MCK - The New DAVIDsTEA: The Worst Is Behind Us And A New Era Begins
- DTEA recently settled the lease liabilities, so the new DTEA emerged with a significant amount of remaining cash to develop its growth strategy.
- A few days ago, DTEA announced a significant deal with the Rexall pharmacies in Canada.
- I believe that Rexall’s “store-within-a-store” concept opens up a whole new world of opportunities and more Rexall-like deals will come in the next months.
- The secular tailwinds are unquestionable thanks to health-conscious wellness-oriented consumers (including Millennials & Generation Z) who increase their tea consumption, so the outlook for the tea industry is bright.
- The new DTEA at $2.70 per share is dirt cheap while generating profits and having a fortress balance sheet.
For further details see:
The New DAVIDsTEA: The Worst Is Behind Us And A New Era Begins