Restaurant Share Discussion Threads

[deduce101] 14/3/2020 21:08

Coronavirus: Cafe and bar jobs 'gone by May' if laws do not change - trade body

"Ms Nicholls told the BBC that even some of the largest hotel chains, pub chains and casual dining brands all "run the risk of not existing going forward", such is the economic impact of the coronavirus pandemic.

"This is business-critical - these are cash businesses, put simply, if you don't have people coming through the door, you will run out of cash very quickly.

"So we are talking about intervention that is needed next week to make sure that in six to eight weeks these businesses continue to trade, and if we don't get that support, by May, we will be facing business failures and a significant number of jobs at risk."

"This is affecting hospitality companies of all sizes and shapes...it's high street businesses that are seeing footfall decline, so your pubs, bars, your cafes where you pop in for a sandwich, but also it's the larger companies across the sector - they are the firms that employing the most people," she added."

[deduce101] 12/3/2020 14:10

Similar competitors are down, but not quite as much. Whitbread -17%, Mitchell and Butlers -15%, Marstons -15%.

[devonlad] 12/3/2020 13:36

Going bankrupt possibly?

[deduce101] 12/3/2020 13:19

Serious underperformance now. Is there any reason why this has dropped 21% so far today?

[adobbing] 09/3/2020 17:24

Outperformed the market today 😃

[thecroots] 05/3/2020 21:26

Well what do you expect when a lot of the top brass have no food service experience, just Betting experience..

[superstardj] 05/3/2020 16:58

Andy McCue has a lot to answer for. The guy should be unemployable after this debacle. Wanton value destruction caused by over self confidence.

[essentialinvestor] 05/3/2020 15:49

It's the debt they took on, arguably right at the wrong time of the cycle?.

[earwacks] 05/3/2020 15:47

The issues are many. They have a disastrous leasure arm, with a bunch of leases they can't offload. A pile of debt to pay for Wagamamas which is currently holding up the fort. With the original global expansion reigned in there is not a lot of room for manoeuvre.Now down 30% on RI to help fund Waga purchase. A case of tail wagging dog, trouble is its tail is a bit short.

[essentialinvestor] 05/3/2020 15:41

I've cautioned here a number of times since the Wagamama deal, the
entire group now worth less than the price they paid:

[salchow] 05/3/2020 15:37

A pity the business largely comprises Frankie and Benny's and Chiquitos. Just returned from one of their pubs in Cheshire. Good quality food and always extremely busy despite being more expensive than local competitors and only ever having the one menu with no lunch offers/early bird offers or such like. They have chosen their locations well and if they ever split off the pub business I would be an eager investor in that. The performance of the pubs shows they are capable of running a very good business but I guess the problem with the other brands is that they cannot charge as much and consequently the quality probably suffers based on comments I have read.

[middlesboroughfc] 05/3/2020 13:16

Will breach bank covenants


Who wants chinese food when bats are in it

[sbb1x] 05/3/2020 13:07

Has there been a recent RNS for this big fall ?

[pugugly] 05/3/2020 09:41

steelwatch100 = Looks like your warning is coming true - A prolonged shutdown of all places of entertainment could (imo) see many liquidations - Boris needs (imo) to suspend business rates for all forced to shut down as a starter to mentain solvency and employment. In a worst csse scenario suspect this might drop to the 20's or worse.

[philanderer] 24/2/2020 10:17

Restaurant Group was on the back foot following a report over the weekend that the Frankie & Benny’s owner is set to announce site closures this week. According to the Mail on Sunday, many of the sites are in out-of-town retail parks struggling to attract visitors.

ADVFN

[steelwatch100] 15/2/2020 13:21

Headwinds getting stronger, Coronavirus could impact cinema, airports, restaurants & pubs throughput plus all the challenges mentioned above. RTN looks to be in a tough place going forward.

[philanderer] 17/1/2020 20:56

Today's UBS note:

We see the outlook in 2020 as incrementally challenging for Restaurant Group given; (1) Expectation that the Leisure brands will again underperform the market, with our menu analysis suggesting the value proposition is unlikely to have improved since the price reduction strategy delivered in 2018; (2) Weaker UK air passenger capacity forecasts that may impact concessions; and (3) Cost headwinds which we expect at least in line with 2019E, but with mitigation likely incrementally tougher. With the stock having re-rated by 25% over the last three months, and with our 2020E EBIT forecast 6.2% below consensus combined with forecast net debt / EBITDA >2x in 2020E, we believe expectations are at risk of being too high and downgrade to Sell.

Frankie & Benny’s and Chiquito look to have continued to weigh on group growth in 2019E, and we see limited catalyst for change in 2020E. In particular, whilst the focus of the 2017 strategy had been improving price competitiveness given their value focus, our analysis for F&B’s estimates an average price increase of c.4% since the price reset, including price increases >10% on entry level meals such as Margarita Pizza which we believe occurred in 2019.

We believe that with oversupply still an issue in the casual dining segment, and growth limited, this could limit the potential improvement in performance relative to the market.

[kekesfalva] 17/1/2020 12:02

Berenberg reitereated BUY today at 175...

[philanderer] 17/1/2020 11:15

Restaurant Group, down 6.5%. UBS downgraded the Frankie & Benny's, Wagamama and Garfunkel's dining chains owner to Sell from Neutral.

[nordic1958] 14/1/2020 23:02

Just waitQ1 restaurant M&A

[adobbing] 10/1/2020 10:31

Were the circling wagons full of men in white coats?
They certainly weren’t full of new shareholders were they?
Just like the share price not moving higher.....

[nordic1958] 04/1/2020 17:05

Watch the shareholder list!!The wagons are circling

[nordic1958] 02/1/2020 23:26

No 1 M&A target in the sectorStock moving higher

[mr_spock] 26/11/2019 14:13

Buying Wagamama showed that they had no faith in F&B, Chiquito, etc. Sure, they could turn F&B etc. around but it would take forever. And F&B, etc. are not 'cool' brands like Wagamama.
We'll have to wait and see if they made the right decision. Took on a whole load of debt.