Restaurant Group reported results slightly ahead of our expectations but confirmed that trading remains weak and much needs to be done to reposition the business. We anticipate FY17 being a second year of unprecedentedly weak like-for-likes with EBITDA margins falling to 14.5% – a level last seen in 2001. Nevertheless, we anticipate that eventually there will be a recovery back to the 17%-19% range that was consistently achieved between 2006 and 2015, which should drive the share price
14 Mar 2017
Appetite returning
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Appetite returning
- Published:
14 Mar 2017 -
Author:
Ian Berry -
Pages:
13
Restaurant Group reported results slightly ahead of our expectations but confirmed that trading remains weak and much needs to be done to reposition the business. We anticipate FY17 being a second year of unprecedentedly weak like-for-likes with EBITDA margins falling to 14.5% – a level last seen in 2001. Nevertheless, we anticipate that eventually there will be a recovery back to the 17%-19% range that was consistently achieved between 2006 and 2015, which should drive the share price