Franco Manca and The Real Greek owner The Fulham Shore PLC (LON:FUL) rallied after reporting ‘encouraging’ sales growth over the past five months.
Fulham Shore has issued two profit warnings over the past year but chairman David Page was more upbeat this time, saying both chains had seen increased transactions.
A raft of restaurant chains have either closed or drastically scaled back their plans recently but Page added this backdrop is potentially an opportunity as more properties are coming onto the market due to the current tough conditions.
“We will continue to assess these opportunities and respond accordingly,” he told shareholders at the annual meeting, adding the group was in final stages of negotiations for locations for the current and coming financial year.
“As previously announced, we will continue to fund new restaurant openings largely through internally generated cash flow.“
This year, Fulham Shore opened Franco Manca pizzerias in Bath and Cambridge and closed one in Brighton Marina.
The portfolio now comprises 58 restaurants in the UK, of which 16 are The Real Greek and 42 Franco Manca, and one Franco Manca franchise in Italy.
Shares rose 8% to 12.25p.