Langton Capital – 2023-01-06 – Service sector, costs, USA, Byron, D&D, Pret, Covid, comp numbers etc.:
Service sector, costs, USA, Byron, D&D, Pret, Covid, comp numbers etc.:A DAY IN THE LIFE: The first working week of the year was always going to feature people struggling to get out of neutral and making an effort, half-hearted or otherwise, to get their act back on the road. And Langton too has been getting its act together. Albeit fitfully. Such that Friday has arrived more rapidly than expected and, other than getting various tax, FCA and other irritating official forms filled in and some bills paid, it’s hard to put ones finger on what we’ve actually achieved. Which hopefully won’t be the anthem for 2023 as a whole. On to the news: LANGTON EMAIL: The Free Email is now written in short form. Extended versions of many stories (after the ellipses) 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 https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN PUBS & RESTAURANTS: Service sector performance: S&P Markit yesterday updated on the PMI for the UK Services Sector in December saying that its main measure came in a mild decline at 49.9. The capacity to surprise is diminished as the Flash Measure had been revealed as 50.0 on 16 December. Today’s numbers is a narrow miss. The earlier measure is exactly at the point where S&P believe the sector is neither growing nor contracting… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Cost increases: The Daily Telegraph points out that many ingredients used in pizzas have risen in price by ‘double-digits’… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Other news: Licensing solicitor Poppleston Allen reports that Melton Mowbray has removed its cumulative impact policy and adopted a new Statement of Licensing Policy… The MA reports that an average of 1.5 million people, per match, visited the pub to watch England and Wales in the World Cup. The MA says this shows that live sports can be a revenue driver for pubs with half of the Premier League season still to run. Trading in the US. A survey undertaken by the National Restaurant Association in the US has found that operators have a mixed to slightly gloomy outlook for 2023. It says 92% of respondents say food costs are a significant challenge, with 89% saying the same about labour costs… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. COMPANY NEWS: The Business Desk reports that Byron-owner Famously Proper has filed a notice of intention to appoint administrators despite being ‘confident’ that it will secure a rescue deal… After two years of trading, D&D London has closed its Klosterhaus restaurant in Bristol. The news follows the group placing seven of its UK sites on the market after a ‘review’ of its portfolio late last year. Pret A Manger’s new value range meal deal includes a sandwich for under £3 and a baguette deal for £5. Among breakfast options for commuters are the bacon and egg breakfast beans box or a vegetarian halloumi and egg option. Pret A Manger is also reported to have reached an initial agreement with Israeli retailer Fox Group and restaurant operator Yarzin Sella Group to launch the brand in the country… Constellation Brands reports Q3 EPS of $2.52 and comparable basis EPS of $2.83. The company said its Beer Business achieved ‘strong net sales and solid depletion increases primarily driven by continued growth of Modelo Especial and Modelo Chelada brands’. Constellation declared a quarterly cash dividend of $0.80 per share. Despite what looked like a good and well-received Q4 update yesterday, Gregg’s shares closed the day down around 1%. Plenty of opportunities for the leader writers to write Gregg’s is on a (sausage) roll and it’s selling like hot cakes etc. D&D London has confirmed it has ceased trading at four restaurants, blaming “spiralling utility, food and beverage costs and the unstable labour market…” In the US, some of the subsidiaries of an Illinois-based Burger King franchisee, one of the largest in US system, are reported by Bloomberg to have filed for Chapter 11 bankruptcy protection at units operating about 90 restaurants. Brazilian coffee brand The Coffee is reported to have received $7.5m in a new investment round, which it will use to expand across the country and into new international markets. The company opened 90 units last year and currently operates out of 189 sites in five countries. Royal Unibrew has acquired microbrewery Nørrebro Bryghus for an undisclosed sum. Founded in 2003 in Nørrebro, Nørrebro Bryghus is produced in Hedehusene, Denmark. Irish coffee chain Insomnia is reported to have traded strongly in its last reporting period with profits up 7-fold on the prior year. Annual sales remain 37% below pre-pandemic levels. HOLIDAYS & LEISURE TRAVEL: The EU’s Integrated Political Crisis Response group (IPCR) are strongly recommending that member countries insist on negative Covid tests from Chinese arrivals before they travel… Norwegian Cruise Line has reintroduced mandatory Covid-19 testing for any guest who has visited mainland China, Hong Kong or Macau within 10 days before embarkation… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. OTHER LEISURE: The Department for Digital, Culture, Media and Sport has axed plans to privatise Channel 4, but has said there will be ‘new production arrangements to support its long-term sustainability and growth’. Twitter is to relax restrictions on political advertising as it seeks to generate more revenue following Elon Musk’s $44bn takeover. The company said it would align its advertising policy with that of TV broadcasters and other media outlets. Samsung reports that profits in Q4 last year should fall by around 69% to take them to the lowest level in eight years. Technology giants globally have been impacted as consumers cut back on discretionary spending… FINANCE & MARKETS: For S&P’s December services PMI see Pubs & Restaurants above. Minutes from the Fed’s FOMC December meeting suggest that, whilst the pace of interest rate rises in the US could (and likely will) moderate, more rises are likely… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. In the Eurozone, S&P’s PMI data suggests ‘there is little evidence across the survey results to suggest the Eurozone economy may return to meaningful and stable growth any time soon…’ Taxpayers are reported to be facing a loss of around £1bn in fraudulent Covid grants paid out during the pandemic. This is in addition to the hundreds of millions of pounds paid out for useless PPE and for Track and Trace wasteage. Sterling weaker at $1.1906 and €1.1319. Oil up at $79.15. UK 10yr gilt yield up 5bps at 3.55%. World markets mixed yesterday and London set to open up around 19pts as at 6.30am. RETAIL WITH NICK BUBB: • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. |
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