Hi Shane,
Domino’s Pizza (DMP) $66.15 – The franchise licence owner of Domino’s Pizza has seen its share price fall over 60% since last September even as the company continues to increase its footprint across Europe & Asia. MM is not a fan of its business model with on the grass roots level franchisees often struggling but its the contraction of valuations associated with growth stocks and reduced demand as COVID lockdowns lift that’s weighed the most. It not on our radar at present especially as sales growth slips lower.
Collins Foods (CKF) $8.76 – The company enjoys a comprehensive KFC footprint across Australia and has been expanding in Germany & the Netherlands plus it has a growing number of local Taco Bells outlets but its been a distinct market underperformer in 2022 having fallen over 40%. I would describe this as a solid but not exciting business that’s offering good value under $9 plus a sustainable 4% grossed up yield.
Australian Agricultural Co (AAC) $2.34 – MM likes exposure to food and agricultural moving forward but as a theme it feels due for a pullback. Beef company AAC has soared 60% in 2022 and it looks great but after recent gains we would be more interested into retracements from a pure risk / reward perspective.
