Professional
Added to YB: 2024-07-30
Pitch date: 2024-07-29
LGRS.L [bullish]
Loungers plc
+17.82%
current return
Author Info
Sweet Stocks is a former portfolio manager at an international small cap fund who shares pitches for international equities. Sign up for his blog.
Company Info
Loungers plc operates cafés, bars, and restaurants under the Lounge and Cosy Club brand names in England and Wales.
Market Cap
GBP 290.7M
Pitch Price
GBP 2.75
Price Target
N/A
Dividend
N/A
EV/EBITDA
9.21
P/E
32.94
EV/Sales
1.28
Sector
Hotels, Restaurants and Leisure
Category
growth
Loungers – growth at a very reasonable price
LGRS.L: UK café-bar chain w/ 219 Lounges, 35 Cosy Clubs. Strong LFL growth (5.2% avg), high AUV (£1.45m), low rent (4.4% of sales). Aggressive rollout (36 new sites FY24), 600+ potential. 18% rev CAGR to FY30E. Cheap at 20x P/E, 12x FY27E. Risks: rollout execution, cost inflation. Bull case: proven format, strong mgmt, FCF yield >12%.
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