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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Restaurant Group - Cheerier outlook married to ambitious EBITDA margin targets

April 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RTN
  • Price:
  • 40p
Shares in Restaurant Group, best known for its Wagamamas chain of pan Asian cuisine, have taken a battering in line with a weak hospitality sector but there are welcome signs it’s over the worst with final results beating expectations. Revenues rose YoY to £883m (some £30m ahead of consensus) while  adjusted pretax profit was £20.3m (£17.1m). More encouraging still, like-for-like sales vs 2019 (pre-pandemic year) for the eight weeks to 26 February revealed all divisions showing growth; most notably Wagamamas, where underlying dine-in sales grew 16% adjusting for the strong zero VAT comparables a year ago. But what could really crystallise value for shareholders is management’s new three-year  target to grow EBITDA margin by 2.5%-3.5% ver ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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