Investor's Champion Blog
Provides refreshingly forthright, independent comment on predominantly small cap companies and specialist investment funds. Informed opinion, based on first-hand research, but pulls no punches in exposing management weaknesses.

La Tasca-what about the product!

I have just read a broker note on La Tasca, the £71m market cap AIM quoted restaurant group.

The broker rates the stock a BUY covering all the usual elements-impact of World Cup, opening programme, investment in new brands, like for like sales, key Christmas trading etc.

However, somewhat amazingly this 8 page document fails to mention anything about the restaurants themselves or the food.

Having experienced La Tasco congealed rice (the menu said paella) on 2 occasions I am not a fan of the La Tasca offering. The openings might be going to plan and like for like sales (ex World Cup of course) up 2.6% but to my mind the product stinks-quite literally and gives Spanish food a bad name.

Perhaps I frequented 2 of the less well run establishments and I will indeed endeavour unfortunately) to obtain a more balanced view over the coming months by visiting some of their other restaurants. Paid for, I hasten to add, out of my own pocket

I particularly like the line in the note which says that 'cash generation is very strong and remains a key attraction of the business'!

Long term estimates are ultimately dependent on the quality and price competitiveness of the company's product offering i.e. the restaurants, the food, the ambience, cleanliness etc. Surely this merits a few column inches!


Investor's Champion is a registered trade mark of Investors Champion Ltd.  Investor’s Champion Limited is a company registered in England and Wales under number 03577867 whose registered office is at Langwood House, 63-81 High Street, Rickmansworth, Herts WD3 1EQ. Investor’s Champion Ltd is associated with Fundamental Asset Limited who is authorised and regulated by the Financial Services Authority.