The Restaurant Group upgrades 2021 earnings expectations

The Restaurant Group – which operates brands including Frankie & Benny's, Chiquito and Wagamama – has upgraded its financial expectations following strong trading.

In the group's last market update on 16 November 2021, it provided guidance that it expected adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the 2021 financial year to be between £73m-£79m and year-end net debt would be less than £190m.

The group said today that, due to "good cost control and continued strong trading relative to the market", management expected earnings to be at the top end of the range and net debt to be less than £180m.

Wagamama saw like-for-like sales slow from 11% growth in October against 2019 and 8% in November to 1% in December, while like-for-like sales across the group's leisure portfolio dropped 2% and its pubs division saw a drop of 7%.

Despite uncertainties, the board said it remained confident in the group's prospects.