The Restaurant Group (TRG), operator of Frankie & Benny’s and Chiquito, has reported that like-for-like sales increased 3% in the 45 weeks to 9 November, with total sales up 10.3%.
However, it said that “sales have shown lower growth since the end of August and we are seeing some cost pressures”.
TRG said: “Nevertheless, we still expect to report good full year results, showing material progress on the prior year.”
The company has opened 24 new restaurants in 2014 to date.
It said that these are performing well and are set to deliver strong returns in line with its usual targets.
The group expects to open a further 16 sites before the end of the year, taking the total to 40 new sites in 2014 (2013: 35).
The group said: “The pre-opening costs for these and a number of new sites that will open in January 2015 will be incurred in the last quarter of the current year as we continue to invest in the Group’s future. Our pipeline of new site openings continues to improve and we expect to further strengthen the rate of new openings in 2015.”
The group said its balance sheet position remains strong and cash continues to be generated at levels which allow it to maintain investment in its existing portfolio and open new restaurants.
The company said it “remained confident that the business will continue to make good progress during the remainder of the year, although sales have shown lower growth since the end of August and we are seeing some cost pressures”.
It said: “Nevertheless, we still expect to report good full year results, showing material progress on the prior year.”
