Lots of interesting results out today. Restaurant chain TAST.L (Tasty) issued its interims today: http://is.gd/IdRw9i, sending the shares 4.6% higher to 102p.
Turnover was up 24% to £11.0m, and diluted EPS was up 69% to 1.25p. Pretty good. “The Group continues to move forward by increasing sales through updated menus and improving the food and labour margins, all of
which are continually reviewed. The new openings during the period, reported above, bring the number of restaurants to 27, consisting of 6 Dimts, 17 Wildwoods and 4 Wildwood Kitchens. The Group continues to look at new sites and has the resources for
further acquisitions. Despite the on-going general economic conditions, the Group continues to grow and invest for the future.”
Although only a small holding, I bought some of these in Oct 2012 and Apr 2013 at around 59p, so I’m obviously delighted by the share price performance of these. This company, like PRZ (Prezzo), is really one of those Peter Lynch type stocks. I think there’s a lot of money to be made in these fairly simple companies that are small, and are starting to show some profits and prove themselves as proper businesses.
In what will no doubt be famous last words … TAST is on an admittedly lofty valuation and its share price has shown excellent momentum. The shares have reacted well to the announcement – I like that – and they do seem well-supported by the 50dma. So I’ll continue to hold for now, and see how I feel down the road.