Langton Capital – 2022-08-11 – CCH, Entain, Disney, Chipotle, Wendy’s, energy costs, TUI & more:
CCH, Entain, Disney, Chipotle, Wendy’s, energy costs, TUI & more:A DAY IN THE LIFE: I was wandering around the garden yesterday and a tree fell down. At least around a third of a tree did. But it was one very large bough and it collapsed within yards of me after a bit of shrieking and the screeching of what turned out to be tortured and twisting wood and it hit the ground with the kind of thump that reminds you trees aren’t the light and fluffy things of kids’ drawings but are rather heavy and, if you happen to be beneath one when it falls, they can be somewhat dangerous. So that makes three, either part or whole, trees that we’ve lost in the last couple of months. Two fruit trees and some scruffy indeterminate thing that probably would be better off perpendicular to the ground so maybe it’s either a) the weather drying out the wood and causing some sort of instability via shrinkage or b) just affirmative bias brought on by our desire as humans to see patterns and to eschew the likelihood that some things are just coincidental. So, the advice here isn’t just regarding hospitality stocks and markets. We would suggest that, if you’re standing under a tree and you hear crackling and screeching above you rather similar to the noises made by a blazing fire, then move. Anyway, whatever. If you’d like some firewood it’s here to collect. 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 DELIVEROO – H1 ANALYSTS’ WEBINAR: Following the release of its H1 numbers, Deliveroo hosted a webinar for analysts. Headline numbers. Overall GTV growth during H1 was 7%, with the restaurant base increasing by 9%. GTV growth slowed sequentially in Q2 compared to Q1; GTV growth in constant currency was 12% in Q1 and 2% in Q2. Grocery now 10% of global GTV, up from 8% in H2. This represents a creeping mix change, with the company not guiding on margins for the different parts of the business. • See premium. Reply for sample or to upgrade. Single £324, multiple £595. PUBS & RESTAURANTS: Cost of living crisis: Per the BBC, the cost of living crisis is causing increasing numbers of consumers and small business owners to turn to debt… • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Martin Lewis has urged both candidates for the Conservative leadership to set out detailed plans for helping people with rising energy bills… • See premium. Reply for sample or to upgrade. Single £324, multiple £595. In what looks like something of an outlier, a YouGov and consultancy Cebr survey has found that the overall consumer confidence index rose 2 points in July… The RAC has said that supermarkets are not passing on the ‘significant’ drop in the cost of wholesale fuel to consumers. WFH: Recruitment software company Greenhouse has said that around 75% of workers would like to be offered hybrid working in order to help cope with the cost of living crisis. This has implications for city centre and transport-hub-located leisure operators… • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Company distress: The British Institute of Innkeeping has written to the Secretary of State for BEIS and the Chancellor, highlighting the devastating impact of the energy crisis on its members running independent pub businesses and calling for urgent, essential support from Government. • See premium. Reply for sample or to upgrade. Single £324, multiple £595. The Scottish Beer & Pub Association, Scottish Licensed Trade Association, and UK Hospitality Scotland have called on the Scottish Government not to forget about pubs when it comes to the current proposals which could allow further flexibility on pavement seating… Other news: Manchester’s Night Time Economy Advisor, Sacha Lord, has said that inflation coming from multiple directions in addition to continued supply chain problems and an increasingly cost-conscious consumer represent a ‘perfect storm tearing through the heart of the sector’… Nottingham councillors are reported to have decided to scrap the late night levy on city centre bars. The levy can be anything between £299 and £4,440 per year. COMPANY NEWS: Stonegate Group’s Popworld brand hosted the first Popworld Festival last Saturday in Millennium Square, Leeds. Live performances came from 5ive, S Club, Fatman Scoop, Paul Chuckle and Peter Andre. Coca Cola HBC has reported H1 numbers for the 6mths to 1 July saying that organic revenue was up by 19.4% with reported revenues some 29.6% higher. The co says that ‘excluding Russia and Ukraine organic revenue [was] +25.2%, with volume +12.1%.’ The company reports net sales revenue of €4.2bn with an operating profit of €275.7m, down from €350.3m in the prior year. The co says that ‘comparable net profit’ was up to €316.9m from €235.6m in the prior year. EPS is 86.5c up from 64.6c… • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Cooler on delivery? Wendy’s in the US has reported Q2 numbers, saying that it will scale back the expansion of its co-operation with ghost kitchen company Reef Technology. Wendy’s says ‘as the second quarter progressed, we re-evaluated our Reef development commitment. We now anticipate that Reef will open approximately 100 to 150 Wendy’s delivery kitchen locations by the end of 2025 with the majority operating internationally in Canada and the U.K., where sales volumes have continued to meet our expectations…’ • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Chipotle Mexican Grill in the US has is reported to have agreed to pay $20 million to 13,000 workers for violating their right to predictable schedules and paid sick leave. HOLIDAYS & LEISURE TRAVEL: TUI’s shares finished yesterday virtually unchanged as its Q3 numbers were accepted as in-line with expectations by the market… Disney has reported strong April-June numbers saying that higher levels of holidaymaker helped raise operating profits to $2.2 billion for the quarter. Revenue was up to $7.4 billion year-on-year from $4.3 billion… • See premium. Reply for sample or to upgrade. Single £324, multiple £595. Norwegian Cruise Line Holdings (NCLH) has reported a net loss of $509.3m despite record-breaking advance ticket sales and onboard revenue increasing by nearly 20% against 2019 across the last three months. The company’s total debt position was $13.2bn and its liquidity was approximately $2.9bn. A new 18-storey, 350-room Travelodge hotel in the East India Dock area of London Docklands has been completed. Dexter Moren Associates (DMA) said the hotel has been designed to reflect the industrial history of the site and its surrounding architecture. OTHER LEISURE: Entain has reported H1 numbers, saying that net gaming revenue grew by 18% and that group EBITDA was up 17% to £471m. Profit after tax was down to £28m from £91m in the prior year. The H1 dividend is 8.5p per share… Entain has also announced that it ‘has partnered with EMMA Capital, a leading investment firm based in the Czech Republic… Meta Platforms raised $10bn in its first ever bond offering on Tuesday… Restructuring experts Kroll are set to be appointed as administrators of Pollen, a taxpayer-backed ticketing tech start-up… FINANCE & MARKETS: Slight reduction in the upward pressure on interest rates. The US Labour Department has reported that inflation in the US fell to 8.5% in July from 9.1% in June. German inflation eased to 7.5% in July from 7.6% in June. Consumer price inflation in China ‘accelerated’ to a still-low 2.7%. Pork prices, interestingly, were up by 20.2%. All of these numbers are lower than the CPI figure in the UK where the July number will be released on Wednesday next week. The Telegraph has reported that used car sales are down 14% on pre-pandemic levels. It puts this down to a shortage of supply. Sterling higher at $1.2193 and €1.1851. Oil price up at $97.02. UK 10yr gilt yield down 4bps at 1.95%. World markets mixed yesterday with London set to open up some 10pts as at 6.30am. FORTHCOMING NEWS: The week we still have numbers from Coca Cola & Entain (Thursday)and Flutter and 888 both report on Friday. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £324, multiple £595. |
|
