RBD - Restaurant Brands Ltd

[Bongo666]

The KFC business delivered another quarter of positive sales growth. The company’s biggest brand, contributing over two thirds of total sales, produced a sales increase of $3.0 million for the quarter to a total of $50.0 million. The $50.0 million total marks another sales record for KFC as the highest first quarter total since the inception of Restaurant Brands.

Apart from the highly misleading sales figures quoted for KFC (inflation makes this quarter far from a record) and a failure of Starbucks to once again fire it looks like RBD are starting to get things right.

KFC IS doing much better and I can attest to that from my occasional visits to buy the lovely greasy stuff - the service is vastly better and the food seems a little more consistent in quality.

Good to see Pizza Hut finally coming back from the abyss, although 1 slice of sales doesn't yet make the full Pizza. Give them a few more quarters to sort themselves out.

See attachment for more.

Further to yesterday, I am still not convinced that the bounceback in fortune for RBD is sustainable in the long-term given the companies patchy history.
I would love to see it back on track...

[Bongo666]

After many years of buying shares here and there Danny Diab has finally done it. He made the figure of 5% where he now has a substantial holding. (details in attachment below) There is clearly money in his Pizza Hut operation in OZ.

[Bongo666]

I see this stock is in the top part of the NZX 50 index again and that brokers should be buying it to fill their quotas.

Haven't we been here before and cried bucket loads when the stock was last removed?

[Bongo666]

I have added 3 attachments from one RBD thread on ShareTrader RBD thread (2004-2006). The majority of the contribution is from me (Bongo666) and it gives some history of my discussion on this company for those of you viewing this thread on Share Investor.

The thread is in 3 parts.

[Bongo666]

More info out today confirming NZ Pizza Huts being sold to owner/operators. Something that I suggested to RBD management almost 10 years ago. Clearly the owner being in the store makes the key difference between profit and loss.

I guess it is better late than never.

RBD gets a payout for the sale of the stores and an ongoing management fee - Great news for the company.

[Bongo666]

It is getting competitive out there in fast food land.(see attachment below) McDonalds are set to build at least 30 more stores over the next few years, Subway is making its mark and fish and chips is making a comeback.

RBD will find it hard but the strength of the KFC brand will guide them through.

[Bongo666]

Seems the brokers are getting over excited about this company's prospects again now that it is going into the NZX50 next week. Oh how some have such short memories about this company. (see attachment below for more)

[Bongo666]

Marketing of Pizza Hut really has stepped up a level. Very smart very aggressive. Just right for today's competitive market. Danny Diab is behind this move.

[Bongo666]

Read the letter Bruce Sheppard wrote to RBD management and their reply to it.

Note RBD debt levels will be higher as Sheppard's investigation relies on data a year old.

[Bongo666]

I could be wrong and this could be the start of a new era for Restaurant Brands - Russel might have been the right guy all along - but the profit upgrade is likely to be the high point for some time. Another peak is being reached with another through to come. The time to buy this stock was when it was well under a buck. Time to sell is now.

This is a recession based "recovery" and it will not continue forever. 15 million for the year is around the most they have ever made.

Be warned.

Restaurant Brands Profit Upgrade Announcement

18 September 2009


RESTAURANT BRANDS’ HALF YEAR PROFIT EXPECTED TO BE $8.7 MILLION

Restaurant Brands announces that it now anticipates its half year net profit after tax (excluding non trading items) for the 28 weeks ending 14 September 2009 to be in the vicinity of $8.7 million. This will be a $4.1 million (or 87%) increase on the first half last year’s result.

The improved profitability largely arises from sustained strong sales growth in the KFC brand and a continued turnaround in the financial performance of the Pizza Hut business.

The full year result is anticipated to be in the vicinity of $15 million, which is also an improvement on prior year’s $11.7m. The company will be rolling over a strong second half result for the prior year and hence the second half performance lift for the current year is not expected to be as strong.

The second quarter sales announcement will be made on 23 September and the half year profit announcement will be on 16 October.



For further information please contact:

Grant Ellis Russel Creedy
CFO/Company Secretary CEO
Phone: 525 8722 Phone: 525 8722

[utopian201]

Using TA, I wouldn't say now is the time to sell. It is refreshing to see this stock jump though.

Discl: hold RBD

[Bongo666]

Using TA, I wouldn't say now is the time to sell. It is refreshing to see this stock jump though.

Discl: hold RBD

Dont know much about T/A but you are probably right, the stock will no doubt be over bought and could go 20-30c from here.

Oh how forgetful some of us are.

Will you bail at a higher price Utope?

[Andy Diver]

I think current management have shown that they possibly can deliver the goods results wise and on a consistent basis. If they do the current share price is a cheap one.

[Bongo666]

Anyone interested in an interview with RBDs Russell Creedy?

[Trader Girl]

Anyone interested in an interview with RBDs Russell Creedy?

Yup, I would. I have been trading in and out of this company and am now out after getting in for 85c and out at $1.20

Time to kiss this one goodbuy and find greener pastures