Taste Holdings (TAS) – Shadow of its former self

We are concerned with the sustainability of this business on the current trajectory. While the proceeds of its fifth capital raise in four years was utilized to repay debt, its cash generation from operations remains negative.

The significant reduction in its franchised pizza outlets indicate to us a loss of interest from existing and potential franchisees in its brands. This could result in a higher number of corporate outlets which increases TAS’ capital requirements, in our view.