Forum Archive Index - March 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Allan,
 
> 
> 
> doesn't RBD also include Kentucky Fried
> Chicken and STARBUCK'S?  
>


Yes


>
>If I'm correct in this latter statement, what  percentage of 
>RBD's net profit comes from Pizza Hut.  The percentage 
>of net profit from KFC and STARBUCK' would also be
>helpful.
> 
>


>From the 2002 RBD results:

EBITDA for KFC is $36.1m
EBITDA for Pizza Hut is $7.9m
EBITDA for Starbucks is $1.8m

I don't know if you can assume that depreciation on hardware and 
amortisation of the selling licence is the same, in proportion,  for 
each of the three chains.   But if you can this means: 

KFC makes 79% of profits, Pizza Hut 17% and Starbucks 3.9%.

Rather than size of the profit, I think the critical factor spooking 
the market is growth potential.   Pizza Hut is earmarked to 
provide most of that in the future of RBD.  Sure KFC provides most of 
the profits, but that chain is getting near saturation lewvels in 
kiwiland.  No Pizza Hut growth means no growth for RBD (in effect) as 
Starbucks stores are starting to cannibalise each other as well.

SNOOPY





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