Figaro Coffee’s new Cebu location shows ongoing expansion
15 March 2022
The fast-food holding company is owned by Camerton Inc., which is a personal holding firm owned by Jerry Liu. The fast-food holding company issued a press release yesterday to boast about its “ongoing expansion in 2022.”
Although the news announcement only mentions one new Angel’s Pizza location in Cebu, Figaro Coffee [FCG 0.54 8.47 percent] described itself as a “fast-growing local food conglomerate” (bringing its total locations in Cebu up to three).
According to the prospectus for FCG’s initial public offering (IPO), which was held in January, the proceeds from the IPO will be used to open 35 new Angel’s Pizza shops over the next 36 months, which works out to an average of one shop per month.
The company is expanding, which is a positive sign, and expanding its store count is essential for FCG not only for the company’s continued existence and expansion, but also for “executing the plan we provided to investors.”
Since there are some companies in the PSE sector that make a significant amount of noise about virtually every new store opening, such as Manny Villar’s AllDay Marts [ALLDY 0.44 6.38 percent], FCG has every right to celebrate its success with a press release such as this one.
The fact that the release makes an attempt to portray the launch of a single site as evidence of the company’s ongoing expansion is something that bothers me.
Certainly, the establishment of even a single site is evidence of expansion. However, this is only the very first baby step in a three-year plan to create over 60 locations across four brands all over the country.
Is the presence of a single location in that context really indicative of the presence of ongoing expansion?
I’d rather hear more about FCG’s hard data on the rise in foot traffic that was mentioned, so that we can make reasonable predictions about future earnings, or determine whether FCG is ahead of or behind schedule in its growth ambitions. This would allow us to determine whether FCG is ahead of or behind schedule in its growth ambitions.
It seems silly to even bring this up, but it’s been a concern of mine for years regarding the messaging that comes from this group. You’ll understand what I mean if you’re familiar with Mr. Liu’s other company, which goes by the name Cirtek (TECH 3.14 6.55 percent).
