RTN replace CEO Danny Breithaupt with ex-Paddy Power chief Andy McCue in September
Companies: Restaurant Group plc
Restaurant Group (LSE: RTN) has announced that it will replace CEO Danny Breithaupt with the former Paddy Power chief, Andy McCue in September, completing a full board overhaul and sending shares up 14% in early trading on Friday.
Mr Breithaupt, who was appointed to the role in 2014 after 15 years with the company, will step down immediately after months of deteriorating performance for the company who operate many high street restaurant brands, and following 26.8% of the company’s shareholders rejecting the remuneration report at its AGM on 12 May.
The move is the latest, and final, replacement on the company’s board, which has seen a new Chairman, CEO, CFO and Non-Exec Director appointed in the last six months in a bid to turn around the company who warned in May that LFL sales had fallen in the first part of the year.
The groups share price had fallen 60% in 2016, but began a steady recovery after the appointment of Barry Nightingale as CFO in mid-June. Today’s move has seen further gains in the company’s value, as Investors welcomed the final board replacement.
Debbie Hewitt, Chairman, said;
"Danny has provided strong operational leadership over the years. He has fully participated in the review of our operating strategy in a professional, conscientious and thorough way… Andy is a proven listed company Chief Executive, having recently held that role at Paddy Power plc, where he embedded a new growth strategy which delivered record revenues and profits, as well as playing a pivotal role in the merger with Betfair plc. Prior to that, he led the Paddy Power UK and Irish retail businesses, having transformed the profitability of the UK business and overseen its development over 8 years.”
Covering the announcement in its morning note, city broker Panmure Gordon welcomed the announcement:
“We see this as a positive catalyst in dealing with the pent up problems of the past and expect the news to be well received.”
According to Panmure, an ‘operating’ strategy review is still underway and an update is expected along with interims on 26 August. The company’s performance is expected to be in-line with previous guidance:
“LFL Sales decline of 2.5%-5.0% and PBT for £74-80m”
