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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Restaurant Group

June 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:
  • 50.5p
A few days after last month’s main ‘Buy,’ the shares gapped higher after Restaurant Group  said it’s tracking ahead of expectations on its medium-term “margin accretion and deleveraging plans”. It’s found £5m incremental cost savings with 70% realized this year and Jefferies says this adds another 20% to target cost reductions. It’s also accelerating the leisure estate rationalization and plans to close 23 of the c. 35 sites identified by the end of May. At the same time a favourable rental  market means it now expects to open 7-8 sites in FY’24 versus five previously. Current trading is encouraging with Wagamama (+9%), concessions (+20%) and pubs (+10%) again leading the charge for the four weeks to 30th April. Under press ...

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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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