OLI

41.7%

1.7¢ oliver's real food limited

"They've obviously tried to cushion some of the food increases...

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plough

33,732 Posts.

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17/03/23

12:45

Post #: 66822676
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Originally posted by bcc_100 ↑

I don't think it matters which way you do it, but wages need to land between 25%-35% of sales. I remember baulking at OLI, even though I really liked the idea and thought the food was pretty good, because the food was quite expensive and the wages bill up around 45%. Even allowing for some head office overhead in that employee expense it was difficult to see how they would ever make money – they needed to drop food prices, but there was nowhere for them to absorb that on the cost side.

The last "clean" HY report (ie no bushfires, no covid, no floods) is from HY19. Food+Labour as a % of revenue in that half was 27%+55%=84%. To me it seemed if they couldn't get their labour costs down, and as I said their restaurants had the organisation of a Bunnings sausage sizzle, then they just didn't have any slack on the food side to absorb a price increase. Fast forward to the last HY and we see 38%+34.5%=72.5%. Still on the high side, but these costs have been cut at a time that anyone selling food has been dealing with some pretty savage food inflation, so credit where credit's due, imo. They've obviously tried to cushion some of the food increases with the wage savings.

I'd like to see a bit more of this progress before I'd consider buying, but it seems as though at long last there is some hope for these guys. Early days. You guys who have held on deserve some good news. You've certainly earnt it!

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"They've obviously tried to cushion some of the food increases with the wage savings."

I do not see that as obvious , be good to see more promotions though to increase traffic so increases sales per worker at say off peak times ie early bird specials ? , we are looking in the motel industry with increasing our occupancy considerably ie looking to work with an onsite restaurant ,that is not owned by the motel . could OLI synergise a promotion with other companies ?

OLI Price at posting: 2.3¢ Sentiment: Hold Disclosure: Not Held
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Last 1.7¢		Change 0.005(41.7%)		Mkt cap ! $7.492M

Open	High	Low	Value	Volume
1.3¢	1.7¢	1.3¢	$1.263K	75.92K

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No.	Vol.	Price($)
1	21365	1.3¢

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Price($)	Vol.	No.
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No.	Vol.	Price($)
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2	677272	0.011
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0.018	66623	2
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"They've obviously tried to cushion some of the food increases...

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"They've obviously tried to cushion some of the food increases...

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