Report

Outlook: 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’s success.
Underlying
Cooks Global Foods

Cooks Global Foods Ltd. Cooks Global Foods Limited is a New Zealand-based company engaged in the food and beverage industry. The Company's segments include Global franchising & design, UK franchising & retail, Ireland franchising & retail, China franchising & retail, Supply and Corporate. It owns the franchising rights to the Esquires Coffee brand (excluding Australia and New Zealand). In the United Kingdom, Ireland and China, the Company directly operates and franchises Esquires Coffee stores, whilst in the Middle East, Indonesia, Northern Cyprus and Canada, the Company has master franchise agreements. The Company's Esquires franchising and retail segment receives two main income streams: Retail Sales from owned stores (the United Kingdom, Ireland and China) and Royalties from and Product Sales to Franchisees (the United Kingdom, Ireland, the Middle East and China). The Company's Supply segment represents the supply of tea/coffee/beverages and fresh produces.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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