Research Roundup
We will be hosting a restaurant Black Book idea call on 5/31/22 at 2 PM. We are presenting the vetting of two investment ideas Krispy Kreme and First Watch Restaurant Group. Krispy Kreme is on our position monitor as a Long. First Watch Restaurant Group is currently not on our position monitor.
The Black Book will cover the long thesis for Krispy Kreme (DNUT):
- Strong Organic growth
- Controlling distribution and margin potential
- Strong brand; inexpensive treat
We will also be vetting a potential new idea FWRG which we believe can possibly be one of the better small-cap growth stories in the restaurant space:
- Strong new unit economics
- Right dayparts for the times
- Significant future growth
Restaurants Subscribers CLICK HERE for event details (includes video and materials link)
Just Eat Takeaway's Disaster
According to The Times, GRUB may only be worth $1.2 Billion
Grubhub, which Just Eat acquired for $7.3 billion last year, may only get $1.2B in a possible sale after failing to receive significant interest from strategic buyers, according to the article, which cited multiple unidentified sources. A number of private equity firms are said to have expressed interest in Grubhub, though it's not known if serious. Just Eat Takeaway announced last month that it's actively working with advisers to find a strategic partner for a partial or full sale of Grubhub. Just Eat Takeaway has been under pressure since last fall to sell or spin-off Grubhub as investor Cat Rock Capital has been urging the company to explore options for the Grubhub business.
Restaurant customers prefer local
A survey by NEXT found that 64% of restaurant-goers have intentionally chosen local restaurants over chain restaurants since the pandemic began.
Consumers are making a conscious effort to support their neighborhood small businesses. 43% said they have tried to help out by eating at local restaurants even if they don’t have to. The survey included more than 1,000 restaurant customers in April 2022. Customers appreciate that some neighborhood restaurants source their ingredients locally, which means fresher, healthier and more environmentally sustainable meals. The survey found restaurant customers are drawn to local, small business eateries for these reasons:
- They like supporting local businesses (87%)
- They prefer the food (71%)
- They thought the flavors of the food are more interesting/tastier (70%)
- They like the atmosphere (69%)
- They know the people who work there (69%)
