BrewDog sees pre-tax losses double in 2023, global bars sales up 12.3%: Scottish brewer and retailer BrewDog has reported that its pre-tax losses more than doubled in 2023 but insisted it had seen a “significant improvement in profitability”, with the business returning to Ebitda positive trading by the first half of 2024. The group’s delayed accounts showed the business posted net revenues up 12% on 2022, to £280.9m last year. Underlying trading losses declined from £12.8m in 2022 to £2.5m in 2023, with that number turning positive in the opening months of 2024, according to chief executive James Arrow, who took over from co-founder James Watt earlier this year. However, the business posted a pre-tax loss of £59m for 2023 compared with a deficit of £25m in 2022, which it said was driven by one off impairment costs related to historic acquisitions and restructuring. Focusing on the Ebitda figure, Watt insisted the business “came very close to returning to profitability” in 2023. Watt, who said that the company’s average revenue growth for the last decade has been 34% annually, described the ongoing losses as “frustrating” but said the business was “right on the edge of a return to our strong track record of positive Ebitda trading.” The company said that the double-digit increase in 2023 net revenues had been driven by a “market leading” performance in beer and a continued strong performance in its now 129-strong bar division. Global bars sales increased by 12.3% in 2023, boosted by a record breaking fourth quarter of 2023. The company said its “hero sites” delivered outstanding performances, with Las Vegas delivering $185,778 in revenue during the Superbowl – BrewDog’s biggest day in one site ever – and Waterloo continuing to perform strongly, now accounting for 12% of retail revenue. It said BrewDog Waterloo and BrewDog Las Vegas both delivered more than £10m in sales in the year. At the same time, revenue in BrewDog USA grew 20% in the year, while sales across its German and Australian breweries grew at 20% and 31% respectively, with European distributors’ growth at 9%. In the first half of 2024, BrewDog reported revenues of £137.5m, with grocery revenues of £33.3m – up 2% on 2023. BrewDog said it now has four of the top five craft beer brands in UK supermarkets, and Wingman is the number one craft new product development in terms of value and volume in 2024, despite only launching in October 2023. New bar openings in the first half of 2024 included Bangkok, Denver, Perth and Rotterdam, with the announcements of new travel hubs at Belfast Grand Central and Edinburgh Waverley before the end of 2024. Arrow said: “The progress made in 2023, and the first half of 2024, demonstrate the appeal of our brilliant beers, the power of our brand, and the strong appetite for quality craft beer in the UK and around the world. We are pleased to report our trading losses reduced significantly in 2023, reflecting the significant changes we have made to address inefficiencies in the way we operate, and this will continue to be a priority as our business continues to evolve and return to sustainable, profitable growth in 2024.” The company also hailed a milestone after brewing more than one million hectolitres of beer for the first time in its history, with June 2023 marking BrewDog’s biggest ever month at some 100,000 hectolitres.

 

Taco Bell to open first equity site in the UK: Taco Bell, the Yum! Brands-owned brand, is to open its first international equity-owned restaurant in the UK next week (Tuesday, 22 October), in Ipswich. The company, which operates circa 135 franchise sites in the UK, will open the new site – a drive-thru – at Anglia Retail Park, Anglia Parkway, Ipswich. Taco Bell, which operates more than 7,500 restaurants worldwide, said the UK continues to be a “high-priority region” for the brand. “Our first international equity-owned restaurant sets a new benchmark for our expansion strategy,” said Ian Cranna, general manager of Taco Bell Europe. “This direct investment in the UK demonstrates our confidence in the market and sets the stage for ongoing future growth opportunities, both company-owned and with our valuable franchise partners.” The company said the Ipswich restaurant is just the beginning of its accelerated growth into international markets, as the brand continues to expand across Europe and other key regions. “At Taco Bell, we’re world famous for our unique and craveable menu, flavour explosion and bold experiences from innovative new items to iconic classics,” said Chet Patel, chief marketing officer of Taco Bell UK & Europe. “We’re excited to bring our unique brand culture and connect with the people of Ipswich.” Taco Bell first opened in the UK in June 2010 at the Lakeside Shopping Centre in Essex. The Mexican-inspired fast-food chain has since expanded rapidly, with the 100th UK location opening in Spalding, Lincolnshire, in August 2022.

 

PizzaExpress prepares to appoint advisers to help refinance £335m bond: The parent company of PizzaExpress is hiring bankers to help it refinance a £335m bond ahead of its maturity, amid tough trading conditions for casual dining operators. Sky News reported that Wheel Topco is close to appointing PJT Partners, the investment bank, to advise it on talks with its debtholders. PizzaExpress currently trades from 359 sites in the UK and Ireland. According to its latest accounts, its bond matures in July 2026, with negotiations expected to get underway with bondholders in the coming weeks. News of PJT’s imminent appointment comes a year after PizzaExpress explored a takeover bid for The Restaurant Group, which owns Wagamama. It decided against making a formal offer, citing “market conditions”. In 2020, a group of bondholders took control of PizzaExpress after a financial restructuring that saw them inject £40m into the business. They parachuted in Allan Leighton, one of Britain’s most prominent businessmen, as chair, and named former Wagamama chief David Campbell as chief executive. Campbell subsequently stepped down, with Paula MacKenzie, formerly of KFC, taking the helm of the business. Last year, the company made a loss after tax of £7.5m and said in filings at Companies House that it had “continued to experience strong macroeconomic headwinds” in the UK and Ireland. PizzaExpress declined to comment. PizzaExpress features in the Propel Turnover & Profits Blue Book, the next edition of which will be available exclusively to Premium Club members on Friday (18 October) and feature 994 companies. PizzaExpress’ turnover of £454,566,000 for the year ending 31 December 2023 is the 29th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.