Using Unit Level Economics to Invest in Retail and Restaurants
Interview with John Zolidis, President and Founder of Quo Vadis Capital
I will admit that I have an affinity for retail and restaurant stocks. Not that I have done well investing in those sectors. but I secretly enjoy building a bottom-up model that starts with store-level economics. This week's podcast guest, John Zolidis, the President and Founder of Quo Vadis Capital, takes unit level analysis to another level. This episode was a masterclass on analyzing and investing in retail and restaurant stocks where we covered:
· The unique return on capital lens that he approaches brick and mortar companies with;
· How he structures an investment portfolio;
· What people commonly get wrong about retail and restaurant stocks;
· What a retail compounder looks like in the early stages; and
· The lasting impact of the shift to e-comm and of COVID on the retail sector
Please enjoy the episode here:
With all of the alternative data sources available now when it comes to retail and restaurant stocks, it would seem to be hard to develop an edge. But, with so many people focused on traffic data and same-store-sales, John believes investors can have an edge if they do a granular study of the unit economics. In this clip, John discusses the differentiated approach he uses to understand what is really going on within these companies.
I hope you enjoyed this episode and will stay tuned for another great interview to be released next week.
Have a nice weekend,
Ben Claremon