Long have I been a knocker of Restaurant Brands New Zealand [RBD.NZX] over the last 13 years but 2010 has been a standout year for the company. In terms of sales and profit performance it has managed to raise most key indicators of success in its business, especially with its KFC brand.
It 2010 full year profit was substantially up on full year 2009 and its 2011 half year out today was a full testosterone chicken ahead of half year 2010. In fact the company is achieving record profits and looks to earn between $24 - 26 million in full year 2011.
Dividends are also well up and at all time highs.
Likewise the share price started 2010 (see 2 year chart above) out at around a buck and as I write this is trading at around $2.60, close to its all time high last reached around 13 long years ago.
Just 2 years ago the share was trading just above 50c! (see 13 year chart below)
I have to hand it to CEO Russel Creedy for turning the company around. He has been exceptional in his management from a turkey of a company when he arrived a few years back to a full blown chicken with a punch like Mike Tyson in his prime.
Beware though that there could be a touch of salmonella in the tail. While I don't expect the exceptionally poor performance of past management, the company is achieving close to peak profit in the fast food sector and its share price levels reflect this.
Even though 2010 still has more than 2 months to plod on, I have no hesitation in giving RBD the golden chicken drumstick for the best company in 2010.
I am hoping to get an interview with Russel now we are on the same page.
Well done Russ.
Restaurant Brands @ Share Investor
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RBD - 2010 Quarter two sales
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Restaurant Brands: KFC Sales Figures Explained - Part 2
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Discuss RBD @ Share Investor Forum
c Share Investor 2010
