Share Investor

Wednesday, August 3, 2011

Collins Foods IPO

Lets jump across the ditch for a while to look at the impending IPO of Collins Foods, the franchisee of YUM! Brands Inc [YUM]that operates the 119 store KFC chain in Queensland and the 85 unit Sizzler business.

The best way to compare the merits or otherwise of this IPO is to make a comparison with the NZ franchisee of KFC, Pizza Hut and Starbucks in New Zealand, Restaurant Brands Ltd [RBD.NZX].

The latest figures that we have for Collins Foods is in their prospectus and for Restaurant Brands their 2011 Annual Report, although we will look at the 1998 Annual Report for RBD to get a comparison between the two companies at the time of their respective IPOs.

Not all figures and ratios are available for Collins Foods.

The Stats

Restaurant Brands - Compiled from 1998 & 2011 Annual Reports

	1997	2011
Net Profit	11.1	25.1
Sales	216.8	324.4
EPS	13.1	24.6
Net Debt	58	29.5
Net Cashflow	18.3	40.5
Store Numbers	124	208
NTA per share		37.4
PE Ratio		9.64
Market Cap		235
Div Yield		7.08
Net Margin		7.48

* Figures in NZ dollars

Collins Foods - Compiled from 2011 Prospectus

	1997	2011
Net Profit		22.8
Sales		410.8
EPS
Net Debt - Proforma		123.7
Net Debt - Audited		228
Net Cashflow		15.4
Store Numbers		202
NTA per share
PE Ratio
Market Cap		232.5
Div Yield		6.4
Net Margin

*Figures in Australian dollars

The most interesting part of this IPO is that of the $232.5 million raised $105 million will be used to pay down the $228 million debt mountain that has accrued under the ownership of Pacific Equity Partners, so shareholders are basically paying back the banks by buying shares.

The RBD IPO had shares valued at $NZ 2.20 each with roughly a $200 million market cap, while the Collins Foods IPO has a $2.50 IPO share price with a market cap of around $AU230 million.

While the RBD IPO and subsequent performance of the company foundered for many years and failed to meet IPO expectations the company is now in relative health and has grown over the last 3-4 years.

Collins Foods is laden with debt and has had a very patchy last few years in terms of sales and profit.

When comparing the two companies one can clearly see the value in RBD over Collins Foods. Better profit on less sales, indicating far better margins and less debt on the books.

Investors would be far better off buying RBD shares than Collins Foods and it will be interesting to watch what happens across the tasman with Collins now that it is listed and RBD managment have indicated that they are still interested in expanding there given the right opportunities.

Avoid.

Collins Foods

Prospectus

Restaurant Brands @ Share Investor

KFC Doubles up on Double Down record one day sales
Share Price Alert: Restaurant Brands Ltd
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

c Share Investor 2011

Monday, August 1, 2011

The Share Investor Portfolio is likely to be substantially down over the next few days due to the US debt crises and a failure of a vote on compromise by Rebublicans in the senate just hours ago but was marginally up in the forth week of July. The portfolio was up by 0.22% or $593.45 on the July 22 update . For the first 29 weeks of 2011 the portfolio has increased by 14.17 % or $36226.99 . A 5c rise for the WHS and 25c increase for MFT contributed the most to the upside but a broad drop in most of the other stocks kept any gains in check.

The total of unspent dividends and interest in the bank as at 26 May from the 2010 - 2011 earnings years is $25382.95 at close of reporting season for 2010 and at the end of the 2011 1st half reporting year. There are also approx $55000.00 in tax credits earned from the portfolio since it began in late 2002.

The Share Investor Portfolio has increased in value by 18.96% or $49984.13 since I began tracking it for this blog on October 11 2010

Track the Share Investor Portfolio 2 .

Share Investor Portfolio as at 17:30:00, Friday 29 July, 2011 (NZT)

Stock

Quantity

Cost price

Total cost

Market price

Market value

Change

AIA

2,000

$1.700

$3,400.00

$2.260

$4,520.00

$1,120.00

32.94%

AIA

2,000

$1.510

$3,020.00

$2.260

$4,520.00

$1,500.00

49.67%

AIA

558

$0.000

$0.00

$2.260

$1,261.08

AIA

754

$2.150

$1,621.10

$2.260

$1,704.04

$82.94

5.12%

ASBPB

3,109

$0.000

$0.00

$0.763

$2,372.17

ASBPB

6,891

$1.000

$6,891.00

$0.763

$5,257.83

$1,633.17

23.70%

BGR

619

$0.000

$0.00

$1.410

$872.79

BGR

2,381

$0.990

$2,357.19

$1.410

$3,357.21

$1,000.02

42.42%

FBU

284

$0.000

$0.00

$8.130

$2,308.92

FBU

830

$9.750

$8,092.50

$8.130

$6,747.90

$1,344.60

16.62%

FPH

3,000

$2.350

$7,050.00

$2.500

$7,500.00

$450.00

6.38%

FPH

1,365

$3.720

$5,077.80

$2.500

$3,412.50

$1,665.30

32.80%

FPH

635

$0.000

$0.00

$2.500

$1,587.50

FRE

2,054

$0.000

$0.00

$3.400

$6,983.60

FRE

6,577

$3.630

$23,874.51

$3.400

$22,361.80

$1,512.71

6.34%

GFF

586

$0.000

$0.00

$1.160

$679.76

GFF

1,414

$2.330

$3,294.62

$1.160

$1,640.24

$1,654.38

50.21%

HLG

299

$0.000

$0.00

$3.550

$1,061.45

HLG

701

$2.530

$1,773.53

$3.550

$2,488.55

$715.02

40.32%

KIP

763

$1.480

$1,129.24

$1.010

$770.63

$358.61

31.76%

KIP

237

$0.000

$0.00

$1.010

$239.37

MFT

1,000

$7.960

$7,960.00

$10.500

$10,500.00

$2,540.00

31.91%

MFT

1,838

$8.000

$14,704.00

$10.500

$19,299.00

$4,595.00

31.25%

MFT

1,375

$4.200

$5,775.00

$10.500

$14,437.50

$8,662.50

150.00%

MFT

787

$0.000

$0.00

$10.500

$8,263.50

MHI

1,646

$0.860

$1,415.56

$0.920

$1,514.32

$98.76

6.98%

MHI

7,000

$0.630

$4,410.00

$0.920

$6,440.00

$2,030.00

46.03%

MHI

494

$1.050

$518.70

$0.920

$454.48

$64.22

12.38%

MHI

860

$0.000

$0.00

$0.920

$791.20

PPG

$0.000

$0.00

$0.240

$7.44

PPG

1,500

$0.440

$660.00

$0.240

$360.00

$300.00

45.45%

PPG

1,004

$0.800

$803.20

$0.240

$240.96

$562.24

70.00%

PPL

1,000

$3.090

$3,090.00

$1.050

$1,050.00

$2,040.00

66.02%

PPL

1,000

$2.870

$2,870.00

$1.050

$1,050.00

$1,820.00

63.41%

PPL

939

$4.200

$3,943.80

$1.050

$985.95

$2,957.85

75.00%

PPL

975

$0.000

$0.00

$1.050

$1,023.75

PPL

1,086

$1.530

$1,661.58

$1.050

$1,140.30

$521.28

31.37%

RYM

555

$0.000

$0.00

$2.700

$1,498.50

RYM

4,445

$1.970

$8,756.65

$2.700

$12,001.50

$3,244.85

37.06%

SKC

5,750

$7.430

$42,722.50

$3.680

$21,160.00

$21,562.50

50.47%

SKC

1,000

$7.600

$7,600.00

$3.680

$3,680.00

$3,920.00

51.58%

SKC

2,750

$7.700

$21,175.00

$3.680

$10,120.00

$11,055.00

52.21%

SKC

1,431

$8.750

$12,521.25

$3.680

$5,266.08

$7,255.17

57.94%

SKC

272

$4.720

$1,283.84

$3.680

$1,000.96

$282.88

22.03%

SKC

25,712

$0.000

$0.00

$3.680

$94,620.16

STU

$0.000

$0.00

$2.500

$195.00

STU

303

$4.740

$1,436.22

$2.500

$757.50

$678.72

47.26%

WHS

4,500

$3.730

$16,785.00

$3.540

$15,930.00

$855.00

5.09%

WHS

6,979

$6.000

$41,874.00

$3.540

$24,705.66

$17,168.34

41.00%

WHS

$3.710

$55.65

$3.540

$53.10

$2.55

4.58%

WHS

3,506

$0.000

$0.00

$3.540

$12,411.24

30.79%

	Total cost	Market value	Change
	$269,603.44	$352,605.44	$83,002.00

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c Share Investor 2011

Share Investor

Wednesday, August 3, 2011

Collins Foods IPO

Monday, August 1, 2011

Share Investor Portfolio: Value @ 29 July 2011

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