Cake Box Share Discussion Threads

[pietradura] 25/9/2018 07:29

Dont thank me s_a_b, buy me a red velvet cake


:)

[s_a_b] 25/9/2018 07:26

Pietradura full marks for calling today's RNS! Great news.

[nitbhav06] 23/9/2018 21:27

Mikton KeynesStore opening in Milton Keynes tomorrow. This should be a gem of a location.Keep them coming!

[nitbhav06] 18/9/2018 20:50

Most likely October however, I don't think they will come out with anything.

[yvonne] 18/9/2018 08:50

does anybody have any idea when half year results might be due?

[nitbhav06] 18/9/2018 08:14

I also think that issuing shares to store owners is an excellent incentive and a driver for growth. Can't wait for half year results.

[nitbhav06] 18/9/2018 07:40

Great point nw99. I hope they don't ignore expansion overseas. I see the US being an excellent opportunity in the forseeable future.

[nw99] 18/9/2018 07:17

Interestingly, when it comes to targeting new franchisees, Cake Box doesn't spend any money on marketing either, with the company saying it receives around 80 applications a month and between 2015-2018 it has expanded from 39 to 86 franchisees with a strong presence inside the M25, Birmingham, Leicester and Manchester but with not many elsewhere. It's therefore a fairly immature rollout with plenty of scope to expand.

[nitbhav06] 18/9/2018 04:43

The company has a long way to go in all honesty. Basic information is missing on website and it looks really dated. They need to focus more on Information strategy.However, I'm expecting good things for half year and full year results. If we can see a 20-35% uplift in revenue and profit growth, that would be excellent.

[s_a_b] 17/9/2018 19:44

The other point is that there aren't any broker forecasts out there as far as I know, so they don't have to release a trading update before the interim results unless they want to, no matter how good (or bad!) results are.

[nitbhav06] 17/9/2018 19:38

I doubt it. We'll most likely get half year results next month or November. That's about it.

[pietradura] 17/9/2018 19:16

there will be an rns when they hit 100 stores

[nitbhav06] 17/9/2018 19:07

Thanks for the heads info Sab. Great to know they are making progress regarding store openings. They need to keep up the momentum. The beauty of their current model is they require hardly any capital as the franchisee takes out a loan for the shops. Superb business model however, I do wonder if they can keep 2 store openings a month, it's a very tough ask. The profit margins are also superb. The valuation at current price seems a bit steep imo.

[s_a_b] 17/9/2018 13:48

Had a look on the website and they are up to 99 stores open, an increase of 13 from the 86 at 31 March 2018 disclosed in the admission document. This is encouraging as they are continuing to open new stores at the target rate of circa two per month. There are also a further five stores listed as opening soon. This should support revenue growth in the half year results to September from both product sales and store fit out/franchise fees. Fingers crossed!

[davr0s] 12/9/2018 19:24

It's a growth company if it can execute so PE ratios meaningless

[nitbhav06] 12/9/2018 19:15

I've used a P/E ratio of 15 not 20. 20 would give share price of £8.33 which is unrealistic IMO.

[jh420] 12/9/2018 19:12

Good quality product. Well located shops. People seem loyal to the brand. If you visit a local decent sized indian restaurant on any weekend you will always see a few of their cakes in the distinguished packaging which people bring with them for their celebration. Imo their clientele don't necessarily always look at price, they want the product. They are eggless and it ticks off the religious aspect for their party guests and looks the part too.

Previously people always laughed when you said cake without eggs. It is those people which love the cake when they try them.

[nitbhav06] 12/9/2018 19:10

No chance this is another Fevertree. It has a £5bn market cap and has expanded tapped into the US market. Even with 250 stores Cbox would generate around £25m of revenue. If we say £6m for earnings and P/E ratio of 20 (very optimistic), that gives a share price of around £6.25. No way near a Fevertree. But a takeover would make sense for Patisserie V due to synergies, economies of scale and firming up revenues. Either way I'm very bullish but it all depends on how quickly they get new franchises set-up.

[gswredland] 12/9/2018 17:07

Thanks Marty

[nw99] 12/9/2018 16:48

Thank you excellent

[martywidget] 12/9/2018 16:01

Cake Box had a mention here yesterday:

Stockwatch: An AIM share to gobble up
by Edmond Jackson from interactive investor | 11th September 2018 11:53
www.ii.co.uk/analysis-commentary/stockwatch-aim-share-gobble-ii506737/

[pietradura] 12/9/2018 15:46

Wonder if there is news tomorrow?
Interesting someone said this is the next Fevertree

[opodio] 12/9/2018 14:42

250p target

[gswredland] 06/9/2018 20:00

Yes their cakes are really good

[hvs] 06/9/2018 18:18

As I thought heading to £1.50 and under estimate.

You should try their cakes.

lol !!!!!!!