Wagamama owner TRG shrugs off heat wave slump as sales surge
- Total comparable sales at Wagamama are up 5 percent
Restaurant Group shares soared on Thursday as the owner of Wagamama and Frankie & Benny’s confirmed annual guidance after a surge in sales.
London-based TRG revealed that total comparable sales at Wagamama rose 5 percent in the quarter ended July 2, despite its locations being affected by unusually hot weather.
Four new Wagamama chains launched earlier this year and are trading above expectations.
Shares of the London-based company rose 8% in early trading, as the group disclosed that total comparable sales at Wagamama rose 5% in the quarter ended July 2.
The warmest June on record affected Wagamama trade, though group sales rose 21 percent for the two weeks ending July 16.
The news will be a welcome relief for TRG, which has been dealing with increasing investor pressure on its performance in recent months.
The company posted a loss of £86.8m last year, its fourth consecutive annual loss, and its shares have fallen 80 per cent since it bought Wagamama five years ago.
More than 45 per cent of voting investors, including campaigners Oasis Management and Irenic Capital, opposed last year’s TRG salary report when former HBOS chief executive Andy Hornby was paid £792,000.
Daniel Wosner, head of Europe at Oasis, said: ‘The numbers tell the story.
“We will continue to seek constructive engagement with the company to strengthen its governance and allow it to better align with the interests of all shareholders.”