The Restaurant Group plc (TRG) operates over 480 restaurants and pub restaurants across the UK, and its principal trading brands are Frankie & Benny’s, Chiquito and Coast to Coast, and has provided an update on the 2015 full year trading outturn.
For the 52 weeks ended 27 December 2015, total turnover was up 7.9% on the prior year, and like-for-like sales increased by 1.5%. The Group’s full year results will be announced on 9th March. These are expected to show material growth in both earnings and cash flow versus the prior year, with profits for the full year towards the middle of the current range of market expectations.
During 2015, a total of 44 new restaurants were opened, with the Group very pleased with how these are trading: they are set to deliver strong returns. A broadly similar number of new restaurants are expected to be opened during 2016.
Cautious on outlook
It has become apparent from much of the recent data from the retail sector and the wider economy that the trading environment for many consumer facing businesses has been tougher in recent months than it was earlier in 2015. This has caused like-for-like sales growth to trend lower and accordingly TRG is more cautious than previously on the outlook for 2016. A possible referendum on the UK’s continued membership of the European Union, National Living Wage implementation and global uncertainty are all additional issues going into the newyear. However:
“That said TRG has an excellent portfolio of businesses with strong market positions. The Company’s move towards a more balanced portfolio is paying dividends and we have a proven track record established over many years of delivering strong financial returns and excellent cash flows, even through more difficult trading periods. Therefore, notwithstanding some of the uncertainties described above, we are confident that TRG is well positioned to deliver further profitable progress in 2016 and subsequent years.”