Are Retail Food Group Limited (ASX: RFG) shares, Domino's Pizza Enterprises Ltd. (ASX: DMP) shares and Collins Foods Ltd (ASX: CKF) shares tasty investment ideas?
Retail Food Group
RFG is the name behind brands like Gloria Jeans, Crust Pizza, Pizza Capers, Donut King and much more. The company has experienced strong organic and acquisitive growth in recent years and paid a rising stream of dividends to shareholders.
However, it is the group's coffee businesses which make it a compelling long-term investment proposition, in my opinion. The company's coffee brands include bb's cafe, Cafe2u, Gloria Jeans and Caffe Coffee. Any coffee drinkers who have travelled globally would know that Australia has a high standard when it comes to coffee. Retail Food is taking Australian coffee to the world.
Retail Food Group shares yield a dividend of 5.4% fully franked.
Domino's
Domino's has been in hot water lately, following revelations of underpayment and unpaid hours completed by franchisee staff. However, the Domino's business model has provided exceptional returns to shareholders over a number years with the company expanding its reach abroad, into parts of Europe and Japan.
The company is currently tipped by analysts to grow quickly, however, investors must pay a high price for a slice of the company's shares. It is expected to pay a 1.4% dividend.
Collins Foods
The $516 million Collins Foods is the name behind KFC stores throughout Australia. It operates as a franchisee of Yum! Brands, the owner of KFC worldwide. It also owns Snag Stand and operates Sizzler stores.
Most recently, Collins Foods entered a deal with subsidiaries of Yum! Brands to buy 16 stores in the Netherlands market. The deal follows Collins Foods' investment in the German market last year.
It is tipped to pay a 3.3% dividend fully franked.
Foolish Takeaway
In my opinion, these three companies should be on long-term investor's watchlist. However, at today's prices, only Retail Food Group shares are worthy of a buy rating, in my opinion.
And saying that, I think it is a somewhat cyclical business. Therefore, I suggest buying shares slowly over time.
