The owner of Wagamama and Frankie & Benny’s had some cheer for the City on Friday as it showed signs of weathering the difficult climate in casual dining.
The Restaurant Group managed like-for-like sales growth of 2.8% in the 10 weeks to March 10, much improving on the trend of a 2% fall during 2018.
Wagamama’s numbers were the star performer, after the firm only just scraped through a controversial £559 million takeover of the noodles chain following a major shareholder rebellion. Some were concerned about the firm taking on £202 million of net debt in Wagamama and the price paid, but sales at branches open for a year or more jumped 9.1% in the 12 weeks to February 3.
Shares in the FTSE-250 firm rose 13p, or more than 10%, to 139.9p as TRG’s update defied the gloom in the casual dining sector. Chains such as Byron Burger and Jamie’s Italian axed sites last year amid weaker consumer confidence and higher costs.
Boss Andy McCue, who is set to leave owing to personal circumstances, said: “We now have a business that is orientated strongly towards growth.”
Underlying pre-tax profit for 2018 fell to £53.2 million from £57.8 million the year before.
Today TRG outlined plans to boost sales at Wagamama, including new sites and a new grab-and-go Asian food brand called Mamago.
