Restaurant Share Discussion Threads

[shinnas] 26/11/2019 12:46

Why the fall and now the rise

[thecroots] 28/10/2019 16:13

Agreed. Way too much debt. F&B is dire and Coast to Coast even more so. My last meal at F&B was because Toby carvery right next door had a 45 minute wait for a table. Walked in to F&B and it was only 25% occupied!

B&P pub look excellent and of course Wagamama is great they paid too much for it.

Not helped by the lack of catering experience at the top - just Gaming experience !

As mentioned, in my opinion, the little growth in Chiquito and F&B is purely down to deliveries. They won't admit it though!

[porsche1945] 24/10/2019 14:06

Too much debt to be taken over, im seriously under water with these, horrible share to own, to think i was once in profit on this sxxt, terrible management and brexit uk a poverty stricken mess. Dont know whether to just take a loss and get out.

[daymer58] 08/10/2019 08:45

AgreeCity Pub next M&A if RTN is taken over

[porsche1945] 08/10/2019 01:04

Pizza Express looking like its going down the toilet, less competition for RG, excellent.

[daymer58] 08/10/2019 00:15

24 million shares tradedstock up 5%The break up story of the sector!

[philanderer] 03/10/2019 13:30

Liberum..

Oversupply and a cautious consumer continue to weigh on performance. The outlook for the legacy casual dining brands looks bleak with c50% of sites earmarked for exit, and a £116m impairment/onerous lease provision taken. In contrast Wagamama continues to outperform with the extension into USA, food-to-go, concession and delivery all offering long term opportunities.

Overall management is slowing expansion to focus on debt reduction however visibility is low and earnings risk remains to the downside. We downgrade forecasts and cut our TP once again.

[daymer58] 11/9/2019 17:30

CEO bought £300,000 worth

[earwacks] 09/9/2019 16:00

rns. Pity, Norges Bank reduces stake.

[earwacks] 08/9/2019 16:16

I think its been realised fr some time the failings if the leisure arm including the likes of Bennie and Frankies. Personally I've bot eaten in any of them. The pubs sector has done well and the buy out of Green king is interesting. Dreadful beer and restaurants but value in the property which is encouraging because RTN obviously have a bit to unload still. Disappointing that The American roll out maybe shelved too. The thing is this stock is widely held by institutions, 94% a few years ago. Not sure if it is still that high, but thats makes the remainder very volatile and when PI's are on the run like recently the drop and rise can be overdone. two of the big holders actually added to their stake in recent days which suggests that it has indeed been oversold. One broker has only reduced its target 5p to £1.75. That will need supporting bu a marked increase with some better figures. Unfortunately I can't see how there won't be more write downs to come. Will need some clarification on that as there was no news on previous comments about unloading some properties. Guess that is where Mr Halifax comes in. Worth picking up a few under £1.30. I started in again at £1.23, and more at £1.25 and £1.27 having said I wouldn't. After the dust settled on the disappointing update it seems it is a bit early to writ them off which they probably would have been if not for the purchase of Wagamama which may well save the day even though against the majority shareholders. Sure it was expensive its a great business they don't get given away.

[thecroots] 06/9/2019 19:04

As an ex- investor i cant see F&B making any comeback. After frequenting a few of the Restaurants in the last 8 weeks, all i can say is that its little wonder while its struggling. Service and Kerb appeal is shocking. The 2.8% growth is misleading as this is purely down to deliveries.

B&P pubs though are a different game - much better run.

Wagamama is great but RTN simply paid way too much for it.

[philanderer] 05/9/2019 00:25

Wagamama-owner The Restaurant Group fell 6.1 per cent, or 8.2p, to 127.2p as analysts at Stifel trimmed its target price from 180p to 175p, which followed the firm outlining plans on Tuesday to close more than 150 restaurants.

[philanderer] 04/9/2019 00:07

Restaurant Group poised to shelve Wagamama's America dream amid £100m writedown

[jobber1] 03/9/2019 23:18

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Any ideas whether holders of restaurant group get discounts at WAGAMAMAS yet

[bend1pa] 03/9/2019 16:59

As expected RTN slowly heading for the knackers yard. And they still own the hopeless Frankie & Benny's chain which they should have sold off/ditched 2 years ago. Another 3 years or less and RTN will be gone.

[daymer58] 03/9/2019 14:00

Expect Norges Bank and Threadneedle buying more today

[philanderer] 03/9/2019 09:59

Wagamama owner Restaurant Group swings to a loss on £115m writedown

Restaurant Group plunged into the red as it recorded a loss for the first six months of 2019 following its controversial £559m takeover of pan-Asian chain Wagamama.

The figures
Revenue rocketed 58.2 per cent from £326.1m in the first half of 2018 to £515.9m in the first half of 2019.

Restaurant Group fell to a pre-tax loss of £87.7m, compared to last year’s£12.2m profit, after taking a £100m writedown on its Frankie & Benny’s and Chiquito restaurant brands.

Cash flow doubled to £52.3m but net debt piled up after the unpopular Wagamama purchase to £316.8m, 13 times higher than this time last year.

Investors made a loss per share of 16.1p while Restaurant Group agreed to pay an interim dividend of 2.1p per share.

Why it’s interesting
Restaurant Group’s share price dropped 4.2 per cent on the losses, with Peel Hunt having expected it to post a £27.8m profit due to Wagamama.

Like-for-like sales rose four per cent year-on-year in large part thanks to the pan-Asian chain.

But the firm took a pre-tax charge of £115.6m on its struggling Frankie & Benny’s and Chiquito restaurant chains, which comprise its leisure business.

Non-executive chairman Debbie Hewitt MBE said the leisure arm’s drop in like-for-like sales was down to strong sales last year boosted by “extreme weather” and the World Cup.

But analysts said the company is struggling to meet high expectations as shareholders started to see the upside of the Wagamama purchase, having initially found it hard to stomach.

“Unfortunately its half-year results don’t quite live up to the hype around its recovery efforts,” AJ Bell’s investment director Russ Mould said.

“Yes, Wagamama is doing well and there are signs of progress with repairing its other interests. But there are a few items on the menu which leave investors with a stomach ache.”

He pointed to the large one-off charges and a 0.2 per cent growth in like-for-like sales in the last six weeks.

Meanwhile The Share Centre said markets were reacting to the outlook for the retail sector, after the British Retail Consortium warned companies to prepare for economic turbulence as sales dropped in August.

“We had hoped and expected structural changes within the group would bear more fruit however, the structural challenges have not abated. If anything they are getting worse with the Brexit saga adding more fuel to the fire,” investment research analyst Helal Miah said.

The Share Centre has put its ‘Buy’ rating for Restaurant Group under review.

[philanderer] 03/9/2019 09:57

Half of Chiquito restaurants under threat

[earwacks] 02/9/2019 18:20

May get good results but also updates on redundant sites how Wagamama going to be expanded and a lot of other news in which they have been rather lacking, like the Sainsbury tie up trial. Don't forget the share price has risen nearly 50% from rights issue already. I'd like to see a strong focus on the global expansion plan for Wagama as the previous owners had planned. 90 new restaurants in the states for example.

[daymer58] 02/9/2019 15:13

Expect stellar results tomorrow

[daymer58] 30/8/2019 13:00

And one would assume, there is still a short position, in spite of Norges Bank and Threadneedle buying

[earwacks] 30/8/2019 11:17

Cautious optimism building for Tuesdays interims. If we can just get to the weekend without Trump hitting the red button or picking a right with some poor unsuspecting soul America will be closed on Monday so we have a clear run for the results on Tuesday which we hope will bring some encouraging news.

[daymer58] 23/8/2019 10:41

Threadnedle through 15%

[daymer58] 15/8/2019 17:04

YepAnd St James