Wagamama reports record results for Q1 fiscal year 2017
Casual dining chain Wagamama has reported record total sales of £75.6m for the first quarter of the 2017 fiscal year, up 16.6% on the previous year.
Like-for-like UK sales increased by 9.8% for the 16 weeks to 14 August and the restaurant chain opened three new sites during the period in Bromley, Staines and London's Bankside.
Meanwhile a site at Heathrow Terminal 5 was rebuilt and refurbished and a flagship New York City restaurant is on track to open in Q2.
Earnings before interest taxation, depreciation and amortisation (EBITDA) for the period was £16.5m while adjusted EBITDA was £12.1m, both showing double digit growth.
Wagamama has been upgrading its estate under what it calls the Kaizen project, which seeks continuous improvement in all aspects of operations, including its new and refurbished restaurants.
David Campbell, CEO of Wagamama, said: "I am delighted to report another very strong set of results, especially on the back of two prior years of robust performance. Like-for-like growth of 9.8% shows that we continue to trade strongly and are positioned favourably within the market. We continue to seek an even greater understanding of our guests, which drives our ongoing improvements.
"Operationally all of our company owned estate, in the UK and US, has Kaizen embedded, and physically by the end of FY17 the majority of restaurants will either be newly built, rebuilt or refurbished with the Kaizen design. Kaizen is also in all new franchise restaurants and rolling out through our remaining estate."
He added: "We are pleased with the new openings in Q1 and current pipeline of new restaurants. We also continue to actively manage the estate by not renewing leases in a very small number of less well performing sites. New York City has not been without its challenges, but we are on target to open at 210 5th Avenue in Q2, further strengthening our presence in the US."
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