Retail Food Group Ltd [ASX:RFG] saw their share price rise by almost 10% yesterday after announcing the promotion of Richard Hinson to Group Chief Executive Officer.
Their shares are currently trading at 85 cents, up from its closing price on Monday of 77 cents.
The multi-brand food group has been experiencing a downwards spiral over the past 12 months, dropping over 82.55% of its share value.
What does Richard Hinson mean for the Retail Food Group?
Mr Hinson has almost 30 years’ experience in the retail food sector, holding executive positions at Wrigley Pacific and Metcash Supermarket and Convenience.
He commenced working with RFG as Chief Executive in January this year to lead the implementation of the company’s strategic business review. His leadership has had a significant positive impact on the business already.
Since February 2018, RFG has worked closely with franchisees, including Gloria Jeans, Michel’s Patisseries, Brumby’s Bakeries and Donut King to reduce the cost of goods, renewal and new store fees and trial new store concepts.
Hinson has stated that this is a 12–18 month turnaround for the RFG business.
‘Our core business is fundamentally sound and we are working hard to improve franchisee relationships and profitability. We are revitalising the network to focus on our customers first; improving performance, driving innovation and improving communication and transparency with our franchisees.’
What can we expect to see from Retail Food Group?
RFG are focused on rebuilding their image after franchisees publicly criticised their business model and Fairfax’s investigation which revealed franchisees were struggling to keep their businesses afloat due to rising costs, falling sales and lack of franchisor support, as reported by the Australian Financial Review.
RFG have faith that Mr Hinson can turn things around for the company, and based on yesterday’s increase in share price, the news of the newly appointed CEO seems to have restored trust in investors.
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