Restaurant Group, the owner of Wagamama restaurants and Frankie & Benny's, said on Wednesday 19 July it was on track to deliver on its annual expectations, helped by strong dine-out sales in the second quarter despite a hit from hot weather conditions.
Details
Total like-for-like sales at its Wagamama noodle chain rose 5% in the quarter ended 2 July, the company said, adding that four new Wagamama sites launched this year were trading ahead of its expectations.
Shares in the London-based company were up 10% in early trade on Wednesday 19 July.
Restaurant Group has been facing pressure from investors over the last few months to increase profitability and more recently to replace its chairman.
The board is still reviewing its wider strategic options, including potential disposals, with the help of independent advisers, the group said.
Britain experienced its hottest June on record that temporarily impacted trading for Wagamama.
Additional Information
Still, Wagamama has been trading ahead with total sales up 21% for the two weeks ended 16 July.
Irenic Capital Urges Restaurant Group To Replace Board Chair
The above news follows last week's news that activist investor Irenic Capital Management urged Restaurant Group on Tuesday 11 July to replace its chair, Ken Hanna, add new independent directors and conduct a "legitimate" strategic review with "all options on the table".
Irenic, which has a 2.4% stake in Restaurant Group, has joined shareholder Oasis Management in asking the company for a governance change.
Read More: Irenic Capital Urges Restaurant Group To Replace Board Chair
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