All-day strategy success, with more to come
Loungers’ FY24 results illustrate the strength of its all-day café-bar model with record FY24 revenues increasing 25% to £353m and Adj. EBITDA (pre-opening costs) rising 26% to £59.6m, 1% ahead of our, and consensus, estimates. The group’s growth strategy is on track with continued food innovation, 36 new sites (and some record-breaking sales) and an expanded regional management structure. Meanwhile, whilst we make no significant changes to our recently upgraded forecasts, current trading of 5% LFL sales growth in the last 11 weeks and seven new Lounge openings, is very encouraging. We reiterate our Fair Value of 370p (8.0x our calendar 2025 EV/Adj. EBITDA).
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