Patisserie Holdings is likely to exceed its own growth targets in the current financial year and has the potential for at least another 250 Patisserie Valeries, according to Investec.
Analyst Alex Paterson said he expects the group to open 22 new stores in the 2016 financial year – above its stated target of 20.
Paterson said he expects the currently 120-strong Patisserie Valerie estate to reach 210 by 2020. He predicts no change to the 22-strong Druckers portfolio or the 23 Philpotts and for its premium brand Baker and Spice to double to 12 stores.
On ultimate rollout potential, he said: “With brands such as Pizza Express and Nando’s operating 421 and 346 sites respectively, we see the potential for at least another 250 Patisserie Valerie’s.”
He added: “Pipeline visibility for FY16 is strong, with six openings since the end of FY15 already and a number of further sites set to open in the first half of FY16, including Patisserie Valerie’s first store in Northern Ireland and Baker & Spice’s first new opening since acquisition. We forecast net new openings of 20 p.a. going forward apart from FY16e where we assume 22 given the rapid progress to date, slightly ahead of the company’s target.”
