Cafe de Coral 341

Re: Cafe de Coral 341

Postby winston » Wed Jun 30, 2010 2:16 pm

Annual Turnover of HK$5b enough to excite you ?
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Cafe de Coral 341

Postby kennynah » Wed Jun 30, 2010 2:25 pm

i take it back....

this is big money....big business....

next time i go HK...must go visit their kopitiam...see what kinda blue mountain they serve...
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Re: Cafe de Coral 341

Postby winston » Tue Jul 20, 2010 7:14 am

Wage hike puts food chain on platter
Tuesday, July 20, 2010

Hong Kong will have a minimum wage - the question is how much. Trade unions are seeking HK$33 an hour while businesses are proposing HK$23 to HK$25.

Against this background, let's look at Cafe de Coral (0341), the SAR's biggest fast food chain.

For the six months to September 30, 2009, it had sales of HK$2.43 billion and profit before tax of HK$265 million. It outlaid HK$744.9 million on various items, HK$591.1 million in salaries for 15,000 staff and HK$268.7 million in rent.

As Hong Kong accounts for 80 percent of the firm's sales, I assume the firm employed 12,000 people here, and most were paid HK$20 an hour.

If they got HK$13 more an hour, salaries would be up by about HK$195 million. Then profit before tax would slide 73 percent to HK$70 million from HK$265 million.

How could the chain head off such a plunge? Well, it could raise prices by about 10 percent.

So I warn customers to be ready to shell out 10 percent more if Cafe de Coral sets its minimum wage at HK$33.

If the stock drops, you may consider buying it as I think customers will stay loyal, even if prices increase.

http://www.thestandard.com.hk/news_deta ... 00720&fc=2
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Re: Cafe de Coral 341

Postby winston » Tue Sep 21, 2010 7:29 am

Not vested

Cafe de Coral counts costs
Tuesday, September 21, 2010

Cafe de Coral (0341) aims to expand although it expects a drop in customers, along with rising food costs and rents.

The fast-food chain will open new restaurants and build food- processing and logistics centers in Hong Kong and the mainland this year to ease pressure on rising costs, said chairman Michael Chan Yue-kwong.

"People worry about inflation, so they are cautious about spending, and prefer to hold more money," Chan said after the company's annual general meeting yesterday.

Cafe de Coral's same-store sales grew less than 1 percent year-on-year in recent months, while prices at its special restaurants such as Spaghetti House posted double-digit declines.

To ease pressure on costs, the chain plans to spend 150 million yuan (HK$173.44 million) on a food-processing and logistics center in Guangzhou, and HK$250 million on a similar facility in Tai Po.

Chan said there are plans to open more than 10 outlets in the mainland in the next six months.

The chain expects to have 200 mainland restaurants in three years, contributing up to 40 percent of total revenue.

The company, Chan said, will not raise food prices sharply or lay off employees when the minimum wage is introduced.

"We fully support a minimum wage, but we may issue a net-loss warning in the future."

Cafe de Coral raised staff pay by 2 percent recently, allocating HK$1 billion - or 22 percent of expenditure - on salaries.

Chan said the catering industry will benefit from the minimum wage in the long term as it will help reduce staff turnover and increase revenue as society's buying power increases.

BETH YE

http://www.thestandard.com.hk/news_deta ... 00921&fc=2
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Re: Cafe de Coral 341

Postby winston » Wed Nov 10, 2010 9:55 am

Not vested. From Dr. Check:-

Dr Check has eaten at Cafe de Coral (0341) and recommended the stock a few times. The shares have risen 30 percent in the past year with a 2.7 percent dividend yield despite the advent of a minimum wage.

The chain raised prices recently as food costs are increasing. Be prepared to pay more when the minimum wage law takes effect.

But Dr check believes even if menu prices go up again, it will be able to retain customers.
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Re: Cafe de Coral 341

Postby winston » Mon Nov 29, 2010 2:11 pm

Not vested

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2010

â—† Record high of 37 new operating units in 6 months.
â—† Overall sales increased by 10%.
â—† Profit growth is modest as margin was eroded by surging food cost.
â—† Multi-brand strategy in our western restaurants developing into a sizable 61 units platform.
◆ A scalable business model of 79 Café de Coral units in China market.
â—† Our PRC business platform posted profit growth close to 20%.
â—† Uninterrupted and consistent dividend payment for the 24th consecutive year since listing.

http://www.hkexnews.hk/listedco/listcon ... 129122.pdf
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Re: Cafe de Coral 341

Postby winston » Mon Nov 29, 2010 3:12 pm

Not vested

DJ MARKET TALK: Cafe de Coral May Fall More; 1H Net Profit Flat

1419 [Dow Jones] Cafe de Coral (0341.HK) may fall more in afternoon, after reporting 1H net profit nearly flat on-year at HK$223.9 million; if using last year's 43% ratio (1H earnings as percentage of full-year's), implies full-year earnings at HK$521 million, falling short of HK$567 million now pegged by 7 analysts polled by Thomson Reuters.

Interim dividend unchanged vs year-ago at 17 HK cents.

HK's largest listed Chinese fast food chain says margin eroded by surging food costs, cautions "formidable challenges" faced by local catering industry due to inflation.

CdC down 2.6% at HK$20.40 midday, may test HK$20 in afternoon; stock hasn't traded below HK$20 since August.


Source: Dow Jones Newswire
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Re: Cafe de Coral 341

Postby winston » Mon Jul 25, 2011 7:31 am

Not vested

Coral keeps prices on the boil by Samson Lee
Monday, July 25, 2011

Fast-food chain Cafe de Coral increased its food prices by 2 to 4 percent this month, and more increases can be expected in the next six months because of inflation and introduction of the minimum wage, its chairman said yesterday.

Michael Chan Yue-kwong said given the current environment, there is definitely no room to reduce prices in the catering industry. He said the cost of food ingredients has risen by 15 to 20 percent since April - the price of pork is up by 40 percent - payrolls are up 30 to 40 percent and rents have increased from 5 to 10 percent in the same period.

Chan said ingredients account for 30 percent of Cafe de Coral's operational costs.

He issued the price warning at the launch of a book on the fast-food chain at the Book Fair in Wan Chai. He also spoke about his experience in running a fast-food chain and said team spirit is important and employees should be willing to assume leadership. In addition, when the nature of the work changes members should be able to reorganize their job duties, he added.

Chan keeps abreast of the latest in management techniques by reading books such as The Future of Management by Gary Hamel to find out how to make a good restaurant great.

"Enterprises should be aware of changes in the world. And taking the tainted milk scandal in the mainland as an example, we should know that anything that is caused can be prevented."

Commenting on his mainland business, he said there are now nearly 100 branches of the restaurant and he expects to expand this to 200 restaurants by 2014.

He said doing business in Hong Kong is very difficult due to rising rents.

The book about Cafe de Coral's history is available at the fair for HK$134.


http://www.thestandard.com.hk/news_deta ... 10725&fc=1
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Re: Cafe de Coral 341

Postby winston » Tue Apr 17, 2012 3:20 pm

not vested

DJ MARKET TALK: DB Ups Cafe De Coral Target But Keeps Hold Call

1503 [Dow Jones] STOCK CALL: Deutsche Bank raises Cafe de Coral's (0341.HK) target price to HK$20.80 from HK$19.70, due to a 6%-10% increase in its FY12-14 EPS forecasts because the FY12 opex-to-sales ratio is lower than its initial assumptions.

The house says for FY13, CdC is likely to focus on same-store-sales growth rather than store growth.

"We believe the current price is fairly valued given that the Hong Kong market is still challenging due to new talks on the minimum wage and rental hikes," DB says, and keeps the stock at Hold. The stock is up 0.7% at HK$21.65.

Source: Dow Jones Newswire
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Re: Cafe de Coral 341

Postby winston » Wed May 09, 2012 6:28 am

not vested. Cafe de Coral may be doing well in HK but what about their other acquisitions ?

===========================

I have recommended Cafe de Coral (0341) several times. It stands at around HK$21.50.

Whenever I go to a Cafe de Coral it is crowded, and it is also a leader in catering for schools.

And its stock has provided a stable 4 percent dividend yield plus considerable capital gains for 15 years. I think that will continue.

I said several times in 2010 that it was easy for this company to raise prices, and its 2011 net profit hit a record high of HK$514 million. Any dip to near HK$20 would offer a good buy.

Source: Dr. Check, The Standard HK
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