TRG reports robust trading across Wagamama and pubs business

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The Restaurant Group (TRG) has reported strong consumer demand for its brands as it continues to outperform the market.

In the six weeks to 15 May 2022, Wagamama was up 11% in like-for-like sales versus 2019. Meanwhile, the group's pub estate was up 6%, with leisure up 4%. Concessions remains down at 11%.

The trading period includes VAT at 20%, unlike previous periods

TRG said the recovery of concessions, mostly based at travel hubs, was accelerating, with the entire 41-strong estate expected to be trading by July 2022. Total sales for this business are expected to be eat least £100m in FY22.

The group said good progress had been made on Wagamama new site expansion plans, with at least eight restaurants and three delivery kitchens expected to open in FY22.

Three new pubs are expected to open in FY22, also.

The trading performance has improved the group’s financial position, with net debt reducing by approximately £6m since the year-end and cash headroom in excess of £220m.

This has given the group flexibility to invest in growing the business and reduce leverage over the medium-term.

The management team believe continued robust trading in Wagamama and Pubs and the recovery in Concession will offset the increased food and drink inflationary impact in FY22.