The Restaurant Group’s boss Andy McCue shocked the City on Thursday as he said he will step down from the troubled Frankie & Benny’s owner due to “extenuating personal circumstances”.
The 45-year-old’s move is not understood to be related to his health, but a private family matter.
He said he recognises the decision is “untimely”, but is right for him and his family. No further details were given.
Investors found the news hard to digest because it comes at a time of big change for the casual dining group.
TRG’s shares plunged 16.57p, or more than 11%, to 129.44p.
The update comes little more than two months after The Restaurant Group scraped through a controversial £559 million takeover of noodle bars chain Wagamama, despite a major shareholder rebellion.
Some investors were concerned about the firm taking on £202 million of net debt in Wagamama.
McCue, who joined from Paddy Power in 2016, had insisted the swoop would help the business grow internationally. The Restaurant Group also planned to make better use of its kitchens to move into takeaways through apps like Deliveroo.
Andy Brough at Schroders, one of the supporting shareholders, said at the time of the vote on the deal that McCue’s experience with data and tech running Paddy Power was a factor in his backing of the Wagamama move.
McCue, who has been under pressure to boost the business amid industrywide headwinds such as weaker consumer confidence and higher wage bills, will remain in his position while a successor is being recruited.
The boss, whose salary is £515,500, said: “I’m confident The Restaurant Group is well positioned with the scale, talent and levers to drive profitable growth.”
Details on a potential severance package were not released.
Goodbody analyst Paul Ruddy said: “The timing is clearly bad given the group has to work quickly through the integration of Wagamama.”
He added: “There are also potential storm clouds on the horizon for the consumer in terms of Brexit.”
