Restaurant Group posts rise in sales with portfolio expansion plans on track
The Restaurant Group, owner and operator of Garfunkel's, Frankie & Benny's and Chiquito brands, has posted an 8.5% rise in headline sales for the 19 weeks to 10 May.
FTSE 250
20,164.54
17:00 03/05/24
FTSE 350
4,515.50
16:54 03/05/24
FTSE All-Share
4,469.09
17:14 03/05/24
Restaurant Group
64.80p
16:45 20/12/23
Travel & Leisure
7,674.56
16:54 03/05/24
In a trading update on Thursday, the company also posted a like-for-like sales hike of 2% on an annualised basis for the stated period.
Restaurant Group added that plans to expand its property portfolio were on track as the company gears up to open between 42 and 50 new restaurants in the current financial year. A total of nine sites were opened in the period, all of which are were reported to be trading well and on course to deliver strong returns, it added.
"The group's balance sheet remains strong and continues to benefit from good cash generation from our operations. The group is trading in-line with expectations and we are on track to report a good first half performance…and anticipate momentum continuing to build well in the second half of the year," the company said.
Analysts at N+1 Singer reiterated a ‘hold’ rating on Restaurant Group with a target price of 721p on its stock. At 10:17 BST, shares in the company trading down 4.48% at 687.25p.