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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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The Restaurant Group

May 2018

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:
  • 260p
Casual dining chain, The Restaurant Group, showed signs of stabilisation after a difficult 12 months. Results were in line with expectations with pretax profit of £56.7m (2016: £77.1m) and eps of 22.3p (2016: 30p). With capex down from £55m to £33.6m and favourable working capital movements, free cash flow was a strong £84.9m (2016: £78.9m), allowing net debt to fall from £28.3m to £21.6m – just 0.23x EBITDA. A maintained and sustainable full year dividend of 17.4p is a key attraction.Restaurant Group trades from 498 restaurants and pub restaurants through the Frankie & Bennys (259 units), Chiquito (85 units) and Coast to Coast (19 units) brands as well as a growing pubs and ...

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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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