Restaurant Share Discussion Threads

[squeamish1] 23/3/2021 11:11

Presumably holders are now dumping their shares at >£1 to buy them back at £1 in the open offer expiring tonight

[tygarreg] 22/3/2021 08:19

I think these pubs and restaurants are going to be the highlights of our lives this year. No holidays abroad, cash to spend, missed birthdays, missed anniversaries. Vaccine rolling out, outside drinks in three weeks, inside drinks and food by mid may and then an explosion of pent up trade. Strong buy imho

[ali47fish] 19/3/2021 10:59

if i have a tiny holding is it still worth it to take up my rights here anyone witn insighht please!

[adobbing] 16/3/2021 08:49

From page 9 of recent annual report, pub freeholds valued at £153 million in November last year;



The Pubs business benefits from their premium proposition, being situated in rural locations with outside space and limited competition nearby, as well as autonomy at a site level on menu selection which allows pubs to adapt rapidly to local trends. Approximately 50% of the Pubs estate has over 100 external covers, with the expansive buildings and grounds providing multiple ancillary trading opportunities. There is strong asset backing, with a freehold asset base valued at c. £153m (as of 27 December 2020, according to a third-party valuation report commissioned by the Group).

It’s these pubs with 100+ external covers, which could (with a fair wind) provide the scaleable revenue and therefore profit.
Many of these outlets have never really pushed outdoor dining, now they are all gearing up to max out on it.
Also the takeaway business is another revenue stream that can be flexed as necessary, until last year this didn’t exist.
Pre pandemic I could book a table to eat, often the time I wanted wasn’t available, unless I booked a week in advance.
Because I’d need to drive, i couldn’t fully imbibe.
Now and in the near future, if I can’t get a table indoors I can opt for outdoors or a takeaway.
If I fancy more of that nice cask beer I’ve been drinking, I can take more of it home with me in a plastic carry out.
If I fancy a night in, I will be able to get both food and beer...
If it’s nice weather and I’m outside having a pint and get hungry, I can nip over to their Pizza van and get a decent pizza to eat there or take home...

They have adapted well and have numerous new revenue streams that can be easily scaled up or down as appropriate.

I see a bright future for the pubs business, it’s the retail park and high street outlets that concern me.

[adobbing] 15/3/2021 19:16

Most of the pubs are freehold, so perversely won’t have much of an impact.

I think a lot of the next batch of results could be weather dependent, 2 months of fine weather could make a significant difference to ability to generate profit.
Hoping for a repeat of last year’s weather.

A delay to the planned easing of restrictions, combined with poor weather could send the share price south.
It could also have the same effect on weaker competitors, of course!

[mashman] 15/3/2021 18:52

And lower rents adobbing. The thing is it looks like we're going back to £1 Seems to always happen. Do I hold or go short? I like the b&p concept and think it will do well so don't really want to be out.

[ny boy] 14/3/2021 16:49

The £175M placing will add financial security, bit high for my liking, see where the share price is later in the month, when general markets start pulling back.

[porsche1945] 10/3/2021 19:25

Just how much dilution can one company suffer, too many shares, too much capital raising, debts still eye watering, rolling lockdowns again next autumn, U.K. is a basket case, dont get carried away re vaccines, glad to be out, U.K. terminal and restaurants airlines cinemas and hotels super terminal.

[paulisi] 10/3/2021 16:20

Huge jump and then back down to normality.Tempted to jump in again when sites can re-open if the market prices stays at this level.

[scepticalinvestor] 10/3/2021 09:01

Sold at 121.30p value based on those results; with placing maybe another 30p.The mcap is back to where it was pre-COVID...

[babbler] 10/3/2021 08:21

Hence placing. And lockdown ending so...

[paulisi] 10/3/2021 08:12

Jump on results, which show potential, but are draining cash resources due to lockdown.

[quest2011] 07/3/2021 22:01

Despite the rise in the last 8 weeks, there's 20% upside here in the next months. The risk/return calculation remains favourable

[adobbing] 04/3/2021 18:11

Notice of Results

The Group will announce its full year results for the 52 weeks to 27 December 2020 on 10 March 2021.

FY 2020 year-end (27 December 2020) net debt (pre-IFRS16) of c.GBP340m, in line with our expectations

-- c.GBP5.5m cash burn per four week period during ongoing national lockdown, with a c.GBP40m working capital outflow post year-end due to unwind of supplier creditor positions

-- Strong recent trading for delivery and takeaway across c.200 sites in Wagamama and Leisure businesses

-- Accelerated reopening plan for dine-in trading, once the current restrictions for hospitality businesses end, with all viable sites being reopened within two weeks.

[albanyvillas] 02/3/2021 08:25

VARE



0 0 0
VARE could be interesting for yous

What is very apparent and which should clearly hold VARE in good stead is that the team appear to be well ahead of the curve, having already installed the igloo concept before others had even thought about it and where such vision had already seen the brand embracing a changing working environment. “We don’t think the whole world will now start working from home, but we do think that people may be doing that one or two days a week for example and that trend certainly plays to Coppa’s strengths”.

As the company moves forward there is likely to be a mix on the outlets it develops in terms of buying the freehold as with Cobham or opting for the lease route.

CFO Williams says, “the Cobham purchase was probably more of a one off as it was a really attractive proposition for us as it’s a really difficult place to get into and it came up at the right time and it was a really great purchase.
Looking ahead, the majority will most likely be leasehold sites but obviously if an attractive freehold site came up, then yes, we would absolutely look at it”.

VARE isn’t however all about Coppa Club as it has another emerging brand in Tavelino which currently has a presence on the Riverside in London.

Bassadone is quick to enlighten me further and where the enthusiasm is arguably
infectious, “this is my baby really and it is focused on Italian food which is the UK’s number one seller, but yet, is served by a whole host of mediocre chains that really don’t focus on the product and ultimately end up in a discounting war. It’s effectively
an open goal crying out for a quality offering, so what we did with Cote, we want to apply to Tavelino which will be an Italian Brasserie where you can actually have home made pasta.
If you want to come and spend £40.00 per head you can, or equally, if you only want to spend £15.00, you can do that too, so something on offer for everyone”.

Bassadone sees huge potential for Tavelino going forward as numerous restaurants that closed their doors will not be opening again, providing for a major opportunity in ripe locations with a focus on the quality of the food and service.

In terms of the financials Williams says that despite the harsh environment created by the pandemic VARE has a very healthy balance sheet to execute on its strategy and in addition to the money raised, it has also received an interim payment of £2.5m from its business interruption insurance. On trading, when restrictions were eased last summer VARE’s venues experienced robust activity, so not surprisingly there is cautious optimism moving forward.

Bassadone points out that back in the summer they saw big like-for-like growth outside of London with massive pent-up demand and for one who has been operating in the industry for some thirty years he clearly sounds confident on the mission.
“Spending on eating out has only been going one way since the early 1990’s and it has now become embedded in our culture, everyone wants to eat out and it is such a big part of our social life”.

Indeed, given the easing out of lockdown and the promise of a brighter summer VARE’s biggest headache at its venues may prove to be handling the level of activity, rather than worrying about getting people over the threshold.

In terms of promoting their brands it is also refreshing to hear of the strategy as Malkov explains, “we aren’t into running big national campaigns, it is much more about the local pr and marketing in those areas and we already have a strong market position with a good following on social media. If you look at what happened in Cobham, people were already talking about us long before we had even opened and there was a lot of excitement around that”.

As mentioned in the opening, there is currently no guidance out on the market at present, but that will change as things progress on the wider economy opening up.

There are however for now good reasons to be optimistic, not least the strength and depth of the management and a high quality team also backing up the brands.

Coppa’s like-for-like sales were very positive until mid-February of last year and was trading better than expected through July to September, despite various restrictions remaining in place.

In particular the five Coppa Clubs outside of London saw a 24% in LFL’s over the period, whilst the first Tavolino which only opened in July of last year also saw positive trading.
The coming months should see news emerging on further additions and their locations as Bassadone says that there are currently three or four under active consideration.

And just this week the company has also welcomed a new property director on board, who arrives from Loungers where he oversaw
some one hundred openings.
The team here believe that they are offering a high quality experience in wonderful settings which may be poised to grow and prosper as we finally get to once more embrace some of our much lost freedom.

The shares which briefly dipped at the open are currently up 7% at 87.5p and I remain a firm holder for the longer term story.
hxxps://www.variouseateries.co.uk/who-we-are

[adobbing] 24/2/2021 11:36

Not seen any notice of results yet, but based on your dates there should be something soon.

I am told that in the pubs division they have recently acquired a further two pubs in the South, one being around Stratford on Avon.

[mashman] 24/2/2021 08:42

You are right. Notice of results 13 Feb20, results out 26th Feb 20. My apologies.

[adobbing] 23/2/2021 20:29

Full year results presentation was 26/02/20.

[mashman] 23/2/2021 20:12

adobbing. The annual report normally comes out 15/16 April. If you wait that long you will have missed it imo.

[mashman] 23/2/2021 20:02

Good push today in a generally red market.

[quest2011] 23/2/2021 08:02

More value to come. Look past the next three months, which will soon be ancient history, and earnings will be back to "normal".