Disclaimer: I don't own shares of 7&i Holdings.
Here are 5 reasons why I've been paying attention to $SVNDF lately:
1) Electric Vehicles: 7/11 recently acquired Speedway, which is the largest gas station chain in the US and the 3rd largest convenience store chain. 7/11 has the most convenience stores in the US. They have been investing in remodeling gas stations to accept EV's equipping them with solar panels, batteries and chargers.
2) Fresh Food & Proprietary Beverages: The brand we know as 7/11 is owned by a Japanese company called 7&i Holdings. 7/11 is the #1 convenience store in Japan and are well-known for their remarkably high-quality selection of fresh food and fantastic in-store experience. They are in the middle of a revamp of their US stores to improve the in-store experience and fresh-food and beverage selection.
3) Food Delivery: 7NOW, 7/11's delivery app, has seen a 6x increase in monthly sales over the course of 2020 (granted this is off of a very small base). Only 960 stores out of their 12,946 convenience stores in the US (including Speedway) have this enabled today.
4) Digital Payments: 7-Eleven Wallet embedded within the 7/11 App enables contactless payment at 7/11 stores and lets customers earn rewards points. This could be 7&i's foothold in the Financial Services sector in the US. If that sounds farfetched, consider the list of Financial Services that 7&i subsidiaries already have in operation.
5) Valuation: With a P/S at 0.6, $SVNDF has a pretty good margin of safety.
- Revenue growth has been stagnant.
- Execution risk is high.
- Volatility in gas prices.