet you WHERE.. [8D]Quote:
quote:Originally posted by winner69
Those Evans & tate ETW are atill worth 15 centsQuote:
quote:Originally posted by Halebop
It's true there are many companies I don't hold. Consequently I've missed out on such standout value plays as Restaurant Brands, Evans and Tate and Smiths City.Quote:
quote:Originally posted by BRICKS
...Halie the biggest non holder...
Bling ..... your 80 cent bids getting close to the head of the queue mate ...... may need to revise them down .... otherwise you might end up as a reluctant shareholder
DONT worry Bling you wont have to push W69 out of the way to BUY as he will be standing there hoping he wont fall under a BUS.. [8D]Quote:
quote:Originally posted by winner69
Bling ..... your 80 cent bids getting close to the head of the queue mate ...... may need to revise them down .... otherwise you might end up as a reluctant shareholder
Thanks for your concerns mate! I am all CASHED UP and can afford to buy and hold. I am a value investor and short/med term price movement doesnt mean much to me. In fact, the lower they go the better the opportunity for me to buy more. Abit like WHS when it was a real dog around the $3-$4 mark. Rest assure I will be putting some of these away around these level. :)Quote:
quote:Originally posted by winner69
Bling ..... your 80 cent bids getting close to the head of the queue mate ...... may need to revise them down .... otherwise you might end up as a reluctant shareholder
I still think this mob are ripe for a takeover, just waiting for the bottom, got some already but they are red, things will pick up for RBD its just a matter of time people will always eat KFC and they will always drink coffee, pizza is in a price war eveywhere with smalltime operators in abundance but the squeeze is on and a lot will fold the pressure is on the smally boys a few have shipped out already just in for the quick kill build the business and offload.
Bling you will be happy with this one an Bricks just loves them cos they buy his chips.
I get concerned with their wage bill, they tend to pay only minimum wage and that rises each year and with a tight labour market their ability to attract good staff is also a concern.
Good staff always move on and up, realistically not many would look at a career with KFC, Pizza hut or Starbucks unless they were high in management.The can kickers at the bottom are just there temporary anyway, but I get your point and agree, pass the peanuts please:D[:D
Quote:
quote:Originally posted by Scuffer
its just a matter of time people will always eat KFC
Yeah...until it kills them.
Ignore the trend to healthier menus at your peril.
Mmmmm! death by KFC never thought about that one, personaly don't eat the stuff but lots do.
EVERYONE dies dose not matter what you EAT.. just some faster than OTHERS.. [8D]Quote:
quote:Originally posted by OneUp
Quote:
quote:Originally posted by Scuffer
its just a matter of time people will always eat KFC
Yeah...until it kills them.
Ignore the trend to healthier menus at your peril.
Pigs will eat anything and they will be snout deep in this trough soon watch your chips getting gorged Bricks.[:p]
Fastfood are good jobs for young people.
Shareholders haven't been looked after by management.
Businesses must be ripe for takeover.Who knows when.
How is the cash flow situation?
with no signs of management sorting things out why would a t/o occur now when they can simply sit to the side and watch RBD's sp fall further. i realy do feel for shareholders of RBD but if a takeover does occur its the faithful that will benifit and i might have to take my words back
THATS the whole idea BUY when you think the bums has fallen off no good after the BOUNCE.. [8D]Quote:
quote:Originally posted by boysy
with no signs of management sorting things out why would a t/o occur now when they can simply sit to the side and watch RBD's sp fall further. i realy do feel for shareholders of RBD but if a takeover does occur its the faithful that will benefit and i might have to take my words back
LOL... Once management have got things sorted the share price would rally and the predators will have to pay a higher price. This is the idea time for a hostile T/O if any.Quote:
quote:Originally posted by boysy
with no signs of management sorting things out why would a t/o occur now when they can simply sit to the side and watch RBD's sp fall further. i realy do feel for shareholders of RBD but if a takeover does occur its the faithful that will benifit and i might have to take my words back
Anything will kill you if you eat too much of it. The answer is moderation and a balance diet. I do eat KFC occasionally, esp when they have the Hot & Tasty out.Quote:
quote:Originally posted by OneUp
Quote:
quote:Originally posted by Scuffer
its just a matter of time people will always eat KFC
Yeah...until it kills them.
Ignore the trend to healthier menus at your peril.
All these positive talk is pushing up the SP.. Bling wants the price DOWN not up!
I was once an investor in RBD thankfully i sold but why would preditors act now when it looks as though the shareprice will continue its 2 year downward trend ?. i agree with you whole heartedly that RBD can do well but it needs new management and what sort of t/o share price are you expecting. I assume that many downtrodden RBD investers would jump at the oportunity to get out whatever the offer. Im just sceptical of how good an offer will be if there is one of course. :(
$1.40 would probably see some willing sellers at this point in time but it may need to be a bit more in 9-12 months time if things pan out.(excuse the pun). Wasn't there some speculation or rumour that there was interest at 1.30 and the CEO was pushing to sell before she got the boot? If so, it would be hoped the Board know what they are doing.
Between $120-$160 is the price. I would like shareholders to vote and kick few on the old board members out the door and replace them with a new and exciting board of directors.
you honestly think that a preditors bid would need to be that high at current market prices ?. i mean thats a 50ish% premium and this premium looks set to increase as the only news keeping sp up is t/o speculation and new mgmt.
I sold all mine RBD couple of years ago losing quite a bit. I still keep an eye with the news with regard to RBD from time to time~ I like them just because I drink coffee during office hour and eat pizza on Sat when there is a AB game, and kids get their KFC treat on Sunday~ still I find it difficult to see how these would worth someone paying $1.20 or more for this company.
I don't think there is much take over speculation built in at 83 cents. That evaporated back in March. A waiting game now for the next 1/4 ly update on sales.Quote:
quote:Originally posted by boysy
you honestly think that a preditors bid would need to be that high at current market prices ?. i mean thats a 50ish% premium and this premium looks set to increase as the only news keeping sp up is t/o speculation and new mgmt.
exactly i mean its currently $0.85 im thinking a 30% premium would be lucky for RBD investors especially with the downtrend a 30% premium would be $1.10 at the moment:(
WHS shares traded just over $3 prior to the T/O and then traded as high as $7. The market is not always right, especially the fund managers. Why else whould you only get crap returns from unit trusts and funds?
I would guess there would be a hostile T/O if there was one. There are no major shareholders to block a hostile. Stuff the directors, their only contribution to RBD is destruction of shareholders wealth.
There is just a slight difference between the WHS and RBD its like comparing apples to oranges i just personaly dont belive RB is a buy now as what would happen to the shareprice if this takeover talk/hype melted away. Of the T/O targets currently RBD is ONE of many. Hostile T/O will target companys that are UP and Coming not ones that are on the downward spiral or not until they hit rock bottem and RBD isnt in either of those catogories so how can you expect a T/O ?
A new CEO must be close. The right appointment may help the market's view of this beaten up stock.
Tried a vegetarian cheesy-bites pizza a few nights ago. A long time since I've tried a Pizza Hut pizza and it was delicious.I was pleasantly surprised, and on a cold night was much more appealing than Subway. Why Dominos is so strong in the market place beats me.Their product (which I had consumed previously) was very inferior, even allowing for price.
Hi Rumpy well what you said about product superiority is what will drag RBD shareprice out of the depression but it will only come on the wave of public sway and that could take awhile, but a positive head in the right direction. RBD are getting close to a turnaround and I for one am expecting the sp to regain some of its losses soon.:)
Im new to this forum so no one out there bite my head off.
I have watched views on this site for over six months and decided it was time to register. Anyway, this stock is not a growth stock and is having to spend a lot of its money trying to retain its piece of the pie. I find it hard to see where the growth is. As a defensive stock then perhaps but i dont think its going to grow doing what they are doing.
Short term the only real hope i see is a takeover or NZ opeing up the immirgation laws to let in more Pacific Islanders into NZ, especially with KFC and to a lesser extent Pizza Hut.
Nita none of the things you said is going on or will happen RBD is just an ordinary stock been around a long time and none of the quick fix`s will happen if it would they would have been done a long time ago, T/O also is not a fix the company has to trade out in very competitive biz so you should study a bit more and to get to know the COMPANY.. [8D]Quote:
quote:Originally posted by Nita
Im new to this forum so no one out there bite my head off.
I have watched views on this site for over six months and decided it was time to register. Anyway, this stock is not a growth stock and is having to spend a lot of its money trying to retain its piece of the pie. I find it hard to see where the growth is. As a defensive stock then perhaps but i dont think its going to grow doing what they are doing.
Short term the only real hope i see is a takeover or NZ opeing up the immirgation laws to let in more Pacific Islanders into NZ, especially with KFC and to a lesser extent Pizza Hut.
Nita some of your comments about the immigration laws and pacific islanders are foolish listen to yourself and judge yourself appropriately surely you must realise you have issues to make inflammatory comments you are not endearing yourself to anyone except the odd xenophobe.
If you have taken anything out of context then my sincerest apology. After reveiwing i can see how yo7u may have jumped to that conclusion. But let me stipulate that was not my intention so please be careful not to assume.Quote:
quote:Originally posted by Scuffer
Nita some of your comments about the immigration laws and pacific islanders are foolish listen to yourself and judge yourself appropriately surely you must realise you have issues to make inflammatory comments you are not endearing yourself to anyone except the odd xenophobe.
I will try and put things in perspective. I am speaking demographically here so lets break it down somewhat. I do not have any specific numbers and if you can prove otherwise then i am happy to be corrected.
KFC. Large % of KFC buyers are Pacific Islanders and Maoris. Their average wage and afforability makes this a logical choice. Comparing to europeans the P I's spending ratio would on KFC would far outstrip them. Bottom line. More Pacific Islanders would mean more revenue.
Pizza Hut. In a fierce competition with other Pizza company's and they are losing the battle. They now lack a USP. Its a slow death and noone seems to come up with any bright ideas how to counter it apart from maybe giving the stores a makeover.
Starbucks.
Gets a lot of the rich overseas students and profession people. This market is also now flooded but at least they have a USP.
To summarise my previous posting. How on earth do you think they are going to increase the bottom line. The market is shrinking and and RBD seem to lack direction. All is not lost as YUM have had a reasonable financial year so if they can takeover then maybe they can see some areas where it can be improved.
Finally, if i have offended any Pacific Islanders then please accept my apology. Scuffer, do tell me what is inflamatory? If not then please dont be so PC. I hope you are not offended by my comments that rich overseas students and professions make up a large chunck going to Starbucks.
What the toot is this world coming to.
I personally didn't read anything into your comments Nita other than the demographic angle. KFC's sales have historically and demonstrably been driven by a "pacific" demographic out of proportion to their disposable income. Anyone who has seen a fast food focus group or relevant market research data can see this at play. I haven't had "inside" information on this for a while but have wondered if there has been any Asian spin off as well, particularly in Auckland where the Asian demographic is now into double digits.
Hi Nita maybe I jumped the gun nice to know your not a racist.
Being a RBD shareholder with a minimum holding, I was pleased to get my annual shareholder 'bonus' in terms of a voucher for a KFC toasted wrap.
The first time I used it, the wrap was a complete disaster complete with crusty chicken! However, the girl had given me back the voucher so I felt no guilt in having a 'free' freebie as it tasted past its use-by.
The second time I used my voucher really made up for the previous disappointment. Interestingly, the voucher was again returned to me. Perhaps they felt sorry for me being a RBD shareholder?!
Today, I used it for a third time and this time they kept the voucher. Now I will have to wait to see what bonus I recieve next year...
They might have to revise there profit forcasts after your visits to KFC steve:D
Steve is eating away the RBD profit!!! LOL
As for Nito the dildo's question about growth. I would say RBD at 82 cents, the market has already priced in little to no growth for this pup. The company is worth well over $1.00. For a fast food chain to set up and move into NZ, it will be far more cost and time efficient to take out RBD to start from scratch. If a good operator is running RBD there is still potential for growth by introducing new international brands and growing existing brands. As I said previously, the market is not always right. You just have to look at WHS price of around $3 just prior to T/O announcement to see that the market is not always tight.
WELL as an overseas owner the Computer share company does not send vouchers or annual reports for there companies clients any more prob if you ask they may but it only happen of LATE.. [8D]Quote:
quote:Originally posted by Steve
Being a RBD shareholder with a minimum holding, I was pleased to get my annual shareholder 'bonus' in terms of a voucher for a KFC toasted wrap.
The first time I used it, the wrap was a complete disaster complete with crusty chicken! However, the girl had given me back the voucher so I felt no guilt in having a 'free' freebie as it tasted past its use-by.
The second time I used my voucher really made up for the previous disappointment. Interestingly, the voucher was again returned to me. Perhaps they felt sorry for me being a RBD shareholder?!
Today, I used it for a third time and this time they kept the voucher. Now I will have to wait to see what bonus I receive next year...
I've said it before gotta be worth the sp they are currently at, Burgerfuel are supposedly worth a dollar and someone is buying them HaHa!:D
At this rate i would suspect a strong possibility that Yum will make another play for RBD, especially if there are some bad results on the horizon. Within another 6 months especially if the share price hits around 70 cents.
When did Yum make a play for RBD?Quote:
quote:Originally posted by Nita
At this rate i would suspect a strong possibility that Yum will make another play for RBD, especially if there are some bad results on the horizon. Within another 6 months especially if the share price hits around 70 cents.
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.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.
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
Must be just about time for King Win Laurel to have anothjer go for RBD. Or Telstra. Or Pike River.......;)Quote:
quote:Originally posted by Steve
When did Yum make a play for RBD?Quote:
quote:Originally posted by Nita
At this rate i would suspect a strong possibility that Yum will make another play for RBD, especially if there are some bad results on the horizon. Within another 6 months especially if the share price hits around 70 cents.
Couldn't agree more Snoopy. But when do Yum become unhappy about their return out of New Zealand?Quote:
quote:Originally posted by Snoopy
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.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.
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
Why would YUM be unhappy?Quote:
quote:Originally posted by Onthemoney
Couldn't agree more Snoopy. But when do Yum become unhappy about their return out of New Zealand?
Turnover up by 40% in ten years in NZD terms. Probably up around 70% in USD terms? That equates to a 70% profit increase for YUM out of RBD since 1997. New ten year agreement for KFC signed off
If YUM are unhappy, they can let RBD management know in 2017.
SNOOPY
WE will have to move fast and get a KFC up at AULKLAND AIRPORT to feed the ARABS as they get off there private JETS.. [8D]
KFC should be in every airport and shopping malls.
GOOD one Bling, eat your heart out HALIE.. [8D]Quote:
quote:Originally posted by Bling_Bling
KFC should be in every airport and shopping malls.
Who said that there is no room for this co. to grow Pizzahut KFC and starbucks in every major airport in NZ, it works in other airports so why not here.:)
you never know the way RBD has been going burgerfuel might beat them to the airports :D
Anythings possible but I would imagine they have thought of the airports before and decided its a no go for some reason.
I recall there is a KFC in the old KL International airport, not sure about the new airport...Quote:
quote:Originally posted by Bling_Bling
KFC should be in every airport and shopping malls.
SO that's why Steve keeps missing his planes still going to the OLD INTER,, Been told ARABS love chicken but wont go near PORK.. [8D]Quote:
quote:Originally posted by Steve
I recall there is a KFC in the old KL International airport, not sure about the new airport...Quote:
quote:Originally posted by Bling_Bling
KFC should be in every airport and shopping malls.
I dont think there are many arabs in KL Bricks. I happened to pass through KL internation airport a couple of months back. They have KFC, Burger King, Starbucks but not sure about Pizza Hut.
My guess is that the overheads in NZ airports would be too high for many of the Pizza Huts etc.
Probably right Nita, Bricks its muslims that don't eat pork an arab could be any religion.:)
WHO CARES,, Do i note the RBD share price is FIRMING.. [8D]Quote:
quote:Originally posted by Scuffer
Probably right Nita, Bricks its muslims that don't eat pork an arab could be any religion.:)
I also think the price has reached its bottom and should start to climb again unless there is bad news.:)
Good article in the Independent about RBD. Makes the point that Yum makes money irrespective of how badly RBD is doing. Also has Chairman revealing that they did receive offers but considered too low to recommend to shareholders. What's there to stop a hostile offer?
Which quite co-incidently is what Snoopy said on the previous page ;)Quote:
quote:Originally posted by Balance
Good article in the Independent about RBD. Makes the point that Yum makes money irrespective of how badly RBD is doing. Also has Chairman revealing that they did receive offers but considered too low to recommend to shareholders. What's there to stop a hostile offer?
So does this mean that either Snoopy writes for the Independent, or that Snoopy has been the victim of plagiarism?[:0]Quote:
quote:Originally posted by Paper Tiger
Which quite co-incidently is what Snoopy said on the previous page ;)Quote:
quote:Originally posted by Balance
Good article in the Independent about RBD. Makes the point that Yum makes money irrespective of how badly RBD is doing. Also has Chairman revealing that they did receive offers but considered too low to recommend to shareholders. What's there to stop a hostile offer?
Stop talking up the SP! Bling wants to buy more shares at around 80 cents!!!
ps: OMG! I just saw an advert for KFC on TV with salad!!! KFC is going healthy... WOOT!
I think the Independent steals sharetrader's thunder.
Me too :)
Me too, on buying more at 80 cents was what I meant:D
A small lift in SP on lower volume than the downwards fall.
Beware[8]
UB:D
Another 5 cent fall towards Quarterly Announcement I say.Quote:
quote:Originally posted by Uniboy
A small lift in SP on lower volume than the downwards fall.
Beware[8]
UB:D
Well, I was right about the share price drop, so my earlier forecast of 75 cents is coming true.
14th September 2007
DIRECTOR: RBD: RESTAURANT BRANDS APPOINTS NEW CEO
Restaurant Brands New Zealand Limited has appointed Russel Creedy as its new
chief executive. He has been acting CEO since the departure of Vicki Salmon
in February.
Chairman Ted van Arkel announced today following an extensive global search process that Mr Creedy has been appointed CEO of Restaurant Brands. Mr Creedy was selected ahead of a number of highly qualified candidates.
"This appointment is very important for the group. We have been through a thorough process starting from a re-evaluation of group priorities and culminating in a choice of the style of leadership and experience we need to achieve a substantial improvement in performance," he said.
"During the past six months the group has undergone a full review of its operations and structure -- a process Russel has been intimately involved with -- and we expect this to be reflected in better trading results over the short to medium term.
"Russel's leadership as acting chief executive over the past six months demonstrated to us he was the right person to lead Restaurant Brands through its next phase of performance improvement and expected earnings growth. His proven ability to work with stakeholders, including key suppliers and our franchisors to secure benefits for the group, negotiate improved supply-chain relationships and reduce costs also counted heavily in his favour."
South Afrian-born Mr Creedy, 48, joined Restaurant Brands in 2001 as a supply-chain director. Later, as director of business development and supply chain, he led the group through a major expansion which included the opening of 27 new Pizza Hut, 14 new Starbucks Coffee and four new KFC outlets.
Mr Creedy, who holds a bachelor of science (chemistry) and a master of business administration from the University of Witwatersrand, South Africa, has led Restaurant Brands cost-reduction campaign during his six-and-a-half years with the group. His achievements included:
- restructuring the supply chain by setting up a contract warehouse and distribution service for all frozen, chilled and dry goods;
- negotiating various supply contracts, including a seven-year chicken supply agreement worth $280 million, generating savings for KFC in the first year alone of $7.2 million;
- managing Pizza Hut from 2003-2005, achieving good results in an intensely competitive market; and
- the recent restructuring Restaurant Brands' support centre, resulting in savings of $1.2 million.
--------
I am disappointed. The chance to introduce some new blood from outside has been lost. I remember an allegation from the AGM that Creedy was also responsioble for the decline of Pizza Hut in NZ from 2005 to 2007. If true I can see why Creedy hasn't included that amongst his lists of achievements.
Next step for me with this investment is to wait for the next set of sales figures to be released.
SNOOPY
discl: hold RBD
SNOOPY, Look on the brightside what a great chance to carry on averaging down. Macdunk
I bet you are disapoointed Snoopy .... agree with you this is an opportunity lost
So the guys who have been around the executuve table learning the tricks of the trade from Vicki remain to carrt on the tradition eh
Not many supply chain experts who can negotiate fantastic deals have the charisma to lead from the front and drive great service from those who serve the customers.
Never mind .... maybe they think the current performance is good enough
And I'm afraid the new KFC advertising is enough to drive me away from the stores.
It's okay, I'm really very presentable. But don't worry, chances are slim - I only go to KFC maybe twice a year now that the young fella's taste has turned to pizza.
Very dissapointing announcement, but then who would want to be a CEO of a company that will be sold at any day at the right price. I also agree with the advertisements. Maybe they should get a new advertising person for RBD. I will reveiw my RBD holding, may sell it down. What a joke :confused::mad:
Restaurant Brands have reported second quarter sales across its three New Zealand businesses up 5.8 per cent to $93.6 million, with same store sales up 5 per cent.
- Sales at KFC were up $6.3m in the second quarter to $60.7m. On a same store basis KFC sales were up 9.3 per cent for the quarter.
- Sales at Pizza Hut New Zealand during the second quarter were $23.1m, with same store sales declining 4%. A substantial improvement on the 8% decline in same store sales in the first quarter of the year.
- Starbucks Coffee delivered the 15th consecutive quarter of sales growth, increasing to $9.9m, with same store growth of 2.8 per cent.
NZ Herald - Restaurant Brands turns things around in Q2
Mr Chips would like to thank Mr KFC for the Total Store Sales increase of 11.7%..
Sales up slightly but no announcement about profits which in my opion will have fallen further otherwise they would be trumpeting the fact of a profit increase
The market seems to view the result positively, up 2 cents today. Wonder if they can sustain the growth pattern or is it just a one off.
Pick the positives - don't worry about the negatives
I am more of a med-long term investor, so I usually buy undervalued stocks with potential for future growth. I do have some RBD that I got above 90 cents. The current board and management hasnt given me confidence to accummulate more shares. RBD will eventually need a leader with vision and leadership to grow RBD after it restructures.
Restaurant Brands reported improved half-year results this morning:
- NPAT on continuing operations (excluding non trading items) for the half year was $5.4 million. Up 12% on the $4.9 million achieved for the prior year comparable period.
- NPAT including non trading items was $4.5 million, up $4.3 million on prior year. The prior year included a write down of the Pizza Hut Victoria investment.
- Total revenues from continuing operations (New Zealand) for the first half were $164.3 million, up $7.9 million or 5.1% on prior year.
- Interim dividend of 3.0 cents per share, fully imputed. A 20% increase on the 2.5 cent dividend paid last year, recognising improved trading conditions and cash flow.
Full results announcement
Nice result. Lets hope they can keep up the momentum. :)
ANOTHER good report KFC up 8% so Mr Chips will be up 8% as MCH. sends 50% production of chips now goes to Australia the company now does not have rely on RBD that much as in the past, Good on the customers for eating well don't worry all pizza will soon be GONE..
There is a war in the high streets and suburban shopping centres of NZ, as pizza chains jostle for market position, the big boys will win in the end the smaller private pizza chains will slowly fall by the wayside, the cut price deals at some are so cheap you have to wonder if they are trying to buy the publics custom, I personally know of one small pizza shop offering a deal on a large pizza for $3, this sort of trading cannot last, there will be shops closing.
DO you buy any at $3 as I don't like them any price is dear, But look at this way RBD just closed down 7 Pizza Red roof huts in the last Quarter well that puts 70 - 80 people out of work our company doing its bit for the unemployed...
I got back from my Christmas break finding that RBD had hit my 'stop buy'. So I am now the proud owner of more RBD shares, bought at 87c. I can't remember exactly when I put the order in. It was probably a couple of months ago. I guess it just shows that 'price favours the patient'.
In a nutshell KFC is doing better than expected, and the threatening Ozzie invader 'Red Rooster' has been confined to a couple of 'hen runs' in Auckland.
Starbucks is doing OK, and I reckon it is now marginally profitable even including the head office cost allocation millstone. However Starbuck's main purpose seems to be to provide new director Sue Suckling with something to do and keep her away from meddling (sic) with the old boys network controlling KFC and Pizza Hut, rather than to earn any serious money for shareholders. Personally I think Starbucks should be sold back to the master franchisor. That would release enough cash to pay down some of that RBD debt, without affecting overall profit much, and allow management to focus more on the real problems the company faces.
Pizza Hut is getting smaller but not at a rate fast enough to compensate for the shrinking profitability of the pizza market. They are losing money and remain the problem area for the company. I really wanted to see PH turn before I invested more. But progress in the other divisions has outstripped my expectations, which is why I put my 'buy' order in - at the right price.
SNOOPY
discl: Hold RBD, average entry price now $1.23
I just knew I would cajoule you into replying Macca. I expected one of your usual raving responses though, not that you would turn my own words against me! I think you are getting better at this. Anyway it's a fair call.
I did some retro-arithmetic on the case I presented to 'Judge Mick'. It looks like the average share price I paid was $1.36 in October 2005, not the $1.26 I stated at the time. Not sure if it was just a typo but it does make sense that I have reduced my average purchase price by more than 3cps, given all the 'sub dollar' purchasing I have done since 2005.
You think I am on the road to oblivion with RBD? I have been giving other retailers the 'once over', in particular STU, HLG and MHI, to see if I should 'cut my losses' and switch. While all of those companies are IMO better companies than RBD, they are not compellingly better value. So I have decided to 'stay put' and add to my position in RBD - in a measured way of course. And thanks to 'value averaging' the lower the share price goes, the more shares I can buy for my dollar.
I am not quite sure why I bothered to work out my average buy price into RBD. Probably because you think it is important and I think it is important to present a 'warts and all' picture. However all of my share purchases are 'future focussed' and 'portfolio balancing focussed'.
I wanted more shares in retail and I still think it is worth 'hanging in there' with RBD for the recovery potential. I admit to having a bias for investing in firms dealing in food because people have to buy food no matter what the state of the economy. In a 'down market' today, RBD was up nearly 2.5%. That is the kind of performance I am after.
SNOOPY
discl: hold RBD
Snoopy i see you were the only investor to select RBD in the share investor contest along with TUA. GOOD LUCK MATE YOU CERTAINLY NEED IT. Macdunk
I am much more interested in what the professional investors are doing with RBD than what is popular Macdunk. Like for instance director Danny Diab who as at 27th November 2007 held 4,000,000 (4m) RBD shares.
4m shares is up from the 3.444m shares he held as at 1st April 2007. Going back through the shareholder reports we find Danny's holding was 3.444m shares on 9th March 2006, 3.444m shares as at 31st March 2005, 3.444m shares as at 29th February 2004, 3.312m shares as at 28th February 2003, 3.100m shares as at 28th February 2002, 3.1m shares as at 31st December 2000, 2.5m shares as at 31st December 1999 and 2.0m shares on 21st January 1999. No holding was listed for Diab on 20th January 1998.
I can't say the exact days that Danny bought his shares. But if you regard the share price as at 30th September - somewhat near when the annual result came out - as 'indicative' it looks like Danny purchased his initial 2.0m holding where the share price was around 80c (September 1998).
The increase in shares held between December 1999 and December 2000 was 0.166m from the 1:12 bonus issue, leaving 0.333m to be purchased on market at the '30th September 1999 indicative price' of $1.30.
Danny increased his holding again by 0.6m shares at the '30th September 2000 indicative price' of $1.14 and a further 0.212m shares at the 'indicative price of 30th September 2002' of $1.72. This 2002-2003 period also corresponds to when Danny was appointed a director of the company and when RBD bought in to Pizza Hut Victoria, expecting great things. On the indicative date of 30th September 2003, Danny bought 0.132m shares at $1.25.
Danny has made no more purchases of shares until the last few months. Over that time he has increased his holding by 0.556m shares at the 30th September 2007 indicative price of 87c. Let me just repeat that point in case you didn't get it. Danny has made *no purchases of RBD shares for around four years* (all the time that RBD was expanding into Australia).
I estimate Danny's holding price for RBD shares as follows:
2,000,000 x $0.80 = $1,600,000
166,000 x 0 = $ 0
333,000 x $1.30 = $432,900
600,000 x $1.14 = $684,000
212,000 x $1.72 = $364,640
132,000 x $1.25 = $165,000
556,000 x $0.87= $483,720
I calculate from that an estimated average entry price of 93cps.
No doubt you Macdunk will claim that Danny is a fool and has 'lost money', completely ignoring all the dividends he has scooped up along the way. But even accepting the worst of your misconceptions as fact, I think you would have to be impressed by the timing of Danny's entry points to increase his position in RBD. He hasn't always got it right, but I don't think there are many shareholders around with an average entry price as low as what he has achieved.
I am putting my cash on the line that Danny, complete with his insider knowledge of the industry, has 'done it again' and that around now is the best time to invest in RBD since 2003. Or put another way it is absolutely the worst time to sell out, as you would have me do.
SNOOPY
discl: hold RBD