Shares in the owner of Gloria Jean’s are getting hosed

Tianjin opening of Gloria Jeans. Supplied

Shares in the Retail Food Group, owner of Gloria Jean’s coffee shops, Donut King and Michel’s Patisserie, fell hard after a cut to profit growth forecasts.

A short time ago, the shares were down 9% to $4.62.

The company says it now expects full year underlying profit growth to be about 15% compared to the previous forecast of 20%.

And it expects to record $22 million non-cash write-down on Michel’s Patisserie and Pizza Capers in the 2017 results.

However, the company says it’s optimistic on future performance with organic growth ahead in 2018, mainly driven by its international, commercial and coffee divisions.

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