Losers in the boozer? Investors might have already missed last orders
There have been some staggering share price increases in the pubs & restaurants sector over the last year but there are a few stocks that have been slow out of the blocks in the recovery play trade
With pubs and restaurants set to reopen for outdoor service on Monday, investors might think leisure stocks are set to rebound strongly.
The surprise is that many of them already have and investors might have missed the boat.
Take (), the global provider of live “escape the room” experiences.
We’ve all been itching to escape the room over the last year or so but that does not explain the 827% surge in the share price since March 23 of last year (when the UK lockdown restrictions were introduced).
The company has completed two fundraises since COVID-19 restrictions were initially imposed; the first in July 2020 raised £4.3mln and a second in January 2021, raised £1.4mln, part of which was used to buy out its French master franchise partner.
This looks more like a “buy and build” play than a recovery play, with the company now having 17 owner-operated sites, 10 of which are in the UK.
“The board is confident that both consumer and corporate demand will return strongly when the restrictions currently in place are lifted. At the same time, property market conditions in the UK are increasingly favourable for those seeking to take on new space,” the company said in its February update.
The shares have more than doubled in 2021 and they have momentum. It’s possible investors may not have entirely missed the boat with this one despite its staggering share price increase over the last year.
Other leisure stocks that have pushed the boat out in share price accumulation terms since the first lockdown include The Restaurant Group PLC (), up 441%; (), up 420%; (), up 294%; (), up 219%; (), up 219%; The Fulham Shore PLC (), up 200%; and The City Pub Group PLC (), up 188%.
Last chance saloon opportunities
If you are looking for pub and restaurant stocks that have not exactly set the Crepe Suzette on fire, then here is a list for you, although interestingly all have made some sort of share price progress since March 23 of last year.
- The Brighton Pier Group PLC (LON:PIER), up 39%. The stock is up 50% in 2021, so traders could be waking up to its appeal, despite Luke “Patisserie Valerie” Johnson being the chairman.
- Brewery PLC (), up 29%. The share price has done nothing this year and is prone to prolonged spells of inactivity, probably due to its dual-shares structure.
- Fuller, Smith & Turner PLC (), up 48%. The shares have risen 29% in 2021 Its London bias, normally seen as a boon, might count against it if the work from home trend sticks around.
- Young & Co’s Brewery PLC (), up 54%. expects to reopen about 140 of its managed pubs with outdoor spaces on or around 12 April. The company has just over 205 pubs in all, 20 of which are in the West Country, 30 are in the Home Counties with the rest in various bits of London, including 12 in London’s Square Mile
- (), up 62%. The Lebanese and Eastern Mediterranean restaurants operator has bounced back strongly, doubling in share price.
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