Restaurant Group sales drop amid challenging market

Garfunkel’s and Frankie & Benny’s owner Restaurant Group reported a drop in full-year sales on Thursday amid a challenging environment.

In a trading update for the 52 weeks to 31 December 2017, the company said like-for-like sales dropped 3%, while total sales declined 1.8%.

Still, it expects to deliver an adjusted pre-tax profit outcome for the year in line with current market expectations and said it continues to make good progress against the four key elements of its strategy despite the challenging market.

Chief executive officer Andy McCue said: "In 2017 we made solid progress against our strategic initiatives, resulting in improved volume momentum in our leisure business, a lower cost base and a more focused growth plan. While the market has softened, we continue to benefit from strong cash generation and a healthy balance sheet."

The key four elements of its strategy include the reestablishment of the competitiveness of its leisure brands, serving its customers better and more efficiently, growing its pubs and concessions businesses, and building a leaner, faster and more focused organisation.