BFG, CFG, RBD: 3 F&B stocks as eateries reinvent menus to beat rising prices

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BFG, CFG, RBD: 3 F&B stocks as eateries reinvent menus to beat rising prices

 BFG, CFG, RBD: 3 F&B stocks as eateries reinvent menus to beat rising prices
Image source: Source: © 2022 Kalkine Media®

Highlights

  • Restaurants are going through price hikes in dairy, meat and dry goods
  • Eight out of 10 restaurant owners adjusted their menus to cover rising costs
  • This has been compounded by labour costs

A Restaurant Association survey found that 70.87% had noticed food prices increasing across the board, with the biggest increases in dairy, meat and dry goods. Eight out of 10 restaurant owners had adjusted their menus and pricing to cover the rising food costs, 43.9% had substituted for cheaper products and more than half had absorbed the extra cost.

Almost 86% of restaurant owners said they had faced a short supply of products, including beef, chicken, cooking oil and food wraps packaging. Along with that, the shortage of labour is also creating a lot of problems for restaurant owners.
Against this background, let’s look at restaurant stocks listed on the NZX.

 

                                         Source: © 2022 Kalkine Media®

Burger Fuel Limited (NZX:BFG)

BFG is a food and beverage company. In FY22, the Group posted its full-year results with its NPAT at NZ$575K, a drop of 19.2% over pcp, mostly on accounts of lockdown restrictions and costs incurred while establishing new brands. The Company is facing cost issues with prices soaring high. The sales were up a marginal 0.01% to NZ$21.0 million during the period. 

Do Read: MFB, BFG: 2 NZX stocks in news as food and fibre exports set to rise
Also Read: BFG, MFB, PGW, CVT: A lens on food stocks amid rise in food prices

On 22 June, the stock was trading flat at NZ$0.340, at the time of writing.

Cooks Global Foods (NZX:CGF)

This food and beverage company changed its name and ticker code to Cooks Coffee Company (CCC) with effect from 31 March 2022. On 30 May, the Company announced its full-year results with net million compared to NZ$2.64 million on pcp. The result reflects that its café sales were on a recovery path in the UK particularly.

The acquisition of the fast-growing Triple Two Coffee business in June 2020 added scale to the core UK market and placed Cooks as the number 4 Coffee focused café chain in the UK, according to research.

Total group revenue from continuing activities increased 283.2% to NZ$6.7 million. Despite headwinds like labour shortages and uncertainty regarding COVID-19 variants, CGF’s brands grew from 57 stores in 2021 to 69 cafes in 2022 in the UK itself.

Must Read: Which are 4 popular NZX food stocks to consider in 2022?

Also Read: RBD, GSH: Hospitality stocks in news amid calls for lesser curbs

On 22 June, the stock was trading flat at NZ$0.420, at the close of the trading session.

Restaurant Brands NZ Limited (NZX:RBD, ASX:RBD)

RBD is NZ’s leading restaurant chain which announced its annual report recently. The Company has been resilient in tough times.

It has a multi-brand, multi-format presence across geographies and all divisions continued to trade through the crisis and have been able to achieve an improved EBITDA.

The company said that all divisions in New Zealand had generally continued to trade through the crisis and had been able to achieve an improved EBITDA.
Also Read: RBD and GSH: 2 NZX hospitality stocks as travel picks up

On 22 June, the stock was down 2.04% at NZ$11.070, at the time of writing.

 

 

 

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