23rd May 2018 11:31
LONDON (Alliance News) - Restaurant Group PLC on Wednesday warned on challenges to its Leisure business, but said its Pubs and Concessions businesses continue to outperform the market.
The owner of Frankie & Benny's, Garfunkel's, and Joe's Kitchen chain of restaurants said sales for the 20 weeks ended last Sunday decreased 3.1% with like-for-like sales falling by 4.3%.
The group said its trading was mainly affected by the severe winter weather in the UK; however, excluding the impact of snow, like-for-like sales were still down 3.1%.
In the first seven weeks of the second quarter like-for-like sales improved, but remained down by 1.8%.
The company said it began to lap the significant price investments made last year in order to re-establish its value credentials in Leisure business.
Meanwhile, Restaurant Group's Pubs and Concessions division continued to outperform the market, it said.
During the period, the company said it opened nine new units and exited five closed sites.
The group said it further strengthened its Pubs business with the acquisition of four pubs from Ribble Valley Inns, while making a good progress it its Concessions business with expansion into new travel hubs.
Looking ahead, Restaurant Group said it expects to open around 10 pubs this year and at least 12 new concession sites. The company operates Brunning & Price pubs.
"We are comfortable with the performance in the first 20 weeks of the current financial year and expect to see further benefit from our strategic initiatives as the year progresses," Restaurant Group said in the statement.
The stock was trading 5.0% higher at 329.20 pence per share on Wednesday.
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