Results a bit underwhelming.
Remember that the franchise runs out in 19 years. This is not an ad infinitum business.
Let's be generous and say $20m per annum cashflow. Let's also assume that the growth rate roughly equals the discount rate of 10%. The cashflow is worth roughly $180m over the life of the franchise, assuming everything holds steady.
Market cap is now $120m, debt is $100m, total EV is $220m which is more than cashflow stream of $180m. I suppose you need to value the probability of Yum extending the franchise after 19 years.
Looks very marginal to me.
Results a bit underwhelming.Remember that the franchise runs out...
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Last
$7.22 |
Change
0.060(0.84%) |
Mkt cap ! $851.1M | |||
| Open | High | Low | Value | Volume |
| $7.19 | $7.26 | $7.15 | $1.844M | 255.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 4302 | $7.20 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.24 | 7250 | 1 |
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| Last trade - 16.10pm 20/06/2025 (20 minute delay) ? |
| CKF (ASX) Chart |