Restaurant Group down as half-year results disappoint

FTSE 250 hospitality firm Restaurant Group (LON:RTN) has seen its share price drop by 11.35% to 136.70p (as of 14:05 BST) after it posted a loss before tax for the 26 weeks ended 30th June, primarily due to large impairments in its leisure businesses. Like-for-like sales rose by 4% relative to the same period of last year with good performances by the Wagamama brand and the firm’s pub portfolio.

CEO Andy Hornby commented: “I am delighted to have joined The Restaurant Group in August. Our three growth businesses of Wagamama, Concessions and Pubs are all out-performing the market and have potential for further growth. At the same time, we have an acute focus on optimising our Leisure business, through targeted operational initiatives and disciplined estate management.

“Despite the well documented challenges facing the casual dining sector, the Group’s diversified set of brands provides firm foundations“.