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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Restaurant Group

July 2022

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:
  • 53.5p
Restaurant Group reported better than expected trading at its AGM. In the 19 weeks to 15 May Wagamama sales grew 11% like-for-like versus 2019 while pubs and leisure rose 6% and 4%, respectively. Concessions recovered faster than anticipated and are now only 11% below 2019. Liberum says this should partially offset higher inflation (guidance now 9-10%  adding c. £8.5m to costs). However Liberum has still cut its forecasts with EBITDA lowered by 8% for FY’23 for new eps of 4p. Nevertheless as Liberum says, Restaurant Group “remains better placed than most to recover strongly and take market share given its strong top-line performance, upside from delivery (including eight new Wagamama and three delivery kitchens in FY’22) and a rest ...

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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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