The Restaurant Group PLC (LSE:RTN) said it expects adjusted underlying earnings for 2021 will be at the top end of its guidance range.
The owner of the Wagamama brand said that it outperformed the market in the final quarter of 2021 and thanks to good cost control and strong trading year-end net debt will be less than £180mln, which represents an improvement on its mid-November guidance of net debt of no more than £190mln.
December, traditionally the best month of the year for pubs and restaurants, was a tricky one for the group following the introduction of the “Plan B” lockdown restrictions by the government.
The group’s flagship brand, Wagamama, saw year-on-year like-for-like (LFL) sales growth of 11% in October and 8% in November but growth slowed to 1% in December.
For the group’s Leisure division the LFL sales comparisons were +16%, +8% and -2% for October, November and December respectively while for its pubs the comparisons were +9%, +7% and -7%.
The group’s concession outlets, some of which are at UK airports, saw LFL sales fall by 34% year-on-year in October and December while November’s numbers were down 24%, reflecting a significant decline in the number of UK airport passenger numbers.
Management said it is pleased that all "Plan B" restrictions will be lifted next week but thinks consumer confidence may take longer to recover. It is also mindful that the recovery in air passenger volumes remains dependant on the timing of changes to both UK and international restrictions.
Shares in the Restaurant Group were up 1.6% at 101.6p.