14th Nov 2014 07:14
LONDON (Alliance News) - The Restaurant Group PLC on Friday said total sales in the first 45 weeks of its financial year were up 10.3% year-on-year, albeit they have grown at a slower pace since the end of August.
However, the restaurant operator said it is still confident in its outlook for the rest of the year.
The owner of the chains Frankie & Benny's, Chiquito, Coast to Coast and Garfunkel's said sales growth has slowed since the end of August, and it also isfacing some cost pressure.
"Nevertheless, we still expect to report good full-year results, showing material progress on the prior year," Restaurant Group said in a statement.
The company said like-for-like sales were 3% ahead of last year for the 45 weeks to November 9, building on strong growth delivered in the first-half.
Driving this growth was new restaurant openings, 24 of which the group said it has opened in 2014 to date.
"These are performing well and are set to deliver strong returns in line with our usual targets," it said.
Restaurant Group said it expects to open a further 16 sites before the end of the year, taking the total to 40 new sites in 2014, higher than the 35 it opened in 2013.
"The pre-opening costs for these and a number of new sites that will open in January 2015 will be incurred in the last quarter of the current year as we continue to invest in the group's future. Our pipeline of new site openings continues to improve and we expect to further strengthen the rate of new openings in 2015," the company said.
Restaurant Group said its balance sheet position remains strong and cash generation remains at a level where it can maintain investment in both its existing portfolio and expansion.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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