'Very encouraging year-to-date,' says TRG

The Restaurant Group (TRG), national owner and operator of brands including Wagamama and Frankie & Benny's, has provided a trading update for the first weeks of the financial year (year-to-date), from 2 January to 16 July. 

Dine-in trends have been particularly strong, with year-to-date like-for-like (LFL) VAT-adjusted sales for Wagamama alone up 13% on last year. Despite being temporarily impacted by hot weather in late May and June, the brand still outperformed the market in Q2, with sales up 5% on the comparable period in 2022.

So far this year, TRG has opened four new Wagamama branches, as well as one pub restaurant. The new Wagamama sites are trading ahead of expectations, with management stating they are confident in the group's ability to deliver seven to eight new openings annually from 2024 and beyond. 

In the report, the board notes: "Whilst we are pleased with the progress being made in delivering these medium-term plans, the Board has continued to review its wider strategic options with the assistance of independent advisors in order to examine the potential to accelerate TRG’s deleveraging profile and further enhance EBITDA margin accretion. In evaluating strategic options including potential disposals, the Board remains mindful that any transaction must be at attractive levels for shareholders and must reflect both the strength of current trading and the long-term prospects of our businesses. 

"Given the very encouraging trading performance in the first 28 weeks of the financial year, TRG is confident in delivering management’s expectations for FY23."

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