Euro 2024 Poised to Score a Winning Goal for Bars and Pubs in Europe and Beyond
ConsumersSummary
The 2024 UEFA European Football Championship (Euro 2024), which will have 51 matches taking place in Germany from June 14 to July 14, will likely be one of the most watched global events of the year. In this commentary, we discuss what effect Euro 2024 will have on bar and pub traffic, revenue, and credit risk profiles across Europe and the rest of the world.
Key highlights include:
-- We believe Euro 2024 should result in a considerable traffic surge for bars and pubs as fans cheer on their favorite team.
-- We expect bars and pubs to see a boost in revenue, which in some cases will provide much-needed liquidity, considering the industry has faced a difficult operating environment over the past few years.
-- We view this benefit as temporary and likely not material enough to solely drive any meaningful improvement in the overall credit risk profiles of most bar, pub, and restaurant operators.
“We anticipate that establishments in countries whose teams advance further will likely see a more meaningful benefit to their revenue,” said Moritz Steinbauer, Senior Vice President, Sector Lead, Diversified Industries at Morningstar DBRS, “but we expect venues across Europe as well as more globally to also see at least some benefit, considering the sport's and tournament's global fan following.”