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Food & drink

Restaurant Group raises guidance as its outlets outperform the market

Management's expectations for 2022 remain unchanged from the outlook outlined in September but this year's guidance has been raised.

Restaurant Group PLC (LSE:RTN) raised full-year expectations, sparking a mini-stampede for the shares.

The Wagamama and Frankie & Benny’s restaurant chain operator said that since it last updated the market in mid-September, it has traded well, with like-for-like (LFL) sales growth exceeding that of the market across its Wagamama, Pubs and Leisure businesses.

Even the hard-pressed venues in UK airports are seeing a pick-up in business, the group revealed.

As result, the group now expects adjusted underlying earnings for 2021 will be in the range of £73-79mln, subject to no unexpected Covid related disruptions being announced before the end of the financial year.

Full-year net debt is now expected to be less than £190mln, with the improved position driven primarily by the robust trading performance, the group said.

Shares in Restaurant Group were up 16% at 91.9p in mid-morning trading.

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