Franco Manca Takes a [Tomato] Pasting
Franco Manca is facing the heat as its share prices fall and its customer base thins
– but could the sourdough pizza chain simply be slowing down? Here’s how the Pomanda platform helps to work out what’s really going on.
Bad news for Pomanda’s favourite pizza place Franco Manca, which has seen its share price folded and pressed almost 25% lower in the last week after warning of a thinning visitor base as consumer confidence wavers. The market capitalisation of owner Fulham Shore PLC now sits around the £100m mark.
Does this announcement justify a permanent slice out of their historic rapid growth rate (49% YOY) – or, even worse, could it indicate some wider Domino effect? Here at Pomanda, we speculate that it merely means assuming more conservative growth.
Utilising the Pomanda Valuation Calculator and assuming industry average levels of growth (around 7%) we arrive at a valuation of around £120m, suggesting Franco Manca might actually be trading at a significant discount. The half year figures released towards the end of the year will be telling. In the meantime, the Pomanda team will continue its efforts to single-handedly prop up the pizza chain’s revenue.