Restaurant Share Discussion Threads

[albanyvillas] 31/8/2017 12:00

heading north

Will shoot up to 400p tomorrow maybe

[thevaluehunter] 31/8/2017 11:37

Egg on face for peel hunt and langton.

[hurst10] 31/8/2017 11:24

M&A target in the leisure / restaurant sector

[hurst10] 31/8/2017 09:21

Nice short squeeze this morning , a bit more volume and you will see more covering .
Doubt very much the new FD will even have a chance to start .
Anyone seen his equity package?
Come on Peel Hunt , what else are you selling ? Need to buy another stock 😎

[adobbing] 31/8/2017 08:27

-- Grow our Pubs and Concessions businesses
Our Pubs have performed well in the period, helped in part by favourable weather but also driven by strong operational delivery.

We have focused on improving the consistency of our execution, which has contributed to an increase in our customer ratings to an all-time high. We have also deepened our links with the communities in which we operate by hosting popular beer and gin festivals.

We have committed increased resources to identifying sites to enable us to increase the rate of openings, and consequently, the pipeline of prospective sites is steadily growing.

Our Concessions business continues to perform strongly, driven by both solid growth in passenger numbers and by strong execution in maximising the throughput of customers. Our pipeline of new opportunities has strengthened in recent months and we expect to secure several new contract wins in the second half of the year.




We expect to open between 18 and 20 units in 2017 with associated capital expenditure of between GBP18m and GBP20m. Refurbishment and maintenance capital expenditure, including technology investment, in 2017 is expected to be c.GBP20m.

We anticipate opening between 10 and 20 units in 2018.

[adobbing] 31/8/2017 08:08

opodio 12 Jul '17 - 08:40 - 1971 of 1972 0 0
240p on the next warning

How's that going?

[adobbing] 31/8/2017 08:04

Oh dear, seems like the so called experts called it wrong!

Hope the shorters are enjoying their burning.

I hear coast to coast do a good burger that you can eat without getting burnt!

[adobbing] 31/8/2017 07:09

-- Adjusted(1) profit before tax of GBP25.5m (2016: GBP36.6m). Statutory profit before tax of GBP2.8m (2016: loss of GBP22.5m)


-- Exceptional charge of GBP22.7m (2016: GBP59.1m)
-- Adjusted(1) EBITDA of GBP44.3m (2016: GBP59.6m)
-- Adjusted(1) EPS of 10.0p (2016: 14.3p). Statutory EPS of 0.6p (2016: loss per share 11.2p)
-- Continued strong free cash flow of GBP35.1m (2016: GBP35.8m)
-- Net bank debt of GBP19.3m (2016: GBP35.6m)
-- Interim dividend maintained at 6.8p per share, reflecting the Board's confidence in the plan

-- Current trading in line with our expectations; we continue to expect to deliver an adjusted PBT outcome for the full-year in line with current market expectations

* The highlights reflect the statutory 26 week period in 2017 versus the statutory 27 week period in 2016 unless stated otherwise

(1) Adjusted reflects pre-exceptional costs and is further defined in the glossary at the end of this report

Andy McCue, Chief Executive Officer, commented:

"We have made good progress against our strategic initiatives outlined in March. Our Leisure customers are enjoying a better value, higher quality product; our growth plans for our Pubs and Concessions businesses are advancing well and we have made good progress in delivering cost efficiencies. I've been impressed with our colleagues' receptiveness to change and thank them for their contribution to stabilising the business."

[hurst10] 31/8/2017 00:38

A stock to have tomorrow am

[andysaw] 30/8/2017 00:23

There you go from today and the expectation is unchanged. Source - The Telegraph Steep drop in profits expected at the half-year mark for Frankie & Benny's owner Restaurant GroupInvestors in Frankie & Benny's owner Restaurant Group are in for an unappetising dish this week as the company is expected to reveal a 30pc drop in half-year profits.The firm's shares have more than halved since the start of 2016 to 325p after three profit warnings since November 2015 and analysts are once again predicting a deterioration in the numbers.Earlier this year the company reported a 1.8pc fall in like-for-like sales and although this was better than expected, analysts fear the trend has not persisted. A recent decline in the growth rate of attendances at cinemas, which are often next to Restaurant Group sites, is one reason being touted as is the squeeze on consumer spending.One analyst, who did not want to be named, expected the group's numbers to be "pretty bad" given consensus expectations are for half-year profits to be £25.2m."It's going to look quite messy," the analyst said. "Customer volumes don't come back that quickly."Andy McCue, the former Paddy Power boss, has headed the company, which also owns Mexican eatery Chiquito, for a year now and has implemented sweeping changes, including cutting prices at Frankie & Benny's to make it more competitive against its rivals, as well as closing underperforming sites and cutting costs.Mr McCue said earlier this year that F&B would have 22 meals priced under £10 compared to five previously, but analysts fear this won't yet have had a positive impact."If you cut prices by 10pc then volumes have got to rise by 12pc to offset that and is also before the extra running costs restaurants now have to deal with," the analyst added.The restaurant and pub sector has been hit particularly hard in the past year with changes in business rates ramping up costs, as well as the National Living Wage and import-cost inflation caused by the drop in the pound following the Brexit vote.There's also rising fears about the sustainability of the group's dividend, which is only covered 1.2 times by earnings. One analyst called this "extraordinarily low" given investors usually like shareholder payouts to be twice covered by earnings. But Cenkos analyst Simon French thought the company would commit to an unchanged dividend but would likely review this when Kirk Davis joins as chief financial officer from Greene King in February.Consensus estimates for the full year are for adjusted pre-tax profits of £56.4m, down 27pc.

[adobbing] 29/8/2017 23:54

Old news, that was from a proactive investors article published back in May!


Try posting something relevant and recent, better still don't post anything!

[andysaw] 29/8/2017 23:26

In a note to clients, UBS's analysts pointed out: "Core to the turnaround strategy for Frankie & Benny's is a new menu, aimed at improving the value proposition."They added: "After its recent menu launch, we have analysed the new F&B proposition along with 20 key competitors, with our analysis indicating that, while prices have fallen (c.6% on average), a value gap remains versus the branded pub chains which are on average 22% cheaper. "The turnaround for F&B looks challengingThe analysts said: "Given these brands also focus on the family value orientated market, we see risk that the F&B price cuts will not drive the required footfall increase from the core family value orientated customer F&B is looking to attract to offset price reductions."As a result, they have cut their earnings per share estimates for Restaurant Group by 4% for 2017 and by 17% for 2018, and reduced their target price to 275p from 310p leading to its rating downgrade after a strong recent share price performance.The analysts concluded that in "our view that the turnaround for F&B looks challenging based on changes implemented so far."

[thevaluehunter] 29/8/2017 16:27

Cinema admissions are up 7% yoy based on cinemauk.org.uk and I think the airport passenger numbers are doing pretty well too. August comparatives were tough for film releases but should become much easier in Q4.

hxxps://www.cinemauk.org.uk/the-industry/facts-and-figures/latest-uk-cinema-statistics/monthly-admissions/

[hurst10] 29/8/2017 14:18

Granted , but today's note is nothing more than a PR stunt from Peel Hunt and it worked until midday .
Numis and JP will no doubt take RTN on the the road with the new FD and one would think and trust that Gervais etc will be visited . In my mind this is the no1 M&A target in the sector . Intetesting to hear about average customer spend brand vs brand .ask your broker to look up on the Bloomberg the total amount of equity short holdings in RTN. They are going to be squeezed .

[andysaw] 29/8/2017 13:12

I believe you're comparing 57 units of pub restaurants with struggling 366 units of other restaurants. Let's see the results on Thursday. There could be more closures in the RNS. High wages, inflation, tenancy renewal, reduced profit margin in around 366 restaurants, lost customers, quite Cinemas, etc IMO

[hurst10] 29/8/2017 10:51

I disagree , new FD very experienced , liked by the institutions . PH's downgrade understandable but their Pub ( gastro) should offset some of the cinema related losses. Yes the FD will most likely kitchen sink the numbers , but thanks to PH this is already in the numbers .This is now a no 1 take over target and whoever gets it , should persuade A Page ( former CEO ) to join the board as an advisor. Buy the stock today . 1/2 today and 1/2 on the day of the results .By November this good old company will no longer have a quote.Check out the FD's equity package if any ?Have not done myself .Good luck

[andysaw] 29/8/2017 10:28

Well I expect it go below 300 before results and don't know where it will land after results IMO

[philanderer] 29/8/2017 09:46

It`s a Peel Hunt downgrade this morning to 'reduce' .. target cut from 350p to 300p


Back on the watchlist.

[andysaw] 29/8/2017 08:57

Big numbers are being sold. Results can't be positive on 31st IMO

[andysaw] 29/8/2017 08:10

There could be another profit warning in 31st Aug IMO.https://www.pressandjournal.co.uk/fp/business/uk-and-abroad/1316979/business-north-whats-coming-week-12/A consensus of City analysts forecast that half-year pre-tax profit at the Restaurant Group will fall over 30% to £25.2 million as warm June weather and poor cinema attendance look set to have dented footfall.

[adobbing] 11/8/2017 10:00

They play an increasingly important role, several new site openings will have increased their contribution!

They are also usually much bigger sites and cater for a less price sensitive clientele, without the need for special offers and discounting.

My local outlets are always busy and at weekends it is difficult to book a table.

How many other pub chains could you say that for?

I have just tried to book for Sunday lunch at and there are no tables available.

The same with the nearby and recently opened
That place has only been open since about April and so probably wont have featured in the last numbers.

[gutbuster] 11/8/2017 09:34

Traditionally Brunning & Price have always excelled during economic downturn, they sit perfectly in the market place with their offering. Whilst they do not represent the whole portfolio they continue to play an Important role.