Restaurant Group reports ‘challenging trading period’

As Restaurant Group updates the market, Helal Miah, investment research analyst at The Share Centre, explains what it means for investors.

Restaurant Group reports ‘challenging trading period’

It has been a turbulent year for Restaurant Group. The company has parted company with its chief finance officer and chief executive in recent months and experienced a half-year loss of £22.5m as a new menu has failed to entice customers.

The company has today announced the axing of 33 of Frankie & Benny’s and Chiquitos restaurants in a bid to restore its fortunes after what it described as a ‘challenging trading period’.

The company has reported that sales have fallen by 3.9% for the first half of the year, which is within its earlier guidance range, while pre-tax profits have slipped by 3.7% to £36.6m. Investors will take some relief that the Board has not yet resorted to cutting the dividend, which has been maintained at 6.8 pence per share.

About Author