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1. Company Snapshot

1.a. Company Description

Loungers plc operates cafés, bars, and restaurants under the Lounge and Cosy Club brands in England and Wales.As of April 18, 2021, it operated 168 sites, including 138 Lounges and 30 Cosy Club cafés, bars, and restaurants.The company was founded in 2002 and is based in Bristol, the United Kingdom.

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1.b. Last Insights on LGRS

Recent positive drivers behind Loungers plc's stock performance include the approval of a revised offer from Fortress Investment Group by 94% of shareholders on February 3, 2025. This development brings the company closer to a potential takeover, potentially providing liquidity to existing shareholders. Additionally, Loungers' high insider ownership, with 25% of shares held by insiders, as highlighted in a January 1 article, may indicate strong alignment between management and shareholder interests, potentially offering resilience amidst market volatility.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Loungers shareholders approve revised offer from Fortress Investment Group

Feb -03

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3 UK Growth Companies With High Insider Ownership

Jan -01

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UK's December 2024 Stocks That May Be Priced Below Intrinsic Value

Dec -30

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3 UK Growth Stocks With High Insider Ownership And 30 Percent Earnings Growth

Dec -03

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Loungers faces shareholder opposition to takeover bid

Dec -02

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3 UK Stocks Estimated To Be Up To 43.2% Below Intrinsic Value

Nov -29

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Loungers accepts £340m takeover by Fortress

Nov -28

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Cosy Club exchanges contracts to expand into iconic Swansea building

Nov -28

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Cafe Bars and Cafe Restaurants

Expected Growth: 5.5%

Growing demand for casual dining, increasing popularity of coffee culture, and rising consumer preference for relaxed, hybrid cafe-pub experiences drive growth in the Cafe Bars and Cafe Restaurants segment.

7. Detailed Products

Cafes

Loungers plc operates a chain of cafes that offer a relaxed and comfortable atmosphere, serving a range of food and drinks.

Restaurants

The company's restaurants provide a casual dining experience, offering a variety of menu options for breakfast, lunch, and dinner.

Bars

Loungers plc's bars offer a wide selection of drinks, including craft beers and cocktails, in a lively and vibrant atmosphere.

Coffee Shops

The company's coffee shops provide specialty coffee drinks, sandwiches, and pastries in a cozy and inviting environment.

8. Loungers plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Loungers plc operates in a niche market, offering a unique blend of casual dining and pub experience. While there are substitutes available, the company's focus on quality and customer experience helps to differentiate it from competitors.

Bargaining Power Of Customers

Loungers plc operates in a competitive market, but its strong brand reputation and customer loyalty help to reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Loungers plc relies on a network of suppliers for its food and beverage offerings. While the company has some bargaining power due to its scale, suppliers also have some leverage due to the specialized nature of the products.

Threat Of New Entrants

The casual dining market is highly competitive, and new entrants would face significant barriers to entry, including high startup costs and the need to establish a strong brand reputation.

Intensity Of Rivalry

The casual dining market is highly competitive, with many established players vying for market share. Loungers plc must continually innovate and improve its offerings to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.62%
Debt Cost 4.82%
Equity Weight 46.38%
Equity Cost 11.24%
WACC 7.80%
Leverage 115.61%

11. Quality Control: Loungers plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ibersol

A-Score: 6.9/10

Value: 6.4

Growth: 3.6

Quality: 3.4

Yield: 10.0

Momentum: 9.0

Volatility: 9.0

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Domino's Pizza

A-Score: 5.4/10

Value: 7.8

Growth: 6.4

Quality: 6.4

Yield: 6.2

Momentum: 1.0

Volatility: 4.7

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Fuller Smith & Turner

A-Score: 5.2/10

Value: 7.8

Growth: 5.8

Quality: 3.4

Yield: 5.6

Momentum: 1.0

Volatility: 7.3

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Loungers

A-Score: 4.5/10

Value: 3.8

Growth: 9.1

Quality: 3.0

Yield: 0.0

Momentum: 6.5

Volatility: 4.7

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Wetherspoon

A-Score: 4.4/10

Value: 7.4

Growth: 5.1

Quality: 2.7

Yield: 1.2

Momentum: 3.5

Volatility: 6.7

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HelloFresh

A-Score: 3.2/10

Value: 8.9

Growth: 5.3

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.24$

Current Price

3.24$

Potential

-0.00%

Expected Cash-Flows