Restaurant Share Discussion Threads

[mashman] 17/3/2022 21:39

There is a bull and a bear case imo

Cash flow has been sufficiently strong for the group to pay back £45m of its term loan. More repayments are expected

But, comparisons are ignoring 3 years of inflation and VAT has been lower

Positive, "The group sees around 6 Wagamama units a year, 5 Wagamama delivery sites and 4 pubs. Wagamama’s international expansion should fire up again. The group sees five years of growth in Wagamama and 5-10yrs in pubs".

I'm in for a trade hoping for 20 or so points

[essentialinvestor] 17/3/2022 16:53

May be misreading this - I make the FY 2023 forward multiple about 15 x,
so nearly 2 years away.

Given net debt and lease liabilities that already looks to discount a lot of
recovery here? and arguably allows little room for any wider economic slowdown.

[porsche1945] 17/3/2022 15:18

7 quid to .70p over 7 years, hysterical, the 10pc club. Capital destructive rubbish, debt junkie company, love Wagamama but they overpaid big time. Will end up with waga bought out of admin by private equity when this goes bust. Ftse 100 only 4 points above where it was 21 years ago FFS. The U.K. indexes full of shxt like this. Buy US mega caps and protect your capital.

[mashman] 16/3/2022 18:38

Well, he is not a director but yes a nice buy and a reasonable amount.

Looks like they have done good and are well-positioned with several choices of where to go

Might have to buy some

[lawson27] 16/3/2022 17:12

Nice to see a director buying today

[km18] 16/3/2022 14:33

Restaurant Group PLC is an emerging corporation managing restaurants and pubs in the UK. The firm is currently operating across 650 restaurants. As a result, the firm has a sound platform for continued expansion to break trading records. From a financial perspective, the group derived an attractive profit before tax of £16.6m, higher than the previous (£47.9m) loss in 2020. Furthermore, the firm’s net cashflow surged to £146.5 million from £40.7 million, enabling the group to re-invest its funds to expand its operations, hence optimising returns on investments.



Keep up to date with WealthOracle AM

[lawson27] 16/3/2022 09:30

very happy with the results, looking for consolidation at around 90, GLA

[farrugia] 16/3/2022 08:08

Pretty much all of them Farrugla - i doubt the small ones will have such a complete hedging system in place. This is impressive all round and will give them a huge advantage over restaurants that are unhedged.

[paulisi] 16/3/2022 07:50

Decent set of results

[mashman] 16/3/2022 07:46

Pretty much all of them Farrugla

Impressive figures though, despite the fact that they have closed their worst sites.
Wagamama seems to be performing very well indeed.

[farrugia] 16/3/2022 07:24

here's one huge advantage over the competition

- 95% of electricity and gas volume hedged for 2022

- c.75% of electricity and gas volume hedged for 2023 and 2024

how many restaurants can say that?

[mashman] 13/3/2022 19:13

Why don't you ask Nicola about supply chain issues

[mashman] 13/3/2022 19:06

erm.... WAR. I am not talking this down at all, just pointing out the obvious.

[mashman] 11/3/2022 18:23

Good luck LAWSON27 but be careful because the forward-looking statement may suggest challenging times. Rates are going up as are heating and fuel costs (RTN are not hedged) NIC is going up and VAT is going back to 20%. Interest rates are rising and consumer spend could fall. Not a pretty picture IMO

[lawson27] 10/3/2022 09:12

Back in at this level, looking forward to the results next week. GLA

[farrugia] 04/3/2022 10:11

people are just giving their shares away stupidly - as if people are going to stop eating in the UK lol

the epidemic claustrophobia is gone and that will benefit RTN.

[mashman] 22/1/2022 22:33

This is Nobbys quote from the Times

"Like-for-like December sales in its leisure, concessions and pub categories fell compared with 2019 levels. Sales at the group’s Wagamama chain grew by 1 per cent in December, from 8 per cent in November and 11 per cent in October."

Times suggests it grew. Go figure.

[mashman] 22/1/2022 22:28

Still here john 09.

I have to say that I'm impressed with the resilience of RTN and the whole sector.

Nobbys green energy thing is just want and no cheaper than they are paying now.

The 16 March is when the full year's numbers will be announced and then we can digest where it's at with net debt and all that.

"
• Restaurant Group says ‘the introduction of the UK Government's "Plan B" in early December which included advice to work from home, calls for further caution in socialising and increased testing requirements for international travel reduced consumer confidence and put additional restrictions on the hospitality and travel sector.’ It says that LfL growth in Wagamama fell from 11% in October to 1% in December. "

so mind how you read it.

[john09] 22/1/2022 11:08

Did Mash Man Die

[adobbing] 22/1/2022 11:04

In an update yesterday the company, which also owns Chiquito restaurants and the Brunning & Price gastropub business, said that its adjusted core profit would be at the top end of its previous projection range of £73 million to £79 million in the financial year ending on January 2.

Like-for-like December sales in its leisure, concessions and pub categories fell compared with 2019 levels. Sales at the group’s Wagamama chain grew by 1 per cent in December, from 8 per cent in November and 11 per cent in October.

[adobbing] 21/1/2022 11:40

TotalEnergies to supply The Restaurant Group with green gas

The Restaurant Group (TRG) has signed a green gas contract with TotalEnergies Gas & Power.

The contract between TRG, a major player in the UK casual dining market, and TotalEnergies, means all TRG’s directly controlled supplies of electricity, gas and LPG used in its Wagamama, Pubs and Leisure (Frankie & Benny’s and Chiquito) divisions will be from renewable sources.

All sites on the Green Gas contract will have 100% of their consumption backed by Renewable Gas Guarantees of Origin (RGGOs). RGGO certificates guarantee that for every kWh of gas consumed from the grid, an equivalent volume of biomethane has been injected.

Alongside Green Gas, TRG also uses TotalEnergies Gas & Power’s Pure Green power, with 100% of the consumption for their sites backed by an equivalent volume of Renewable Energy Guarantees of Origin – only from wind, solar and hydro sources.

“At TotalEnergies Gas & Power we’re committed to helping our customers become carbon net-zero, so we’re delighted to be able to support The Restaurant Group’s drive to reducing their carbon footprint across all their sites,” said Mark Rose, sales and marketing director for TotalEnergies Gas & Power. “Together, we can make fantastic brands such as Wagamama even more sustainable, efficient and ethical.

“This new contract demonstrates how TotalEnergies offers its customers complete solutions across the value chain. We are producing as well as selling the power our clients need, allowing us to offer services they can understand and trust.

“This contract also shows how the green economy is emerging in the UK, with TotalEnergies offering renewable and low-carbon energy solutions for major businesses like TRG looking to secure dependable green power.”

[adobbing] 21/1/2022 11:37

“[However], TRG continued to trade ahead of the market demonstrating our ability to outperform in all market conditions.”

“ TRG also expects to better its net debt forecast of about £190m and end the year at less than £180m.”

“Management reacted quickly to reduce food and staff costs, which allowed it to protect margins through December,” said James Ainley, an analyst at Citi. “In addition, capex projects were shelved or delayed, which has also supported a better than expected net debt performance.”