Restaurant Group reports £326.1m in H2 revenues

4th September 2018 (Last Updated September 4th, 2018 12:34)

British chain The Restaurant Group has reported a revenue of £326.1m for its second half (H2) ending 1 July, a 2.1% decline compared to the previous year.

Restaurant Group reports £326.1m in H2 revenues
The Restaurant Group currently operates 258 Frankie & Benny’s locations. Credit: Brian Robert Marshall.

British chain The Restaurant Group has reported a revenue of £326.1m for its second half (H2) ending 1 July, a 2.1% decline compared to the previous year.

The decline in revenue was impacted by the investments in price and proposition across the company’s leisure brands in 2017, adverse weather and the World Cup.

Adjusted EBITDA of the restaurant chain dropped to £38.1m for the six-month period, a 14% decline compared to £44.3m during the same period last year.

The restaurant company also reported an operating profit of £20.9m for the six-month period of 2018, a 21% decline compared to £26.5m for the same period last year.

“The turnaround of our leisure division continues to plan and shows further progress.”

Adjusted earnings per share of the company were £7.78 for the second half of this year, compared to £9.98 for last year.

The Restaurant Group chief executive officer Andy McCue said: “Over the last six months we have delivered against our strategy, creating a more competitive and balanced business, more closely aligned to the growth segments of our market.

“The turnaround of our leisure division continues to plan and shows further progress. This was despite the headwinds facing the sector as a whole and the adverse effects of extreme weather and the World Cup.”

“Meanwhile our pubs and concessions businesses have traded strongly, with both businesses expected to deliver significant total sales growth this year. Our recent acquisition of Food & Fuel Ltd will further accelerate our growth at the premium end of the pub market.

“We remain focused on developing our offering to meet consumers’ evolving demands and behaviours. Over the last six months we have rolled out delivery and ‘Click-and-Collect’ across most of our leisure estate and successfully trialled two delivery-only brands, ‘Burger Burger’ and ‘Kick-Ass Burrito’, both of which have been well received.”

The restaurant chain currently operates 258 Frankie & Benny’s, 85 Chiquito locations, 16 Coast-to-Coast establishments, eight Garfunkel’s, seven Filling Station’s, four Joe’s Kitchen’s, three Firejacks, 66 pub restaurants and 62 concessions.