Yep, maybe early warning signs of things to come. Not specific to GJ of coarse. Lots like to believe these types of businesses are recession proof but in reality they tend to be the canary in the coalmine. Even if sales were not to drop much, some of the franchisees are financed to the hilt to get into the business in the first place.
Small business all over the place got addicted to historically low interest rates and sales to customers who were in the same position. Interest rates now aren't overly high as peaks go but its a huge shock after a number of years of virtually free money. The leverage is too high all over the shop. Promises that it won't last long by entities with vested interests in keeping people spending haven't come to fruition and people and businesses who have been hanging on for the promised reductions are now having to face reality.
It doesn't help that the federal govt is actively fighting against the reserve bank and undermining efforts to get inflation and interest rates under control as quickly as possible. Smoke and mirrors efforts will cause longer term pain.
RFG Price at posting:
6.7¢ Sentiment: None Disclosure: Not Held
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