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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Restaurant Group

May 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:
  • 67p
The impending hikes in energy and food prices, as well as return to full 20% VAT on eating out on 1 April (from 12.5%) cast a difficult backdrop for consumer spending but I expect Restaurant Group will at least continue to outperform its peers. As Numis notes, Restaurant Group’s in line results showed £81m EBITDA for FY’21, which was within £40m of the peak despite losing £18m in Q1 lockdowns. Net debt almost halved to £171.6m even after £15m spent on five new Wagamama restaurants, two delivery kitchens and one freehold pub.Wagamama achieved 15% like-for-like sales growth in the 33 weeks since re-opening, almost double the market benchmark. Meanwhile Wagamama delivery also did well and this, alongside roll-out opportunities (genera ...

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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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