Hi all, I've had another read of the presentation.
I think increasing DKs exposure through the DK occasions is a good move as it aims to use a new e commerce channel to reach a broader market. I note that RFG says it will also receive an e- commerce fee under this model (page 60). Not much more detail but could be another revenue stream for RFG (please let me know if I have misinterpretEd this page)
Additionally, page 48, also lists Supermarkets as a key driver for the retail industry. With the launch of DK occasions, it could be possible the next step to enter into a wholesale opportunity with a supermarket (similar to Krispy Kreme and woollies).
Overall I think the consolidation of Michelle's into GJ and Pizza Capers into Crust simplifies the company.
Again, I think it is really positive that guidance has remained the same, which should result in the largest NPAT RFG has had in over 5 years. Which should in theory lead to ongoing investment and growth into a simpler business model.
See how the August report goes.
RFG Price at posting:
6.9¢ Sentiment: Buy Disclosure: Held
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