TRG portfolio outperforms a 'challenging market'

The Restaurant Group (TRG), owner and operator of restaurant brands including Wagamama, Frankie & Benny's and Chiquito, has released its latest financial summary for the 26 weeks ending 3 July 2022. 

The group reports total sales of £423.4m, almost double the £216.8m seen during the same period in 2021. 

Wagamama, along with the group's pub and concessions businesses, continues to outperform the market in terms of like-for-like (LFL) sales. Comparing the 33 weeks to 21 August against the same period in 2019, Wagamama's LFL sales are up 11%, +6% vs the market; pubs are up 9%, +11% vs the market; while concessions stand at 11%, +9% vs the market. 

Barburrito, a brand acquired by TRG in July, also continues to trade ahead of industry levels, with an outperformance of 13% for the 33 weeks to 21 August. 

The group notes that improvements in the customer offer means consumer ratings remain positive, while ongoing cost pressures have been partially mitigated by decisive management actions such as: 

• 100% of utlities hedged for FY22, FY23 and FY24 to provide future certainty on the cost base
• An interest rate cap on £125m of gross debt, effective from November 2022– November 2025

TRG will take a "disciplined" approach to both organic and inorganic targeted expansion opportunities to drive longer-term value creation. Plans include establishing a strong pipeline of Wagamama restaurants with improved commercial lease terms. 

Andy Hornby, CEO of TRG, comments: "We have made good progress in the past six months, delivering a robust financial performance in a challenging market, with continued LFL sales outperformance. I'd like to thank each and every member of our teams for their phenomenal efforts in delivering these results."

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