17th May 2019 08:54
LONDON (Alliance News) - Restaurant Group PLC on Friday said sales increased significantly in the first four months of current financial year, thanks to new pubs and concessions openings and Wagamana acquisition.
The FTSE 250-listed company acquired Asian food chain Wagamama in November 2018 for GBP357 million. The deal was formally completed on December 24, 2018.
Ahead of its annual general meeting, the Frankie & Benny's, Garfunkel's and Firejacks restaurants operator said current trading is in line with expectations, with like-for-like sales for the 19 weeks to last Sunday up 2.8%.
Total sales were up 57% in the period, reflecting the benefit from the Wagamama acquisition and the "record" number of new pubs and concessions sites opened last year. During 2018, Restaurant Group opened 21 new pubs and 21 new concessions.
"In the period we saw strong performances from Wagamama which has continued to significantly outperform in its core UK market, and from our Pubs business, which consistently traded ahead of the pub restaurant sector," said Chair Debbie Hewitt.
In addition, Restaurant group noted that its Concessions business traded well and the company remains focused on optimising its Leisure business against the backdrop of a declining market.
Looking ahead, the company said it is "comfortable" with its performance in the first 19 weeks of its current financial year and remains focused on realising the synergies from the Wagamama acquisition and executing on its "multi-pronged" growth strategy.
Restaurant Group shares were trading 1.0% higher on Friday at 131.10 pence each.
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