Updates

The Restaurant Group

January 2019

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.

Restaurant Group surprised investors with the acquisition of pan Asian chain Wagamama from Duke Street. It’s easy to see why it might want it - it’s a strong brand (133 restaurants in the UK, five in the US and 58 franchised units in Europe and the Middle East) and its food options typically have little protein/meat content, which makes for healthier margins.Wagamama also made estimated EBITDA of £42.5m on an annualised basis for the 12 months ended August ’18 but RTN expects synergies of £22m. Taking that into account reduces the EBITDA multiple to a reasonable 8.7x the price being paid - £357m cash and the assumption of £202m debt.The deal has been funded by a £315m rights iss ...

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Anexo - 'Trading ahead of expectations'

Fulham Shore

Restaurant Group - Bid from Apollo backed funds (November 2023)

Restaurant Group - Cluster buying by directors (August 2022)

Restaurant Group - Plans rapid expansion of airport concessions and pubs (October 2018)

Restaurant Group (June 2018)

Restaurant Group - Like-for-like expected to go +ve in H2 (May 2018)

Restaurant Group (April 2018)

Restaurant Group - Strategy update due 26 August (August 2016)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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