Lotus Bakeries: The World’s Second Most Expensive Stock and Its Journey to Success

Today, let’s talk about a very special stock that’s making waves in the market: Lotus Bakeries. Lotus Bakeries stock price became the second most expensive in the world. Let’s explore what makes this company and its stock so unique.

A Very Expensive Stock

Recently, for the first time, Lotus Bakeries’ share price crossed the €10,000 mark per share. This milestone makes it the second most expensive stock globally. The only stock priced higher is Berkshire Hathaway, which trades at an incredible $475,000 per share (approximately). This achievement shows the company’s significant value and the high confidence investors have in it. Interestingly, Biscoff cookies, one of Lotus’s main products, are the fifth best-selling cookies in the world.

About Lotus Bakeries

Lotus Bakeries was founded in 1932 in Lembke, Belgium. The current CEO, Jan Boone, is the grandson of the founder. The company is famous for its delicious speculoos cookies, which are often served with coffee. Over the years, Lotus has expanded its product range and market reach significantly.

Expansion and Strategy

Last year, Lotus Bakeries reached €1 billion in revenue for the first time. They operate in over 70 countries and continue to grow. A big part of their strategy is to introduce people to their cookies outside of their homes. They have invested heavily in partnerships with airlines and other places where they give out free samples, helping them gain international recognition.

The company also announced plans to build a factory in Thailand to enter the Asian market. This expansion will help them grow and improve their distribution by producing closer to these new markets.

Financial Performance

Lotus Bakeries stock price

Lotus Bakeries is a strong company that makes significant profits. Their earnings per share are around €159, and this is expected to rise to around €200 in the next two years. However, it’s important to note that the stock trades at about 60 times earnings, indicating a high valuation.

The dividend yield is less than 1%, which might make it unattractive for income investors. Major shareholders include Vanguard, Norges Bank, and BlackRock, each holding around 1%, which ensures there is enough liquidity in the stock.

Conclusion

In summary, Lotus Bakeries is a fascinating company with a rich history and strong financials. Its stock is stable and performs well, though it is very expensive. It might not be the best choice for the average investor due to its high price and low dividend yield, but for those looking for a unique and high-quality investment, Lotus Bakeries stands out. With continued growth and strategic expansions, Lotus Bakeries remains an interesting player in the global market.

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