Prezzo Share Discussion Threads

[jazza] 03/12/2009 08:37

Hawaiian pizzas (Ham & Pineapple) are a classic slap.

Not my particular favourite, although last time I went to Pizza Express, one of my group had one, don't remember anyone saying it was old-fashioned..

Haven't bought in here yet but do like them on value grounds, net-cash/freehold-backing is way too strong for this enterprise value.

[slapdash] 03/12/2009 08:23

this may seem like a bizzare comment I am about to post but please take it seriously:

I am looking at this one so looked at their menu ... it looks a bit odd and out of date.. on one of the pizza's they put on pineapple for example.... not a pizza as I understand pizza.... that makes me cautious..... are these dudes up to clue with the times???? I will have to find one to eat in...

Slap

[paulypilot] 03/12/2009 01:57

Hi,

There IS cash here, and plenty of it. Plus there is around £11m in completely unencumbered freeholds - material to the valuation.

The beauty of retail/catering is that the takings are received immediately, and banked the same day as providing the product. Whereas a lot of the cost of sales are payable in arrears on 30-60 day terms usually. This means a perpetually revolving & large float of cash. I used to be a retail FD, so know what I'm talking about here.

Prezzo is a class act. OK it's another "me too" type of Italian pizza/pasta restaurant, but they're good at what they do, and the point of difference is the excellent restaurant fit-outs which differentiate it from other cheaper operators. They often choose nice buildings with architectural interest - all adds to the sense of occasion for the customer.

Proof of the pudding is in the eating, they're churning out solid trading figures, and with a bulletproof balance sheet, we'll make money slowly & in a low risk fashion with this share, IMO.

KAye family have done all this before, this is the 3rd or 4th big roll-out of a restaurant chain they've done. They will be back with an MBO proposal at some point I reckon, which is fine as it provides our outer at maybe 50p/share or more, with little downside risk.

Great investment for the patient. DYOR as usual.
Great timing for a buy actually now as well, at 26p. I might double up. BLASH and all that!!!

Regards, Paul.

[ydderf] 30/11/2009 15:38

call me old fashioned but looks like no impairments for the full year, so (based on flat numbers compared with last year) eps likely to be 3.5p, then there are 137+ restaurants for enterprise value of 45m (market cap less cash) = £320,000 per outlet, add in a little uplift to profits and eps could reach 3.75-4.00p, this year and 4.5p next......so a p.e of 7 currently, falling to 6 next.......pity there's no divi and that the guvnors tried to take it private a little while ago........still makes me wonder about when to take a bite - there is a heavy and persistent seller around apparently

[spudders] 13/11/2009 17:11

A few big trades lately and Blue today. My local Prezzo is still busy & should get more trade in the run up to xmas with thier xmas menu. Good luck all :)

[spudders] 15/10/2009 19:10

wowy - Quite right post deleted, I'm sure this should not be seen by the general public but I found this info laying in the street & as a shareholder thought it may help others. Lots of other info on there regarding seperate centre names.

[wowy] 15/10/2009 13:17

Spudders – I would question the posting of this information as it is not in the public domain. Secondly for the LFL to have any relevance it should only cover same shops for same period, as any other basis would be misleading.

[wowy] 14/10/2009 16:47

Don't think they issue LFL

[liveinhope] 14/10/2009 09:04

spudders: LFL = Like for like %.
LY?

[spudders] 13/10/2009 19:46

Does anyone know what LY Total & LFL% is as I may have something of interest.

[simon gordon] 12/10/2009 21:43

Came across this review on another blog:

In something of a hurry, Mr Oil and Mr Vinegar decide upon a quick pizza at Prezzo in Mayfair.

MrO: Looks like there's quite a few tables available. That's lucky.
MrV: Good God, the heat in here is appalling. It's hardly surprising the place is half empty. Is there nothing that can be done about it?
MrO: The windows don't appear to open. Prezzo likes to base itself in quaint old buildings. I guess this means that the windows don't work.
MrV: Well I'm not sure I'll last.
MrO: It may not be all bad. There's a magazine called Olive, owned by the BBC, which named Prezzo pizza chain of the year.
MrV: Never read it, never even heard of it. Another stupid BBC venture at our expense, I expect.
MrO: Gosh, it is quite warm in here. Perhaps this wine will cool us down.
MrV: What's this Merlot IGT? No other identifying marks? I suppose at £14.95 a bottle it's wise not to ask.
MrO: IGT stands for Indicazione Geografica Tipica. It's the modern Italian wine designation that the purists hate.
MrV: You are the most terrible bore. And this is the hottest wine I've ever had without cloves and cinnamon in it. It's undrinkable.
MrO: We can pop it in an ice bucket for a few minutes to bring it back to an acceptable temperature.
MrV: Look where the idiots keep it. As if it isn't hellishly hot enough in here, they store the wine on racks under lights behind the bar.
MrO: At least the pizzas are delivered fairly quickly. My Vesuvio looks quite good. It has pepperoni and red chilli with extra chilli oil on the side. Not bad for £8.75.
MrV: My Proscciutto e Funghi's supposed to have field mushrooms in it. Look, the menu distinctly says field mushrooms but these look very like button mushrooms. And I asked for garlic and onions to be added but I can't see any sign of them.
MrO: The website says: "We use the finest seasonal products available, many of which are imported directly from Italy."
MrV: I can't believe anyone would import these button mushrooms all the way from Italy. What would be the point when you can get them in any Morrisons or Tesco in this country.
MrO: We can't take it up with the manageress because she's been on the phone for the past 15 minutes. The waitress says it's something to do with the credit card machine.
MrV: That's none of my concern. I can't bear this any longer. I don't want any more of these mushrooms and so far I've found two specs of onion and one of garlic. Let's leave.

(The manageress arrives and argues that it is not her fault the credit card machine is on the blink, says she has no idea about the mushrooms and adds that she does not necessarily approve of the menu's claims.)

MrO: This is all very unusual, I must say.
MrV: I'm not paying for that pizza. And not leaving a tip either.

Mr Oil and Mr Vinegar consumed one and a half pizzas and a bottle of wine but withheld elements of the bill, paying about £23 in total.

[paulypilot] 20/9/2009 00:09

Hi,

Shares magazine reports market rumours of a possible MBO approach again. Would make sense. But no idea who their source is.

Regards,
Paul.

[bigboyo] 16/9/2009 10:24

better to buy earnings enhancing freeholds of restaurants ... could pick up some real bargains

for example a unit where rent is paid at 100k may be purchased at 1.2m to 2.0m inc tranaction costs (depending on location and length of lease and degree of overrenting)

There is no way interest on 1.2m to 2m would ever be 100k !

[rvsy38] 04/9/2009 11:54

I can't understand the silence and lack of activity given that yesterday about 5 % of the issued shares were traded and the price rose significantly. Anyone any ideas ?

[rvsy38] 03/9/2009 17:24

Paulypilot - just back from a dreadful session on the golf course and saw the final volume and price rise. I agree with your view ... and minimum price. Here's hoping.

[paulypilot] 03/9/2009 16:05

Hi,

Very unusual volume & large trades going through, together with a 12% rise in price on the day, normally this is a very quiet share, I wonder what's going on? Wouldn't be surprised is a bid approach is announced. But that's pure speculation - just reminds me of a situation a few years ago with a share called Eyretel - massive volume & a price rise, and bid was announced a day or two later.

PRZ is an obvious MBO candidate - Kaye family already own a majority stake, and tried to bid for the rest once before not that long ago. They could fund most of the cost of an MBO from the company's own cash & by mortgaging the freeholds, would only need a bit of extra cash over & above that to buy out we minority shareholders. I'd be happy with anything above 50p, below that no chance.

Regards,
Paul.

[the disciple] 03/9/2009 15:52

Most of the restaurant groups have come up with good results ,maybe this will follow the trend, it is after all run by quality managemant..

[matt123d] 03/9/2009 15:48

Massive volume, looks interesting

[jazza] 03/9/2009 13:24

1-week to results...hence the buying...probably.