Original-Research: DO & CO AG (von NuWays AG): BUY

Classification of NuWays AG to DO & CO AG

Company Name:	DO & CO AG
ISIN:	AT0000818802
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 255
Target price on sight of:	12 months
Last rating change:
Analyst:	Simon Keller

Solid Q1 despite Middle East headwinds

DOC shrugged off the weak Middle East situation in Q1. Sales rose 5% yoy to € 642m and EBIT 8% yoy to € 57m (margin: 8.8%, +0.2pp yoy), broadly in line with consensus. The conflict cost c. € 40m of sales (€ 25m Airline Catering, € 15m International Event Catering), without which growth would have been c. 11% yoy, yet the EBIT margin still improved in all three segments. The net result grew 16% yoy to € 31m, helped by a much improved financial result (€ -0.4m vs € -5.4m) as interest income on the Turkish cash position nearly doubled.

Airline Catering sales increased 4% yoy to € 484m, or c. 9% adjusted for the Middle East drag, at slightly improved EBIT margin (8.3%, +0.1pp yoy). Türkiye remained the main growth contributor with segment sales up 17% yoy. Continued tender wins broadened the customer base further, though the larger new contracts only start contributing from Q2.

International Event Catering grew sales 11% yoy to € 112m and lifted the EBIT margin by 0.8pp to 10.6%, despite the cancelled Bahrain and Saudi Arabia GPs. The FIFA World Cup more than compensated, with DOC hosting over 75,000 VIP guests across 20 matches including the opening game and the final. Around 70% of the related sales fell into Q1 and the remainder into Q2.

Restaurants, Lounges & Hotels sales improved 7% yoy to € 47m with the margin up 0.2pp to 10.2%, supported by sustained city tourism and rising volumes in gourmet retail with Henry and DEMEL. The Vienna Stephansplatz flagship is meanwhile closed for a general refurbishment, with both restaurants and the hotel due to reopen in October.

Growth is set to accelerate over the coming quarters. Sales growth of 6-8% yoy at an EBIT margin of 8.6-9.0% remains targeted for FY 26/27 (eNuW: +7% and 8.8%). The step-up starts at Heathrow in September, where a temporary American Airlines arrangement converts into a long-term contract at up to 22 flights per day (currently only c. 6 per day, eNuW). Further contract starts are spread across autumn, with another American Airlines contract in Chicago from February 2027. Middle East volumes are meanwhile back at pre-conflict levels.

The World Cup also opened a new US avenue. Known in the US mainly for airline catering and F1, DOC demonstrated large-scale stadium hospitality, which matters in a business where new work follows well perceived performance rather than marketing. As venues already pay comparable prices, the pitch is better quality at almost unchanged cost. Initial talks have started, though incumbents are under contract, so new US stadium business is still 2-3 years out, with corporate and single-event work possible earlier.

All in, DOC continues to combine exposure to two structurally growing premium markets, air travel and global sports hospitality, with c. 70% of sales under multi-year contracts, c. 80% variable costs and a net cash balance sheet, supporting our BUY, with an unchanged PT of € 255, based on DCF.

You can download the research here: do-co-ag-2026-08-13-previewreview-en-7bae8
For additional information visit our website: https://www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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