Endeavour Group Ltd (ASX: EDV) shares have hit not one, not two, not even three… but four all-time high prices this week.
The owner of Dan Murphy's and BWS liquor stores has had a cracking time of it lately. Endeavour shares have spiked 11% over the past 30 days and closed the session up again today by 1.06% to $7.66.
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Endeavour shares hit new highs
The Endeavour share price closed at $7.42 on Monday — creating the first all-time high of the week. On Tuesday it finished at $7.49, then $7.58 on Wednesday, and it's yet another high-flying finish today.
This is despite no price-sensitive news out of the retail drinks and hotel operator since 21 February. That was when Endeavour reported its FY22 half-year earnings, which lifted its share price 11% in one day.
The company reported a 15.6% increase in group net profit after tax (NPAT) to $311 million. It also announced a fully franked interim dividend of 12.5 cents per share.
What else is happening at Endeavour lately?
Endeavour appears well-positioned to benefit from the COVID-19 reopening, as people feel more comfortable venturing out for meals and entertainment at hotels and clubs.
Endeavour runs 342 venues and draws income not just from drinks and food sales but gaming, too. This segment of the business is "returning to normality" with 12,400 poker machines operating across its network.
The shift to more online shopping also bodes well for Endeavour. The company has amassed an enormous regular customer base through its Dan Murphy's loyalty program.
According to the Financial Review, more than 30% of Australian adults — that's 6.2 million people — are members of the program.
According to the report: "For a business with only 251 bricks and mortar outlets, the "My Dan's" loyalty program has impressive reach, considering the much older Flybuys program, which operates across Coles supermarkets and a host of other retail brands, has about 8 million users."
Analysts believe the ASX businesses that can best leverage their customer base in the digital world will have a big advantage moving forward.
What do brokers say about Endeavour shares?
The article quoted Goldman Sachs analyst Lisa Deng. She has a buy rating on Endeavour and a share price target of $8. She also sees the My Dan's loyalty program as a huge benefit to the company.
Deng said: "Given it is a pure-play alcohol retailer, we find it extraordinary that it has the breadth and depth of consumer assets that can rival a top staples grocery retailer."
Deng said she expects the company to continue gaining market share in its retail division.
Given the complexity of the portfolio, with high number of stock-keeping units and specialist skills required for procurement, it will be difficult for incoming competitors to build scaled competition quickly.
