Restaurant Group PLC - London-based operator of around 400 restaurants and pub restaurants across the UK - Reports "very encouraging" trade in the first four months of the year, having delivered around GBP5 million cost savings on an annualised basis. In the four weeks to April 30, Wagamama sales rise 9% on a like-for-like basis, while Pubs sales rise 8% and Concessions rise 20%, helping to offset a 1% fall in Leisure. Says it will close 23 sites as part of its Leisure estate rationalisation plan, and notes "favourable" UK property market dynamics for potential new Wagamama sites on "attractive rent terms with good incentives". It will accelerate the expansion of Wagamama restaurants, and expects seven to eight openings in its financial 2024, compared to previous expectations of five.
Looking ahead, says the combination of current trading and incremental cost savings achieved provides confidence that Restaurant Group is tracking ahead of management expectations.
In March, the company reported pretax loss for financial year that ended January 1 to be GBP86.8 million, widening from GBP35.2 million a year earlier. Revenue fell to GBP883.0 million from GBP636.6 million.
Current stock price: 47.36 pence, up 17% on Tuesday afternoon in London
12-month change: down 22%
By Xindi Wei, Alliance News reporter
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