Restaurants/Pubs

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.

Starbucks plots a skinny-latte future

20 June 2018

The coffee chain is serving slowing sales in the U.S. and China, and a lukewarm valuation. Boss Kevin Johnson is using his tech background to attract customers, but still faces venti-sized challenges. Starbucks is shaking up the menu. It could also consider slimming down faster.

Starbucks boss seeks smoother second shot at exit

4 June 2018

Howard Schultz is leaving the company he built into a global icon, and he may even run for U.S. president. He stepped away in 2000, but came back eight years later. If he’s to quit Starbucks for good this time, the coffee chain will need ideas that stay fresher for longer.

Whitbread’s coffee spinoff is too slow

25 April 2018

The UK company is planning to hive off its Costa cafes less than two weeks after activist Elliott disclosed a 6 percent stake. That may lift the group’s undervalued shares and make the chain a bid target. But a 24-month timeline is too long for investors to wait for the takeaway.

Coffee to go offers quick fix for Whitbread

16 April 2018

Activist Elliott controls 6 pct of the UK hotel and coffee chain and reckons a listing of its Costa brand would add 3 bln pounds of value. It’s a simple-seeming solution to Whitbread’s discount rating. Separating investor worries about the two parts of the business has merit.

Private equity’s retail fix risks landlord revolt

5 April 2018

Ailing UK food and fashion chains like private equity-owned New Look or Prezzo increasingly use fast-track insolvency tools to scotch costly leases. The fad gives companies a shot at recovery, while avoiding a risky administration. But property groups may tire of taking the pain.

Stuffed KFC only has itself to blame

20 February 2018

The fried-chicken chain owned by Yum Brands had to close hundreds of UK restaurants after running out of poultry. Its plan to cut costs by ditching a long-term supplier for a cheaper one backfired. The cock-up shows that chasing higher margins is no sure way to feather your nest.

Investors’ eyes are bigger than Chipotle’s stomach

14 February 2018

The burrito chain’s shares soared 14 pct after hiring Taco Bell’s boss as CEO. But Brian Niccol’s fast-food nous may not mix well with Chipotle’s wish to be a health-conscious brand. And the firm is wrapped up in poor governance that may hamper efforts to spice up the top line.

Whitbread can give activist a hospitable welcome

7 December 2017

Jitters about UK consumer spending have pushed the Costa Coffee and Premier Inn owner’s valuation to a 10-year low. U.S. fund Sachem Head, which has taken a 3.4 pct stake, sees upside. Selling property or spinning off the coffee unit are among a menu of value-creating options.