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Original-Research: DO & CO AG - from NuWays AG
13.11.2025 / 09:00 CET/CEST
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Classification of NuWays AG to DO & CO AG
Company Name: DO & CO AG
ISIN: AT0000818802
Reason for the research: Update
Recommendation: BUY
Target price: EUR 266
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch
Q2 review: rising utilizitation drives margin progression
Topic: Yesterday, DOC released a strong set of record breaking Q2 25/26
results, especially driven by stronger utilization rates across kitchens
amid continuous intake of customers and overall growing demand.
Q2 revenues increased by 8% yoy despite negative FX effects (USD, TRY & GBP
depreciated vs. EUR; +15% yoy in cc) and were largely driven by AC segment
(+10% yoy to EUR 515m) and supported by RLH (+14% yoy, less impacted by FX
than AC). The IEC segment showed a decline in revenues by 10% to EUR 64m,
solely due to the strong comparable base in Q2'24/25, which contained the
EURO24 as a positive one-off (eNuW: EUR 19m sales effect in Q2'24/25).
Excluding this, IEC would have grown by 23% yoy, highlighting the segment's
strong underlying growth profile.
Q2 EBIT driven by efficiency gains. AC improved EBIT by 17% yoy to EUR 43.5m
(8.4% margin, +0.5pp yoy) against a easy comparable base (Q2'24 still
contained JFK start-up costs). More importantly, rising utilization rates
stemmig from new airline customer wins and also growing passenger volumes
among existing customers (e.g. Turkish Airlines: +3.9% yoy in H1'25),
increased the fixed cost coverage and led to a strong incremental EBIT
margin of 13.4% in Q2 (20.5% in H1). A similar picture was observed in RLH
(EUR 4.6m EBIT, 10.1% margin, up 1.2pp yoy), where incremental EBIT margins
even reached 21.4% (H1: 31.3%). In IEC, the EURO24 effect described above
did not hurt EBIT at all, which came in flat yoy at EUR 6.2m, which means a
0.9pp higher margin of 9.5%. We attribute this to a mix of two reasons: (1)
the EURO 2024 event had lower than usual margins, negatively affecting the
Q2'24/25 comparable base and (2) better economies of scale at each event
performed in Q2'25/26. In sum, the group EBIT reached EUR 54.3m, which is 16%
higher yoy and carries an incremental margin of 16.4%.
DOC's sharp focus on utilising their kitchens to the fullest and thus
ensuring high margins, also explains a changing tone regarding next year's
FIFA 2026 World Cup tender. In our view, it seems that DOC may chose not go
for the tender, if they cannot ensure to reach critical mass at every single
event. Although it might mean no additional (and potentially lower margin)
one-off revenues (like the EURO 2024), DOC also signalled that their current
plans for 2026 already indicate strong utilization rates anyway.
Against this backdrop, yesterday's negative share price reaction seems
unjustified. The growth story is far from over, however DOC prioritises
profitable growth instead taking on new business at any price. Consequently,
the plan to increase the workforce with highly qualified chefs (educated in
DOC's own academies) is just the first step to ensure exactly that.
Therefore, we maintain our strong conviction in this high-quality equity
story and reiterate our BUY recommendation with an unchanged PT of EUR 266,
based on DCF.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=b98712f8674bb8d6f188a3f4c56db34c
For additional information visit our website:
https://www.nuways-ag.com/research-feed
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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