Analysis before buying or selling Autogrill shares

Are you interested in Autogrill's share price but hesitating to buy or take a position on the stock? In this case, it is necessary to make sure that you have all the necessary knowledge about this company. We will now tell you more about the advantages and disadvantages of this company, in other words, the strengths and weaknesses of this company that will undoubtedly influence its future growth. These elements will allow you to understand how investors perceive this stock but also and especially how it can face the challenges that the future holds or the threats and seize possible opportunities.

Let's start this analysis of the strengths and weaknesses of the Autogrill group with a summary of the various advantages that this group has at present and that allow it to make a place for itself in the face of competition in its sector of activity. These elements can also, under the right conditions, have a positive influence on the share price:

• First of all, the first strong point of this company is undoubtedly its advantageous positioning on the market and in its sector of activity. The Autogrill group is currently number 4 in the world in the field of institutional catering, which is its historic business and which still generates more than three quarters of its income. But that's not all! In the concession segment, Autogrill is also well positioned in third place worldwide.
• Another positive point for the group concerns the overall trend in the outsourced catering market, which has been on the rise for a number of years, with a peak in 2018. The same applies to the concessions segment, which is growing slightly less strongly but sustainably. These two increases in demand are mainly due to airport traffic, which generates the bulk of this market.
• Another of Autogrill's undeniable advantages is its strategy, and in particular the strategy of setting up well thought-out strategic partnerships with other companies. These include partnerships with internationally renowned brands such as Costa Coffee, Pau, Starbuck's, Burger King in Spain and the United States, Monop Daily, Illy Café, Lexington Catering in the United Kingdom, Aeras in Spain and the United States and many others. Thanks to these large-scale partnerships, the Autogrill group now achieves more than half of its turnover internationally, which is another of its strengths.
• In the past, the fact that the Autogrill Group managed to get its hands on the control of the Areas concessionaire was also the starting point for a nice growth and offered it some longer-term prospects. Indeed, by acquiring this company at a very low price, the group was able to benefit from significant synergies as early as spring 2016 with Autogrill's French station business and that of the English company Waterfal.
• Finally, investors have also greatly appreciated the recent improvement in the group's financial situation. This feat has been welcomed by the rating agencies, which have placed their trust in the company, and shareholders have thus been able to benefit from an attractive payout rate on the company's dividend for several years.