As someone who made money out of RFG (i.e. bought low sold high) over the past 12 months the real problem in Australia is scale and enough talented franchisees that can build a business like RFG. Most are buying a job. If you look at any of the successful international brands they have not only scale but talented master franchisees. RFG has too many small brands and needs a major expansion plan with a few quality brands that ultimately could be spun off in their own right. I don't blame the RFG Board, they just a a child of Australia. Unlike the airlines and banks there is no chance of reaching market share that qualifies for successful Australian companies of oligopoly status. Looking across the ASX unfortunately there are too many companies like RFG trying to scratch out a living in the domestic market and fighting off lawsuits etc. DYOR.
RFG Price at posting:
5.1¢ Sentiment: None Disclosure: Not Held
