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Repla

Just Eat – Best Ideal LONG

Yesterday, the company announced the departure of its CEO Peter Plumb (appointed September 2017) and replaced in interim by Peter Duffy, Chief Customer Officer.  Also the company, provided some FY19 guidance where the FY18/FY19 numbers were slightly ahead of FactSet estimates.  We view this change as bad news, but will likely speed up the sale of the company.  We also see the presence of an activist as positive catalyst for the stock. 

SBUX - Best Idea SHORT

After only three months of testing, SBUX has declared the testing of delivery in Miami a success and is expanding the rollout to seven more cities.  “Following an initial test in Miami, the company remains on track to bring Starbucks Delivers to nearly one-quarter of U.S. company-operated stores, with planned expansion to select stores in Boston, Chicago, Los Angeles, New York and Washington, D.C., in the coming weeks. In total, Starbucks Delivers will be available in seven U.S. cities this spring”.  I remember in 2014 the company aggressively rolled out mobile order and pay and we know how that ended.  It was an epic disaster!  In two years MCD has been in partnership with Uber Eats, and it has none little to drive incremental customers.  Coffee delivered is a big business?

Tax Refunds

According to Civic Science, people are spending beyond their means right now and they need to pay down debt. 32% of American who expect to see a tax refund this year plan to use the proceeds to pay down debt. 36% are planning to save or invest the money, and about 32% are planning to spend it. Home improvements (9%) slightly outrank vacations (8%) as the top spending choice. Bucking stereotypes, men are more likely than women to use their refund to go shopping.  

Howard Penney

Managing Director

Shayne Laidlaw

Director

 

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