Retail Food Group Ltd (ASX: RFG) seems to recoup on its lost ground in last one month with a 32% rise in stock price on December 21, 2017 post a fall of about 63% in last one month. There seems to be some buying in the steep pit that the stock has recently fallen into owing to its soft trading update and criticism in media for its business strategy in relation to handling franchising arrangements.

The recent rise comes at the back of the group’s response to ASX price query while informing the exchange operator that its forecast of a 34% plunge for half-year profit was not its revised guidance, and it earlier only provided an outlook for its full-year underlying profit.

As per the earlier update, RFG had flagged the expected impact of persistent challenging domestic retail conditions and other factors on its 1H 2018 statutory business performance. On the other hand, the Commercial Division, including food processing and distribution operations, is performing in line with expectation, and has secured new customer contracts largely commencing in 2H 2018. International operations have also been indicated to perform as per expectations, with negotiations ongoing in respect of new International Master Licence sales of $5.0m in aggregate (pre-tax), which are expected to complete by 31 December 2017.

The latest price movements have led the dividend yield touch an 18% figure as the stock price plunged about 46% in last five days (as at December 20, 2017). It will be prudent to keep a watch on this with Christmas almost there.

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