RBD - Restaurant Brands

[winner69]

That's a conservative description, "SP drift", now 84% down from ATH this has destroyed untold capital and the market seems totally unconvinced that there is any hope for RBD with the solid SP downtrend continuing forging new lows!

Unbelievable really. Your mention of 2012 is poignant for me, as it was when I bought in, although I did move onto other things some years later. Since ATH August 2021 I've been watching and wondering how low can this go.

It was really cool riding RBD from under $1 to its highs and even better taking the profits in 2022

I also had SUM from their early days and often said ‘I’ve made more dosh from greasy chicken and chips than from a retirement village’ ….. didn’t seem right

It started going all wrong when that outfit took 75% of RBD and pressed ahead with global expansion.

[Rawz]

It was really cool riding RBD from under $1 to its highs

I also had SUM from their early days and often said ‘I’ve made more dosh from greasy chicken and chips than from a retirement village’ ….. didn’t seem right

You looking for another ride? Or not yet

[winner69]

You looking for another ride? Or not yet

Can’t see another ride on the horizon Rawz

RBD was always overvalued …even when it was $1 but sentiment kept getting better as share price keep going up. At the moment not cheap and I can’t see punters getting too excited in the future.

I also have bad feeling that the CEO and CFO put in by Grupo Finaccess have an agenda where minority shareholders aren’t top of mind.

[Sideshow Bob]

Snoop Dog - are you still holding??

[Snoopy]

Snoop Dog - are you still holding??

Yeah still here Bob, with my residual holding of 'free carry'. When I get time I will say something sensible. But right now I have some bigger fish I am frying, which requires the full attention of this chef's hat.

SNOOPY

[winner69]

Updated old stuff.

NPAT trends over the years below. Takebout one extraordinary year hardly inspiring ……in context of sales doubling over recent years

Maybe different picture when sales reach 2 billion

I,’ll just keep watch in meantime

[bull....]

wonder if RBD is in takeover play or merger talks ?

Collins Foods is looking to increase its store count through M&A activity ( collins foods is AUS KFC CHAIN )

https://www.theaustralian.com.au/sub...haviour=append

[winner69]

In the days when I had a morbid fascination with things RBD on of the things I looked at was a Du Pont Analysis

Essentially this looking at the main components of where ROE comes from …. Profit Margin X Return on Assets X Financial Leverage

From F19 to F23 RBD’s ROE has declined from 16.5% to 5.5% which isn’t that great eh

The drivers have been Profit Margin down from 4.6% of sales to 1.1% with ROA (Sales/Assets) declining from 1.8 times to a miserly 1.0 times and Financial Leverage (Aassets/Equity) going from 2.0 times to 4.9 times.

Brief summary the global expansions and acquisitions since 2019 have added $965m to the asset base but only increased sales by $570 with and significantly increased leverage

For what they’ve spent the increase in sales is rather pathetic …no wonder they talk about getting to $2 billion sales ..one day. And lower profit margins have compounded the problem. The increased leverage (a lot more debt) hasn’t helped boost ROE either.

I’d say a lot if things need to go right for RBD to return to healthy returns ….simple things like a lot more sales and higher margins.

Hard to see this happening that quickly.

I’ll keep watching to see how things turn out

[Valuegrowth]

winner69 wrote:

"From F19 to F23 RBD’s ROE has declined from 16.5% to 5.5% which isn’t that great eh

The increased leverage (a lot more debt) hasn’t helped boost ROE either."

Falling ROE and rising debt are early warning signs. I like to watch and accumulate companies with rising ROE, cash flow and falling debt. This what I have been doing over the last 10 years.

[nztx]

What will be the likely outcome if it tips over - anyone ?

The South American major stakeholder have buckets full of dough to come to the rescue or not ?

Don't have to look far to see how Retail is doing lately here ..