Restaurant Share Discussion Threads

[philanderer] 31/8/2016 09:12

Here we go all explained.

Big downgrade from Citigroup from 'neutral' to 'sell'... target cut from 350p to 320p.

And of course those in the know dumped out yesterday.

So that now takes my guess of a target price using average of experts to say 375p - 380p

[philanderer] 31/8/2016 08:49

We`ve got a big seller causing the overhang .. 1.2 million printed already. That`s not PI`s.

[philanderer] 31/8/2016 08:47

I`ll go the average of all the target prices from the experts and say 380p - 385p

Morning everyone.

[tsmith2] 31/8/2016 08:13

A little bit of defence around 3.75 but get feeling £3.5-£3.4 range is where this is going

[henrik viking] 31/8/2016 00:40

Gentlemen , I maintain that we will see further downside from here , very little point in looking at RTN from a technical point of view . The share price could easily fall another 20% over the next month , as I expect the new CEO to make some tough decisions across several of their business divisions . Note the comment in the Company's result statement

: From some initial diagnostic work undertaken, it is evident that some of the issues identified in Frankie & Benny's are also apparent in these brands. We will therefore be undertaking a thorough review of their propositions, pricing structure and menu architecture.

Meaning other leisure brands are underperformance as well. New CEO will most likely have to make further impairment charges and might even have a rights issue during the quarter.I agree there will always be a M&A chance , as the competitive environment for some of their brands have increased significantly .
However Their Gastro pub division should continue to expand .
So my target price post new CEO is 290-310
This also reflects a more realistic view of consumer spending after our post Brexit / amazing weather rally in leisure and retailing stocks .

[tsmith2] 30/8/2016 17:48

H+s think will get played out here May dip toe in at sub 350p level

[philanderer] 30/8/2016 17:29

henrik , you`ve called this one pretty well with 'sell' advice since your first post on the 18th august when the shareprice was 401p

Are you short ?

[henrik viking] 30/8/2016 17:17

As you can see from today's price movement with volume , the market does not want hold too much of RTN.
The new CEO will make further provisions , called kitchen sink and it will be a messy ex divi mid September.
Would continue to sell in spite of potential M&A. Too early for that

[tsmith2] 30/8/2016 14:02

Around that mark...

[philanderer] 30/8/2016 14:02

Yep, it acts like a 'high beta' stock :-)

[imranawan] 30/8/2016 13:52

Don't hold myself, but price action always seems volatile with £RTN.

[philanderer] 30/8/2016 13:30

This one is stinking out my portfolio today.

Chart support @ 360p ?

[philanderer] 30/8/2016 08:46

30th aug Jefferies neutral tp 330p
30th aug JP Morgan neutral tp 390p up from 330p
30th aug Beaufort Secs hold tp 422p
30th aug Barclays equal weight tp 321p

reiterations

[sharw] 30/8/2016 01:52

I bet Wagamama's good food didn't include avocado saturated with vinegar on toast

[philanderer] 29/8/2016 08:55

Bank holiday shopper footfall 'down 4%'

Tom Nathan is general manager at Brent Cross shopping centre in London - one of the UK's biggest, and he was sanguine about the figures.

"It certainly looked very busy yesterday - the restaurants were rammed."

[discodave4] 26/8/2016 19:01

philandererGood luck here and all others who hold.DD

[sharw] 26/8/2016 18:19

I have to give them credit for being honest this time - no more 'lower footfall' or 'increased competition' but an admission that taking the most popular items off the menu and bumping up the prices was a mistake. As for the Avocado Toast, that alone made it worth reading FTAlphaville (thanks for the link philanderer).

I think this must be one of the best examples of the Peter Principle (people get promoted to their level of incompetence). Danny Boy appears to have been doing very well when he was running the leisure side as MD but then:



After initial euphoria that the results weren't worse the price has settled down to around the 420 mark which is where it has been most of the week. That's probably about right for now (until the next t/o rumour).

[philanderer] 26/8/2016 17:11

-6p for the week ... sold half on wednesday @ 423p , happy to hold the rest.

Good weekend everyone.

[philanderer] 26/8/2016 13:44

Barclays (equal weight) and Cazenove (neutral) notes here:

[philanderer] 26/8/2016 12:59

Daily Mail:

The next phase of the review will look at Mexican-style restaurant Chiquito, American chain Coast To Coast, Joe's Kitchen and Garfunkel's.

Analysts at Numis said they were ‘impressed’ with the speed with which management has responded, especially in addressing Frankie & Benny's, and that the appointment of Andy McCue as chief executive was ‘strategically important’.

‘We expect him to prioritise stabilisation of the F&B brand, but we also see scope for more effective capital allocation. The decision to close 33 underperforming sites seems a sensible start,’ Numis added.

Helal Miah, investment research analyst at The Share Centre, said: 'Restaurant Group is a favoured share in the sector but the recent updates and subsequent performance of the share price has seen any profit quickly disappear.

'We continue to highlight the shares as a higher risk buy for contrarian investors only, who either see the company as a tempting proposition to a predator or believe its strong brands will enable management to address the recent problems.'


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