TAS - Testing Times for Taste
We think TAS had dropped the ball on its profitable jewellery division during the sale period and resulted in the division becoming loss-making. We believe that the ability to sell its jewellery division is limited because of its broad product offering, which partly contributed to the lack of interest from potential buyers.
TAS had been focused on developing the Domino’s and Starbucks brand at the expense of its local food brands which had previously performed well. In our view, it may be time to re-look at whether the local food brands should remain within the TAS stable.
TAS is likely to do a capital raise to restructure its balance sheet, but its past four capital raises have demonstrated the company’s inability to profitably allocate capital, in our view
Taste Holdings Limited is a South Africa-based management company that owns and licenses a portfolio of franchised and owned, category specialist, and coffee, quick service restaurants (QSR) and luxury retail brands. The Company operates as a restaurateur and franchisor. The Company operates through three segments: Food Division, Luxury Goods Division and Corporate services. The Food Division consists of Domino's Pizza, Scooters Pizza, St Elmo's, Maxi's, Zebro's Chicken, The Fish & Chip Co and Starbucks franchise, and retail divisions, as well as the food manufacturing and distribution business. The Luxury Goods Division consists of NWJ franchise, wholesale and retail, as well as Arthur Kaplan and World's Finest Watches, which are jewelry related businesses. The Company's food brands are spread across a portfolio of product categories and dining occasions, including chicken, pizza, fish, breakfast and burgers.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.