Restaurants/Pubs

Corona Capital: Davos delay, Political TV ratings

26 August 2020

Concise views on the pandemic’s corporate and financial fallout: The World Economic Forum’s annual winter meeting becomes a summer gathering; and in the U.S., the Democrats’ online spectacle leads TV ratings over the Republicans’ more traditional convention.

Corona Capital: Junked cans

11 August 2020

Concise views on the pandemic’s corporate and financial fallout: An aluminum company with a junk rating issues debt with a ridiculously low interest rate.

Corona Capital: PizzaExpress, Aerospace pain

4 August 2020

Concise views on the pandemic’s corporate and financial fallout: The UK restaurant chain’s restructuring is not that tasty a meal for creditors; Airplane-parts maker Spirit’s reliance on Boeing’s 737 MAX has it heading into worse turbulence.

Corona Capital: Not so united

8 July 2020

Concise views on the pandemic’s corporate and financial fallout: A potential round of cuts at United Airlines lays bare the pitfalls of the government being both savior and investor.

Fast food franchise model has burnt edges

1 July 2020

NPC International, the U.S.’s largest Pizza Hut franchisee, filed for bankruptcy. An LBO flip, heated competition, and higher labor costs left it larded with debt. Parent company Yum appears resilient. But its restructuring portends sizzling problems in the franchise model.

Uber tries for bigger meal ticket with small fry

30 June 2020

Boss Dara Khosrowshahi may strike a deal with Postmates after failing to bag Grubhub. The food-delivery service is tiny compared to rivals with outsized valuations, so the mooted $2.6 bln price is easier to stomach. Yet benefits are as questionable as risk, and Uber could wait.

Corona Capital: U.S.-China fight, Canada downgrade

25 June 2020

Concise views on the pandemic’s corporate and financial fallout: Washington deploys sanctions over Hong Kong, adding to trade and Covid-19 tensions; and a double whammy of the coronavirus and low oil prices costs Canada one of its AAA ratings.

Corona Capital: U.S. recession, Grubhub, Airlines

8 June 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. falls into a recession, Grubhub looks for leverage, airlines have optimistic investors.

Corona Capital: Perpetual WFH, Macy’s

21 May 2020

Concise views on the pandemic’s corporate and financial fallout: Facebook and its peers consider making working from home the new normal, while Macy’s gives an insight into a corner of the retail market that was struggling even before the pandemic.

Corona Capital: HCA Healthcare, Kering

21 April 2020

Concise views on the pandemic’s corporate and financial fallout: The virus helps one part of the U.S. healthcare industry, but harms another; and luxury group Kering's Chinese fortunes may depend on an end to Italy's lockdown.

Corona Capital: Dining bonds

20 March 2020

Concise views on the pandemic’s corporate and financial fallout: Restaurant industry cooks up a unique form of funding to help alleviate revenue wipeout.

Chinese buyout shop grabs for last UK pizza crust

14 November 2019

Hony Capital paid 900 mln pounds for PizzaExpress in 2014. Now it’s facing a wipeout as the restaurant chain falters. Snapping up unsecured bonds might boost its bargaining power in debt talks, but its hand looks weak. The firm’s best hope is that nobody wants a messy default.

Brexit takes froth off Whitbread’s coffee reward

22 October 2019

The 3.9 bln pound sale of Costa pleased activist investors eager for a breakup. But the remaining hotel and restaurant business is worth little more than before the deal, after including cash paid to shareholders. Fears of a messy EU exit are denying CEO Alison Brittain credit.

Jollibee risks indigestion with U.S. coffee deal

25 July 2019

The $5 bln Philippine fast-food chain is buying Los Angeles-based retailer The Coffee Bean & Tea Leaf. It gives Jollibee 1,189 stores, over 400 of them in fast-growing Southeast Asia. But the company is losing money in the battle with Starbucks. A quick turnaround looks unlikely.

Pret’s veggie buyout more appetising than it looks

22 May 2019

The ubiquitous sandwich chain has gobbled up loss-making rival Eat. Taking on nearly 100 extra stores when rivals are struggling to survive sounds reckless. But using the outlets to roll out its vegetarian offering is an established way to boost sales.

Starbucks hasn’t got recipe quite right yet

1 November 2018

The coffee chain’s same-store sales increased 3 percent, as it got customers to spend more per transaction while tweaking menus and working practices. Boss Kevin Johnson’s experiments are helping to turn around the lackluster U.S. business. But profitability isn’t keeping pace.

Wagamama may give Frankie & Benny’s indigestion

30 October 2018

Restaurant Group is splashing out 559 mln pounds – near its market value – on the noodle chain. With its Frankie & Benny’s chain struggling, it could use Wagamama’s growth. But even if the UK doesn’t capsize post-Brexit, it looks hard for the buyer to make a tasty return.

Is Howard Schultz a Starbucks asset or liability?

9 October 2018

Bill Ackman, whose Pershing Square unveiled a $870 mln stake, thinks a presidential run by its retired founder might protect the coffee chain’s China business. Yet a liberal campaign could stymie expansion in America’s red states. Schultz’s days as a stock booster may be over.

Peltz pizza tie-up is missing one ingredient

9 October 2018

Papa John’s is an ideal target for activist Nelson Peltz, who has a big stake in Wendy’s and experience fixing struggling consumer companies. Getting founder John Schnatter on board is essential, though, and that’s a challenge even for an investor used to boardroom conflict.

Coca-Cola pays big price for global coffee fix

31 August 2018

The soda giant is spending $5.1 bln on the Costa chain of cafes. Justifying the frothy 16 times EBITDA multiple requires Coke to order up new markets for hot drinks. It’s another reminder of consumer groups’ lust for coffee. Investors in seller Whitbread are the big winners.