Pizza, coffee, and donut merchant Retail Food Group Limited (ASX: RFG) this morning delivered a net profit of $28.9 million on revenues of $148.3 million for the six-month period ending December 31 2015.

The profit and revenues are up 34.4% and 90.2% over the prior corresponding period, with a dividend of 13 cents per share paid out on earnings of 19.6 cents per share.

The group also delivered record new outlet growth with its coffee empire in particular expanding quickly and RFG says it is on track to achieve 2016 financial year guidance for more than 250 total new outlet commissionings.

Nearly 17% of group earnings came from international operations and RFG’s opportunity to grow its coffee brands overseas looks attractive, while sales also grew across the majority of its domestic retail operations despite feeble real wage growth across the local economy.

The group operates as a franchisor and supplier with market-leading coffee roasting operations that give it plenty of leverage to consumers’ growing global demand for a daily caffeine fix.

The market reacted negatively to what looks a strong result with the shares down 2% to $4.30 in trade today as investors seemingly remain concerned over the acquisitive business model and the company’s capital management.

However, the company reaffirmed guidance for underlying profit growth around 20% for the full year and given the decent valuation and attractive yield the shares look a solid buy in my opinion.

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Motley Fool contributor Tom Richardson owns shares of Retail Food Group Limited.

You can find Tom on Twitter @tommyr345

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Retail Food Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.