One of the better Drinks industry Investments/trades.

Certainly got Momentum in its favour and we have a bottom triangle/wedge formation breakout.

First resistance level at around 500p.



dyor

StockMarketWire.com
Greene King is confident of delivering another year of strategic and financial progress, shareholders at the annual general meeting today will be told.

Greene King says that in the first 18 weeks of the year, Pub Company delivered like-for-like (LFL) sales growth of 1.7% including a strong start to the year as customers enjoyed the European Football Championships and better weather. Growth was driven by our Local Pubs estate.

In Pub Partners, LFL net income was up 4.5% after 16 weeks, while in Brewing & Brands, own-brewed volume declined 0.5% over the same period. A statement says: "We continued to make strong progress with the integration of Spirit including the delivery of further planned synergies and over a quarter of our managed pubs now operating with the 'best of both' IT system.

"We also completed 41 brand conversions in the year-to-date with encouraging sales uplifts.

"As expected, uncertainty surrounding the UK's future withdrawal from the European Union has translated into a softening of some economic indicators and a reduction in consumer confidence.

"While the broader implications remain unclear, a number of recent industry surveys have flagged risks to leisure spend and we are alert to a potentially tougher trading environment ahead.

"With this in mind, we will continue to focus on delivering great value, service and quality to our customers. Greene King has a track record of success in challenging trading environments and our strong balance sheet and enhanced opportunities following the Spirit acquisition will help limit any potential impact from prolonged uncertainty in the environment."

Greene King also announced the appointment of Gordon Fryett as a non-executive director with effect from 1 December. He will also become a member of the audit, nomination and remuneration committees. He has many years' experience in retail and property matters, having spent his career at Tesco plc, where his roles, prior to his retirement in 2013, included playing a leading role in Tesco's expansion in the UK and overseas, the development and management of the group's property portfolio and CEO of Tesco Ireland.

i thought pretty good results though i admit the forward forecast was not exactly bullish
nevertheless, is the fall of 3.5% this morning really warranted?
indeed, sp is now down to ~800 from even recent levels of ~900 and ~980 at the beginning of the year

Will have a punt if they get to 700p any time soon.

a brief analysis just picked up .....

Shares in this pub operator have not exactly blossomed over the past year, having hit a multi-year high towards the end of 2015. First half earnings are expected on 30 November. The most recent update saw like-for-like sales rise 1.7% for the 18 weeks to 4 September, an improvement over the 1.5% rise for the twelve months to April, and ahead of the broader sector. A brand improvement drive for key restaurants such as Flaming Grill and Hungry Horse should help boost the appeal. Full year earnings are expected to increase by 3% and 4% for the years to April 2017 and 2018 respectively.
At 9.8 time earnings, the shares trade on a relatively undemanding multiple (five-year average being 11.7). A 4.4% dividend yield also boosts the attractiveness of the shares. Some cost inflation from sterling weakness may compress margins, while the ongoing rise in the minimum wage will make itself felt in the sector.

Greene King's out-performance continues.

StockMarketWire.com

Greene King has reported another set of record results following continued market out-performance.

Revenue rose by 6.9% to a record £2,216.5m, and operating profit before exceptional and non-underlying items increased by 4.9% to £411.5m.

Chief executive Rooney Anand said: "Greene King has delivered another set of record results, generating full year EBITDA of over £500m for the first time.

but the market remains tiresomely underwhelmed

Drop over done?

To uncertain to say I would have thought in this sector.

At their current 565p I would agree CD, GNK has a terrific record for eps & dps growth, I'm not in these but have a holding in MARS which has dived on the GNK news, but better luck to all who hold.

Next week I will keep an eye on this one for a buying opportunity.

555p at close.

Like-for-like sales down 1.2% but sp down by 15%. Is this justified?

Like-for-like sales down 1.2% but sp down by 15%. Is this justified?

Still going down.

GNK keep going down and Weatherspoon keeps going up - why?

Weatherspoons operating margins seem far better.

GNK and MARS weaker today may be due to final results at MAB

INTERIM RESULTS FOR THE 24 WEEKS TO 15 OCTOBER 17

Business highlights

· Further outperformance from Local Pubs, Pub Partners and Brewing & Brands in a challenging first half

· Strong cost mitigation: on track to deliver £40-45m of cost savings

· Brand optimisation delivering return on investment over 25%; Fayre & Square to be debranded by year end as part of our plan to reduce our value food exposure

· Spirit refinancing under way: new facility agreed, bond prepayment announced
· Pub Company volume trends improved post period end after £10m investment in value, service and quality

Financial summary

· Pub Company like for like sales -1.4%, Pub Partners LFL net profit +1.5% and Brewing & Brands own-brewed volume +0.3%

· Operating profit before exceptional and non-underlying items1,2 of £188.4m, -7.5% below last year

· Strong cash flow and balance sheet supporting attractive and sustainable dividend; dividend per share maintained at 8.8p

· 4.2x net debt to EBITDA1,2; fixed charge cover 2.3x; securitisation headroom in excess of 30%

· Group return on capital employed2 of 9.0%, well ahead of weighted average cost of capital

more.....

Peel Hunt Add 513.00 625.00 600.00 Reiterates

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