Friday 15 November 2013

The Restaurant Group IMS

Home

The Restaurant Group plc (TRG) is engaged in the operation of restaurants and pub restaurants. The principle brands are  Frankie & Benny’s, Chiquito, coast to Coast, Garfunkel’s, Home Counties Pub Restaurants and Brunning & Price.  I have a holding in my income portfolio (epic code: RTN).



The Restaurant Group issued their IMS for the 45 week period and continues to make excellent progress compared to other chains in their sector.  Total sales were 9.1% ahead of last year and like-for-like sales were 3.5% ahead - this is in line with expectations.

They opened 21 new sites in 2013 to date and they expect to open a total of between 33 and 35 new restaurants this year.  They also stated that they expect to open more new restaurants in 2014 than in 2013.

Management state that although the like-for-like comparatives are much tougher during November, they are confident that the business will continue to make good progress during the remainder of the year and they are on track to meet expectations for the full year.

At the current price of 557p they trade on almost 21x expected earnings for this year and yield 2.6%, so currently fully priced.  Analysts are expecting EPS growth of 12% next year, although this may rise based on the comment of greater expansion next year.
 

No comments:

Post a Comment