Tuesday, February 15, 2011

Share Price Alert: Restaurant Brands Ltd



The all-time peak for Restaurant Brands Ltd [RBD.NZX] shares was $2.76 back on October 29 but since then the share price has retreated by 29c or just over 10% to close at $2.46 yesterday.

There doesn't appear to be anything material within the company to suggest a slow down in company fortunes and there was even an NZX share price enquiry back in late Jan when the share price dropped 28 cents in a few weeks that came to nothing so the share price fall seems to be a mystery.

I can only guess that there could be cost pressures on the business from increased raw food prices and energy costs. Every staple has risen substantially over the last few months, especially this year and chicken, the primary cost for this business, has risen 10% in January alone.

While the company will have stable contracts for supply of raw food and power these costs will rise when the contracts expire. Add to this the minimum wage rise of 2% passed a few weeks ago and one can perhaps see some validity in the lower share price.

I have been uneasy about the RBD share price for some time and in November questioned the highs the share price was reaching.

There will obviously be more cost pressure as 2011 wears on so the share price is likely to retreat from its present levels unless price rises at the counter can be increased without affecting sales too much.


Share Price Alert

Mainfreight Ltd
Tourism Holdings
Goodman Fielder Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Freightways Ltd
Xero Ltd

Restaurant Brands @ Share Investor

RBD - 2011 Half Year Result
RBD - 2010 Quarter one sales
RBD - 2010 Quarter two sales


Restaurant Brands share price looking overcooked
Most Outstanding Stock of 2010: Restaurant Brands Ltd
Restaurant Brands Ltd: KFC has finally cracked it
Restaurant Brands: KFC Sales Figures Explained - Part 2
Finger Lick'n Good Management
Chart of the Week: Restaurant Brands Ltd
Long Term View: Restaurant Brands Ltd
Stock of Week: Restaurant Brands Ltd
Restaurant Brands: Buy or Sell ?
Pizza Hut sell-off provide opportunities all-round
Danny Diab & Restaurant Brands
2008-2009 KFC sales figures mislead investors
KFC Finally Flying
Starbuck's New Zealand Cup doesn't runneth over
RBD gives KFC a push
McDonald's playing chicken with KFC
Restaurant Brand's Pizza Hut faces increasing competition
RBD sales analysis
RBD saga continues: CEO leaves
The secret recipe is out
2007 FY profit analysis
Delivering increased profit in October 2007
No reason for optimism in latest sales figures

Discuss RBD @ Share Investor Forum
Download RBD company reports


New From Fishpond

A Perfect Gentleman: The Sir Wilson Whineray Story

A Perfect Gentleman: The Sir Wilson Whineray Story


Fishpond


c Share Investor 2011

No comments:

Post a Comment

Comment on Share Investor Stuff