LONDON (ShareCast) - KBC Peel Hunt has raised its view on Restaurant Group to ‘buy’ from ‘hold’ after the Frankie and Benny’s restaurant chain owner’s interim profits beat forecasts.
Restaurant Group announced interim pre-tax profits of £21.1m Friday morning, against expectations of £18.5m.
However, the broker predicts more difficult times ahead for the company.
“Restaurant Group’s model will not be immune from the consumer downturn, despite average spend being low at around £15,” it said.