KFC and Taco Bell franchise owner CKF is up +36% year-to-date aided by a beat on FY23 earnings in June, with revenue up 14% to $1.35bn and NPAT of $51.9mn around 8% better than expected as unlike many businesses, they didn’t suffer badly from rising costs. With people expected to tighten their belts further into and after Christmas, this relatively cheap dining experience should fare relatively well if times become tough, i.e. in theory, fast foods are recession-proof.
- We can see CKF testing above $10.50 into 2024, but again, we would consider fading such a move on risk/reward grounds.
MM is cautiously bullish toward CKF
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