I sold out on the morning of the results announcement. I thought that the results were pretty bad and did some back of the envelope calculations (ie: in my head as I was going for a morning walk using my phone's calculator) and came up with a share price of <$7.50. Growth looks challenged, dividend isn't all too enticing, so I've since parked my proceeds in my Ubank account earning 5.5%. No franking of course. But no volatility either. That'll do for now. Australia will always be a strong market for them. Remember when this was trading closer to $14? trading on a PE like it was a growth stock. But right now, this hasn't been beaten up enough for my liking. It had a great run in a prolonged low interest environment (like many stocks) and low inflation. You got to ask yourself, how much can outlets like KFC increase their pricings going forward? They already run on thin margins. Customers will only pay up to a certain amount for what already is poor quality food.
I think it's a good company, but I'm happy to have sold out and will keep it on my radar. Back to $7.50 and I'd be reconsidering.
CKF Price at posting:
$7.87 Sentiment: None Disclosure: Not Held
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