Taste to resume rollout of coffee and pizza offerings after raising capital
The fast food and jewellery group is to resume rollout of new Starbucks and Domino’s Pizza stores
Fast food and jewellery group Taste Holdings says it will resume rolling out new Starbucks coffee shops and Domino’s Pizza outlets, following the approval of its R132m rights offer by its shareholders on Friday. In November Taste said that it was holding off on rolling out new stores as a way to preserve cash. This decision was announced with the release of its results for the half-year to end-August that showed it incurred an operating loss of R87m and generated a negative cash flow of R33.9m from operating activity. These results came despite it getting R398m from a rights offer in February 2018, bringing the amount of money it has raised from shareholders to more than R1bn over the past few years. The money from that rights issue was used to pay off R270m in debt. CEO Tyrone Moodley said Taste always planned to roll out new stores but he wanted to fully understand the group before going ahead with expansion. Moodley took over from co-founder and CEO Carlo Gonzaga soon after the S...
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