25th Nov 2019 08:22
(Alliance News) - Restaurant Group PLC on Monday reported "another" outperformance for Wagamama despite difficult trading conditions in the UK.
The FTSE 250-listed restaurant owner bought Asian food chain Wagamama a year ago for GBP357 million. The deal was only narrowly passed by Restaurant Group's shareholders.
Including Wagamama's debt, the deal had an enterprise value GBP559 million, and Restaurant Group used a GBP315 million rights issue and a GBP220 million bank loan for the acquisition.
Revenue in the 13 weeks to September, Wagamama's second quarter, rose by 11% year-on-year to GBP93.5 million, with like-for-like revenue growth coming in at 6.3%. Restaurant Group's own financial year aligns with the calendar year.
Wagamama generating GBP16.7 million of adjusted earnings before interest, tax, depreciation, and amortisation in the quarter, Restaurant Group said, 27% higher than a year before.
Overall, the brand delivered a 5.1% outperformance of the UK market, the company said, and has consistently outperformed over the past five years.
Wagamama Chief Executive Emma Woods said: "Great businesses are built from dedicated people, a commitment to always be on the side of their customers and a galvanising sense of purpose.
"Wagamama has always followed this model, and I am thrilled to say has delivered another quarter of strong outperformance versus the market with a number of record restaurant sales weeks.
"We look forward to 2020, and whilst we don't expect to be immune to the various headwinds facing our industry, we will stay true to our positive culture and growth mindset," Woods continued.
Restaurant Group shares were 4.7% lower in early trade on Monday in London at 139.20 pence each.
By George Collard; [email protected]
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