RFG 3.17% 6.5¢ retail food group limited

It looks like they are doing similar DK rollouts in Victoria, so...

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    It looks like they are doing similar DK rollouts in Victoria, so they clearly have the capital to expand for the first time in some time. As I understand it, they are also expanding Gloria Jeans, although a lot of this is not visible in Australia as it's happening offshore.
    On the Corporate stores question, the earnings from Corporate stores should be higher (as you don't need to pay a profit margin to the franchise owner) but the return on capital is lower as you have to fund the fit out etc. As someone else mentioned, these stores also provide a good testing environment for new ideas and can also be sold to franchisees at a later date.
    I'm looking forward to seeing the discussion in the HY results and the early performance of these new stores. I would guess new stores probably take 18 months to fully ramp up, so might be an initial drag but will provide good growth tailwinds over next couple of years assuming the consumer stays in reasonable shape.
 
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