Cake Box Share Discussion Threads

[justiceforthemany] 17/4/2024 12:33

Royal Mail about to be taken over now as per the FT.
UK companies are significantly undervalued.

[justiceforthemany] 16/4/2024 08:14

The Aussies like the company.
All that matters.

[disc0dave46] 15/4/2024 22:02

Sorry but LFL was negative H2.The UK is saturated they need to expand abroad. Earnings growth forecasts aren't even double digits anymore.Always liked their business model but they seem to lack any longer term strategy IMO.

[sid_b] 15/4/2024 21:57

LFL sales will more likely move in line with general economy. Practically, growth for biz will come from new store openings. And there is still lots of scope for new store openings. They have cracked the operations for their hub and spoke model. Now they just need to execute their playbook at a faster rate.
Lower interest rates will help as franchise will find it easier to get loans to open stores. It will also help with their RoI.
CB have a long runway unless they screw-up something real bad. Of course, I would still say a new professional mgmt will be useful.

[disc0dave46] 15/4/2024 21:21

Seems priced at fair value IMO.Hardly a growth stock with H2 franchise LFL sales negative compared to H1.

[levinson1] 12/4/2024 17:25

Absolutely Sid B - good analysis.And international expansion - especially with River Capital PTY into Asia and other areas potentially.

[sid_b] 12/4/2024 16:43

CB is undervalued. They have shown the ability to keep growing without compromising on profitability (except for the high volatility period post-COVID). Market will be pleasantly surprised by this under-the-radar, steadily growing/compounding company.

What CB definitely needs to do is to increase the rate at which they open new stores/kiosks. Their capital-light model enables them to grow faster but they haven't really leveraged it fully. A look at some of the other big franchise chains will give you an idea how quickly they expanded their store footprint in their growing days and that is reflected in their multi-billion $ valuation. However, that also brings the operational risk of managing the fast-paced growth that the mgmt. hasn't witnessed yet. I am happy with 'slow and steady' but let's see what they do in future.

[levinson1] 12/4/2024 10:42

Cake Box discuss latest developments following its Full Year Trading UpdateApr 8, 2024 2min 43sechttps://www.youtube.com/watch?v=M2i421s6BPwCake Box, UK's largest retailer of fresh cream celebration cakes, announced a Full Year Trading Update with strong growth across the business, reflecting new store openings, positive sales growth ...View Full Message

[levinson1] 12/4/2024 09:30

Investors Chronicke - buy ?Will Midas re pick up this share over the weekend ?Much more detailed growth plans to emerge in June on the basis of the podcast below

[levinson1] 12/4/2024 09:20

Cake Box discuss latest developments following its Full Year Trading UpdateApr 8, 2024 2min 43sechttps://www.youtube.com/watch?v=M2i421s6BPwCake Box, UK's largest retailer of fresh cream celebration cakes, announced a Full Year Trading Update with strong growth across the business, reflecting new store openings, positive sales growth ...View Full Message

[martywidget] 11/4/2024 17:30

Cake Box discuss latest developments following its Full Year Trading Update
Apr 8, 2024 2min 43sec



Cake Box, UK’s largest retailer of fresh cream celebration cakes, announced a Full Year Trading Update with strong growth across the business, reflecting new store openings, positive sales growth from the enhanced marketing campaigns and increased online sales. The Group expects to report revenues for the year up c9.0% year on year (FY 2023: £34.8m), along with adjusted profits slightly ahead of market expectations.

[levinson1] 11/4/2024 15:08

BUY note on CBOX in tomorrow's Investor's Chronicle ?

[levinson1] 11/4/2024 09:06

Did you not read the statement. They've now consolidated and going fir growth . EPS over 20p won't take long imo

[disc0dave46] 10/4/2024 17:01

Thanks for your article.You mentioned getting to 20p eps, given their current high single digit eps growth that's going to take 5+ years or thereabouts.I'm assuming you don't hold?.

[levinson1] 10/4/2024 10:39

Higher than 20 when growing like CBOX is. River Pty need to hurry up if they want to get CBIX at 2.50

[levinson1] 09/4/2024 14:50

River Capital PTY must surely imo be very tempted to make the 250p bid imminently

[martywidget] 09/4/2024 12:55

Investors celebrate as Cake Box sweetens full year profit guidance


THE BROKER’S TAKE

House broker Shore Capital commented: ‘With some of the clouds over the UK consumer economy lifting (in our view) we believe Cake Box is now very well placed to deliver on its evolved growth strategy, with a more proactive property strategy, enhanced marketing capability combined with the considerable knowledge and experience of founder and CEO Sukh Chamdal.’

The broker added: ‘Cake Box remains immature, and after two years of stability and consolidation looks well positioned to deliver sustainable capital light, cash generative medium to long-term growth.’




Date Broker name New Price Old price target New price target Broker change

08-Apr-24 Shore Capital House Stock 165.00p 0.00p 0.00p Reiteration

www.sharecast.com/equity/Cake_Box_Holdings/broker-views

[justiceforthemany] 09/4/2024 12:50

These sorts of discretionary stocks with no debt and a NET CASH position usually trade at 20x earnings.
240p is a fair price.

[edmondj] 09/4/2024 11:57

Thoughts for you guys:

[diohohku] 08/4/2024 18:58

Cake Box sweetens profit forecast
Patisserie chain Cake Box has told investors its profits for the year to March 31 will be better than expected after boosting online sales and launching new products.

It says that sales should be up 9pc year-on-year, reaching around £37.9m.

The chain added an extra 20 shops during the year. It believes there is scope to grow its current estate from 225 stores to 400 over time.

Cake Box began in 2008, founded by vegetarians who wanted to supply cakes that were egg free but still contained fresh cream.

Sukh Chamdal, chief executive, said the baker had “delivered a year of solid growth in all our key performance areas and full year profits slightly above expectations despite the backdrop of uncertain macroeconomic conditions.”

Shares rose 2.5pc today.

[justiceforthemany] 08/4/2024 17:17

Net Cash levels up.

Only a matter of time before a revised bid comes in.

[johndoe23] 08/4/2024 15:23

Surprised decent update

[disc0dave46] 08/4/2024 13:41

Their broker has 11.3p eps so up with events IMO.