Retail Food Group fails to stimulate investor appetite

The Donut King owner's hefty PE may lead analysts to downgrade the stock unless its earnings, released in 2 weeks time, surprises on the upside.

Retail Food Group’s (RFG) profit growth guidance did little to assuage concerns about the company’s valuation with the stock falling 1% to $4.15 this afternoon.

The food franchise owner is forecasting a 13% increase to full-year earnings, which would put its bottom line at $34.2 million for the year to end June – right on the consensus estimate.

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