I can't get my arms around the 2.5B in debt that Blackstone saddled this company with post IPO. I'm not clear how PF can continue any kind of acquisition/growth strategy with such a large debt compared to EBIDTA. I know the IPO was used to pay down some senior notes which lowers it, but it still remains problematic to this very conservative investor. I think it was disingeneous to begin paying a divi when you have this overhang debt payments in 2014, 2015 and 2016.
Perhaps this was a shrewd PR strategy by management to say something like... hey, this debt is no problem whatsoever, and to show you, we'll start paying this handsome dividend
Can anyone provide some color here?
SWY was 6 billion in debt and never reduced their div. Their stock shot right back up. I am not worried about PF. Great brand names and take a look at other food stock histories; i.e. FLO-DF-CAG- They all started out the same way and are trading well above their 52 week lows. This is a long term play with a fair div. They will acquire smaller companies and grow just as the rest did.
Nope, they are not like Flowers/FLO-- Flowers have been around for a billion years or so, and grow regularly when they stick to the core business. PF is like BGS who buy brands and market them in a non-related way. Both are trying to buy Wishbone Salad dressing brand, but would you like that or Mrs. Dash on your Cream-of-wheat. Flowers ventured out of their field and had to return to their core business to prosper. FLO has split 3/2 about every 2 years since 1994. Look it up. But hey, we have Birdseye and Duncan Hines cakes. They go together, sort of. I would eat a frozen green pea cake.