The Restaurant Group has announced an increase in its full-year adjusted Ebitda forecast following a swing to pretax profit in the first half of the year. The company's improved financial performance was driven by strong revenue growth from its brands, including Wagamama, Brunning & Price, and Frankie & Benny's.
For the half-year period ending July 2, pretax profit reached £2.3 million ($2.9 million), a significant improvement compared to a loss of £28.5 million in the same period last year. The company reported a 10% increase in revenue, reaching £467.4 million.
Wagamama, one of the restaurant operator's flagship brands, experienced a 4% rise in like-for-like sales during the period. Additionally, concessions revenue grew by 28% and pubs revenue increased by 9%. However, there was a 5% decline in leisure like-for-like revenue.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), an important metric for the company, rose by 15% to £36.3 million.
While the Restaurant Group has not disclosed specific figures for the entire year, analysts' consensus estimates for adjusted EBITDA stand at £79.7 million, based on three forecasts from FactSet. This is slightly lower than the £83 million recorded in 2022.
Chief Executive Andy Hornby expressed optimism about the company's ongoing progress.
"We are making excellent progress on our medium-term plan and the board continues to actively explore strategic options to further accelerate margin accretion and deleveraging," he said.