Not impressed with how they have put the whole deal together, however what is done is done.It appears the grab for store growth numbers via acquisition takes the focus off the core business which is supporting their existing network, which I believe lost approx 50 outlets last year (of the other brands combined) which is almost 5%.
The Pizza Capers licensees would not be doing somersaults that the Crust guys have now got the keys. It must of been conditional for Crusts continued involvement that they run the show, as it could not of been a strategic move on behalf of RFG, just reactive to the sellers request (as Capers deal was done months ago).
Do they continue with both Pizza brands, or go back to just one? It doesn't make sense to have two brands doing the same thing, but taking one out of the marketplace leaves an opportunity for someone else.
They bought 4 more stores in Canberra as well. As there has been virtually nil growth in Capers since they took over they need to do this to show the numbers increasing
Signs don't look too good to me, as acquiring businesses isnt difficult, running them is.
RFG Price at posting:
$2.87 Sentiment: None Disclosure: Not Held
