Restaurant Share Discussion Threads

[philanderer] 25/1/2017 19:55

Market report:

.....under-pressure Frankie & Benny’s owner Restaurant Group surrendered 46.1p to finish at 300p following a deterioration in sales in the fourth quarter. Although the group said full-year results would be in-line with expectations, Mark Irvine-Fortescue, said he wouldn’t be surprised if ‘in-line’ means “low end” of the £74m to £80m guidance range.

[philanderer] 25/1/2017 16:32

LOL

Brighton Marina ‏@BrightonMarina

50% off Frankie & Benny's, download the F&B rewards! *Exclusions, terms and conditions apply, head over to the F&B website to find out more.

[philanderer] 25/1/2017 13:36

Investors Chronicle:

IC TIP UPDATES:

It sounds like everything including the kitchen sink is being thrown out by the new broom at Restaurant Group (RTN) Andy McCue. The chief executive has been undertaking a review of the business since he joined in September and said its Frankie and Benny’s brand needs “substantial price and proposition changes” while other brands, such as Chiquito, also need “similarly significant change”.

And it couldn’t come soon enough given total sales only rose 0.9 per cent to £710.7m on a 53-week vs 53-week basis (this morning’s trading update is for the 53 weeks to 1 January). What’s more, like-for-like sales were down 3.9 per cent on the same time basis and there clearly wasn’t much festive cheer across the company as like-for-like turnover in the final quarter of the year dropped 5.9 per cent.

The shares have tumbled 11 per cent on the numbers so quick action will be needed. Its saving grace could be that if there is a consumer spending squeeze, its brands could perform well just as they did during the last financial crisis.

Buy

[philanderer] 25/1/2017 11:58

On an unchanged dividend the yield now is 5.6%

Detailed broker comment here....

Canaccord buy tp 450p
Deutsche sell tp 290p





No consensus...

House broker Numis said it remains unknown how quickly these initiatives can start to stabilise turnover, adding that a prediction for a 2% decline in same-store sales this year may be “too optimistic”.

Broker Liberum described today’s update as “disappointing” but argued that the group’s brands are not broken and that it has the firepower to execute a turnaround. “It is with optimism that we feel the group may have passed the nadir in trading.”

[nicksoj] 25/1/2017 11:06

Disappointingly low support level at 300.Suggests much work to do if shareholder value is a future goal.

[alex1621] 25/1/2017 10:47

Did you expect a turnaround in a few months?

[nicksoj] 25/1/2017 10:31

It wasn't very long ago that Andy Mccue was being touted as a white knight delivering RTN to a successful sale (post Brexit).It looks now that all hope is lost.Not holding but watching.

[philanderer] 25/1/2017 09:21

Let`s see if Telegraph's Questor column comments on it`s 'buy' tip from last october when RTN was at 350p ;-)

[philanderer] 25/1/2017 09:08

So therefore I added a few @ 303.1p :-)

Broker updates:

25th jan ShoreCap buy -
25th jan Liberum buy tp 400p cut from 450p
25th jan Peel Hunt hold tp 300p cut from 380p
25th jan N+1 Singer hold tp 350p

[philanderer] 25/1/2017 08:50

A pile of steaming $hite and a 6 month low for the shareprice.

Another one for the bin.

[salpara111] 25/1/2017 08:26

The forward looking statement is just completely negative.
I will wait and see if it revisits the 270 level.

[rimmy2000] 25/1/2017 07:30

Overall negative. Esp this "During 2017, the Group will also face well documented external cost pressures from the increases in the National Living Wage, the National Minimum Wage, the Apprenticeship Levy, the revaluation of business rates, higher energy taxes and increased purchasing costs due to the combined effects of a devalued pound, and commodity inflation." Sounds like setting themselves up for more bad news to come

[unnavailable] 24/1/2017 21:44

Hoping to see signs of a turnaround beginning to play out.
Non profitable sites closed and new ones opened.
Expect them to meet pretax targets but margins may take a hit with new value focused menus and various promotional offers via the app.

Expect cautious outlook. Mentions of inflation, rising labour costs, Brexit.

[philanderer] 24/1/2017 20:44

Thanks mashman.

Shareprice at 8:30am tomorrow somewhere between 300p and 350p ? ;-D

[mashman] 24/1/2017 20:36

thevaluehunter your post 1634 is from 2016 and reporting 2015 so is misleading.

[mashman] 24/1/2017 20:30

Good luck tomorrow guys. Im expecting bad figures offset by a bullish forward looking statement. Maybe the bad figures are "in the price" and the "jam tomorrow" will steady the boat.

[philanderer] 22/1/2017 18:32

preview....

Wednesday January 25

Although industry data for the UK pub and restaurant industry has pointed to stable trading recently, analysts in the City think it is “too early” to expect any significant improvement in like-for-like sales trends at the Restaurant Group.

Last year, the struggling owner of the Frankie and Benny’s and Chiquito chains, ousted its chief executive Danny Breithaupt after it warned on profits. The London-listed group is grappling with increased competition from food-led pubs and branded restaurant chains.

In its half-year results, published in August, the mid-cap company showed an uptick in revenues following a turbulent few months of trading. Forecasts point to full-year pre-tax profits of between £74m to £80m.

However, analysts at Panmure Gordon said: “Frankie & Benny’s, acknowledged as the ‘problem child’, is likely to require more customer-driven menu content, better value, more relevant marketing as well as higher maintenance capital expenditure.”

New boss Andy McCue is also expected to update investors on the findings from the group’s strategic review of operations.

[philanderer] 20/1/2017 20:24

Roll on wednesday , should see what plans are in store for F&B's plus the numbers of course.

[adobbing] 20/1/2017 09:40

The Sutton Hall is an example of the direction the company should and is largely taking.

I don't know how much it turns over or what the profit % is, but I imagine both metrics are considerably higher than at a Frankie & Bennys.

Although the number of B&P outlets is smaller than F&B outlets they are growing rapidly and represent an increasingly greater share of the businesses profitability.
I would imagine the profit generated by a single B&P outlet is probably the equivalent of several F&B outlets.
I don't know whether that metric is published anywhere?

F&B is the past, B&P is the future!

Where the F&B concept isn't working profitably, the outlets should either be closed or converted to newer formats like Coast to Coast or Joe's Kitchen. I believe this is happening already and it needs to continue at an accelerated rate.

[salchow] 20/1/2017 09:16

Usually we go to Brunning and Price pubs at lunchtime when they are always busy. Yesterday evening we went to one near Macclesfield. A very large pub but at 7 pm we would not have got a table had we not booked. Not cheap either for a pub but relatively good food. Impressive activity for a Thursday evening in January. If all the outlets were Brunning and Price it would be a fantastic business. What concerns me is that Frankie and Benny's is the main part of the business and I don't know whether they are getting the improvements they clearly need. I will have watch what other people say on that score.

[thevaluehunter] 16/1/2017 21:12

Casual Dining Group the operator of nearly 300 mid-market restaurant brands including Café Rouge, Bella Italia and Las Iguanas reports like-for-like growth of 4.7% over the holiday period.

hxxp://casualdininggroup.com/news/corporate/casual-dining-group-announces-record-festive-trading-driven-by-online-pre-bookings

[philanderer] 13/1/2017 18:20

My wife`s just back home after having lunch with friends at The Old Orchard, Harefield (Brunning & Price) .... superb , highly recommended :-)