Shares in Restaurant Group PLC (LSE:RTN) were up 10% in early trade after it said it is tracking ahead of its medium-term profitability and debt reduction targets thanks to a strong first quarter.
For the 13 weeks that ended 2 April 2023, the core Wagamama chain reported a 2% increase in like-for-like sales, with dine-in sales surging by 10%. However, takeaway and delivery sales experienced a 13% decline.
The pubs operation was up 5%, with concessions ahead 37%. However, the leisure division was off by 4%.
Broker Liberum reckons consensus forecast will be upgraded on the back of the unscheduled trading report.
It repeated its ‘buy’ recommendation and 70p a share price target. At 9.45 am, the stock was changing hands for 44.53p, up 4.03p.