Wagamama-owner says on track as hot weather fails to dampen appetite (updated)

Restaurant

19/07/2023 08:17

(Adds background on investor action in paragraph 2, details on
sales in paragraphs 5-6)
       July 19 (Reuters) - Restaurant Group  RTN.L , the owner
of Wagamama restaurants and Frankie & Benny's, said on Wednesday
it was on track to deliver on its annual expectations, helped by
strong dine-out sales in the second quarter despite a hit from
hot weather conditions.
    Total like-for-like sales at its Wagamama noodle chain rose
5% in the quarter ended July 2, the company said, adding that
four new Wagamama sites launched this year were trading ahead of
its expectations.  
    Shares in the London-based company were up 10% in early
trade.
    Restaurant Group has been facing pressure from investors
over the last few months to increase profitability and more
recently to replace its chairman. 
    The board is still reviewing its wider strategic options,
including potential disposals, with the help of independent
advisers, the group said.
    Britain experienced its hottest June on record that
temporarily impacted trading for Wagamama.
    Still, Wagamama has been trading ahead with total sales up
21% for the two weeks ended July 16. 
      

 (Reporting by Yadarisa Shabong and Radhika Anilkumar in
Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))