KFC Europe revenue is only 123m, which comprises of 13% of total revenue. So despite it being lack lustre, it is not a huge factor in the grand scheme of things. Hopefully we turn things around there by having the same SSS growth in Australia when digital initiatives was rolled. Also don’t forget, Drew O Malley (future CEO) only joined CKF in 2017 and he’s had great success growing KFC and Pizza Hut in Central Europe previously with Yum. In time I believe he will get CKF European portfolio firing.
I think punters started digesting ing the news properly, realising it was undervalued given the sharp unwarranted drop after the planned CEO exit and a good quarter. We are basically where we few weeks ago.
Last factor I believe investors have digested is the increasing dividend. CKF is a growing company that has also been steadily raising the dividend, attracting a new set of investors. If you buy at current prices, yield is round 2.3%. In time it could easily be 5% or more depending how long your initial cost is.
CKF Price at posting:
$8.34 Sentiment: Buy Disclosure: Held
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