Autogrill (MIL:AGL, Financial) is a global leader in food-and-beverage retail to the travel sector. Its primary business is operating food retail concessions at airports globally. In the short term, the business will face considerable challenges due to coronavirus-related travel restrictions. However, we believe the recent 60% decline in the company’s share price already accounts for the potential impacts of these near-term disruptions along with mid-term declines in passenger volumes. We cannot predict how long the pandemic will last and we anticipate that the company could experience severe short-term shocks. However, we expect that both leisure and business travelers will eventually return to airports, which will benefit Autogrill’s business.
From David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) Fund first-quarter 2020 shareholder commentary.
