VSA Capital Morning Brands Comment 17/01/23

Cooks Coffee Company Limited (COOK) owns master franchises for Esquires Coffee, the ethical coffee and fresh food regional café chain. Cooks, founded and listed in New Zealand, in November 2022 dual listed on the London Aquis Exchange. Having restructured and reduced international operations, the business is now driven by expanding revenues from UK and Ireland franchised cafés. In 2020, Cooks acquired UK-based, franchise-operated, Triple Two Coffee. At year end March 2022 (FY 2022) Cooks had 6

Cooks Coffee Company: Expanding in the UK and Ireland

Cooks Coffee (CCC NZX), which was founded in 2008 in New Zealand and is listed there, owns master franchises for Esquires Coffee, the ethical coffee and fresh food regional café chain. Having restructured and reduced international operations, the business is now driven by expanding revenues from UK and Ireland franchised cafés. Small legacy revenues are derived from 26 outlets in ROW, primarily MEA. In 2020, Cooks acquired UK-based, franchise-operated, Triple Two Coffee. This brought in a more m

Cooks Global Foods - Termination of coverage

Edison Investment Research is terminating coverage on Cooks Global Foods (CGF). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Focused on capital requirements

Cooks Global Foods (CGF) has reaffirmed its 650-store budget for Esquires Coffee by March 2021, but has acknowledged that the growth path may not be smooth. The company needs to obtain additional funding to fuel this growth and in the short term has arranged a NZ$2m convertible loan facility from two of its largest shareholders. CGF also has shareholder approval to raise NZ$9m, and we understand the company is in discussions with strategic investors. The company’s auditor, PricewaterhouseCoopers

Funded for growth

Cooks Global Foods (CGF) has reported a net loss excluding impairment charges of NZ$1.556m for H116, a 31.7% increase year-on-year. The company is very much in the investment phase of scaling up its operations offshore and has set in place the parameters to fund its growth plan for the next few years. Our DCF-valuation of NZ$0.245 per share post-transaction is based on the company successfully rolling out 710 stores by FY21.

Growing the global footprint

Cooks Global Foods (CGF) is ready to take the Esquires Coffee House franchise to the next phase, with a new plan to fund its trajectory and key relationships in place to significantly expand its presence in China. It also plans to establish a beachhead in the US market in the next 12 months. The New Zealand-listed company has embarked on a growth strategy to lift its presence from 77 stores to 710 stores by FY21. Our DCF valuation of NZ$0.23/share post-recapitalisation is based on this strategy’

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