Q: ATD announced on Jun 6 that it will sell discounted food via smartphone app for half original price or less.Please comment and its impact on financials.In view of foregoing.is it timely to add given that u last good entry price is $74-75. Txs for u usual great services & views.
5i Research Answer:
Financial details are not easily available here, but Too Good to Go (TGTG) is an interesting concept and the company is growing fast. ATD has the locations and the distribution system to roll this out across its network fast. It will drive traffic both to its gas stations and store purchases, so from a business point of view it makes a lot of sense. High food prices and sustainability remain big issues and the company should also get a lot of goodwill from this, regardless. We might move an entry up to $77.