Wagamama owner posts sales jump despite pressure on consumer spending
The Restaurant Group said on Wednesday that Wagamama has reported a 5% like-for-like increase in total sales over the 28 weeks to July 16.
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Your support makes all the difference.Wagamama owner The Restaurant Group (TRG) has shrugged off the consumer cost-of-living crunch to reveal “very encouraging” trading so far this year.
The hospitality business saw shares jump higher in early trading after it also hailed strong progress on its cost-savings efforts, which include the previously announced closure of around 35 venues across its leisure brands.
Casual dining brands have faced significant pressure over the past year from sharp rises in food costs and energy bills as well as its customers facing higher household bills.
Nevertheless, TRG said on Wednesday that Wagamama has reported a 5% like-for-like increase in total sales over the 28 weeks to July 16.
Meanwhile, its pub business reported a 9% increase and its leisure business, which includes Frankie & Benny’s, saw a 4% decline.
Its concessions business reported a 28% increase for the year so far as it was boosted by an increase in travellers at airports and other travel locations.
The group said the Wagamama brand has seen sales accelerate in recent weeks after a temporary impact from hot weather in May and June.
Sales across the pan-Asian chain rose 21% over the two weeks to July 16 as it made a positive start to the latest quarter alongside the firm’s other divisions.TRG also told shareholders that its recently opened Wagamama sites are “trading ahead of expectations”.
The group said it has made an “excellent start” to its current strategy, with it accelerating plans to open more Wagamama sites and pushing forward with the closure of 35 leisure restaurants.
The update comes after pressure from activist investor Oasis Management, which has built an almost 15% stake in the company, over its performance and recent losses.
Shares in TRG were 4.9% higher at 40.9p in early trading.