Takeaway providers, pubs and hotels are likely to be key beneficiaries of the Rugby World Cup, which kicks off tonight for six nerve-wracking weeks of tackles, tries and scrums, hopefully culminating in an England final on 31 October.
‘We would expect both stocks to benefit from increased orders, particularly as the wetter and colder weather begins to set in and the autumn TV schedules recommence,’ says Canaccord Genuity analyst Nigel Parson.
Pubs and bars across London are expected to generate lots of business for the big matches, which should benefit Young & Co’s Brewery (YNGA:AIM) and Fuller, Smith & Turner (FSTA).Young’s has eight pubs in Richmond and one in Twickenham, all of which are likely to see an increase in footfall on match days at Twickenham. The £467 million cap has been drumming up interest in the run up to the competition by engaging in social media activity and introducing a dedicated ‘fanzone’ in its Twickenham-based Alexander Pope pub.
Fuller’s has launched a pop-up concept in the City called London Pride Clubhouse where match days will be hosted by rugby legends like Zinzan Brooke and Martin Corry.
Some fans will be travelling to London from rugby nations like South Africa and Australia and given the strong pound will be seeking affordable accommodation.
These stocks are certainly worth keeping an eye on and we wouldn’t be surprised to see share price gains after their next set of trading statements, although much depends on how well England actually does.