Retail Food Group (RFG) AI Stock Analysis

• Market Cap: AU$91.25M
• Dividend Yield: N/A
• Average Volume (3M): 212.25K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.19
• Revenue Growth: 10.13%
• EPS Growth: -353.94%
• Country: AU
• Employees: 59
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.10
• Shares Outstanding: 62,930,790
• 10 Day Avg. Volume: 124,791
• 30 Day Avg. Volume: 212,246
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$2.21
• Price Target Upside: 52.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 44 Neutral
• Price Target: AU$1.50 ▲(3.45% Upside)

Retail Food Group's overall stock score is primarily impacted by its financial performance and technical analysis. While the company shows strong revenue growth and improving cash flow, it faces significant profitability challenges. The technical indicators suggest bearish momentum, with the stock trading below key moving averages and showing oversold conditions. Valuation is also a concern due to negative earnings and the absence of a dividend yield. These factors collectively contribute to a lower overall stock score.

Retail Food Group Business Overview & Revenue Model

Company Description

Retail Food Group Limited, a food and beverage company, engages in the management of a multi-brand retail food and beverage franchise in Australia and internationally. The company operates through four segments: Bakery/Café, QSR, Coffee Retail, and Di Bella Coffee. It is also involved in the ownership of the intellectual property; development and management of coffee roasting facilities; and the wholesale supply of coffee and allied products under the Di Bella Coffee brand. The company develops and manages Donut King, Brumby's Bakery, Michel's Patisserie, Esquires Coffee Houses, Pizza Capers Gourmet Kitchen, Crust Gourmet Pizza Bar, The Coffee Guy, Café2U, and Gloria Jean's Coffees. As of July 31, 2022, it had 840 outlets in Australia and 584 outlets across 54 licensed international territories in 41 countries. Retail Food Group Limited was founded in 1989 and is headquartered in Robina, Australia.

How the Company Makes Money

Retail Food Group generates revenue through a franchising model, collecting franchise fees and royalties from its franchisees who operate under RFG's various brands. Additional revenue streams include the sale of coffee and bakery supplies to franchisees and the operation of corporate-owned stores. RFG also benefits from strategic partnerships and licensing agreements, which expand the reach of its brands into new markets. The company optimizes its earnings by leveraging economies of scale in supply chain management and implementing cost-efficient operational practices across its franchise network.

Retail Food Group Financial Statement Overview

Summary

Retail Food Group shows strong revenue growth but struggles with profitability, as indicated by negative net profit and EBIT margins. The balance sheet reflects moderate leverage and a solid equity base, but the negative return on equity is a concern. Cash flow metrics are improving, with significant growth in free cash flow, suggesting enhanced cash generation. Overall, while there are positive trends in revenue and cash flow, profitability and return metrics require attention.

Income Statement

Retail Food Group shows a mixed performance in its income statement. The company has experienced significant revenue growth, with a 77.1% increase in the latest period, indicating strong top-line expansion. However, profitability metrics are concerning, with a negative net profit margin of -10.82% and a negative EBIT margin of -10.15%, reflecting operational challenges. The gross profit margin remains healthy at 70.46%, suggesting efficient cost management at the production level. Overall, while revenue growth is promising, the company struggles with profitability.

Balance Sheet

The balance sheet of Retail Food Group presents a stable financial structure with a debt-to-equity ratio of 0.65, indicating moderate leverage. However, the return on equity is negative at -7.65%, highlighting challenges in generating returns for shareholders. The equity ratio stands at 54.08%, suggesting a solid equity base relative to total assets. While the company maintains a reasonable debt level, the negative ROE points to inefficiencies in utilizing equity capital.

Cash Flow

Retail Food Group's cash flow statement reveals positive trends, with a substantial free cash flow growth rate of 199.2%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.22, suggesting that operating activities are contributing positively to cash flow. The free cash flow to net income ratio is 0.72, reflecting a decent conversion of earnings into free cash flow. Despite past challenges, the company shows potential in enhancing its cash flow position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	137.87M	137.87M	125.18M	111.37M	102.58M	109.10M
Gross Profit	71.02M	97.14M	90.88M	54.38M	50.77M	52.19M
EBITDA	-7.69M	-3.78M	26.58M	1.42M	19.28M	24.52M
Net Income	-14.92M	-14.92M	5.79M	-8.95M	5.26M	1.46M
Balance Sheet
Total Assets	360.58M	360.58M	368.74M	348.89M	350.08M	369.76M
Cash, Cash Equivalents and Short-Term Investments	26.00M	26.00M	20.64M	22.26M	29.22M	34.65M
Total Debt	125.94M	125.94M	113.62M	110.64M	128.42M	153.38M
Total Liabilities	165.60M	165.60M	160.73M	149.18M	166.30M	191.91M
Stockholders Equity	194.98M	194.98M	208.01M	199.71M	183.78M	177.86M
Cash Flow
Free Cash Flow	11.71M	13.31M	10.32M	-4.93M	12.34M	8.41M
Operating Cash Flow	16.81M	18.41M	15.36M	-1.20M	15.43M	11.07M
Investing Cash Flow	-6.99M	-6.25M	-9.91M	-2.21M	-828.00K	1.88M
Financing Cash Flow	-3.01M	-6.80M	-7.09M	-3.61M	-20.24M	-18.43M

Retail Food Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RFG, the sentiment is Negative. The current price of 1.45 is below the 20-day moving average (MA) of 1.48, below the 50-day MA of 1.78, and below the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 37.74 is Neutral, neither overbought nor oversold. The STOCH value of 37.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RFG.

Retail Food Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTO	75 Outperform	258.32M	14.62	0.00%	3.71%	11.62%	0.00%
CKF	63 Neutral	1.25B	140.53	2.18%	2.46%	2.06%	-84.35%
GYG	55 Neutral	2.59B	176.02	0.00%	0.50%	27.40%	0.00%
DMP	52 Neutral	1.37B	-311.40	-0.56%	5.32%	-3.09%	-104.37%
RFG	44 Neutral	AU$91.25M	14.45	-6.95%	―	10.13%	-353.94%
OLI	37 Underperform	4.87M	-1.72	0.00%	―	-5.88%	-11.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Retail Food Group Corporate Events

Retail Food Group Issues Unquoted Service Rights to Employees

Retail Food Group Limited announced the issuance of 29,385 unquoted service rights under an employee incentive scheme, effective March 18, 2025. This move is part of the company’s strategy to incentivize employees, potentially impacting its operational efficiency and aligning staff interests with corporate goals.

Retail Food Group Issues Performance Rights to Employees

Retail Food Group Limited has announced the issuance of 47,945 performance rights as part of an employee incentive scheme. These unquoted securities are not intended to be listed on the ASX, reflecting the company’s strategy to incentivize and retain key personnel, which could enhance operational performance and stakeholder value.