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Retail Food Group Limited (AU:RFG)
:RFG

Retail Food Group (RFG) AI Stock Analysis

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AU

Retail Food Group

(OTC:RFG)

Rating:58Neutral
Price Target:
AU$2.00
▲(2.04%Upside)
Retail Food Group shows promising recovery signs with strong revenue growth and improved margins. However, the stock faces challenges in profitability consistency and cash flow stability. The technical indicators suggest bullish momentum, and the valuation is reasonable with a moderate P/E ratio. Absence of dividend yield and lack of earnings call data somewhat limit the overall attractiveness.

Retail Food Group (RFG) vs. iShares MSCI Australia ETF (EWA)

Retail Food Group Business Overview & Revenue Model

Company DescriptionRetail 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 MoneyRetail Food Group generates revenue primarily through its franchising model, where it earns income from franchise fees, royalties, and sales of products to franchisees. The company charges upfront fees for granting franchise rights and ongoing royalties based on a percentage of franchisee sales. Additionally, RFG supplies ingredients, consumables, and equipment to its franchisees, creating another revenue stream. The company also operates some outlets directly, generating income from direct sales. Strategic partnerships and supply agreements further bolster RFG's earnings by expanding its product offerings and market reach.

Retail Food Group Financial Statement Overview

Summary
Retail Food Group is experiencing a recovery phase with noticeable improvements in revenue growth and gross profit margins. Despite these strengths, the company faces challenges in sustaining profitability and maintaining consistent cash flow stability. The balance sheet shows moderate leverage and a healthy equity base, but the ROE remains low. Overall, while there are positive trends, the company needs to focus on improving profitability and cash flow consistency to enhance financial stability.
Income Statement
56
Neutral
Retail Food Group has shown improvement in revenue with a growth rate of 12.4% from 2023 to 2024, which is a positive indicator. Gross profit margin improved significantly to 71.8% in 2024, up from 48.8% in 2023. However, the company is struggling with profitability, as indicated by negative EBIT margins in recent years, although there was a positive turnaround in net income in 2024, showing a net profit margin of 4.6%.
Balance Sheet
48
Neutral
The company's debt-to-equity ratio is 0.55 in 2024, which indicates a moderate level of leverage. The equity ratio stands at 56.4%, reflecting a healthy proportion of equity financing. Return on equity (ROE) is 2.8% in 2024, which shows slight improvement but remains low, indicating limited effectiveness in generating profit from shareholders' equity.
Cash Flow
60
Neutral
Operating cash flow turned positive in 2024, showing a substantial recovery from negative figures in 2023, which is a good sign. The free cash flow to net income ratio is 1.78, indicating strong cash generation relative to net income. However, historical fluctuations in cash flow metrics suggest some instability in cash flow management.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue136.81M125.18M111.37M102.58M109.10M126.40M
Gross Profit76.14M90.88M54.38M50.77M52.19M47.69M
EBITDA24.90M26.58M1.42M19.28M24.52M48.11M
Net Income8.90M5.79M-8.95M5.26M1.46M-3.99M
Balance Sheet
Total Assets374.67M368.74M348.89M350.08M369.76M437.50M
Cash, Cash Equivalents and Short-Term Investments21.43M20.64M22.26M29.22M34.65M40.25M
Total Debt112.89M113.62M110.64M128.42M153.38M177.66M
Total Liabilities158.95M160.73M149.18M166.30M191.91M261.41M
Stockholders Equity215.71M208.01M199.71M183.78M177.86M176.09M
Cash Flow
Free Cash Flow13.05M10.32M-4.93M12.34M8.41M-5.79M
Operating Cash Flow18.06M15.36M-1.20M15.43M11.07M-3.83M
Investing Cash Flow-4.38M-9.91M-2.21M-828.00K1.88M-279.00K
Financing Cash Flow-13.23M-7.09M-3.61M-20.24M-18.43M31.09M

Retail Food Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.96
Price Trends
50DMA
1.85
Positive
100DMA
1.90
Positive
200DMA
2.24
Negative
Market Momentum
MACD
0.05
Negative
RSI
55.54
Neutral
STOCH
43.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RFG, the sentiment is Neutral. The current price of 1.96 is above the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.85, and below the 200-day MA of 2.24, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 55.54 is Neutral, neither overbought nor oversold. The STOCH value of 43.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:RFG.

Retail Food Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$16.67B10.96-6.97%3.00%1.72%-24.21%
AURFG
58
Neutral
AU$123.97M13.644.31%21.87%
$676.77M95.182.40%2.73%
$1.11B115.622.09%5.21%
DE36S
€1.81M
AUMTO
76
Outperform
AU$235.44M13.858.49%5.18%3.76%-26.42%
AUGYG
55
Neutral
AU$2.94B-1.13%26.77%51.19%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:RFG
Retail Food Group
1.96
-1.17
-37.34%
CLLFF
Collins Foods
4.64
-1.13
-19.58%
DPZUF
Domino's Pizza Enterprises Limited
13.25
-9.94
-42.86%
DE:36S
Oliver's Real Food Ltd.
AU:MTO
Motorcycle Holdings Ltd.
3.11
1.97
172.81%
AU:GYG
Guzman y Gomez Ltd.
28.19
0.39
1.40%

Retail Food Group Corporate Events

Retail Food Group Issues Unquoted Service Rights to Employees
Mar 18, 2025

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
Mar 18, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025