Fund Manager Summary on Retail Food Group Ltd (ASX:RFG)
In December 2025, Collins St Asset Management commented that Retail Food Group Ltd (ASX:RFG) has rebuilt and returned to growth in 2025—launching a new brand and delivering revenue growth of 13% and EBITDA growth of 2%—but remains undervalued at about 8x 2026 earnings with potential to rerate to 12x given likely catalysts such as a reinstated dividend and continued accumulation by Riguad/United Petroleum. Overall, fund manager commentary on RFG weighs recent constructive signals more heavily: managers note a multi-year turnaround marked by portfolio rationalisation, strengthened franchise relationships and renewed unit growth (RFG reporting about 750 domestic stores mid‑2025 and ~1,200 stores globally by late 2025), but they also flag material risks including residual restructuring costs that have muted EPS and a mid‑2025 trading setback plus a CEO resignation that prompted at least one manager to sell; strategic considerations include a concentrated >20% stake held by the Hirsch/United group and potential synergies with United’s retail network (notably Pie Face), which increase the likelihood of corporate activity, while actionable drivers to monitor are dividend reinstatement supported by A$51 million in franking credits, execution of franchise roll‑out (including Firehouse Subs), margin recovery post‑restructuring, and whether market multiple expansion occurs toward peer levels (managers previously cited peers at ~15–20x and historic commentary estimating 8.5x).
Commentary From The Managers
There are 7 insights from 2 fund managers regarding their investment in Retail Food Group Ltd (ASX:RFG) available on Thesis Tracker.
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Commentary From The Managers
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in Retail Food Group Ltd (ASX:RFG)?
Fund managers including Collins St Asset Management and Renaissance Asset Management have invested in Retail Food Group Ltd (ASX:RFG).
Why do fund managers invest in Retail Food Group Ltd?
Fund managers invest in Retail Food Group Ltd due to its turnaround potential and strong asset base. The company has successfully refined its offerings and exited underperforming locations, now operating 750 stores with well-known brands. The presence of significant shareholders, like United Petroleum, indicates confidence in future growth and potential synergies. Currently valued at an estimated 8.5x earnings, many believe the stock is undervalued compared to peers trading at higher multiples, enhancing its risk/reward profile for investors.
What happened to Retail Food Group Ltd (ASX:RFG)?
There have been no recent updates from fund managers regarding Retail Food Group Ltd although fund managers including Collins St Asset Management have previously commented.
What is the short interest in Retail Food Group Ltd (ASX:RFG)?
The short interest in Retail Food Group Ltd (ASX:RFG) is 0.49% which makes it the 278th most shorted stock on the ASX. Of the 63.1M shares that Retail Food Group Ltd has on issue, 311.1K have been sold short.
What does Retail Food Group Ltd (ASX:RFG) do?
Retail Food Group Ltd. operates as a food and beverage company, which engages in the franchise, investment, and management of food chains. It operates through the following segments: Bakery/Cafe, QSR, Coffee Retail, and Di Bella Coffee. The Bakery/Cafe incorporates its systems which is the Michel's Patisserie, Donut King, and Brumby's Bakery Brand. The QSR segment deals with the Crust Gourmet Pizza, Pizza Capers, and Rack 'em Bones Brand Systems. The Coffee Retail segment incorporates Gloria Jean's Coffees, Esquires, Café2U and The Coffee Guy Brand Systems. The Di Bell Coffee segment provides wholesale coffee operations. The company was founded by Murray Howard d'Almeida in 1989 and is headquartered in Robina, Australia.