Model Update: Kitchen Expansion Provides Additional Upside to Current Estimates

Research evidence excerpt

Model Update: Kitchen Expansion Provides Additional Upside to Current Estimates

e a new customer for Do&Co. The company secured a five-year catering contract 10%9% 8.7% 8.4% 8.6% 8.7% 8.9% 8.3%

8% 7.3% 7.2% 7.6% 7.7% 7.3% 8.1%in Chicago, commencing in February 2027 and covering c.170 daily flights. The contract 7% 6.2% 6.6%

is expected to generate c.€50m of annual revenue and requires only limited incremental 6%5% 5.1% 5.3%

investment. In addition, Do&Co was awarded a temporary catering contract in London in April 4%3%

after American Airlines unexpectedly terminated its long-standing agreement with data (up to 2%1%

19 daily departures). While feedback from frequent flyers and industry observers on Do&Co’s 0%

service quality has been positive, American Airlines has yet to outline its long-term catering .

Source: Company and Jefferies

strategy.

Estimate changes: For FY27-29e, we leave our sales, EBITDA, EBIT and net profit before

minorities broadly unchanged. This reflects the near-term impact of the Middle East conflict

and our conservative modelling approach. While we fully incorporate the capex associated with

the planned rollout of seven new kitchens, we largely exclude any potential related revenue

contribution. We believe this reflects a particularly conservative set of assumptions and intend

to revisit our forecasts as visibility improves on project timing, ramp-up profiles, and initial

customer wins.

We keep our DCF based PT unchanged at €270: Following the Q4 results, we roll forward our

model and incorporate a number of smaller adjustments. Our FY27–29e sales, EBITDA, EBIT

and net profit before minorities remain broadly unchanged, and we reiterate our DCF-based

price target of €270. We continue to believe that Do&Co is well positioned to continue to benefit