Morgan BellBakers Delight, Real Growth Delight
December 27th 2006 09:52
Bakers Delight promises to bake fresh every day. So far its proposition has been a real success. When it lists in the ASX many will want to share in it. Stay with me for a view on this company.
The news today, 27 December 2006, is that “Australia’s biggest chain, Bakers Delight, is set to start kneading its dough in the US with plans to open its first store in Seattle next March.”
“Chief executive Lesley Gillespie said Bakers Delight was ready to tackle the more aggressive US market, having opened 38 outlets in neighbouring Canada over the past three years, starting in Vancouver.”
“The company, which started in Melbourne 26 years ago, said Seattle was a logical stepping stone because of its proximity to Vancouver, where it operates under the COBS Bread banner.”
““We expect our fresh bread and personal service, plus the size of the population, to generate revenues higher than the average annual sales per bakery in Australia, which is about $700,000.””
“Bakers Delight plans to open 10 stores in Seattle in the next 12 months, and to bump up its North American presence to more than 100 outlets within the next two years.”
“It expects to make about $512 million in sales from its Australian, New Zealand and Canadian business in the 2006-07 financial year.”
This news was published in the online edition of The Australian under the title “Baker cuts a slice out of the US” and was sourced from AAP. Click here to open that page.
Bakers Delight is not an ASX listed company but if it continues its current success I wouldn’t be surprised that a some stage it becomes one.
Bakers Delight formula is, as distinct from supermarkets which have the largest slice of the bread market, to bake fresh every day and in a small retail dimension. Their motto says: “real bread, real people, real delight”.
Bakers Delight started in 1980 in a suburb of Melbourne and has now 700, mostly franchised, retail outlets spanning between Australia, New Zealand (40), Canada (38) and the US.
It has received many awards for their concept, such as twice the Franchise of the Year Award, 2001 and 2002.
Bakers Delight serves 2.5 million customers everyday.
The group’s revenues for 2006-07 are expected to be of $512 million. The average franchisee turns over $700,000 and makes a net profit of $100,000 which equates to a margin of 14.3 per cent.
Bakers Delight is a nice, interesting, profitable business with a great scope for growth and, as an investor, I would be in the look-out for its listing in the ASX.
End
The news today, 27 December 2006, is that “Australia’s biggest chain, Bakers Delight, is set to start kneading its dough in the US with plans to open its first store in Seattle next March.”
“Chief executive Lesley Gillespie said Bakers Delight was ready to tackle the more aggressive US market, having opened 38 outlets in neighbouring Canada over the past three years, starting in Vancouver.”
“The company, which started in Melbourne 26 years ago, said Seattle was a logical stepping stone because of its proximity to Vancouver, where it operates under the COBS Bread banner.”
““We expect our fresh bread and personal service, plus the size of the population, to generate revenues higher than the average annual sales per bakery in Australia, which is about $700,000.””
“Bakers Delight plans to open 10 stores in Seattle in the next 12 months, and to bump up its North American presence to more than 100 outlets within the next two years.”
“It expects to make about $512 million in sales from its Australian, New Zealand and Canadian business in the 2006-07 financial year.”
This news was published in the online edition of The Australian under the title “Baker cuts a slice out of the US” and was sourced from AAP. Click here to open that page.
Bakers Delight is not an ASX listed company but if it continues its current success I wouldn’t be surprised that a some stage it becomes one.
Bakers Delight formula is, as distinct from supermarkets which have the largest slice of the bread market, to bake fresh every day and in a small retail dimension. Their motto says: “real bread, real people, real delight”.
Bakers Delight started in 1980 in a suburb of Melbourne and has now 700, mostly franchised, retail outlets spanning between Australia, New Zealand (40), Canada (38) and the US.
It has received many awards for their concept, such as twice the Franchise of the Year Award, 2001 and 2002.
Bakers Delight serves 2.5 million customers everyday.
The group’s revenues for 2006-07 are expected to be of $512 million. The average franchisee turns over $700,000 and makes a net profit of $100,000 which equates to a margin of 14.3 per cent.
Bakers Delight is a nice, interesting, profitable business with a great scope for growth and, as an investor, I would be in the look-out for its listing in the ASX.
End
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