Restaurant Share Discussion Threads

[philanderer] 14/2/2017 11:41

So even with a 40% dividend cut as this fella predicts, the yield would still be almost 3.5%

[philanderer] 14/2/2017 11:39

Star investor: The FTSE 250 stock I’m sticking with despite the shares almost halving


14 FEB 2017

Alex Savvides, who runs the JO Hambro UK Dynamic Fund, has revealed the FTSE 250 stock he is sticking with, despite the shares losing 45 per cent over the past year.

The stock in question is Restaurant Group. Savvides commented that, ‘On the negative side, Restaurant Group had a soggy statement, with like-for-like revenues exiting the year at a weak -5.9 per cent.


We suspect a large part of this was price investment as the new management team gets to grips with trying to re-establish the value credentials of the core leisure estate, particularly the Frankie & Benny’s brand.

We are clear that there will be no quick fix here – this is the beginning of what will be a drawn out and difficult recovery plan. With this in mind, we should also mention that our own forecasts include a 40 per cent cut in the dividend.

However, with a completely new executive and non-executive team in place, and given the current low implied value for the leisure estate and likely shrinking of that estate to a better, more profitable and higher return core, we are willing to back the turnaround.’

[thevaluehunter] 13/2/2017 20:19

Lego Batman was great fun at the weekend, lets hope for better cinema admissions numbers this year. With regards to the rateable values I think central London will be impacted the most.

[ny boy] 13/2/2017 18:13

Restaurant business is damn tough, many closing in central London. Trouble is consumers are running up huge credit card debts, whether it be for shopping or having a good night out, going forward it's going to be tricky, no idea where the bottom us but I guess there is always hope for a bid but do t expect a knock out number in this climate. Sooner or later, esoecially as interest rates creep higher this year, consumers will run into problems.

[philanderer] 13/2/2017 17:45

Business rates rise threatens London's restaurants

[sharw] 13/2/2017 16:24

It would be surprising if PE groups had not run their slide rules over RTN after last April/May's collapse but they would have bid when the share price was below 260p in July rather than wait for over 300p now. But wdik? - I do not possess the Amazing Crystal Ball of larva which churns out these predictions such as McCarthy & Stone:

larva 13 Feb '17 - 08:24 - 175 of 179 0 0
Bid coming soon imho

[philanderer] 13/2/2017 15:40

larva , that article is from nearly a year ago - link below. Nothing is going to happen until we see the results next month and the plans management have.

[larva] 13/2/2017 14:54

Restaurant Group shares surge on hopes of a private equity bid
frankie & benny's
The Restaurant Group has long attracted speculation of private equity interest
list of article image 2
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Ben Martin
19 MAY 2016 • 3:26PM
Shares in The Restaurant Group, which have plunged in recent months amid poor trading, were back on the menu today amid speculation private equity firms are eyeing bids for the struggling casual dining business.

The owner of the Frankie & Benny’s and Chiquito chains leapt as much as 11.4pc after Cinven, the buy-out house that used to own Pizza Express, was said to be considering an offer for the company. TA Associates, another private equity firm, was also linked with a possible bid for the FTSE 250 business today.

There has been growing speculation that The Restaurant Group will attract a suitor because its shares have halved since the start of the year, leaving it vulnerable.


The stock collapsed by 26.5pc on a single day at the end of April after the company warned of deteriorating conditions in the casual dining sector and revealed that its chief financial officer had abruptly left. It was the third time this year that Restaurant Group has rattled investors with a downbeat assessment of its prospects.

One of the challenges facing the company is the explosion of branded casual dining businesses in Britain in recent years, such as Bill’s, La Tasca and Byron. Many of these rival chains are backed by private equity firms, which are attracted to the high levels of cash generated by restaurant groups and the ease with which they can be rolled out.

Before Restaurant Group’s woes struck, it was considered as having too high a valuation to attract a private equity suitor. However, now that its shares have plunged it is seen as a more appealing target.

Sky News first reported that Cinven and TA Associates were eyeing the company. A spokesman for Cinven declined to comment, and TA Associates did not return a request for comment.

[philanderer] 13/2/2017 09:24

Agree adobbing , everyone waiting to see the numbers on march 8th

[adobbing] 13/2/2017 08:44

Why has there "got to be Bid soon coming"?

You know nothing and are just desperately ramping, disappear back under your stone!

[larva] 13/2/2017 08:23

got to be a bid soon coming

[philanderer] 12/2/2017 23:17

Sky News ‏@SkyNew23 minutes ago

THE TIMES FRONT PAGE: 'High street revolt over rates rise'

[philanderer] 10/2/2017 17:43

+5.5p on the week :-)

[carbon man] 10/2/2017 17:19

The chart says it all, there are a few pennies to be made on this one.

[adobbing] 10/2/2017 15:04

10 Feb '17 - 12:10 - 1712 of 1716 0 1 (Filtered)
opodio
10 Feb '17 - 13:23 - 1713 of 1716 0 1 (Filtered)
opodio
10 Feb '17 - 14:24 - 1715 of 1716 0 1 (Filtered)

Moron.
Desperately ramping with talk of non existent bid.

[philanderer] 10/2/2017 14:29

'Fences' for me this weekend :-)

[opodio] 10/2/2017 14:24

Hope to see bid news break this weekend

Will scream up to 400p

[thevaluehunter] 10/2/2017 13:53

Lego batman out this weekend!

[opodio] 10/2/2017 12:10

Screaming leg north

[adobbing] 09/2/2017 16:21

There was no Bid.
There is no Bid.

The "story" posted above is old news and never materialised.
Anyone foolish enough to buy in on the Fake news above, deserves to lose their money.

[larva] 09/2/2017 15:48

Got to be a bid coming soon

[larva] 09/2/2017 15:34

Bought in, couldnt resist


Hope bid is soon