Some tasty looking results from Restaurant Group (RTN) this morning with
Thus it looks like they are on track for a strong second half too with the Chairman summing up the outlook as follows:
"These are strong results and reflect an out performance against our sector. The Group benefits from operating in market segments with barriers to entry which have proved to be very resilient. We have a strong portfolio of complementary brands and have an impressive pipeline of new sites, in terms of both quality and quantity. These factors will ensure that the Group remains on track to double in size over the next eight to ten years.
The second half has started well; year to date after 34 weeks total turnover is up 10.4% and like-for-like sales are up 3.5%. With an improving economic outlook, lower inflation and higher levels of employment the prospects for TRG continue to look good. I am confident that the Group is well placed to deliver another year of profitable progress."
So a strong set of numbers that would seem to leave scope for upgrades to forecasts which is probably just as well as having rallied strongly from their lows (when I last wrote about them and suggested buying back in) they look reassuingly expensive again on around 21.6x with a 2.4% yield. So probably not one to rush out and buy despite these numbers, although hopefully upgrades (3 to 5% may be) could help make it look slightly less expensive. The other slight concern I have is that the long standing and successful CEO - Andrew Page is stepping down, although remaining as a consultant for a while I believe.