Analysts of Greene King had a pleasant-sounding day yesterday being taken round some new pubs.
The object of the trip seems to have been to highlight the new Cloverleaf pub-restaurants, which the pub chain hopes will take it into new areas.
Nigel Parson of Evolution Securities lifted the lid on the trip in a note this morning:
We were impressed with the scale of operation and opportunity of Cloverleaf units and we welcome a new lease type to the tenanted agreement portfolio that was unveiled on yesterday's analysts' trip to Doncaster.
The Cloverleaf carvery acquisition fast-tracked Greene King into a new segment and the pipeline is growing rapidly with 26 possibilities now identified. Our first impression is that the new franchise agreement looks like a 10-year turnover lease with a fall-back rent and with a few bells and whistles nevertheless it's a welcome addition to the agreement suite and should attract more fish from the potential candidate pool.
The shares were slightly down this afternoon, 0.7p off at 498p.
