Wednesday, October 20, 2010

Most Outstanding Stock of 2010: Restaurant Brands Ltd

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

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

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 2010

No comments:

Post a Comment

Comment on Share Investor Stuff