Retail Food Group shares have taken another hit after the cafe and bakery owner issued its second profit warning in less than a month.
The Gloria Jean's, Donut King and Brumby's Bakery owner says half year net profit is now expected to be lower than the $22 million it forecast on December 19.
The company's shares plunged following media reports in early December accused the company of driving its franchisees into the ground with crippling fees to boost its own profits, including with high supply costs.
The company has repeatedly denied all allegations.
Then on December 19, the company's shares plunged to $1.98, an eight-year low, after it forecast a $22 million half year profit, down 34 per cent from $33.5 million a year ago.
Its shares have recovered some ground since late-December, but on Tuesday they dropped 15 cents, or 6.7 per cent, to $2.32.
The company said the terms of new international master licence agreements would impact revenue recognised in its accounts for the six months to December 31.
It said it had struck new master licence agreements for its Donut King and Crust Gourmet Pizza brands in the UK, but revenue from those businesses would not be realised until the second half of the financial year.
The company is also facing possible legal action after Bannister Law in December said it was investigating a possible class action on behalf of RFG shareholders.
The law firm said it would look at whether RFG should have corrected its guidance earlier than December 19.
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