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12/03/18
00:13
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Originally posted by AlCp
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They will have around $13M of ash outflow this half which RFG indicated isn't required, and the new business (i.e. master licenses) that they invested in last half will start to see revenue in this half.
We know a majority of their assets are intangible so the way of reinvesting is purchase new brands or expand their brands (which they did).
Or reinvest in the current franchisees but how much is the cost split between the 2.......
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Poor acquisitions trying to paper over a declining business is one of the things that has got them in this mess to start with.
They are closing uo to 200 stores and only 1 third are company stores. That is a lot of franshise fees yhat will come straight off ebitda and npat.
How people.can see these store closures as ebitda positive is beyond my comprehension