Restaurant Share Discussion Threads

[privileged] 30/9/2022 17:26

Who cares on intangibles and impairments ? They are not a cash charge or affect underlying profitabilityAgree on checking out balance sheet strength of course and cash flow though. I think given they are fully hedged to end of 2024 and I think even some into 2025 they are in a competitively strong position and sub 40p is a steal but let's see

[nav_mike] 30/9/2022 13:04

Was looking through the last results to see what could have justified this latest slump with a view to perhaps getting invested

On the face of it management have taken prudent steps to preserve capital and hedge interest rates and electricity bills.

BUT - the Balance Sheet is awash with intangibles such as goodwill and right to use asets. If you dig down into the Notes, you will see RTN is vulnerable to some pretty horrible impairmant charges if consumer spending drops off and/or price inflation goes unchecked

Think I will sit and watch for a turnaround in the share price 1st

[sanks elsworth] 30/9/2022 09:50

I'm gonna slide it on the mahogany table, nice and slow.
Then I'll sell them all to some nob when it hits £1.44
Thank you so much.. lovya xx

Sanks..OBE MBE BAHONS PHD LLB SHAG

[porsche1945] 29/9/2022 13:31

This will end up in administration and private equity will buy Wagamama back, it writes itself, dump it fast.

[john09] 26/9/2022 18:22

Nope. Check march 2020 price

[danb45] 26/9/2022 15:40

This is lower now then when we were in full lockdown and Covid was an unknown quantity

[john09] 26/9/2022 14:08

Starting to look interesting. 24p ish would be a target for new money id suggest

[ali47fish] 22/8/2022 13:08

still falling why?

[mashman] 02/8/2022 13:39

I would think that there is more potential upside than 19.8%

[porsche1945] 30/7/2022 20:29

Told you guys to dump this shxt when it was around a quid. Terminal levels of debt, Wagamama the only worthwhile element of the biz and they massively overpaid and got stitched up with it. Will end up in the hands of bondholders, shareholders will get stuffed. UK now an uninvestable brexit political self harming basket case. No foreign money wants to touch U.K. assets and sterling has been destroyed.

[albert arthur] 29/7/2022 08:41

Finally added this.... Results here on 15/09 are going to be very very strong.

[adobbing] 25/7/2022 17:08

Insider: restaurateurs show quick profit on bargain buys

Shares in this company had fallen sharply, triggering some big purchases by two of its chiefs. Another smart buy is also showing a nice paper profit for this CEO.
Two Restaurant Group (The) bosses who spent a combined £200,000 on the company’s shares just over a week ago have seen the value of their investment jump 16%.

Chief executive Andy Hornby and finance director Kirk Davis made their moves on 15 July at just over 42p, close to the lowest point since October 2020 for shares in the Wagamama and Brunning & Price chain.

The purchases were disclosed to the market last Monday morning and immediately boosted confidence, with shares up by an initial 4%.

The FTSE All-Share stock closed the week at 49.16p, but remains 50% lower over this year due to fears about cost inflation and potential impact on demand as households prioritise their spending on dealing with the surge in energy and fuel bills.

Your vote counts: Shell, Prudential, Aston Martin, Restaurant Group
Insider: directors pile into two well-known small-caps
Analysts at Jefferies believe the shares can recover to 130p, a level they reiterated on 12 July after Restaurant Group spent £7 million on Mexican fast-casual restaurant chain Barburrito.

The move represented the first big acquisition since a City fundraising generated £167 million at a price of 100p and the company carried out a major restructuring that tightened its focus on Wagamama and the country and suburban pub estate.

There are currently 16 Barburrito sites but Restaurant Group plans to double this over the next four years, with a particular focus on the south of England.

Jefferies said: “The deal adds another roll-out angle, to add to Wagamama and the pubs, at an attractive valuation.”

Alongside the Barburrito deal, Restaurant Group announced an early loan repayment of £44 million and the purchase of caps to manage the risk of higher interest rates. The group has headroom of more than £190 million against its £361 million debt facilities.

There was no update on trading, but Jefferies said this meant no change in consensus forecasts since May’s AGM statement revealed a market-beating performance by Wagamama. Those figures showed like-for-like sales growth of 15% against the 2019 period, with trading in the pub estate also 10% higher. Interim results are due on 8 September.

Analysts at Stifel believe the chain is now better placed and notes that in previous cycles hospitality spending has proved relatively resilient to squeezed household budgets.

The broker added in May: “The longevity and severity of cost headwinds is difficult to forecast, but TRG's balance sheet is in reasonable shape to withstand stagnating economic growth.”

According to Liberum, a valuation multiple of 5.2 times 2023 earnings more than accounted for the current macroeconomic uncertainty. Its target price stood at 100p, with the broker arguing that the company deserved more credit for its strong brands, sales outperformance and longer-term prospects.

[king_baller] 12/7/2022 11:52

A buy rating in the main national Sunday newspaper and today’s news couldn’t even muster any interest in a bid. Small shares like this without a bid will get dragged down by passive flows moving out of the FTSE 250/allshare. Significant downside if the general markets fall, which looks increasingly likely with the current US dollar move.

[pbj] 12/7/2022 08:31

Been watching for a while, great news today.

[mashman] 12/7/2022 07:59

This may turn the price North

[john09] 10/7/2022 12:38

Buy

The Sunday Times

[philanderer] 30/6/2022 10:14

Morning EI

We picked up an M&S 'dribble cake' on a yellow sticker reduced to £4 from £15 :-)

[essentialinvestor] 30/6/2022 09:38

Phil, you like your eating out!.

I made do with a £12 MKS meal deal, their best ever steak pie is rather good.

[philanderer] 30/6/2022 01:06

We left Wagas Paddington at 8:30pm tonight and people were queuing outside waiting to be seated.

[mashman] 29/6/2022 08:12

Don’t worry Essential tried a long around 6o got stopped and reversed. Still short.

[essentialinvestor] 27/6/2022 13:03

mash, i did try to caution you on this.

[mashman] 22/6/2022 23:19

You can lead a horse to water etc etc. MK now less than they paid for Wagamama

[mashman] 14/6/2022 22:28

Brunning and Price is probably the only thing of value left, they should do well after this downturn, but in the meantime it's looking like 40p as the value of concessions and Wagamama evaporates.