Forum Archive Index - March 2003

["Allan Potts" <ajp7079@excite.com>]

Thank you SNOOPY. Now I see the problem that the market sees.  It's a long 
story, but in a head to head contest methinks Domino's will seriously damage 
Pizza Hut in the pizza war upcoming, taking quite a bit of their market share.

Domino's is excellent in merchandising and IMHO puts out a better   product 
than Pizza Hut.  They now also sell Buffalo Chicken Kickers and Buffalo Wings, 
which while not being a threat to KFC adds a little extra to the fast food, 
couch potato types and the families in which both the mom and pop both work.

Thank you for your input.

Allan




 --- On Sun 03/02, tennyson@caverock.net.nz  tennyson@caverock.net.nz  wrote:
From: tennyson@caverock.net.nz [mailto: tennyson@caverock.net.nz]
To: sharechat@sharechat.co.nz
Date: Mon, 3 Mar 2003 00:21:46 +0000
Subject: Re: [sharechat] RBD - SNOOPY

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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