Langton Capital – 2023-02-09 – Compass Group, Disney, YUM, price v volume, delivery & more:
Compass Group, Disney, YUM, price v volume, delivery & more:A DAY IN THE LIFE: Have you ever said to one of your kids when they profess to be bored ‘well, why don’t you do your homework?’ Or dig the garden, wash the pots, vacuum the carpets etc because the answer will be a blank stare followed by some sort of ‘you’re a washed-up old lunatic’ gesture. Which is appalling but, when it comes to ourselves, aren’t we just as bad? Certainly Langton is because, when we’ve got a spare minute, we’re loath to do get a head-start on the VAT or file away that tottering heap that comprises the in-tray let alone jump up and plunge the septic tank. Or even do our homework, wash the pots or vacuum the carpets which is further proof, if proof be needed, that hypocrisy is very much a subjective term, that is, one of those that applies to other people and not to yourself. Oh aye it is. 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 PUBS & RESTAURANTS: Delivery: Foodservice analyst Peter Backman points out that the food delivery market is now huge but it remains unprofitable. Over time, that needs to change… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Price v volume: Nielsen yesterday commented ‘we expect a challenging first quarter for the grocery industry, with inflation very much top of mind for shoppers. As a result, shoppers will continue to trade down to cheaper brands or private label products…’ Directors’ risks: The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act has been passed into law. It will make it easier for the authorities to investigate and prosecute directors. There are a number of factors to consider… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Company failures: The Insolvency Service reports that the number of hospitality businesses registering as insolvent has reached a decade high, increasing 61% between 2021 and 2022, with 2,704 businesses becoming insolvent… • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Low2NoBev reports that alcohol value sales in grocery across Europe fell 4% in 2022 to €66bn, with alcohol sales now lower than pre-pandemic… • Ananda Roy, IRI global senior vice president of strategic growth insights, said ‘Households are having to make trade-offs to moderate [the cost-of-living crisis’] impact on their available income, prioritising food staples and small indulgent treats over discretionary items like alcohol’. Cost of living: A study by Which magazine has found that convenience store spending could cost consumers £800 per year in higher prices… COMPANY NEWS: Compass Group has updated on Q1 trading in a statement that will accompany its AGM later today. CPG says ‘in the first quarter of the year, the Group’s organic revenue grew by 24%. We continued to benefit from strong outsourcing trends with net new business growth of 5.5%, significantly above our historical rate of around 3%, and in line with FY 20221…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Various Eateries has announced that it ‘will appoint Sharon Badelek to the Board of the Company as Chief Financial Officer (“CFO”), with effect from 1 April 2023…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Red Oak Taverns has announced that it has completed its first acquisition of 2023, purchasing three freehold pubs from Marston’s in a deal handled by Graeme Bunn… Yum! Brands, Inc reports Q4 worldwide system sales up 8%, with KFC at 6%, Taco Bell at 14%, and Pizza Hut at 4%. For the full year, worldwide system sales were up 6%, with KFC at 6%, Taco Bell at 11%, and Pizza Hut at 3%. Full-year Core Operating Profit growth was 6%, including a 2-point headwind from the removal of Russia profits. Lemon Pepper Holdings, the UK master franchisee and brand partner of Wingstop, has announced plans to open its first standalone retail unit in the former Bella Italia site at Gallions Reach… Soho Coffee Co reports revenue of £8.8m (up from £4.2m) and a loss before tax of £3.0m (down from £4.9m) for the period ended 30 January 2022. The results were attributed to restricted trading conditions as a result of the pandemic. Big Hospitality reports that Bierschenke has acquired the former Belgo Centraal site in Covent Garden with a view to opening in Spring. The 12,000sq ft site features vaulted brick ceilings and flagstone floors with the company saying it will deliver an ‘authentic Munich bierkeller experience in London.’ According to Big Hospitality, Nick Philpot is looking to disrupt London’s grab-and-go market with his ‘fine fast food’ brand Yolk. Philpot said ‘We’ve got five now, and sites six and seven are currently in various stages of legal negotiations, which we hope to get open in the next six months or so’. Lidl plans to open 25 new stores in 2023, down from 54 stores last year, slowing its store opening programme and focusing on expanding its warehouse capacity instead. E-commerce firm eBay Inc has said that it is to lay off 500 employees globally, some 4% of its total workforce… HOLIDAYS & LEISURE TRAVEL: The Home Office has cautioned that industrial action planned by the Public and Commercial Services union on February 17, 18, 19 and until 7am on February 20 is likely to impact returning half-term holidaymakers.,, Uber has reported that it made a profit in Q4 last year. It says around 23 million trips were taken a day on average, with… Travel Weekly reports that Leger Shearings Group has reported a record-breaking January, with sales up 86% YoY. The company has outperformed January 2019 and it already has more holidays booked for 2023 than departed in the whole of 2022. Club Med has reported a record launch for sales of winter 2023-24 holidays in the UK… OTHER LEISURE: The CMA has found that Microsoft’s $75bn acquisition of Activision Blizzard could weaken the ‘important rivalry between Xbox and PlayStation’ in gaming consoles and that the deal could result in ‘higher prices, fewer choices, or… Disney has said it will cut 7,000 jobs (3.6% of the total workforce) as a part of a plan to save $5.5bn. The Disney+ streaming service reported its first fall in subscribers since 2019. Disney reported sales up 8% to $23.5bn in the quarter with profit up 11% to $1.3bn. Disney+ reported a $1.5bn loss and its subscriber numbers fell by around 2.4m to 161.8m. Pinterest reports that it now has 450 million monthly active users globally, up 4% YoY. The company debuted a short video product called Idea Pins in 2021. ARTIFICIAL INTELLIGENCE – : For anyone who’s yet to use Chap GPT, it’s quite impressive. Almost made us weep. This is what happens when you ask Chat GPT to describe Langton Capital in a Mill’s & Boon style: Langton Capital, a name that evokes passion, intelligence, and a deep understanding of the leisure and hospitality sector. A beacon of light in a world of endless data and information, Langton Capital is the answer to those seeking guidance and insight. Its team of experts, armed with decades of experience and a love for the industry, pour their hearts into every market analysis and financial research report. The company’s unwavering commitment to independence and rigor is the foundation of its reputation for delivering the highest quality advice to its clients. With Langton Capital, you’ll find a partner that understands your needs and desires, one who will hold your hand through every step of the journey to success in the leisure and hospitality sector. So, let Langton Capital be your guide, and fall deeply in love with the art of making informed business decisions. We also stare mistily into people’s eyes. We then tried iambic pentameter, crime noir style and others. And then it was four hours later and the day was over and we hadn’t got any work done and it was all somebody else’s fault. FINANCE & MARKETS: Research from the Managing Partners Forum shows that confidence in the state of the UK economy has rebounded since Liz Truss’ term as prime minister, reports City AM… Housing: Barratt Developments yesterday cautioned that high mortgage rates are hitting the housing market. it said there had been a ‘marked slowdown in the UK housing market’ in the first half of its financial year (calendar H2 of 2022). It says the mini-budget hit confidence… In a pre-Budget submission, the CBI has said that ‘the path to growth is clear’. It calls for ‘a successor to the Super-Deduction to ensure the UK is ‘back in the game on global investment’ and says there must be ‘measures to help ease labour and skills shortages must be a priority in the Spring Budget…’ • See premium. Reply for sample or to upgrade. Single £345, multiple £595. Limited time offer: PayPal monthly £25 + VAT. Easy in, easy out. Sterling higher at $1.2087 and €1.1257. Oil up at $85.16. UK 10yr gilt yield up 2bps at 3.31%. World markets mixed yesterday. London set to open up around 18pts 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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