Restaurant Share Discussion Threads

[philanderer] 09/3/2017 14:01

That chart downtrend seems to have reversed . Fingers crossed .

[mr_spock] 09/3/2017 13:32

[...]

Chiquito owner Restaurant Group PLC (LON:RTN) was in favour with a host of City brokers today...

In response to a difficult year the company said it had undertaken a strategy review across all of its brands...
It was this review which found favour with, among others, Liberum analyst Wayne Brown who applauded the “pragmatic and honest” approach taken by the company’s top brass.
“The strategy is based on rebuilding value in the group's core brands where customer awareness remains strong but value and offer credentials need to be restored,” noted Brown.
The analyst repeated his ‘buy’ recommendation for the stock and upped his price target to 430p.

Similarly, N+1 Singer’s Sahill Shan was a fan of the review, commenting that it included some “well thought-out initiatives to revive the business”.
Shan added: “We take the view that market forecasts have been sufficiently reset and whilst recovery will take time we are encouraged by the strategic review.
“We come off the fence and move to a ‘buy’ with 415p [as a price target] (from 350p).”

Brown echoes the thought that the recovery won’t be instant and may take a little a while.
“We see 2017 as a transformational year, and while we could see some improvement in performance this year, we think like-for-like sales and volume growth will accelerate in 2018.”

Essentially, the message from the brokers is that it although it may take a little for tangible progress to be made, Restaurant Group has set itself on the right path.

[philanderer] 09/3/2017 09:38

9th march N+1 Singer buy tp 415p up from 350p Upgrade from 'hold'
9th march Panmure hold tp 340p up from 310p
9th march Canaccord buy tp 430p

[philanderer] 08/3/2017 22:11

QUESTOR - Telegraph - originally tipped as 'buy' last october @ 350p ;=D


5.2 million shares traded today

[thevaluehunter] 08/3/2017 13:46

I believe the Leisure LFL sales chart (6 month moving average) in the presentation is highly correlated with cinema admissions.

Monthly cinema admissions are shown here: hxxp://www.cinemauk.org.uk/the-industry/facts-and-figures/latest-uk-cinema-statistics/weekend-top-10-box-office/

Cineworld reports tomorrow and I will be interest to hear what they have to say about current trading.

[philanderer] 08/3/2017 13:00

They have covered themselves...

".... During this transitional period the Board will assess the dividend based on progress against the plan. The Board will revisit the previous policy of two times EPS cover at the appropriate time."

[imranawan] 08/3/2017 12:37

According to Stocko EPS for 2017 forecast to be 22.3p, and PAT project to fall to £46.5m. I think its probably price about right for the time being.

Agree it could be a good recovery play, but need to see signs of the recovery plan working. In the results today, they said they expect to see signs of the recovery in H2.

Was surprised they held the divi, as although based on FCF they can afford it now, I thought they may want to rebase this, especially as this is a new management team.

Will be interesting to see how things play out from here. They talked a lot about price investment which is likely to hit margins, and also the competition aren't dormant. They also mentioned, that they have lost customers and need to win them back, which won't be easy. Overall, its not for me, but an interesting stock to keep tabs on.

[thevaluehunter] 08/3/2017 10:56

Guidance from the trading update on 29/04/2016: like for like sales to be down between 2.5% and 5.0% which would translate into full year profit before tax in the range of £74m to £80m.

Actuals -3.9% and £77.1m pretty much slap bang in the middle of the guidance.

[adobbing] 08/3/2017 10:16

"5 Mar '17 - 14:44 - 1779 of 1787 0 0

. buying at 245p when they warn on profits again

If you have 6,000 pounds invested it will be worth pounds 4,900 if i am correct. You will lose 1100 pounds"



So how's that plan going then?

Perhaps you'd be better spending your pocket money on literacy lessons and leave investment decisions to the grown ups?

[thevaluehunter] 08/3/2017 09:51

Looking at the presentation they have recognised that cinema admissions play in large part in LFL performance for Chiquito. I'm not sure why it is not in the LFL sales bridge for F&B because most of the sites are located next to cinemas.

Cinema admissions are up so far for FY17 with good film releases coming up and v. soft comps from last yr.

hxxp://www.bfi.org.uk/education-research/film-industry-statistics-research/weekend-box-office-figures

[liquidkid] 08/3/2017 09:42

Another key 'takeaway' is that Coast to Coast has blown out with 'extreme lfl declines' Mgmt solution: restrategize it to a burger joint. Like. Every. Other. Burger. Offer. Can't name one place that doesn't do burgers.
(99p happy meal anyone)

[philanderer] 08/3/2017 09:07

Upgrade by Peel Hunt to 'add' tp up from 300p to 350p

[philanderer] 08/3/2017 08:58

adobbing , they`ve been reading your posts... :-)


Restaurant Group reports its Brunning & Price gastro-pubs offer 'consistently good and growing returns', expects to increase openings.

[philanderer] 08/3/2017 08:52

One million shares traded already and that chart downtrend could be about to break ;-)

[philanderer] 08/3/2017 08:48

8th march ShoreCap buy -
8th march Liberum buy tp 400p


Reiterations

[philanderer] 08/3/2017 08:34

House broker...

Numis reiterated a 'buy' rating and target price of 430p, saying: "We are reassured by the depth of the strategic review and confident message from a maintained dividend. Clearly the turnaround will not be immediate and an inflection point in like-for-like sales may be several quarters away. Nonetheless, the 5.4% dividend yield and credible management team present an equally compelling near term investment case."

proactiveinvestors.co.uk

[salchow] 08/3/2017 08:33

"It's actually a very positive read!" Apart from the figures! The written part is the easy bit! Anyway, it has gone so far down perhaps the only way is up.

[adobbing] 08/3/2017 08:32

"5 Mar '17 - 14:44 - 1779 of 1787 0 0

. buying at 245p when they warn on profits again

If you have 6,000 pounds invested it will be worth pounds 4,900 if i am correct. You will lose 1100 pounds"



So how's that plan going then?

[gutbuster] 08/3/2017 08:28

It's actually a very positive read!

[philanderer] 08/3/2017 08:19

Very pleased :-)