MFB - My Food Bag

[winner (n)]

Managing costs well they say

Is ' recipe development, which continue to deliver cost control efficiencies' code for less good stuff in the bags?

[winner (n)]

This sounds really cool -

Pilot with WM Robotics, ready made meal vending machines in offices,
apartments and hotels

• This channel is proving to be a valuable test and learn opportunity
• Early results validated demand for convenient, healthy meals


Get home from work and pick up a ready made meal in the foyer and 5 minutes in microwave and dinners done

[winner (n)]

They say 'Order frequency increased to 5.5 in FY26' which seems to imply that each customer on average order 5.5 times

If so 57,100 times 5.5 is 314,000 orders - so I presume that's 5.5 orders per quarter

Over the year on average customer orders 22.3 times

That's pretty good

Highlights the importance of keeping the real regulars happy and contented ..or as they say engaged

[LoungeLizard]

Well I wasn't going too, but since you brought up Spark (which by the way you said was compelling buying or words to that effect at $4.50), Spark have been paying excess dividends by cannibalizing their business, (selling off parts of it), and also heavily increasing debt over the years. 

MFB on the other hand have paid dividends well within the scope of their earnings per share and very comfortably indeed within their free cash flow per share and have done this while contemporaneously nearly paying their bank debt off entirely.

Its a K shaped economy LL.  Those with plenty of money, (probably the 3% Winner suggested), can afford the convenience of having their food pre-packaged and delivered and based on the very latest sales information from MFB they're continuing to do so despite heightened geopolitical tension and the rise in fuel costs.

Agree on one point with you.  The Cameron partners thing is a fishing expedition.  The thing with fishing expeditions is sometimes you can land a really good kingfish...ask me how I know 

We all make mistakes Basil. I still hold Spark for the yield and remain convinced that in the long term it will start to grow again. Sparks fall was unprecedented and probably an overreaction that is yet to be corrected. I seem to remember you were a big promoter of Heartland right before it fell from grace, so no one gets it right all of the time.

MFB has shown no growth in any of the real indicators - Revenue, NP or EPS - and in real terms have gone backwards. Normally you would not be investing in companies that have a track record of not showing fundamental growth. Maybe MFB is the exception to your rule. The yield - sustainable or not (I would say not) isn't anything near what it should be for such a risky stock trading in economic conditions that will get worse not better. I don't see the core numbers changing - why would they? They've managed to cut costs but you can only go so far with that before the quality of the product starts suffering. And there's plenty of substitutes available now including Supermarket brands. Anyway, we'll see where things are in a year. Sit close to the exit would be the best advice for holders.

[Basil]

This sounds really cool -

Pilot with WM Robotics, ready made meal vending machines in offices,
apartments and hotels

• This channel is proving to be a valuable test and learn opportunity
• Early results validated demand for convenient, healthy meals
Get home from work and pick up a ready made meal in the foyer and 5 minutes in microwave and dinners done

Sounds interesting and could be a growth area.  Lots of big apartment blocks in Auckland to put vending machines into. 
FY25 to FY26 MFB is growing EPS and top line revenue, I think that's clear to everyone except those who choose not to see it.  I think repayment of all bank debt is a game changer as that free's up a significant amount of free cash flow each year for new initiatives such as what Winner has highlighted.  I'm excited for the future and believe MFB will have an extremely high gross dividend yield in the years ahead assuming we even get there and don't get taken over first.

Believe me LL, over the very long run I did extremely well as a Heartland shareholder.  I didn't get every cyclical call right but I got nearly all of them right and the one I got wrong I escaped from at ~ break even inclusive of dividends during that period.