DO & CO: new kitchens, same discipline (stays BUY)
We reiterate our BUY on DO & CO and set our new 12M price target (PT) at EUR 250/share. Since our upgrade in November 2025, the stock is up 11%, and we still see further upside, as 3Q FY26 has confirmed that the investment case is about disciplined growth, with strong cash generation. Over 9M FY26, DO & CO participated in 76 tenders and won 52%, underlining its continued commercial momentum across its core aviation catering footprint. The FCFF generation over 9M FY26 surprised positively, coming in 2x higher yoy, which reinforces our view that the company’s capital asset light model can structurally deliver EUR 170m+ in FCFF p.a. over FY26-28E (a c.8% FCFF yield, on our estimates). With a net cash balance sheet and positive FCFF generation, DO & CO is entering its next growth phase. Management’s newly outlined expansion plan – seven kitchens and 20+ restaurants over the next 3Y – supports the ambition to reach EUR 3.0bn of revenues over FY28-29E. While the company targets a 10%+ EBIT margin over the next 2-3Y, we remain conservative and pencil in 8.9% for FY27-28E. In our view, the valuation remains undemanding. On our FY27E numbers, DO & CO is trading at 16.3x P/E and 6.4x EV/EBITDA, below its pre-pandemic 5Y averages of 20x and 8x, respectively. With its fixed-margin contracts, a ROIC north of 20% and a net cash balance sheet, we continue to see DO & CO as attractively valued and a relatively safe play on global aviation.Do & Co AG is a foodservice company. Co. maintains three business divisions. Its Airline Catering division provides gourmet food for passengers of airline companies such as Austrian Airlines, Turkish Airlines, Air France on long-haul flights. Co.'s flying cooks prepare fresh meals on-board. The International Event Catering division provides services such as handling the menu and the provision of food for sporting events, including tennis and golf tournaments, skiing events and Formula One Grand Prix races. The Restaurants, Lounges & Hotel division operates three restaurants; five restaurants with bars and one at the Casino Baden, and three bakeries under the Demel brand.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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