27th Feb 2015 08:18
LONDON (Alliance News) - The Restaurant Group PLC Friday reported a higher profit for 2014, driven by a 10% increase in revenue on the back of new restaurant openings, and said it's also confident in its 2015 outlook and plans to accelerate site openings.
The owner of restaurant chains Frankie & Benny's, Chiquito, Coast to Coast and Garfunkel's, posted a 7.4% increase in 2014 pretax profit to GBP78.1 million, up from GBP72.7 million in 2013, driven by a 10% increase in revenue to GBP635 million, from GBP579.6 million.
Sales were lifted by 40 new site openings during the year, with like-for-like sales up 2.8%. Its profit margin dipped to 12.7%, from 12.9%, as a result of the new openings as well as wage cost inflation.
It raised its total dividend for 2014 to 15.4 pence, up 10% on the 2013 payout.
"The group has delivered another strong set of results in 2014 with growth in turnover, profits and cash flow. We have continued the acceleration of our opening programme with 40 great new restaurants and pubs opened in the year, and a further increase expected in 2015," Chief Executive Danny Breithaupt said in a statement.
It plans to open between 42 and 50 new sites in 2015.
Restaurant Group said the new year got off to a strong start, with total sales up 9.5% and like-for-like sales up 2.5% for the eight weeks to February 22.
The company's shares were trading 0.2% higher at 730.50 pence Friday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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