Taste Holdings Limited. JSE: TAS

Taste Holdings shares

Background of Taste Holdings

  • With a history stretching back to 2003, Taste Holdings is a South African group which owns or licenses a portfolio of mostly franchised and owned quick-service restaurant and retail brands across South Africa.

  • The group’s portfolio is strategically spread across various target markets, with brands including Starbucks Coffee, Domino’s Pizza, Scooter’s Pizza, St Elmo’s, Maxi’s, The Fish & Chip Co and Zebro’s Chicken. The group also has a Luxury Goods Division comprising NWJ Jewellery and Arthur Kaplan outlets, along with World’s Finest Watches in Sandton. Overall, Taste manages more than 500 outlets covering approximately 65 000m2 of space.

  • Taste Holdings shares were listed on the AltX of the Johannesburg Stock Exchange (JSE) in 2006, and are today available to buy on the JSE Main Board, where the group has a market cap of R662 million. Taste Holdings share price has taken a knock on the live online JSE stocks chart, as some investors cite over-ambitious acquisitions by the company.

Taste Holdings Shares Growth Driver

  • Taste Holdings operates a vertically integrated business model which aims to give sustainable returns to franchisees and shareholders. Franchisee ownership reduces capital requirements and allows owners to build brand equity through aggressive marketing.

  • There has however been a decline in Taste Holdings share price and overall performance of late. Annual financial data for 2016 highlighted a loss of R74 million. This was however mostly due to the group’s decision to buy into the Domino’s and Starbucks brands and bring them into South Africa. More than 80 Domino’s Pizza stores have since been opened, whilst it is anticipated that the Starbucks rollout will eventually comprise around 200 stores.

  • Interim results since March 2016 have been more encouraging as the Domino’s business begins to settle, with average weekly sales rising by 17%. Three Starbucks branches were opened with good consumer interest, and trade performance is currently ahead of the initial forecast. Other brands in the food division, including Maxi’s, Zerbo’s and The Fish and Chip Co, also experienced slight increases in sales.

  • There has been good growth within the Luxury Goods Division, with sales growth reaching 25%, driven by sales of global licensed watch brands. Overall, the group still suffered a loss of R34 million, largely due to increased operating costs and the residual effects associated with the considerable capital expenditure costs of Domino’s and Starbucks. It is anticipated that these two new international brands will begin contributing substantially to profits in the medium-term.

Taste Holdings Group Investor Tip

  • Taste Holdings boasts an interesting portfolio of brands, but the full response to Domino’s and Starbucks is yet to be seen. Investors didn’t react well to chief executive Carlo Ganzaga’s decision to buy into these two brands, with Taste Holdings share price experiencing a significant dip on the stocks chart as the company became more laden with debt. Taste Holdings shares currently won’t be an attractive buy for JSE investors, with no meaningful profitability forecast for quite some time.

Taste Holdings Major Shareholders

Pershing Llc, Brimstone Investment Corporation Ltd., Chickenland

  • Sector

    Consumer Discretionary

  • Industry

    Gaming, Lodging & Restaurants

  • Sub industry

    Restaurants

How to buy Taste Holdings Group Shares

  • Taste Holdings : How to buy Taste Holdings Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Taste Holdings Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Taste Holdings Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Taste Holdings Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Taste Holdings Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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<a href="https://www.sashares.co.za/taste-holdings-shares">Credits: SA Shares™</a>
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