Yahoo Finance Restaurant Group sales sink after 'inevitable impact' of England's football success
Frankie & Benny’s owner Restaurant Group fell victim to the “inevitable impact” of adverse weather and England’s unexpectedly good performance in the World Cup.
Like-for-like sales, based on sites open for more than a year, slipped 3.7pc in the six months to July 1, while total sales fell 2.1pc to £326.1m. Profit before tax slid from £12.6m to £11.7m.
Boss Andy McCue said England’s progression in the tournament had kept people indoors but had at least been “good for the country’s morale”. He remained confident about the prospects of the company, reaffirming its full-year guidance. This buoyed long-term investors in the heavily shorted stock, which rose almost 6pc in morning trade.
Mr McCue said he was particularly encouraged by Restaurant Group’s trading in the six weeks after the World Cup, with sales up 2pc on a like-for-like basis.
The Beast from the East weather front hit Restaurant Group earlier this year as several of the company’s outlets were closed either because staff could not get to work or customers stayed indoors. England’s progression to the penultimate day of the World Cup and eight weeks of hot weather also led to reduced demand for eating out.
Restaurant Group, which also owns Garfunkels, Chiquito and Brunning & Price pubs, added to its drinks-led portfolio with the £14.9m acquisition of London pub chain Food & Fuel.
Mr McCue said 2018 had seen Restaurant Group deliver on its turnaround plan to create “a more competitive and balanced business”.
“The turnaround of our leisure division continues to plan and shows further progress,” he said.
Liberum analyst Wayne Brown said new pub openings represented a “signal of intent” from Restaurant Group.
