For the 52 weeks ended 27 December 2015, The Restaurant Group's (TRG) total turnover was up 7.9% on the prior year, and like-for-like sales increased by 1.5%.
The group’s full year results will be announced on 9 March. These are expected to show material growth in both earnings and cash flow versus the prior year, with profits for the full year towards the middle of the current range of market expectations.
During 2015, TRG - which operates brands such as Frankie & Benny's and Chiquito, opened a total of 44 new restaurants and are very pleased with how these are trading and they are set to deliver strong returns. TRG has good visibility on the composition of the opening programme and anticipate opening a broadly similar number of new restaurants during 2016.
It has become apparent from much of the recent data from the retail sector and the wider economy that the trading environment for many consumer facing businesses has been tougher in recent months than it was earlier in 2015. This has caused like-for-like sales growth to trend lower and accordingly we are more cautious than previously on the outlook for 2016. A possible referendum on the UK’s continued membership of the European
Union, National Living Wage implementation and global uncertainty are all additional issues that TRG is conscious of going into the new year.
Having stated that, TRG said it has an excellent portfolio of businesses with strong market positions. The company’s move towards a more balanced portfolio is paying dividends and it has a proven track record established over many years of delivering strong financial returns and excellent cash flows, even through more difficult trading periods.
Therefore, notwithstanding some of the uncertainties described above, the group is confident that it is well positioned to deliver further profitable progress in 2016 and subsequent years.