Cooks Coffee Lifts Sales 22.8% as International Expansion Accelerates
Cooks Coffee Company reported a 22.8% jump in group store sales and a 27% rise in normalised EBITDA for FY26, driven by strong UK and Ireland growth and new international franchise agreements.
- Group store sales up 22.8% to NZ$95.8m
- Normalised EBITDA rises 27% to NZ$1.69m
- Total sites increased 18% to 105 stores
- New master franchise agreements signed for India and UAE
- Debt reduced from NZ$4.2m to NZ$2.5m
Robust Sales Growth Anchored by UK and Ireland Expansion
Cooks Coffee Company Limited (NZX:CCC; AQUIS:COOK) posted a strong FY26 performance, with group store sales climbing 22.8% to NZ$95.8 million, underpinned by an 18% increase in total Esquires branded sites across the UK and Ireland. The company’s like-for-like sales also nudged higher, with the UK delivering a 1.8% increase and Ireland reporting a more robust 4.9% rise.
The UK market saw 21 new store openings offset by 9 closures, ending the year with 82 outlets. Southeast England stood out, delivering a striking 39% sales growth in Regional Developer-led stores. Meanwhile, Ireland expanded its footprint by 35% to 23 stores and secured two prestigious awards from the Irish Franchise Association, highlighting its franchise model’s strength.
Profitability Gains and Debt Reduction Signal Financial Discipline
Normalised EBITDA on continuing operations rose 27% to NZ$1.69 million, outpacing the reported EBITDA increase to NZ$1.3 million. Revenue surged 84% to NZ$12.4 million, boosted significantly by the inclusion of Dairygold-managed stores, which contributed NZ$5.3 million in sales, up from NZ$1 million the previous year. Excluding Dairygold, revenue still grew a healthy 22.4%.
The company also made notable progress on its balance sheet, cutting debt from NZ$4.2 million to NZ$2.5 million and reducing its debt-to-total-assets ratio from 11.5% to 7.4%. This deleveraging effort complements the growth story, suggesting management is balancing expansion with financial prudence.
International Franchising and New Partnerships Point to Future Growth
Beyond the core UK and Ireland markets, Cooks Coffee is pushing into new territories. The company opened a store in Karachi, Pakistan, and signed master franchise agreements for India and the UAE, markets with rapidly growing coffee cultures. These moves indicate a strategic pivot to capture emerging market opportunities, although the financial impact remains prospective.
Closer to home, the partnership with Tesco Ireland has borne fruit, with Esquires now operating five stores inside Tesco outlets, expanding brand visibility and access to foot traffic in key Irish towns such as Tullamore and Waterford.
Early FY27 Momentum and Brand Resilience
The new financial year has started with four store openings, two each in the UK and Ireland, and commitments for two more in international markets. Executive Chairman Keith Jackson emphasised the brand’s resilience and the company’s focus on disciplined network growth and franchisee profitability. He highlighted that the earnings momentum is expected to build as the network expands.
While the results are preliminary and unaudited, the combination of solid sales growth, improving profitability, and strategic international partnerships paints a picture of a company leveraging its Esquires brand to punch above its weight in competitive markets.
Bottom Line?
Cooks Coffee’s FY26 results reflect disciplined expansion and financial tightening, but execution of international franchises will be key to sustaining momentum.
Questions in the middle?
- How will the newly signed master franchise agreements in India and UAE translate into tangible revenue and profit in coming years?
- Can the partnership with Tesco Ireland scale effectively to boost brand penetration beyond the initial five stores?
- What impact will the Dairygold-managed stores have on long-term profitability and operational focus?
