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Restaurant Group's recovery is under way

Like-for-like sales are still down during the first quarter for the group, but not as sharply as last year as strategy changes start to take hold
May 26, 2017

A like-for-like sales decline of 1.8 per cent might not sound like the best news during the first quarter of the year, but for Restaurant Group (RTN) it demonstrates that a recovery in its struggling leisure business could be on track, sending shares up 10 per cent in early trading. The business is faring better than it did last year when like-for-like sales were down a "disappointing" 3.9 per cent.

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Good weather helped get people out to Restaurant Group's pubs, while strong passenger numbers at the UK's airports aided its concessions business. New menus at Frankie & Benny's are being heavily marketed at the moment, and this should provide a boost for the rest of the year. The leisure side was helped by a good start to the year for cinema admissions, but management expects this, along with passenger numbers, to wane later in 2017.