TRG trading exceeds management's expectations

The Restaurant Group (TRG), owner and operator of chains including Wagamama and Frankie & Benny's, has released interim results for the 26 weeks ending 2 July, reporting strong like-for-like (LFL) sales and adjusted EBITDA growth driven by its Wagamama, pubs and concessions brands.

The group's total revenue has soared by 10% to reach £467.4m (2022: 423.4m). This strong sales performance has supported a moderate increase in management's FY23 adjusted EBITDA expectations, moving from 250bps to 350bps of adjusted EBITDA margin accretion over a three-year time horizon. The company has also set a target net debt/adjusted EBITDA below 1.5x before the end of FY25, while supporting accelerated investment in Wagamama openings. 

CEO Andy Hornby comments: "We are encouraged by the significant progress made in the first eight months of the year, delivering strong LFL sales growth despite the consumer backdrops. In light of the strong trading, we are increasing our expectations for FY23 adjusted EBITDA.

'We are making excellent progress on our medium-term plan and the board continues to actively explore strategic options to further accelerate margin accretion and deleveraging.

"A massive thanks to each and every one of our dedicated team members who have worked so hard to deliver these excellent results."

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