Wagamama, the Duke Street Capital and Hutton Collins-backed group, saw turnover for the year to 23 April 2017 increase 15.8% to £266.1m on the back of its continued expansion and an 8.2% rise in like-for-like sales across its UK estate.
Adjusted EBITDA for the year, in which the company opened 10 new company-owned sites, climbed 17.6% to £45.5m, whilst pre-tax profit increased from £3.6m to £9.2m. Adjusted EBITDA margin stood at 17.1% compared to 16.9% in the previous year. Cost of sales increased 18.7% to £150.7m.
At the same time, Wagamama has launched an offering of senior secured notes due 2022 in an aggregate principal amount of £225m. It said that the gross proceeds of the refinance will be used (i) to redeem all of Wagamama Finance PLC’s £150m of outstanding senior secured notes, (ii) pay the accrued interest and the redemption premium for the outstanding senior secured notes, and (iii) repay certain amounts of deferred interest on loan notes.
Turnover in its UK business increased 15% to £255.2m in the year.
In the UK, the company served approximately 19 million meals during the year, or on average approximately 2,900 meals per restaurant per week, and had an average spend-per-head of approximately £16.30 (including VAT). Its average weekly turnover per restaurant was approximately £30,600, £32,600, £36,800 and £40,600, for the financial years 2014, 2015, 2016 and 2017, respectively.
During the 12 months, on average it received 38% of its consumers in the evening, 33% during lunch time, 21% in the afternoon, 5% in the late evening and 3% at breakfast.
Approximately, 83% of its restaurant revenue in the UK is attributed to food sales and approximately 17% to drink sales. For the same period, its food revenue is split as follows: 23% sides, 21% curry, 20% other mains, 19% teppanyaki, 13% ramen and 2% desserts.
The company said it achieved an average return of 32.8% for 34 of the 37 company-operated restaurants opened in the UK from April 29, 2013 through the end of the FY2017 (data for three restaurants not yet available). For its last 21 openings between Financial Year 2015 and Financial Year 2017, the group said it had spent, on average approximately £1m of new restaurant capital expenditure per restaurant with an expected pay-back of approximately four years.
It completed 16 refurbishments during the year. It said that during the year, every one of its UK restaurants that was open for at least 12 months was generating positive adjusted EBITDA.
It reported a record year for its three Boston locations and a strong start in its debut restaurant in New York.
The company said that Deliveroo was now available in 92 restaurants. It said that Deliveroo supports growth in its delivery and takeaway sales, which constituted approximately 7% and 5%, of its turnover, respectively, in the financial year.
Turnover in its restaurant business in the US climbed 35.1% to £8.3m, primarily due to the opening of its New York City site in November 2016 and an 8.6% growth in like-for-like sales, partly offset by the closure of one Boston restaurant in the first quarter of the financial year.
Turnover from its international franchised restaurants increased 50.6% to £2.6m, primarily due to the opening of nine new franchised restaurants (net of two closures) during the period.
At the end of the period, the group operated 128 company-operated restaurants across the UK and the US (with three restaurants in Boston and one in New York City).
In addition to its company-operated restaurants, it had 44 franchised restaurants internationally, located in 19 countries around the world including in Western Europe, Eastern Europe, the Middle East and New Zealand.
For the year, the company said that its total operating costs consisted of 38.7% labour costs, 21.3% ingredients, 15.4% other costs, 9.7% rent, 7.5% other property and 7.4% head office costs.
The group said it believed there are a number of markets particularly in Europe, neighbouring countries and the Middle East where it could be successful based on its understanding of the local competitive landscape and the potential for a branded pan-Asian casual dining operator in these markets.
It said that recent openings in Spain and Italy had been well received.
