Pizza Express shares rise on profit jump: Better restaurant margins key to progress
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.SHARES in Pizza Express, the restaurant company, rose 4p yesterday on news of a large increase in profitability.
Pre-tax profits rose to pounds 3.1m from pounds 55,000, but the comparable figures were for a period when the business was different. Pizza Express reversed into a concern called Star Computers this time last year.
Figures for the six months to December were also flattered by a pounds 1.8m credit from the disposal of one of the old businesses.
A better guide to the progress at Pizza Express is the improving profit margin, up from 13.5 to 17.9 per cent in its restaurant business.
David Page, managing director, said profits were benefiting as the company bought out franchisees. Wholly-owned outlets earn the company more than franchises, which contribute a fixed revenue.
About half Pizza Express's 80 restaurants are franchised and half are owned. Yet only a third of the revenues come from franchised outlets.
Mr Page added that the greater number of restaurants meant that group buying power was increased and the cost of raw materials driven down.
The company plans to open eight more restaurants before 30 June and wants to add a dozen new outlets every year thereafter.
Earnings per share were 2.9p compared to 4.7p when the company was Star Computer and had fewer shares in issue. Pizza Express is paying 0.5p dividend.
Penny Freer, an analyst with Credit Lyonnais Laing, the company's own stockbroker, raised her profit forecast from pounds 4.4m to pounds 4.55m.
Pizza Express shares closed at 131p yesterday, 9p below their high. They were placed in February last year at 40p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments