“We retain a degree of caution on Restaurant Group, following the trough trading update in January, when Group LFL sales fell by -3% for 2017,” analyst Ali Naqvi said in a note.
READ: Restaurant Group soars as sales decline slow in first quarter with concessions and pubs strong
“However, in H2-18 the group will lap the changes made to menu prices and with others in the restaurant sector facing higher cost, with a lack of space and suffering from the increase in supply,
“Restaurant Group may fare relatively better.”
HSBC upgraded its rating to ‘hold’ from ‘reduce’, but, the bank kept the price target of 265p.