DOM, SBUX, McDonald’s, WTB, Molson, Amazon, confidence & other:

A DAY IN THE LIFE:

Bity backed up with work this morning.

And behind after various errands yesterday.

And stressed ahead of the football on Saturday so, with all of that in mind, we might have to go straight 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 are £395 for one subscription, £695 for multiple, £995 for very large subscribers, all plus VAT. Or sign up for easy in, easy out monthly option per subscriber HERE

https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=87YUG2Z5W7PSN

sent separately

DOMINO’S Q1 TRADING UPDATE:

Domino’s Pizza Group has this morning updated on Q1 trading and our comments thereon are set out below:

The numbers: Domino’s reports that it has returned to ‘positive like-for-like sales and total orders across February and March’ after a tougher January. The company reports that LfL sales were down 0.5% in Q1 as a whole with total orders down by 0.8%, On a 2-year basis, DOM reports that Q1 like-for-like sales are up 8.4%

New openings: The group opened 14 new stores in Q1 (15 at this point in FY23. DOM says it has a ‘strong pipeline, with 38 in construction or planning approved.’ The company still expects to open over 70 stores in FY24.

Other issues: The company reports continued digital progress with ‘app orders as a percentage of total orders +11.3 ppts vs. Q1 23.’ It says it has had a 37% increase in app customers vs. Q1 23. The company reports that, with the Shorecal acquisition completed on 10 April, it is now focused on accelerating growth in Ireland. It adds that the ‘process [is] at an advanced stage to sell the London corporate store estate to a select number of existing and new franchisees.’

• See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out.

PUBS & RESTAURANTS:

Changing consumer behaviour:

Data from payment technology provider Dojo shows a shift towards afternoon activities and ‘days out’ in Q1 2024, with hospitality venues experiencing a £134m increase in spend during the afternoon compared to night time. The cost of living crisis shows signs of easing, driving a nearly 40% surge in spending at tourist attractions and exhibitions, along with a 38% uptick in spend on competitive socialising venues….

• See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out.

WFH

Grosvenor, the Duke of Westminster’s property company, reported yesterday that it is working on the basis that flexible workspaces will remain in demand for the foreseeable future. CEO Mark Preston said ‘the thing that surprised us [is] just how widely attractive this product now is for businesses that you might be inclined to think would take a longer-term commitment.’ In some properties, Grosvenor has edged into the service office space.

COMPANY NEWS:

Revolution Bars Group plc yesterday announced the postponement of its General Meeting, which had been scheduled to take place tomorrow at 11.00 am. RBG proposes a new date of 20 May. The company says that the postponement comes ‘following discussions with key shareholders and in order to provide additional time to fully explore all its strategic options….

• See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out.

McDonald’s yesterday reported Q1 numbers saying that earnings increased 2% to $2.70 per share adjusted on 5% revenue growth to $6.17 billion. Analysts had reportedly been looking for nearer $2.72 in earnings and, as the results made three consecutive quarters of slowing earnings growth, there were some concerns that a new trend was being established. LfL sales globally were up by 1.9%, slightly below the 2.1% rise that the market had been looking for…

Starbucks yesterday reported fiscal Q2 numbers saying that consolidated net revenue fell by 2% to $8.6bn ‘driven by a complex operating environment’. The company reports that ‘global comparable store sales declined 4%, driven by a 6% decline in comparable transactions, partially offset by a 2% increase in average ticket.’ It says ‘North America and U.S. comparable store sales declined 3%, driven by a 7% decline in comparable transactions, partially offset by a 4% increase in average ticket…’

• See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out.

Amazon yesterday reported Q1 profits sharply higher with the company attributing the rise to AI and advertising sales. The company reported Q1 revenue of $143.3bn, up 13% from the same period in 2023 and ahead of Wall Street expectations of $142.65bn….

Molson Coors reported Q1 net sales +10.7% on a constant currency basis, with income before taxes +160.5% to $265.4m. This growth was driven by elevated demand and favourable shipment timing in the US, the company’s largest market….

Green King is leaving its historic Westgate Brewery in Bury St Edmunds, Suffolk, after over 200 years, relocating to a new site nearby. The £40m investment in the Suffolk Park location aims to support future sustainability goals, with brewing continuing at Westgate until the new brewery is operational, expected by 2027.

The MCA reports that Loungers, which achieved record revenue and LfL sales growth (+7.5%) in the 53 weeks to 21 April 2024, has plans to maintain expansion at 35 sites per year….

Campari Group has completed the acquisition of Courvoisier Holding France S.A.S., including the Courvoisier brand, for $1.17bn, following negotiations with Beam Suntory Inc. and regulatory approvals. An additional $30m for finished goods will be paid separately, with a potential earn-out of up to$120m based on 2028 sales targets.

Boparan Restaurant Group’s Slim Chickens UK is expanding into Germany through a partnership with the Foodelity Group, with five locations set to open within the next year.

Restaurant operator Mowgli Street Food has reported full year numbers to 31 July 2023 to Companies House saying that revenue rose from £26.9m to £30.9m but the company slipped to a loss before tax of £476k (2022: profit £1.9m)…

Coca-Cola Inc yesterday reported Q1 earnings and revenue ahead of Wall Street’s expectations and it went on to raise its outlook for its full-year organic revenue. Case volumes globally rose by 1% in Q1.

WHITBREAD – FULL YEAR RESULTS – WEBINAR:

Whitbread has this morning held its full year analysts’ meeting and our comments thereon are set out below:

• See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out.

HOLIDAYS, HOTELS & LEISURE TRAVEL:

The Advertising Standards Authority has banned Whitbread’s Premier Inn from advertising rooms “from only £35 a night.” This because the headline was ‘likely to mislead’ because of the small number of rooms available at the advertised price. The ASA says ‘we told Premier Inn to ensure that when using ‘from’ price claims in the future, a significant proportion of the advertised rooms were available at the advertised price.’

Safestay has announced the acquisition of the Hotel Lineros. It reports ‘the property has 30 freehold bedrooms and is situated in the very centre of the ancient city of Cordoba, 60 miles north of Malaga. Under the Safestay brand the site will be converted into a 100 bed hostel. The cash consideration will be €2 million funded from the Group’s existing cash balance.

Planned strike action by around 50 refuelling operatives at Heathrow airport over the early May bank holiday weekend has been called off after affected Unite members accepted improved pay and conditions. The strike, which could have affected up to 35 airlines, including Virgin Atlantic, Delta Air Lines, Emirates, and Air France, was scheduled for 4-7 May but was cancelled on Monday.

OTHER LEISURE:

PayPal yesterday reported Q1 numbers ahead of estimates. Its shares rose around 3% on the news. The company went on to raise its forecast for full-year adjusted profit.

FINANCE & MARKETS:

The EU has reported that GDP rose year on year in Q1 by 0.4% in the Euro area and by 0.5% in the EU as a whole. It reports that quarter on quarter growth was 0.3% in both the Euro area and the EU. The flash data suggests that any recession has now ended.

Ireland is reported to have made around €700m from additional customs duties now payable on exports into the Republic from the UK.

Zoopla reports that UK house sales rose for the seventh consecutive month in April. It says that lower mortgage rates are fuelling demand and sales numbers in April were up by 12% on a year ago. It says ‘the rebound in sales being agreed continues as mortgage rates have fallen, consumer confidence improves and home buyers have much greater choice of homes for sale.’

Sterling down at $1.2474 and €1.1715. Oil lower at $85.58. UK 10 year gilt yield up 7 basis points at 4.36%. World markets mostly lower yesterday and London set to open broadly unchanged as at 6.30am.

RETAIL WITH NICK BUBB:

• See premium. Reply for sample or to upgrade. Single £395, multiple £695. Limited time offer: PayPal alternative monthly £25 + VAT per sub. Easy in, easy out.