Cheers jd2, I like your thinking. One point you've raised regarding the margins that they are now making selling coffee to all their franchisees is quite a valid one and something I hadn't considered. I think you're right in that it is probably quite profitable. On the flip side if they go too far and charge franchisees too much for the coffee (and franchisors sometimes do skim too much off in margins and kickbacks) they could shoot themselves in the foot long term by reducing the profitability of their franchisees, small differences can make marginal stores not viable. I don't think there are any immediate concerns in this business considering they've just refinanced out to 2020, unless they go too far with more acquisitions. However I do think that on a per share basis this stock has become gradually riskier and less profitable, when considering the overall picture of net assets per share, net tangible assets per share, debt per share, eps, cashflow per share.
RFG Price at posting:
$4.51 Sentiment: Sell Disclosure: Not Held
(20min delay)