The Restaurant Group plans to sell sites as it swings to a loss

e6dbf6 95f8a35bb8eb440daf5acdbf7d3cd89a mv2 9

 

Frankie & Benny’s owner The Restaurant Group on Tuesday outlined plans to take the axe to chunks of its estate, as it warned that one-off costs have pushed the firm into the red.

 

The FTSE 250 casual dining group, which has been grappling with weaker consumer confidence, higher wages and business rates, booked a one-off charge of £115.7 million in the six months to June 30.

 

That is linked to a more “cautious view” on future trading amid Brexit and market uncertainty in its leisure business, comprising brands such as Frankie & Benny’s, Chiquito and Garfunkel’s. 

 

The division has closed 16 sites since January and around 50% of the remaining 352 properties could shut when lease exit opportunities arise in future. 

 

The Restaurant Group recorded a pre-tax loss of £87.7 million, compared with £12.2 million profit this time last year. Stripping out the exceptional costs, profits rose 35.7% to £28.1 million.

 

Shares fell 10.9p to 143.3p.

 

New boss Andy Hornby, who joined last month, was upbeat as he said the firm’s other businesses — airport concessions, pubs and Wagamama — are all outperforming the market.

 

Group comparable sales increased 4% and Wagamama, which The Restaurant Group agreed a £559 million takeover of last year, led the growth with same-store sales up 10.6%.

 

Group comparable sales in the most recent six weeks rose 0.2%.

 

Chair Debbie Hewitt hailed “a really good performance in a very tough market”.

 

Article Written by Joanna Bourke of Evening Standard https://www.standard.co.uk/business/the-restaurant-group-plans-to-sell-sites-as-it-swings-to-a-loss-a4227951.html

 

Photo Courtesy of Evening Standard