Business Improving at RFG, page-215

Agree - key point is that the share register is further consolidating. Many of these incoming investors are no doubt targeting 15-20 IRR on their client capital. This also comes with typically longer hold times circa 16-24 months. Given this many retail and incoming institutions will need to bid up to get access of RFG shares as the free float diminishes. One question I am considering when assessing my holding is has RFG moved from value to growth. PG is outlining international growth and roll-out of franchised and company stores in the US. If successful we could see the international segment EBITDA generating circa 40-50% of the total group. This is many multiples higher than what it is currently. The extent to which this is achieved and over what time period will govern the multiple paid. In the interim its possible that we could see the EV/EBITDA (x) re-rate in a manner similar to Dominos as their global growth occurred. Again this is speculative to but worth pondering when assessing the upside.