7th Mar 2018 10:20
Shares were trading at
Restaurant Group operates 498 restaurants and pub restaurants in the
Revenue for 2017 fell 4.4% to
Restaurant Group actually swung to a pretax profit of
However, on an adjusted basis, pretax profit fell to
Despite the drop in profit, Restaurant Group is paying a final dividend of 10.60p per share, which means the total payout for 2017 will be flat year-on-year at 17.40p.
The company said the like-for-like sales decline was due to investment in price and proposition in its Leisure brands, which was slightly offset by strong like-for-like sales in the Pubs and Concessions businesses.
Restaurant Group added proposition enhancements in its Frankie & Benny's chain is leading to improved volume growth, while Pubs is continuing to outperform the market. The company's
Trading in 2018 has been in line with expectations, with first half trading to reflect "significant" price investments made in 2017.
Chief Executive Andy McCue said: "As expected, 2017 was a transitional year for the group, with significant investments made in price and proposition within our Leisure business, which is driving improving volume momentum.
"We start 2018 with a significantly more competitive offering in our Leisure business, a strengthened pipeline of growth opportunities in both our Pubs and Concessions businesses, and a leaner, faster and more focused organisation."
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