The Restaurant Group PLC said all its divisions had recovered well after being allowed to trade again in May following coronavirus disruption, though investors remain to be convinced.
TRG shares fell 3.8% to 116.6p as losses for the half-year were £58.8mln (£127.6mln), even though RTN said the performance since reopening might support an increase underlying profit [EBITDA[ expectations for the full year.
Wagamama sales were up by 21% compared to 2019 on a like-for-like basis between 15 May and 29 August, pubs by 12% and leisure by 18%.
Airport concessions were still 53% below pre-pandemic levels, but this was still 21% of the market overall, said the hospitality group.
Revenues overall for the six months to 4 July 2021 were £217mln, down from £227mln a year earlier.
Harry Barnick, senior analyst at Third Bridge, said casual dining has taken a pummelling during Covid.
“Now as customers return The Restaurant Group is operating in a less competitive environment, allowing for some breathing space during the recovery period.
“Given the reduction in operating costs during the pandemic, analysts will be hoping for improved margins post-Covid once trading normalises.
“This largely depends on how successful The Restaurant Group can be in reducing rental rates.
“Delivery sales grew 146% in the last eight weeks leading up to 29 August. Interestingly, this includes a period where restaurants were open, suggesting the shift we have seen during Covid is structural rather than temporary.“