Category: Pubs
Punch Taverns — improving operator, share price yet to catch up
Stagnant share price despite investment and debt reduction: Today, Punch’s shares languish on a lowly PE ratio of 5.7 (106p). They have been on as little as 4.8 times earnings (89p) this year, and have fallen by 15% since the start of 2016 (Jan ’16: 125p). Yet this lacklustre performance belies the busy activity of…
Tread carefully; recent FTSE rally inflates already hard-to-justify valuations
Current trading; who are the winners & losers?
Background – costs: There is little inflation but 0% LfL won’t be enough to hold margin Because what inflation there is, is the ‘wrong sort’ Utilities are OK but wages (esp. National Living Wage) are a problem Occupancy costs & F&B costs are benign – but the latter will rise as Sterling falls Outlook for…
Coffer Peach Tracker: Could have been (much) better…
Tracker headline ‘Britain enjoys summer by still eating & drinking out’ doesn’t tell full story: Says LfL sales +0.6% & frames this as a success But CPI is +0.6% so above implies no growth NLW, NMW etc. mean labour costs +5% & inflation re F&B in the pipeline And c5.6% increase in unit numbers could…
Over-expansion, cheap money & fabricated demand
Restaurant Group & Ed’s Easy Diner have said that they are to dispose of units: Restaurant Group has said that it is taking ‘catch up action on underperforming sites’ It is to close 33 units Ed’s has also said that it is to consolidate its position & exit 3 units RTN and Ed’s are unlikely…