FOOD: Jollibee (JFC) URC, FB & other co's

[drbubb]

It is not easy to find a Good Restaurant group below BV, with a 4%+ Dividend

MAXS vs PIZZA, JFC : from '15: 2020: YTD: 10d : 4.05 / 9.50, 231.0 = 42.6%

2014: 2015:   MAXS never recovered much from the 2020 Covid selloff

Restaurants UPDATE,  mid-Sep. 2023. (bought MAXS)
Psei 6,668 1.6.23:  EPS : P521    12.8x: 149.: 2.23%
Psei 6,125 9.18’23  EPS : P425  14.41x 184.: 3.01%

Sym Last: %Psei: BkVal: %BV :   PER : Div. : Yield:
Maxs 4.04: 0.59%: 4.97 : 81.3%  5.40 : .193: 4.77%
Pizza 9.41: 1.53%: P4.18: 225.% 14.23 : 0.10: 1.06%
JFC : 230: 3.76%: 55.61: 414.% 39.50: 23.0: 1.00%
Mcd 269.5  ==== ($6.85) Infin. 33.95: 6.09: 2.26%
J/M: 85.3%
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MAXS - Max's Group, Inc.

C06325: Max's Group press release - 1

"Max's Group posts stronger 1H 2023; outperforms pre-pandemic levels"

Max's Group, Inc. ("MGI", the "Group", or the "Company"), the largest casual dining restaurant group in the Philippines posted net income of P246 million (/1,037M= 0.237/ sh.) for the 1H of 2023 which outperforms its 2019 performance by 54%. Organic net income excludes the sale of a subsidiary whose sole asset is land.

The Group's system-wide sales ("SWS") is back to pre-pandemic levels at P9.2 billion across both company-owned and franchised stores in the global network achieving 95% of its 2019 performance despite lesser stores from closures during the pandemic. As compared to the 1H of 2022, sales jumped by over P1 billion or a 14% increase and converted to revenues of P5.9 billion, a 17% increase from the previous year.

Strong 1H 2023 results were primarily driven by Max's Restaurant and Pancake House, which experienced a rebound from a challenging first quarter last year. Yellow Cab Pizza and Krispy Kreme continue to perform with a strong brand equity. Meanwhile, operations of the international segment remained healthy with a combined 6% growth in SWS across Asia, North America, and the Middle East. Despite the challenges in commodity hikes, the Group's tightened business models implemented during the pandemic continue to have a positive impact on margins.

Strategic measures during the first half of the year cushioned the impact of headwinds as seen in gross profit of P1.9 billion or a 33.0% margin, representing a significant improvement of over 500 basis points as compared to 27.7% in 2019. "MGI's consistent execution of our customer-centric strategies, backed by tried and tested business models have cushioned the impact of commodity hikes and global economic challenges. MGI remains strong despite current market conditions," said Robert F. Trota, President and Chief Executive Officer.

[drbubb]

MAX's INFLATIONARY COST issues went back to 2018

On the cost side, MGI was weighed down by escalating raw material prices and a larger manpower component as it realized the impact of its move towards professionalization which began in 2017. This initiative was undertaken to reinforce strategic capabilities at the management level to ensure sustainable growth. The Company likewise took into account recently enacted labor policies particularly on third-party service engagements. As a result, net income declined 30% to P123.7 million from P176.0 million year-on-year.

The Company also announced its strategic pivot to franchising as the preferred mode of expansion both domestically and overseas. This shift will leverage on Max’s Group’s brand equity, operational expertise, and scale to propel store network expansion and boost fee-based collections, which generally equate to better profit translation.

“While cost and inflationary pressures as well as prolonged currency volatility are likely to persist, we are equipped with the proper growth strategies to stay resilient under these conditions. Looking ahead, we have laid out firm plans to address controllable expenses and maximize income flow-through. This keeps us aligned with our objective of improving overall profitability in the long-run,” shared Ariel P. Fermin, Group Chief Operating Officer.

> https://www.maxsgroupinc.com/news/maxs-group-reports-1st-quarter-2018-results-refocuses-efforts-to-franchising-11

[drbubb]

Del Monte Pacific Limited

DLM : 7.30 : PER: 7.40x, Div.: 0.074, Yield: 1.01%; Range: 7.30 to 14.20.  80.4% of BV: 9.08

10yr:

OLD news, 9.9.22... first quarter FY2023 results ending July

C06848: Del Monte Pacific 1Q FY2023 results - 1

"Del Monte Pacific Delivers Higher 1Q Net Income Before Redemption Cost" •

Del Monte Pacific (DMPL) Group sales decreased by 1% to US $456.6m as higher sales in the USA and international markets led by the S&W brand were offset by lower sales in the Philippines

• US subsidiary Del Monte Foods (DMFI) redeemed its 11.875% Senior Secured Notes to secure a much lower interest rate and incurred a one-off redemption cost of US$50m • Before this one-off cost, DMFI's net profit rose 67% to US$8m while Group net profit increased by 7% to US$19.6m • Net of this one-off cost, DMPL incurred a net loss of US$30.5m • Group expects to generate a net profit in FY2023 after one-off redemption cost Singapore Mainboard and Philippine Stock Exchange dual listed Del Monte Pacific Limited ("DMPL" or the "Group"; Bloomberg: DELM SP, DELM PM) reported today its first quarter FY2023 results ending July. DMPL generated sales of US$456.6 million, slightly behind year ago by 1% as better performance in the USA and international markets was offset by lower revenues in the Philippines.

The Group's US subsidiary, Del Monte Foods Inc. (DMFI), achieved sales of US$302.4 million or 66% of Group turnover. DMFI's sales increased by 1.5% on the back of higher retail branded sales of canned vegetable, tomato, broth and Joyba bubble tea. Del Monte canned vegetable, which had the highest contribution to branded retail sales, saw a 3.5-ppt increase in market share on the back of strong commercial execution, increased distribution of core products, and new product expansion, all supported by superior supply chain support. Canned fruit and fruit cup snacks also achieved higher shares. New products launched in the past three years contributed 6.8% to DMFI's total sales in the first quarter.

[drbubb]

• LTG: P 8.99, per: 4.28, E-y: 23.4%, div: 0.90, D-y: 10.01%. 48.9%, BV: 18.38 : 10d:

W/ DELM: P 7.32, per: 7.42, E-y: 13.5%, div: 0.074, D-y: 1.01%. 80.6%, BV: 9.08 10d:

[drbubb]

MAXS, Buying back shares, up 9.57%

MAXS: 4.35 +0.38, +9.57%

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MAXS - Max's Group, Inc.

C07433: Max's Group share buy-back transactions

Type of Securities: Common Details of Share Buy-Back Transaction(s): Date of Transaction: Sep 1, 2023

Number of Shares Purchased: 877,600 Price Per Share: 4.68 (P 4.1 M.)

Effects on Number of Shares: Outstanding Shares BEFORE: 1,037,292,224 AFTER: 1,036,414,624 (- xx%)

Treasury Shares BEFORE: 49,789,800 AFTER: 50,667,400

Number of Shares Purchased to Date*: 877,600 Total Amount Appropriated for the Buy-Back Program: Up to P200 Million of the Company's common shares Total Amount of Shares Repurchased: PhP4,107,168.00. 

Other Relevant Information: On 14 August 2023, the Company's Board of Directors approved the buy-back of its shares with a total acquisition value of up to PhP200,000,000.00. The buy-back program may be executed over several tranches for a period of one year ending on 14 August 2024. * From the date when the share buy-back program commenced.

[webmaster]

MAXS-JFC-etc : updated, from 11/15: 3.80 >3.30, -13.2%; 217.0 >252.8, +16.5%; r:1.75% > 1.31%

MAXS broke back down below P4.00

MAXS ... P3.30. v 3.86 @11/14  With a div. of 0.1928,  Yield is just below 6.0%, at 5.84%. PER: 5.16. BV: 4.97

==> at p0.1928 Div., 6.0% Yield would be P3.21, And there may be some good support there

BV rising again as Borrowings Fall
           : ye’2019 :    ye’21  :  ye’22 :   chg.  :
YEval.:      12.40  :   6.48   :  4.88  :
BV/sh.:       5.47   :   4.34   :  4.97  :
Sh.Eq.:     5.95B  :   4.51B :  5.16B :
T.Borr.:     7.04B  :   6.11 B :  5.82B :
Net.Dt:     6.15B  :   5.03B :  4.13B :
ND/SE:      103% : 111.2% :  80.0%:
Revs.  :   14.40B :   8.51B : 10.96B :
Ebitda:     2.70B  :  1.81 B :   2.14B :
E.P.S. :        0.66 :    0.43  :   0.60 >
Div/sh.:     .1452 :   .0000 :  .1928  :
%payo:    22.0%:      N/A  :  32.1% :
1st Half :            :    1H’22 :  1H’23 :
Revs.                        4.9 B  :   5.9 B : +17%
NOP                         1.35B  :   1.9 B :
Margin                     27.7% :  33.0%
=======   

[webmaster]

BPI Securities retains BUY rating on JFC.   Last: P225 +8.00, PER: 37.6x

Jollibee Foods: Sticky demand drives strong 9M23 results

Price Target cut to Php274/share, maintain Buy.

We reiterate our Buy rating on JFC but lower our PT to Php274/share (from Php292 previously) as we: 1) lift our risk-free rate assumption to 6.7% (from 6.2% previously), 2) roll-over our PT basis to end-2024, and 3) and tweak our FY23/24F EPS by 4.1%/-2.6% following the firm’s 9M23 earnings results (+76% YoY, ~86% of our previous full-year forecasts). Our earnings revisions reflect slightly tempered operating expenses (lower by 3% vs previous estimates) in lieu of YTD trends, which could be attributed to JFC’s cost rationalization efforts and operating leverage benefits. Still, we expect opex to significantly catch up in 4Q23, similar to 2022 trends (4Q22 opex accounted for 35% of FY22 figures). We also bake-in lower SSSG estimates (4% from 5% previously) for JFC’s international business next year considering the recent slowdown of some categories (Highlands coffee, CBTL, and China).

Nonetheless, robust 9M23 results were underpinned by resilient topline growth (+18.0% YoY to Php177.4B, ~72% of our FY23F revenues) with the Philippine/ international business registering a 17.5%/5.4% SSSG in 9M23. Inflationary pressures appear to have not impacted demand for JFC’s products specifically its Philippine business (evidenced by the QoQ revenue growth and strong SSSG in 3Q23), likely due to the firm’s brand strength and diversified product and store portfolio. At FY24F P/E of 29.2x, JFC’s valuation still marks a 23% discount to prepandemic valuations (the stock traded around 38x P/E on avg in 2018-2019) following the stock’s 14% sell down since reaching its 52-week high last August. We believe the stock deserves higher multiples given its solid sales and earnings trajectory. Our new PT implies a decent upside of 26.7%.

[webmaster]

DELM sliding.  1.10.24: P6.20.  (Range: 6.05 to 14.20 ) PER: N/A. Yield: 1.18%,  BV: 9.08, Price was 6.48

 

[webmaster]

AGI (11.60 +0.14. MEG's parent, and owner of Golden Arches), is following JFC (P252.4) back up again.

Temporary pressure on burger franchises seems to have eased

MEG-etc.  from 2016: ytd: 10d:  MEG: 2.01, AGI: 13.22, JFC: 236.20 ... w/MAXS: 3.30

[webmaster]

MAXS is still bouncing.  Last: P 3.37.  PER: 5.20.  Yield: 5.27% , BV: ??

[webmaster]

DelMonte gets a BID

DELM: P5.65 +0.40, +7.62% PER: n/a,  Div.: xx, Yield: 1.27%, B.V.: 9.08... and Sliding

[webmaster]

"BURGERS" concept. Compare MAXS (chick) & PIZZA (shakeys)

AGI (9.82) vs.JFC (264): =3.72%, MCD (279), MAXS (3.45), PIZZA (10.02)

%BV: a-25.45, 39%, j-55.61, 475%, m-(6.51), neg.; mx-4.97, 69%, pz-4.18, 240%

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