World Cup knocks Restaurant Group results

FRANKIE & Benny’s owner Restaurant Group fell victim to the “inevitable impact” of adverse weather and England’s unexpectedly good performance in the World Cup.

Like-for-like sales, based on sites open for more than a year, slipped 3.7pc in the six months to July 1, while total sales fell 2.1pc to £326.1m. Profit before tax slid from £12.6m to £11.7m.

Andy Mccue, the company’s chief executive, said that England’s progression in the tournament had kept people indoors but had at least been “good for the country’s morale”.

He remained confident about the prospects for the company, reaffirming its full-year guidance. This buoyed long-term investors in the heavily shorted stock, which closed up 6.3pc at 292.6p yesterday.

Mr Mccue said he was particularly encouraged by Restaurant Group’s trading in the six weeks after the

The Beast from the East weather front earlier this year hit Restaurant Group as several outlets were forced to close

World Cup, with sales up 2pc on a likefor-like basis.

The Beast from the East weather front earlier this year hit Restaurant Group as several of the company’s outlets were forced to close because staff could not get to work or customers stayed indoors.

England’s progression to the penultimate day of the World Cup and eight weeks of hot weather also led to reduced demand for eating out.

Restaurant Group, which also owns Garfunkel’s, Chiquito and Brunning & Price pubs, added to its drinks-led portfolio with the £14.9m acquisition of the London pub chain Food & Fuel. Mr Mccue said 2018 had seen Restaurant Group deliver on its turnaround plan to create “a more competitive and balanced business”.

“The turnaround of our leisure division continues to plan and shows further progress,” he added.

Wayne Brown, an analyst at Liberum, said new pub openings were a “signal of intent”.