Restaurant Brands CEO steps up

I’ve just noticed today that Russell Creedy, CEO of Restaurant Brands has bought 45,000 shares in the company he runs. This brings his total shareholding to… well… 45,000.

I think highly of senior management who take positions in the companies they run, and think this is a great move by Russell. Obviously, 45000 is not a lot of shares, and I will be watching to see if such purchases continue. At the moment, only the Chairman of Restaurant Brands, Mr Danny Diab (a director), and now Mr Creedy own shares in the company, and only Mr Diab has a shareholding of significance.

But a good move from the CEO, perhaps coming on the back of some criticism at the AGM.

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Restaurant Brands CEO steps up

5 thoughts on “Restaurant Brands CEO steps up

  1. Good spotting – I had missed the disclosure of his acquisition. I like to see management who back themselves and put a bit of their own skin in the game. Looking at the 2009 annual report, I assume that the CEO Russell Creedy is being paid in excess of $620,000 per year, so the current acquisition is insignificant. It will be interesting to watch to see if there are further purchases.

  2. Yes, when you compare it to his salary, it is an insignificant holding. It is a somewhat odd situation, where senior management and board members own very few shares, with the exception of Danny Diab, who owns 4,000,000!

    I talked to him at the AGM, and he seemed confident about the future. But, if he is, and putting his money where his mouth is, whats with everyone else?

  3. Its to be encouraged thats for sure. However, he does get paid around $600,000, so it is astounding that he hasnt invested much in the company he has most control over.

    Restaurant brands continues to cause me some concern. Their last annual report was all about the “12th ingredient”, which is their ‘expertise’ at running restaurants, suggesting that they would consider adding more brands to the company.

    I haven’t seen an awful lot of expertise, given that they have one brand out of 3 (KFC) performing quite well (although well down in terms of inflation adjusted dollars from the early 90’s). So Im not sure where this confidence is coming from.

    I’ll be watching closely for developments.

  4. I completely agree. The thing that concerns me with Restaurant Brands is that they have a history of using acquisitions to destroy large amounts of wealth for share-holders. The purchase of Pizza-Hut Victoria is a classic example. While Pizza-Hut NZ was being out-flanked by Hell-Pizza in the premium market and Dominos in the budget market, they decided that they had developed a competency in Pizza Hut franchises and decided to expand into Australia. They removed their focus from NZ, lost significant market share to Hell Pizza and Dominos, while also destroying a large amount of wealth in Australia. So I agree, I am not reassured of their expertise and am concerned they may want to add additional brands. I think they need to focus on making sure they fully understand the first 11 ingredients before believing that they have a 12th.

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