Growth for the M&C20 slowed to a halt this week, although it still outperformed the FTSE All Share index, which fell by 0.5%.
Few large or mid cap companies saw their share prices change significantly during a week in which there were few major stock market announcements from the biggest restaurant and pub groups. The exception was Domino’s, whose share price fell 7% after climbing 3.4% last week in the aftermath of reporting like-for-like sales growth of 7% across its 670 UK mature stores during 2013.
Strongest growth among the larger groups was achieved by Enterprise Inns and Mitchells & Butlers (M&B), both up 1.8%. The latter company returned to the top of the index with a market capitalisation of £2.026bn, edging ahead of Greene King (-0.2%) on £1.986bn.
The Restaurant Group’s (TRG) market cap reached £1.33bn, its highest point since the M&C20 Index became tracking sector shares last May. TRG’s share price grew 0.5%.
Punch Taverns experienced another steep fall, down 8.3%, after dipping 9.4% last week. Punch’s market capitalisation is now £73.2m; it reached a 10-month high of £104.8m just six weeks ago.
This week Punch issued a further statement on its debt restructure, saying that it’s aiming to agree the terms of a consensual restructuring over the next few weeks. The group reiterated its warning of the prospect of default in the A and B securitisations, expecting to culminate in administrative receivership, if a restructure does not take place.
Shepherd Neame’s shares lifted by 0.8% this week after the company reported an acceleration in growth across its tenanted and managed pubs, its hotels and core brands in the 26 weeks ended 28 December, Managed like-for-likes were up 7.5% in the period.
Cineworld’s share price fell 1.6% after it reported a 19% decline in pretax earnings for 2013 due to costs related to acquisitions, including Cinema City of Poland.
The trend of large share price movement among smaller cap firms has continued. Richoux’s share price grew 9.2% after falling back 8.6% last week, while Essenden followed a decline of 4.2% with a further dip of 7.2% this week. Heavitree Brewery’s share price grew 9.7% and Tasty’s rose 7% after climbing 1.8% last week.