Restaurant Share Discussion Threads

[porsche1945] 05/4/2023 12:17

This debt ridden poorly managed dogshxt with the only part having any value ( Wagamama) now getting fxcked by new chain Itzu which is half the price and better food, it’s eating trg’s lunch haha. This will be taken over by bondholders and sold off to Private Equity, shareholders in for an unlubed ass-fxcking.

[adobbing] 29/3/2023 12:19

Lincolnshire Frankie & Benny's restaurants put up for sale

They are the only two Frankie & Benny's restaurants in the county

Joe Griffin

Both Lincolnshire branches of a popular Italian-American themed restaurant chain have been listed on the market. Frankie & Benny's in Lincoln and Spalding are both up for sale and it comes after owner, The Restaurant Group (TRG), announced plans to close 35 of its restaurants across the UK.

Spalding's Frankie & Benny's restaurant on Camel Gate, by Springfields, is listed on Savills at a guide price of £850,000 while the Lincoln branch on Runcorn Road is slightly cheaper at £775,000. The listings both state that the trading name and any branded items are not being included with the property which must be completely re-branded before being reopened.

Under the 'Key features' section of the listings, it states: 'Confidential sale - staff unaware'. TRG also owns a number of other restaurants and public houses such as Wagamama, Chiquito and Brunning & Price.

'Confidential sale - staff unaware'🤣
I’m guessing they are now!

[xtrader1965] 20/3/2023 15:48

Time to get onboard here IMHO. Stakes are being built and things will happen

[m_kerr] 16/3/2023 19:51

this isn't going bust, there's only £170m odd of debt.

[libertine] 10/3/2023 17:06

Restaurant Group PLC (LSE:RTN) has “organic recovery potential” that’s according to Citigroup’s London-based analysts.

Citi, in a note today, stuck with a price target of 52p per share (current price: 38.42p) although revised down forecasts for the 2023/24 financial adjusting for margin guidance, following the Wagamama owner’s wider loss reported on Wednesday.

[smurfy2001] 09/3/2023 12:04

Wagamama for me is superb, order from there regularly. Can't go wrong with teriyaki chicken donburi, ginger chicken udon, chicken raisukaree, hot chicken katsu curry etc.

It's no surprise they are opening up more.

Chiquito has potential (I love Mexican food) they need to try harder with their menu, bang average food.

Never tried Frankie and Bennys.

[porsche1945] 09/3/2023 01:16

….did tell you a few days ago…..as I said, will end up back in the hands of private equity who will take over the debt at 50p in the pound and refloat Wagamama in a few years. Rinse and repeat. How do you think these fxckers make the money they do. Shareholders will be wiped out I’m afraid. Brexit basket case U.K. plc is in dire trouble. Watch this space.

[m_kerr] 08/3/2023 17:14

farrugia - if they have very different businesses, they need to provide full disclosure. otherwise the market will generally impose a 'conglomerate discount'. the lack of disclosure also shields management from scrutiny (the main reason). management here want to carry on running the company as they please, without accountability. they have almost no money of their own at risk and so their motivator is job security, not shareholder returns.

the stock market will generally assign a higher rating to 'pure plays', companies that are easily understood and finances that you can easily assess.

most stock market listed pubco's are trading at discounts to net asset value. it's probably not the best time to sell brunning & price.

[mrsimmons] 08/3/2023 08:52

It’s all over for the board I’m afraid. Time for change. The most worrying thing here is the 2% lfl in Wagamama. Once mortgages kick in that will turn negative this year. Once that goes backwards it’s looking bleak. Should have closed the dogs FandB and Chiquito years ago or converted them to Wagamamas.

I can’t believe how bad the cash performance is. Way too much capex being spent on businesses not generating enough ebitda.

[farrugia] 08/3/2023 08:33

why make it a one-trick pony ydderF? The concessions and pubs business look good to me.

[ydderf] 08/3/2023 08:14

What is wrong with the Board, the only strategy is to divest everything except Wagamama, the CEO lacks vision and seems to have a village corner shop perspective which sadly is becoming typical of UK companies

[farrugia] 08/3/2023 07:33

fuel / gas hedged till 2025

Fully hedged for FY23 & FY24, 80% of volume hedged for Q1-Q3 FY25


debt a bit up but because of:

The Pre-IFRS 16 net debt component (i.e. bank debt) has increased from £171.6m to £185.7m, an increase of £14.1m. Free cash flow reduced to £39.4m (2021: £44.7m). In the year there was a material increase in working capital due to the VAT rate reverting to 20% from Q2 but this was offset by an increase in maintenance and refurbishment capex of £36.6m (2021: £19.0m). The increase in capital expenditure related to a catch-up on refurbishment spend relating to our Wagamama, Pubs and Leisure businesses, following two years of disrupted trading due to Covid.

Development expenditure of £21.6m (2021: £14.9m) related primarily to opening eight new Wagamama restaurants and two new pubs including the freehold purchase of a new pub due to open in FY23.

[libertine] 07/3/2023 18:04

Activist hedge fund threatens removal of The Restaurant Group CEO
March 7, 2023

Activist hedge fund Oasis Capital Management has reportedly delivered an ultimatum to London-listed The Restaurant Group (TRG) – overhaul the company or fire the CEO, according to a report by the Financial Times on Tuesday.

The report, citing two people familiar with the matter, said that Oasis was pressuring the British hospitality group to shake up the business or oust its owner after the Hong Kong-based hedge fund previously expressed its disappointment in how TRG was handling the business.

The Restaurant Group’s RTN, +0.67% stock remained stagnant on Tuesday morning in London, moving down just 0.22%. The shares have struggled to recover from the height of the pandemic, which saw many of its restaurants closed for a number of months, slumping 57% since early 2020 and declining 37% in the last 12 months.

The Restaurant Group is one of the U.K’s biggest casual dining operators, owning over 400 venues across brands such as Japanese-inspired restaurant Wagamama and Italian-American chain Frankie & Benny’s. The group will publish its full-year results on Wednesday.

Last month, the group rejected Oasis’s demand for a seat on the board after declaring a 6.5% stake in the company. Oasis accused the group at the time of having “one of the worst performing share prices of any U.K. leisure company.” It also demanded TRG lead a strategic review of the business by an independent lender, which the group also rejected.

According to one source by the Financial Times, Oasis wants to pressure TRG into a position where it can ““reduce debt, reduce interest, resume dividends…R01;get a higher stock rating, better market cap [and] attract better people.”

Oasis did not immediately respond to a request for comment and TRG declined to comment.

[libertine] 07/3/2023 17:53

The owner of the Wagamama restaurant chain is being targeted by a second activist investor — Irenic Capital Management — with Oasis Management already pushing the London-based company for changes, according to people with knowledge of the matter.

Irenic Capital has had private discussions with the Restaurant Group Plc, the people said, asking not to be identified discussing private information. The talks covered the potential divestiture of its pubs and concessions businesses, increasing disclosure around the profitability of Wagamama and reducing corporate costs, said one of the people.

Irenic Capital, founded by Andy Dodge and Elliott Investment Management alumnus Adam Katz, has been amassing a position in Restaurant Group but the size of its stake couldn’t be learned. A representative for Irenic Capital declined to comment.

A spokesperson for Restaurant Group decline to comment beyond a February statement, which said “the board welcomes constructive input from all shareholders that is supportive of the creation and delivery of long-term sustainable shareholder value.”

In February, the Restaurant Group rejected Oasis Management’s demand for a board seat, saying it was already reviewing strategic options.

The company, which is due to report full-year results on Wednesday, operates more than 400 restaurants and pubs across the UK, including chains Frankie & Benny’s, Chiquito and Brunning & Price.

The company’s shares have fallen 32% in the past year, leaving it with a market value of £348 million ($416 million).

Last year, Irenic Capital was the first News Corp. investor to publicly oppose a plan to merge with Fox Corp., a proposal that was withdrawn by Rupert Murdoch in January. Irenic Capital has also disclosed a position in another British company, Capricorn Energy Plc.

Oasis Management, based in Hong Kong, amassed a 5% stake in the Restaurant Group, Bloomberg News reported in January. The activist investor also called the company to increase transparency with the market as well as consider selling its Brunning & Price pubs and airport concessions business, according to letters and a report from The Times.

The Restaurant Group acquired Wagamama in 2018 in a £560 million deal.

[creme de menthe] 07/3/2023 16:40

March 7 -



* WAGAMAMA RESTAURANT CHAIN OWNER TARGETED BY ACTIVIST
IRENIC
CAPITAL - BLOOMBERG NEWS

[farrugia] 07/3/2023 14:14

the trading update is tomorrow.

[ali47fish] 07/3/2023 13:58

sorry law what news is that?

[lawson27] 07/3/2023 13:33

Hoping tomorrows news doesn't disappoint GLA

[libertine] 05/3/2023 09:56

The activist investor targeting Wagamama’s owner The Restaurant Group (TRG) wants the company to look at selling its Brunning & Price pubs and its airport concessions business in an attempt to cut its debt pile.

Hong Kong-based Oasis is understood to be pushing for TRG to unveil divestments on Wednesday when it reveals the results of a strategic review of its business alongside its full-year results.

[adobbing] 03/3/2023 18:36

There could something to be salvaged from the wreckage of Chiquito’s, if they reverse the downward spiral in quality / offer, it went through over the last decade or so.

What better way to do that, than by using their recently acquired Mexican takeaway chain, Barburrito!

[m_kerr] 03/3/2023 17:18

it's been transformed by the restructuring and equity raise which both significantly strengthened the balance sheet. as i've stated before, and as the times article states, IMV they should just shut down the leisure portfolio. there's no value in fake american and mexican casual dining, and it only serves to distract from the growth opportunity at wagamama.

the lack of disclosure, as oasis states, makes it impossible to assess profitability and performance of each business unit. they need to segment their results to allow for better accountability and allow investors to estimate the value of each.

[asiddall] 02/3/2023 12:27

Everybody knows it’s a good well run company. There’s always the odd person on this board which everyone ignores..