Of that $249 million, $23o million is in goodwill.
I would agree that the KFC brand is definitely a saleable asset, but at what value?
How much of that $230 million belongs to Sizzler?
I would've also said that Dick Smith's goodwill was a saleable asset 12 months ago (the beauty of hindsight).
Goodwill includes things like market penetration, effective advertising, labour relations and a superior operating team.
When your Goodwill outweighs your tangible assets, I don't think you can genuinely include its entirety in your analysis.
Disclaimer: I do like CKF as a company and I would consider buying if the price was right, but I think their intangibles (and their debt) are issues that need to be addressed.
CKF Price at posting:
$3.85 Sentiment: None Disclosure: Not Held
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