The Restaurant Group (TRG) has reported ‘encouraging sales momentum’ for the first four months of the financial year, with like-for-like (lfl) sales up 9% at Wagamama in the most recent four weeks.
The group reported that lfl sales at Wagamama were up 2% for the 13 weeks to 2 April 2023, compared to 2022, with its Pubs division seeing sales up 5% over the same period, and Concessions at +37%, but sales in its Leisure division down 4%.
For the most recent four weeks to 30 April 2023, lfl sales in its Pubs division were up 8%, +20% in Concessions and down 1% in Leisure.
Dine-in trading has been particularly strong, it said, up 10% at Wagamama and 6% within Pubs for the year to date (17 weeks to 30 April 2023).
TRG said that it was accelerating its previously announced rationalisation plan for its Leisure business which will further improve cash generation in the second half of FY23.
This will involve closing 23 sites in its Leisure estate by the end of May 2023, after the group successful negotiated a number of early exits.
Current favourable UK property market dynamics are providing further additional opportunities for new Wagamama sites on attractive rent terms with good incentives, it said.
The group will accelerate the expansion of Wagamama restaurants and now anticipates seven to eight new openings in FY24 (versus five planned previously), capitalising on these favourable dynamics.
It said the group had also made good progress on cost saving initiatives, delivering c.£5m of incremental cost savings on an annualised basis.
The combination of current trading and incremental cost savings provides it with the confidence that TRG is tracking ahead of management expectations on its medium-term margin accretion and deleveraging plans, it said.
TRG has also announced the appointment of Helen Keays as a non-executive director. She will join the board as of 1 June 2023 and will become a member of the nomination and remuneration committee.
