Restaurant Share Discussion Threads

[salpara111] 16/6/2016 13:36

Well the recent big run up was hot money entering in the expectation of a takeover but clearly those investors have decided that one is not coming and are now leaving.
I guess it settle back around the £3 mark.....the question is.....what next?

[tsmith2] 16/6/2016 10:07

Taking out stop losses

[philanderer] 15/6/2016 16:31

xd for that 10.6p tomorrow morning

[philanderer] 15/6/2016 13:38

Investors Chronicle:

There’s going to be a new pair of eyes scrutinising the books over at the embattled Restaurant Group (RTN) which shocked the market earlier this year with its weakening like-for-like sales.

Now Barry Nightingale will join as chief financial officer on 20 June and will bring his previous experience from firms including, most recently, Monarch Airlines where he “played a considerable role in the turnaround” and betting group Betfred.

He has previously held senior finance roles at UK Car Group, Easy Everything and Airtours. Buy

[philanderer] 15/6/2016 13:16

Peel Hunt 'hold' tp 270p reiterates

weird

[philanderer] 15/6/2016 09:06

At last :-)

"..Barry will have accountability for the Finance function and also for IT, procurement and property "

[philanderer] 14/6/2016 18:50

Market at it`s lowest since march.... German 10 year bund negative interest rate. You`ve got to pay the bu&&ers for looking after your money !!

[imranawan] 14/6/2016 17:04

bend1pa - I sold out just above break-even when the recent director purchase was announced, as I thought a bid was not in the pipeline, given it would be insider dealing.

Do you still hold? I have it on my w/list, but everything is tanking in the current market.

[bend1pa] 14/6/2016 16:40

Imranawan. So how's that bid for RTN you seemed so confident about a month ago coming along then, mate?

[tsmith2] 14/6/2016 15:53

Cheeky b........s

[philanderer] 14/6/2016 15:51

Whacked.... lots of people to stop eating out with Brexit by the look of it.

[scapital] 14/6/2016 15:45

Mine certainly went

[tsmith2] 14/6/2016 15:45

Stop loss trigger?

[philanderer] 13/6/2016 13:50

Citigroup note today

Restaurant Group PLC (RTN:LSE): Last: 357.10, down 1.5 (-0.42%), High: 361.80, Low: 357.00, Volume: 530.85k
BE
Difficult Trading Environment

At the recent update management highlighted a further deterioration in trading in the leisure business. In this note we revisit the investment case following this recent weak trading. We update estimates in light of guidance. We retain our DCF derived price target at 350p, albeit upgrade our recommendation to Neutral largely on valuation following the recent share price weakness.

BE
Take-Out Speculation

We note recent press commentary which suggests the business may have had interest from private equity. We therefore look at the group on a SOTP basis. We suggest that the current valuation arguably looks attractive, especially when you consider the pre-expansionary cap-ex cash generation of the group at £76.1m 2016e.

BE
However Headwinds Remain

We remain concerned regarding the operating environment however. We undertake a comprehensive Frankie & Benny’s site analysis which suggests the business has significant competition across the estate. We note a number of other headwinds for the group including limited retail & leisure park planned space expansion, slowing consumer foodservice spend growth, weak retail lfl environment, poor brand perception, cost pressures and returns fading.

BE
Recommendation Upgrade, But Caution Continues

Whilst we raise our recommendation (to Neutral) largely on the basis of valuation, we retain an overall cautious stance at this stage. We await conclusion of the ongoing strategic review which be announced at the FY16e interim results in August.

Estimates Updated

We have revised our estimates following the recent trading update reducing our LFL growth assumptions and assuming a slower new site rollout. We cut adj EPS by -12%, -17% and -17% for FY16E, FY17E and FY18E.

Valuation and Recommendation

Our DCF based valuation remains unchanged at 350p with downward revision to our earnings offset by lower capex assumptions. At current levels the shares trade on a CY17E PE of 12.3x and adj. EV/adj. EBIT of 9.9x, with a 4.5% expected dividend yield.

BE
None of which is awfully interesting, though there are some cracking charts once you get into the detail.

BE
Take-Out Speculation

We note recent press commentary which suggests the business may have had interest from private equity. We therefore look at the group on a SOTP basis. We suggest that the current valuation arguably looks attractive, especially when you consider the pre-expansionary cap-ex cash generation of the group at £76.1m 2016e.

BE
However Headwinds Remain

We remain concerned regarding the operating environment however. We undertake a comprehensive Frankie & Benny’s site analysis which suggests the business has significant competition across the estate. We note a number of other headwinds for the group including limited retail & leisure park planned space expansion, slowing consumer foodservice spend growth, weak retail lfl environment, poor brand perception, cost pressures and returns fading.

BE
Recommendation Upgrade, But Caution Continues

Whilst we raise our recommendation (to Neutral) largely on the basis of valuation, we retain an overall cautious stance at this stage. We await conclusion of the ongoing strategic review which be announced at the FY16e interim results in August.

Estimates Updated

We have revised our estimates following the recent trading update reducing our LFL growth assumptions and assuming a slower new site rollout. We cut adj EPS by -12%, -17% and -17% for FY16E, FY17E and FY18E.

Valuation and Recommendation

Our DCF based valuation remains unchanged at 350p with downward revision to our earnings offset by lower capex assumptions. At current levels the shares trade on a CY17E PE of 12.3x and adj. EV/adj. EBIT of 9.9x, with a 4.5% expected dividend yield.

[philanderer] 13/6/2016 11:40

:-D

Frankie & Benny's ‏@frankienbennys

Poppa eats free next Sunday at Frankie’s! Head over to our website for more info!

[mr_spock] 13/6/2016 10:49

But there is sunshine in my heart.

[philanderer] 13/6/2016 09:55

It also cuts it`s target price from 370p to 350p.

Morning everyone, pi$$ing down again.

[abcd1234] 13/6/2016 09:00

Broker Update:
CitiGroup raises RTN to Neutral (it had been a "sell" rating)

[philanderer] 10/6/2016 16:59

Unchanged on the week .... result :-)

[philanderer] 10/6/2016 13:49

Good company

Fuller Smith & Turner boosted by food and premium wine sales

....Food sales — a key component of Fuller’s offering — rose 6.9 per cent on a like for like basis, with the pub group tapping into the trend for healthier eating.

[philanderer] 10/6/2016 13:28

So we`ve got worries with Brexit, strength of JapYen and CHF , German 10year bund yielding 0% , oil reversing and rain every day next week .

Risk aversion the name of the game.

[scapital] 10/6/2016 13:16

Added here

[tsmith2] 10/6/2016 13:08

Just moves a lot with market..