Restaurant Group beefs up divi, eyes tough 2012

published 29 February 2012

Restaurant Group, operator of 400 restaurants and pub restaurants including the Frankie & Benny's chain, said like for like sales rose 3.5% and raised its total dividend 17%.

The group, which also operates Chiquito and Garfunkel's and a concessions division, which trades on over 50 sites, mostly at UK airports, said adjusted profit before tax increased 12% to £60.3m for the 52 weeks ended 1 January 2012.

Revenue for the period climbed 7.25% to £487m and it also saw a modest improvement in adjusted margins.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The group, which opened 25 new sites in the last year, said it had enjoyed a solid start to the current year, with sales growth of 3%. Like-for-like sales fell 2% for the first eight weeks of the year.

Commenting on recent trading the group said, "In the UK, 2011 ended with the economic outlook poorer than it had been just a few months earlier. Projections for UK GDP growth were cut and the outlook for employment deteriorated. As we start 2012, it seems that we will be facing an economic backdrop just as tough as the one experienced during the past year."

While it is planning on the basis that 2012 will be just as tough as the conditions experienced last year, it does expect the UK to start to see a gradual re-building of consumer confidence moving into the second half of 2012.

Underlining its confidence for future trading Restaurant has proposed a full year dividend of 10.5p per share, up 17%.