Like-for-like sales decreased by 3.7% in the six months to 1 July

Double whammy: Frankie & Benny & # 39; s owner The sale of The Restaurant Group was dented by the extreme weather and the World Cup

Frankie & Benny & # 39; s owner The sale of The Restaurant Group is affected by the extreme weather and the World Cup.

The like-for-like turnover decreased by 3.7 percent in the six months to 1 July. This follows a sales decline of three percent in the same period in 2017.

Total revenue also fell by 2.1 percent in the six months to 1 July to £ 326.1 million.

Double whammy: Frankie & Benny & # 39; s owner The sale of The Restaurant Group was dented by the extreme weather and the World Cup

Double whammy: Frankie & Benny & # 39; s owner The sales of The Restaurant Group were dented by the extreme weather and the World Cup

The company – which owns Garfunkel & # 39; s, Joe's Kitchen and Chiquito – also had to deal with a decrease in the pre-tax profit before tax, since it went from £ 25.5 million to £ 20 in the same period. , 1 million lost.

On a legal basis, profit before tax fell from £ 12.6 million to £ 11.7 million.

The Restaurant Group said that the decline in sales was due to its investment in price reductions, as well as the bad weather and the World Cup.

The group warned earlier this year that sales had been hit by the winter weather in the first quarter, and the heat wave also depressed sales.

The company was also hit by an exceptional charge of £ 8.4 million in connection with onerous lease provisions.

However, the company said that the recent trade is encouraging & # 39; was in line with the expectations of analysts for the entire year, with a like-for-like turnover of 2.4 percent for the six-week period since the end of the World Cup.

Chief executive Andy McCue, who oversaw the turnaround in the Restaurant Group, with a refurbishment of prices, food quality and marketing, as well as restaurant closures, said today: & # 39; Over the past six months we have surpassed our strategy, a more competitive and balanced activities, more tailored to the growth segments of our market.

& # 39; The cover of our leisure division continues to make plans and shows further progress.

Sour taste: the company - which owns Garfunkels, Joe's Kitchen and Chiquito - also suffered a decrease in the adjusted profit before tax, while in the same period from £ 25.5 million to £ 20.1 million lost

Sour taste: the company - which owns Garfunkels, Joe's Kitchen and Chiquito - also suffered a decrease in the adjusted profit before tax, while in the same period from £ 25.5 million to £ 20.1 million lost

Sour taste: the company – which owns Garfunkels, Joe's Kitchen and Chiquito – also suffered a decrease in the adjusted profit before tax, while in the same period from £ 25.5 million to £ 20.1 million lost

& # 39; This was despite the headwinds for the sector as a whole and the adverse effects of extreme weather and the World Cup.

In the meantime, our pubs and concession companies have acted strongly, and both companies expected this year to achieve significant total sales growth. & # 39;

One of the most important changes that McCue has made is cheaper food at Frankie & Benny's and additional options for home delivery of their food, with two brands being tested, namely & Burger Burger & # 39; and & # 39; Kick-Ass Burrito & # 39 ;.

The results come in an increasingly challenging time for the food sector, which still suffers from a slowdown in consumer spending.

Citizen chain Byron, Jamie & # 39; s Italian and Prezzo have all made business voluntary agreements this year, closing hundreds of lost jobs and restaurants.

Gaucho also fell into administration last month.

Pressure cooker: Jamie & # 39; s Italian, hamburger chain Byron and Prezzo have all done CVAs this year, leaving hundreds of lost jobs and restaurants closed

Pressure cooker: Jamie & # 39; s Italian, hamburger chain Byron and Prezzo have all done CVAs this year, leaving hundreds of lost jobs and restaurants closed

Pressure cooker: Jamie & # 39; s Italian, hamburger chain Byron and Prezzo have all done CVAs this year, leaving hundreds of lost jobs and restaurants closed

Stock broker Peel Hunt warned that the decreasing earnings of Restaurant Group had weakened the possibility to pay out a dividend.

Analysts Douglas Jack and Ivor Jones also said that operating expenses would increase by £ 18 million this fiscal year, offset by a planned £ 9 million savings.

& Dividend coverage declines towards 1.0X & # 39 ;, they wrote.

The analysts added that the cost-saving and strategy measures of the Restaurant Group are impressive, but they are small compared to the determination of 70% of the assets for which we are still not convinced of the product and pricing. & # 39;

Rising costs associated with the Brexit hit pound, the resulting collapse in consumer confidence and rising business rates have combined to hammer the sector, with fall-out expected.

Shares in the group rose three percent in early trading.

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