Chicken restaurant chain Nando’s has announced plans to open new sites in the UK after swinging back into operating profit-making territory.
Some 14 new restaurants will be opened in the upcoming financial year, Nando’s said, as it unveiled results for the year to February.
Operating profit climbed to £17 million over the year, compared to a £1.2 million operating loss last time around.
This marks the chain’s first operating profit since the pandemic and comes as hospitality firms struggle in the face of higher costs and squeezed consumer spending.
Including exceptional items, Nando’s still reported a pre-tax loss of £86.2 million.
“The macro-economic outlook for 2024 remains uncertain,” chief executive Rob Papps acknowledged, adding cost pressures would likely remain throughout the year.
“But, we are continuing to invest for the future with further menu innovation, enhancements to our digital capabilities and new restaurant openings planned in all our markets,” he continued.
Sales at the chain increased by 20% from £1.06 billion to £1.27 billion year on year, marking a jump beyond pre-pandemic figures.
This “steady recovery” came on “strong consumer demand for our flame-grilled peri-peri chicken supported by our brand and customer proposition,” Papps added.