No more Hot & Spicy, page-37

Actually spent a bit more time reviewing the 2 reports side by side and Restaurant Brands achieved similar turnover RBD $688Mil vs CKF $770Mil, however on reported NPAT RBD 37Mil vs CKF 32Mil.

RBD Market Cap - 1 Billion
CKF Market Cap - 600 Million

That tells me some interesting insights:
1. RBD might be over valued... but if its not...
2. CKF is under performing on efficiencies - the various brands are similar (Pizza Hut / Carls Jr cannot be generating a greater profit per income than a KFC, they are lower turnover businesses)
3. If CKF can execute its Europe strategy and get the profit up to similar metrics (ie increase its profits to 12% of EBITA = an extra 7 mil a year) that gets CKF annual profits to the same as RBD, which should increase our market cap to similar territory. Therefore assuming no changes in valuations metrics CKF should increase its share price to $10 to meet the 1 Billion Market Cap.

I haven't dug too deep into the income for each various brands yet - RBD does do a nice job of breaking those up for us though.

BTW (I have converted the RBD numbers from NZ to AUD at .93 AUD for every 1NZD based on Google)

Thoughts?