Restaurant Group hungry for more

There was a slight dip in like-for-like sales in June, as a result of the World Cup. But Frankie & Benny’s traded strongly, recording a further increase in the number of breakfasts sold. These are particularly lucrative as they add to revenues without requiring new space. Nine new F&B branches opened during the period, with up to 21 new sites planned for the full year. Tex-mex brand Chiquito opened one new restaurant, and another after the period-end. Management hopes to open a further five to seven Chiquito outlets before the year-end.

Only burger chain Coast to Coast hit a rough patch in its roll-out plan. New sites opened in Rochester and Sheffield during the first half, and while management said these are “trading superbly”, hitting the target for five new restaurants now looks unlikely. Landlord and developer delays mean three of the targeted sites should now open in early 2015 instead.

New chief executive Danny Breithaupt, who officially takes the reigns from Andrew Page this week, said it would be “business as usual” as he settles into his new role. Having already put in 13 years at the group, he insisted the broad strategy would undergo “very little change.” In time, however, Mr Breithaupt said he would like the roll-out plan for new restaurants to accelerate, as the group tries to double the size of its estate within the next eight to ten years.

Brokerage Numis expects pre-tax profits of £80.5m for 2014, giving EPS of 30.5p.