Updates

Restaurant Group

April 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The FY17 figures did not make for surprising reading given what has been happening in the sector with sales down 3% to £679m and pretax profit and eps down 26% to £56.7m and 22.3p, respectively. But despite all the travails, RTN had operating cash flow of £108m before its £18m cash provisions and exceptionals and this gives management confidence to hold the dividend at 17.4p, which goes ex-dividend on 7 June (6.9% yield).Unlike the rest of the sector, time is on its side. With the business lowly geared, RTN has been able to take a view of resetting prices lower to win back customers and the company notes that the key brand, Frankie & Benny’s, has seen “the largest positive movement in revisit ...

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