15 August 2016 by pdonnat
Pizza Express is a quality pizza restaurant chain in the UK founded in 1965 and being bought by a China-bases private equity firm in 2014. The CDS is trading since September 2014 in conjunction with the just issued high yield debts financing the acquisition. The CDS is in the iTraxx Europe Crossover since the Series 22. The 5y CDS is trading at 700bps and is trending higher since December 2016 as the attached grapple shows. The restaurant chain sector is struggling globally with intense competition and changes in food consumption. You can make cash flow projection on yours market share off the 4kg of pizza eaten in the UK per year and per person, the recent market growth is more on takeaway than dining. Pizza Express market positioning is asking for changes or its pizzas will burn.