International Dairy Queen's biggest source of revenue is in sales of equipment and supplies to franchisees. The business is mature and very competitive. Franchisees have the option of locating alternative suppliers at lower costs and seem to be doing just that. I would not expect future growth to match the strong double-digit figures of the past. The club bought International Dairy Queen in May 1993, when the quarterly figures showed growth had slowed significantly.
Growth is superior and quality is higher.
The above has not been a formal use of the Challenge Tree as outlined in the Investors Manual. That form is tuned to identifying overvalued stocks and replacing them with those of a greater potential total return, improved quality and less downside risk. If investors try to apply the Challenge Tree fundamentals, they should be better managers of their portfolios. If not, challenge the stock with another one that has better fundamentals. If not, challenge the stock with one that has better management.