Langton Capital – 2022-07-28 – DGE, AB InBev, Chipotle, McDonald’s, Virgin Wines, Meta, confidence etc.:
DGE, AB InBev, Chipotle, McDonald’s, Virgin Wines, Meta, confidence etc.:A DAY IN THE LIFE: So, booking fees, what are they all about? I mean, the internet was meant to make purchases simpler and cheaper. There are no staff involved for the individual transactions, costs should be lower and yet the local cinema or whatever will slap you with a fee and charge you for making their lives easier and, unless you want to cut off your nose to spite your face, you just have to suck it up. And sure, compared to your mortgage trebling, it’s not a major deal. A few quid here or there shouldn’t sink the ship so I try to put it out of my mind but, should any of the above brag in the near future about ‘holding their prices’ (whilst trebling their booking fees), I might begin to slowly combust. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories are in the Premium Email. Reply to this email if you would like to upgrade. Prices for the Premium at time of writing are £345 for one subscription, £595 for multiple, both plus VAT. Or sign up for easy in, easy out monthly option HERE PUBS & RESTAURANTS: Inflation: European gas prices rose by 9% yesterday after Russia further cut gas supplies to Germany and other central European countries. Russia has been cutting flows through the Nord Stream 1 pipeline to Germany, with it now operating at less than a fifth of its normal capacity… • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Costs: The latest UKHospitality Christie & Co Benchmarking Report states that hospitality costs are soaring to a new record high as operators are ‘labouring under extreme pressure’. Costs vary between segments, led by 59.8% of turnover for accommodation-led outlets… • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Cost of living crisis: Money Saving Expert’s Martin Lewis maintains his downbeat commentary turning this week to the mortgage market. He points out that consumers on fixed mortgages will not feel the pinch until their fixes expire but, when they do, the financial shock could be considerable… Accountant Deloitte reports that ‘consumer confidence fell for the fourth consecutive quarter to its lowest level on record in Q2 2022…’ • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Impact of the rail & tube strikes. In the wake of the announcement of further strikes (18, 19 and 20 August are now blighted in one way or another), the CEBR has reported that strike action yesterday likely cost the country in the region of £26.27m. Much of this loss will have been borne by city centre pubs, restaurants, cafes, coffee shops and the like… • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Trading in hot weather: The latest CGA Drinks Recovery Tracker shows that the ‘recent hot weather has delivered both boosts and challenges for the On Premise…’ • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Other news: SIBA has announced that ‘after 3 years as Chief Executive of SIBA, and 5 years with the trade association in total, SIBA’s board has today confirmed that James [Calder] will step down on 1st August to take on a new challenge.’ National Pubwatch is celebrating its 25th anniversary this year. The voluntary organisation, which supports over 800 pubwatches across the UK, works to promote safe, secure and social drinking environments in all licensed premises throughout the UK. An NHS England commissioned survey by the University of Sheffield found that while lighter drinkers cut their consumption during the pandemic, heavier drinkers drank more and may never return to where they were… DesignMyNight reports a surge in interest as England’s Lionesses progress to the Final of Euro 2022, with visits to the DesignMyNight Women’s Euro channel increased by 190%. Research & Markets has released data showing that global craft beer is projected to grow at a CAGR exceeding 8% between 2022-2030… COMPANY NEWS: Diageo reports full year numbers to end-June saying that net sales rose by 21.4% to £15.5bn ‘primarily driven by strong organic net sales growth, up 21.4%, with strong double-digit growth across all regions.’ The company reports that its ‘growth reflects continued recovery of the on-trade, resilient consumer demand in the off-trade and market share gains, and was underpinned by favourable industry trends of spirits taking share of total beverage alcohol and premiumisation…’ • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Anheuser-Busch InBev has reported Q2 numbers saying that its ‘continued momentum [has] delivered double-digit top-line growth…’ Chipotle has reported Q2 numbers in the US saying that total revenue increased 17.0% to $2.2 billion with LfL sales up 10.1%… Virgin Wines has updated on trading saying that revenue for the year to June is £69m (FY21: £73.6m) but it is up 63% on a 3-year… McDonald’s will increase the price of its cheeseburger for the first time in 14 years, from 99p to £1.19, driven by rapidly rising costs. The price rises are due to hit later this summer, with CEO Macrow saying that the group had ‘delayed and minimised’ price rises for as long as it could. Daniel Lambert Wines, a British wholesaler who supplies the UK retail market is moving his business to the South of France in order to mitigate Brexit red tape, which he says has cost his business £150,000. The company imports around 2m bottles of wine to the UK each year to supply retailers including M&S and Waitrose. Denny’s in the US is buying the 52-unit Keke’s Breakfast Cafe from K2 Restaurants for $82.5 million. HOLIDAYS & LEISURE TRAVEL: ACI Europe reports that passenger volumes rose by almost 250% in the first half of the year over the same period in 2021, driven by the easing of Omicron restrictions. Airports in the UK saw a rise of 833% YoY. The busiest airports in June were led by Istanbul followed by Heathrow, Paris Charles de Gaulle and Amsterdam Schiphol. Wyndham Hotels & Resorts has reported Q2 numbers saying that it believes ‘consumer intent to travel and their willingness and ability to spend remains healthy despite the broader economic concerns.’ OTHER LEISURE: Meta, the owner of Facebook and Instagram, has reported its first ever reduction in sales in Q2 this year, hit by a fall in advertising sales. Revenue slipped 1% to $28.8bn. Analysts point to rivals such as TikTok, and say that Facebook and Meta’s other brands could lose market share. FINANCE & MARKETS: The British Chambers of Commerce has commented on exports, saying that the ‘percentage of UK businesses reporting increased export sales remains flat for the 5th quarter in a row at 29%…’ The US Federal Reserve has raised it core interest rate by 0.75 percentage points, targeting a range of 2.25% to 2.5%. The Fed says ‘nothing works in the economy without price stability.’ The ECB put rates up by 50bps earlier this week and the UK’s Bank of England will update next Thursday. Sterling up at $1.216 and €1.1916. Oil higher at $107.20. UK 10yr gilt yield up 4bps at 1.95%. World markets mixed to better yesterday with London set to open around 19pts higher as at 6.30am. FORTHCOMING NEWS: Fairly active on the corporate front this week (although we’re clearly winding down now) with fewer ONS statistical releases. On Thursday, Virgin Wines reports H1 numbers. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £324, multiple £595. |
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