Dominos Pizza is a $3.8 billion dollar company. From a share price low of barely $3 the stock rocketed to $160 over a number of years. These days it's trading more sedately in the late $40s.
Contrast that to RFG, which has recovered from its near death experience. Current market cap is roughly $125 million, down from a high of $1.4 billion at its peak. The share price collapsed from roughly $7 to just over 5c yesterday.
RFG has quality brands that can be improved now that the company has learnt from its mistakes.
Gloria Jeans is by far the most famous of its brands, with presence in dozens of countries. Not many coffee chains can boast the same. And there's talk of a JV with Wendy's.
Yes, there'll be headwinds. But in a decade from now there should be no reason why RFG's market cap should match or exceed Dominos.
RFG Price at posting:
5.4¢ Sentiment: Buy Disclosure: Held
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