Thanks for the report. As you highlighted correctly , chicken and potato prices have come back. Offsetting that, rental/lease rates continue to climb , as well as huge min wage increases in California and to a lesser extent Nz and aust. I think it’s been oversold and will slowly recover after its peak in mid 2021 . The main problem with RBD is free cashflow is minimal .. debt never gets paid down, dividends are now unlikely to be fully imputed due to the level of overseas operations. Have a look at free cashflow levels over a long period … funds always get eaten up by store modernisations or refreshes etc.
for sure, I am out btw. H1 was somewhat disappointing, it was a shorter term trade for me(partly because of the reasons you mentioned) and usually Id give it a couple more quarters but a way better opportunity has come up and I have sold for opportunity cost reasons.
Thanks for the report. As you highlighted correctly , chicken and potato prices have come back. Offsetting that, rental/lease rates continue to climb , as well as huge min wage increases in California and to a lesser extent Nz and aust. I think it’s been oversold and will slowly recover after its peak in mid 2021 . The main problem with RBD is free cashflow is minimal .. debt never gets paid down, dividends are now unlikely to be fully imputed due to the level of overseas operations. Have a look at free cashflow levels over a long period … funds always get eaten up by store modernisations or refreshes etc.
for sure, I am out btw. H1 was somewhat disappointing, it was a shorter term trade for me(partly because of the reasons you mentioned) and usually Id give it a couple more quarters but a way better opportunity has come up and I have sold for opportunity cost reasons.