Pizza Hut restaurants

Baldytyke88

https://www.bbc.co.uk/news/articles/cdd0nzv6v1no

https://www.google.com/finance/quote/YUM:NYSE?sa=X&ved=2ahUKEwiqz6CK_OGJAxVDW0EAHfcnMWkQ3ecFegQIZBAh&window=1Y

Would you be worried about having shares in the above company, have I got the right one?

The operator of Pizza's Hut restaurants in the UK is looking to raise more than £10 million, according to Google Finance their assets have been less than 50% of their debt for 5 years.

They do have positive net income figures, unlike Boohoo who have just had a similar money-raising scheme.

retiredbanker1

If they go bust as in being put in liquidation the shareholders will be wiped out.

Even if they manage to come to an agreement the shareholders will own a very small % of the company as to be virtually worthless.

TheBanker

Baldytyke88 said:

https://www.bbc.co.uk/news/articles/cdd0nzv6v1no

https://www.google.com/finance/quote/YUM:NYSE?sa=X&ved=2ahUKEwiqz6CK_OGJAxVDW0EAHfcnMWkQ3ecFegQIZBAh&window=1Y

Would you be worried about having shares in the above company, have I got the right one?

The operator of Pizza's Hut restaurants in the UK is looking to raise more than £10 million, according to Google Finance their assets have been less than 50% of their debt for 5 years.

They do have positive net income figures, unlike Boohoo who have just had a similar money-raising scheme.

These are different companies.

Yum Brands own the Pizza Hut brand globally (as well as KFC and Taco Bell). 
Heart With Smart Limited is a private company that operates Pizza Hut restaurants in the UK (and some Itsu outlets). I believe that Heart With Smart operate the dine-in restaurants, other franchisees operate takeaways and kiosks. 

The article is about Heart With Smart. If they were to cease trading, this would obviously impact Yum Brands through loss of a franchise partner. However as Yum operate multiple brands in multiple countries the impact may not be huge. I'm not sure the article is suggesting they are likely to cease trading though, rather that they need to r aise funds to invest in cost-saving measures, especially in light of the increase in employer NI.  

If this question is based on shares you own, then I'd suggest confirming which company you actually own shares in and read their annual report to understand what it is you own. Please don't make any financial decisions based on what I've written above.

Baldytyke88

TheBanker said:

These are different companies.

Yum Brands own the Pizza Hut brand globally (as well as KFC and Taco Bell). 
Heart With Smart Limited is a private company that operates Pizza Hut restaurants in the UK (and some Itsu outlets). I believe that Heart With Smart operate the dine-in restaurants, other franchisees operate takeaways and kiosks. 

If this question is based on shares you own, then I'd suggest confirming which company you actually own shares in and read their annual report to understand what it is you own. Please don't make any financial decisions based on what I've written above.

I thought it might be the USA company, I don't have shares in either, I have shares in Boohoo.

I learn more if I discuss share topics. I thought it strange to be blaming the share option on changes in tax, that would be a very small percentage of their costs.

barnstar2077

I stopped going to my nearest Pizza Hut when they decided I had to order and pay on my phone.  They don't even have the McDonalds style screens at the from of the restaurant, you have to use your phone.  I just left and haven't been back.

DullGreyGuy

Baldytyke88 said:

TheBanker said:

These are different companies.

Yum Brands own the Pizza Hut brand globally (as well as KFC and Taco Bell). 
Heart With Smart Limited is a private company that operates Pizza Hut restaurants in the UK (and some Itsu outlets). I believe that Heart With Smart operate the dine-in restaurants, other franchisees operate takeaways and kiosks. 

If this question is based on shares you own, then I'd suggest confirming which company you actually own shares in and read their annual report to understand what it is you own. Please don't make any financial decisions based on what I've written above.

I thought it might be the USA company, I don't have shares in either, I have shares in Boohoo.

I learn more if I discuss share topics. I thought it strange to be blaming the share option on changes in tax, that would be a very small percentage of their costs.

It's their UK franchisee who runs all their restaurants in the UK (as well as some Itsu). They've previously had a CVA so their financial challenges are not new news. As a LTD probably not too many people here have shares in them. 

barnstar2077 said:

I stopped going to my nearest Pizza Hut when they decided I had to order and pay on my phone.  They don't even have the McDonalds style screens at the from of the restaurant, you have to use your phone.  I just left and haven't been back.

Sounds like they are going a step further and replacing your phone with a system in your table... dont know if you think thats better or worse. Reduce headcount through natural attrition. 

EthicsGradient

Baldytyke88 said:

TheBanker said:

These are different companies.

Yum Brands own the Pizza Hut brand globally (as well as KFC and Taco Bell). 
Heart With Smart Limited is a private company that operates Pizza Hut restaurants in the UK (and some Itsu outlets). I believe that Heart With Smart operate the dine-in restaurants, other franchisees operate takeaways and kiosks. 

If this question is based on shares you own, then I'd suggest confirming which company you actually own shares in and read their annual report to understand what it is you own. Please don't make any financial decisions based on what I've written above.

I thought it might be the USA company, I don't have shares in either, I have shares in Boohoo.

I learn more if I discuss share topics. I thought it strange to be blaming the share option on changes in tax, that would be a very small percentage of their costs.

Boohoo is a company in a different sector, that raised some shareholder money for different reasons ("The online retailer intends to use the funds from the placing, priced at 31 pence per share, to reduce debt", while the UK Pizza Hut operator is looking to invest in technology to replace employees). "Heart With Smart" haven't actually said they'll ask their shareholders (a private capital company and the chain's management - they're not a public company) more money yet - the article says they might sell assets to do it instead.