Trading update
The Restaurant Group plc today provides an update on the results for the 52 weeks ended 31 December 2017.
Like-for-like sales for the 52 weeks ended 31 December 2017 were down 3.0%, with total sales decreasing by 1.8%*.
We expect to deliver an adjusted PBT outcome for the 2017 full year in line with current market expectations.
Despite the challenging market in 2017, we continue to make good progress against the four key elements of our strategy:
- Re-establish competitiveness of our Leisure brands. Our investments in price, food quality and marketing during 2017 drove progressively improved volume momentum in our Leisure business through the year. Our expectations around our 2018 sales trajectory remain broadly unchanged and reflect both our improving volume momentum and the significant price investments made in the middle of last year, albeit set against the backdrop of a market that has softened.
- Serve our customers better and more efficiently. Our initiatives to enhance our guest experience, improve effectiveness of labour scheduling and deployment, and exploit new technologies are on track.
- Grow our Pubs and Concessions businesses. Both businesses performed well through the course of the year and the pipeline of new site opportunities continues to grow.
- Build a leaner, faster and more focused organisation. The business is fundamentally leaner, operating increasingly faster and focused on a clear plan, enabled by an enhanced senior leadership team. Kirk Davis will join the business as Chief Financial Officer on 5 February.
The Group’s balance sheet remains strong and continues to benefit from good cash generation from our operations.
We will provide a more detailed update on our progress against our strategy at our preliminary results.
Andy McCue, Chief Executive Officer, commented:
In 2017 we made solid progress against our strategic initiatives, resulting in improved volume momentum in our Leisure business, a lower cost base and a more focused growth plan. While the market has softened, we continue to benefit from strong cash generation and a healthy balance sheet.”
* On a 52 week vs 52 week basis. On a statutory 52 week vs 53 week basis total turnover decreased by 4.4%.