3 (more) ASX shares to profit from Pokémon Go

Pokémon Go has taken the world by storm.

Individuals around the world are embarking on a journey to fulfil their childhood dreams of becoming a Pokémon master, wandering cities to battle one another and capture the rarest Pokémon characters.

In case you’re not up to speed with what Pokemon Go actually is, it’s an augmented reality (a mix of a game and real world interaction) app on iPhones and Android devices. This description from Vox suits nicely:

In simple terms, Pokémon Go is a game that uses your phone’s GPS and clock to detect where and when you are in the game and make Pokémon “appear” around you (on your phone screen) so you can go and catch them. As you move around, different and more types of Pokémon will appear depending on where you are and what time it is. The idea is to encourage you to travel around the real world to catch Pokémon in the game.

According to Fortune, the app had 65 million users in the United States alone just seven days after its launch. The game was the cause of a stampede of users in New York’s Central Park recently while one New Zealand-based man even reportedly quit his full-time job to focus on Pokémon Go.

Source: CBS Sports

Source: CBS Sports

But while Pokemon Go has encouraged people around the world to get active and socialise (albeit while focused on the screen of their smartphones), a number of businesses could also be big winners from the craze.

Yesterday, my colleague showed how businesses such as JB Hi-Fi Limited (ASX: JBH), Telstra Corporation Ltd (ASX: TLS) and Event Hospitality and Entertainment Ltd (ASX: EVT) could be among those winners.

I’d wager that other businesses such as Retail Food Group Limited (ASX: RFG) and Domino’s Pizza Enterprises Ltd. (ASX: DMP) could also be in a position to benefit.

Retail Food Group is the owner of a number of coffee and fast food chains, including Gloria Jean’s, Cafe2U, The Coffee Guy and Pizza Capers, to name a few. As a master franchisor of those businesses, the company receives recurring income from its franchisees based on a percentage of their revenues. The company has grown earnings and dividends strongly over the years and its shares still look to be great value today.

Domino’s shares aren’t as good value as Retail Food Group today, in my opinion, but earnings could receive a boost from the Pokémon Go craze in much the same way.

Given the sheer number of enthusiasts exerting their energy walking around the streets looking for Pokémon, they will need to recharge their own batteries, so to speak. It’s not difficult to see many of those individuals and groups loading up on coffee and fast food products for their meals — a quick and easy bite so they can get back to catching Pokémon.

Collins Foods Ltd (ASX: CKF), which owns a number of KFC restaurants in Australia, could also be in a position to profit.

Of course, you don't have to play Pokemon to get rich. See How 1 Man Turned $10,000 Into Over $8 Million.

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Motley Fool contributor Ryan Newman owns shares of Retail Food Group Limited. 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.

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