Rating Release
Agusto & Co. hereby reviews the rating assigned to Food Concepts Plc to “A”
The rating expires on 30 June 2024.
Agusto & Co. hereby reviews the rating assigned to Food Concepts Plc (“FoodConcepts”, “FC” or “the Company”) to “A” on account of the Company’s declining profitability margins as well as susceptibility to domestic economic challenges which have adversely impacted the cost of operations. Nonetheless, the Company’s rating is supported by a good cash flow position, adequate working capital for current business operations, satisfactory leverage profile, stable and experienced management team and strong brand recognition in the Nigerian quick service restaurant industry.
Food Concepts Plc is a leading player in the Quick Service Restaurant industry in Nigeria (trading under the brand names of Chicken Republic, PieXpress and Chop Box) generates revenue primarily from the sale of fast food, pastries and confectionery products through its outlets in the country’s major cities. As at 31 December 2022, the Company had a total of 308 stores, comprising 276 company- owned outlets and 32 franchised locations. FC offers a variety of delicacies including chicken, jollof and fried rice, salad, french fries and chickwich.
The opinions expressed in this rating release do not represent any investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.
