Restaurant Group LFL sales dip but 2018 profit seen in line

Restaurant Group reported a dip in 2018 like-for-like sales on Thursday but said it expects to deliver profit in line with market expectations.

In an update on trading for the 52 weeks to 30 December, the company, which completed its acquisition of Wagamama at the end of last year, said LFL sales were down 2%, while total sales - which include one week of trading from Wagamama - were up 1%.

The company said it has delivered LFL sales growth since the World Cup, with its pubs business consistently trading ahead of the pub restaurant sector and its concessions business trading strongly.

Meanwhile, the leisure business saw improved LFL sales momentum through the year, but was hit by weaker cinema admissions in December.

During the period, Restaurant Group opened a record 21 new pubs, including acquisitions, and a record 21 new concessions units.

"We expect to deliver an adjusted profit before tax outcome for the 2018 full year in line with current market expectations," it said.

The group said Wagamama continued to trade well over the festive period.

Chief executive officer Andy McCue said: "The enlarged business is now orientated strongly towards growth with a number of exciting opportunities ahead. We are focused on executing on our multi-pronged growth strategy and plans for the site conversions and cost synergies are progressing well."

At 0815 GMT, the shares were down 0.1% to 154.90p.