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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Restaurant Group - Broker price target: 385p

May 2011

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:
  • 312p
Restaurant Group, the owner of Frankie & Bennys, Chiquito and Garfunkels, ably demonstrated how value-for-money family oriented eateries can thrive in the credit  crunch with final results slightly ahead of expectations. On turnover, which rose 7% to £466m, its pretax profit increased 12% to £56m and eps rose 14% to 20p. Strong cash generation pared net debt by £20m to £47m, leaving net debt to EBITDA at just 0.5 times. In its leisure division (profits up 5% to £72.9m) all its main concepts made progress except Chiquito's as it had limited scope to raise prices last year, while the 1% fall in like-for-like sales mainly reflects the unseasonal snow. Last year saw 24 new restaurant openi ...

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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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