Member Info for MacDonalds

@lavenonews Can you elaborate why you think that Boom is so inferior?

The return on capital is quite similar for both divisions. Boom is a high turnover, low margin business and EH is a low turnover, high margin business. The Capex investment and landlord incentives are quite similar. But in the end what counts is Return on Capital (which is similar).

What I think is that EH works everywhere (even in smaller cities) while Boom works best in prime locations which narrows the market quite a bit for Boom and makes bidding more competitive, especially in sight of competitors like Lane 7 or Roxy.

Talking about the latter, they both have similar concepts like Boom so I wouldn't say Boom does not work. I looked at the financials from Lane 7 doing largely what Boom does and they are exceptionally good (check this in the company's house db).

The results today is a quite significant strategic shift, placing all the weighting on EH in future. I actually like this as I see the value proposition of EH more unique with less competition. It's also an easier business to manage overall. I also like the aggressive roll-out targets and ambition to double EBITDA. Not sure about buybacks and dividends looking at the huge opportunity.

But share price should appreciate results from today. Accounting profits will come.

Why would he exit? Because he realised that Henry Spain would not vote for a liquidation? Why did he increase just to sell out everything after that. He must know something..

Quietly up 20% over the last month. Company can be worth between 40m and 80m. Do your math.

Henry Spain still increasing every day. Does anyone have a strong opinion about what option he would likely prefer? I hope liquidation?

They are highly profitable, few people seem to get it, because they don't know how to treat leases and capital expenditure. XPF reinvests cash earned at a rate of 40%+ and you buy XP Factory at a 20% FCF yield. If you can do some basic math you know where cash will be in 1-3 years and where the stock could be. Owner-operated businesses trade sometimes at 5x FCF, but you rarely find business with ROCEs of 40%+ trading at such levels. People also don't get the economics of local store businesses, because they compare them to recurring revenue businesses what they obviously are not. For local store business it's all about occupying high-footfall territory and once you are settled there, people will come.