The Restaurant Group plc

The Restaurant Group plc ("Group") - AGM statement

Current trading

In the financial year to date (20 weeks to 16 May 2021), there has been significant disruption affecting the Group's ability to trade as a result of the various government restrictions imposed on the hospitality sector.  Given the unusual trading environment, there are no meaningful "like-for-like sales" comparisons for the financial year to date.  The Group therefore provides the following update to show how current trading has evolved as restrictions have been lifted to date:

Delivery and takeaway performance (six weeks to 11 April 2021)

The Group had approximately 200 sites trading for delivery and takeaway only across its Wagamama and Leisure businesses prior to the resumption of "outdoor dining" on April 12^th.  The trading performance of those sites was very encouraging with average standalone delivery and takeaway sales in Wagamama and Leisure tracking at approximately 3.0x and 5.5x pre-Covid-19 levels, respectively.

Performance since resumption of "outdoor dining" (five weeks to 16 May 2021)

In the five weeks to 16 May, following the easing of restrictions across the UK we have seen a very encouraging recovery in sales:

·    Wagamama (for the c.130 sites open in this period): Sites traded at c.85% of comparable 2019 sales levels, representing a c.15% outperformance of the market[1], reflecting ongoing strong delivery volumes and good trading from outdoor space in many locations

·    Pubs (for the c.75 sites open in this period): Sites traded at c.85% of comparable 2019 sales levels, representing a c.15% outperformance of the market[2], benefitting from significant outdoor space and investments in stretch tents and marquees

·    Leisure (for the c.110 sites open in this period): Sites traded at c.60% of comparable 2019 sales levels, in line with our expectations, reflecting a continuation of strong delivery volumes and limited number of outdoor covers

Performance of sites in Scotland since resumption of "indoor dining" (3 weeks to 16 May 2021) has been strong:

·   Wagamama (for the 7 sites open):  Sites traded at 22% ahead of comparable 2019 sales levels

·   Leisure (for the 16 sites open):  Sites traded at 21% ahead of comparable 2019 sales levels

Resumption of "indoor dining" in the UK (17 May 2021)

The Group currently has approximately 350 sites open across its Wagamama, Pubs and Leisure businesses, representing 95% of their respective combined estates.  The Concessions business currently only has four sites trading, given restrictions regarding international travel.

The Board has been very encouraged by the trading performance seen so far in 2021.  While the environment for the remainder of the year continues to remain uncertain, the Group is well positioned across its diversified brand portfolio to benefit from the sustained removal of government restrictions. 

Completion of long-term debt refinancing

The Group completed its previously announced refinancing and has £450 million of new debt facilities having drawn down £330 million of the Term Loan Facility on 17 May 2021 and access to a £120 million Super Senior Revolving Credit Facility.  The P&L interest cost for FY2021 is expected to be c.£25m, including c.£3m of non-cash fee amortisation.  The Term Loan provides flexibility allowing the Group to prepay a significant proportion of the loan without penalty in the 18 months following initial drawdown.

The Group currently has in excess of £200m of cash headroom[3] on its debt facilities, providing significant liquidity headroom to protect against a resurgence / new variant of Covid-19 as well as strengthened flexibility to capitalise on selective site expansion in its Wagamama and Pubs businesses.

Enquiries:

 Notes:

1.    As at 17 May 2021, The Restaurant Group plc operated approximately 400 restaurants and pub restaurants throughout the UK. Its principal trading brands are Wagamama, Frankie & Benny's and Brunning & Price.  It also operates a multi-brand Concessions business which trades principally in UK airports.  In addition the Wagamama business has a 20% stake in a JV operating six Wagamama restaurants in the US and over 50 franchise restaurants operating across a number of territories.

2.    Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws.  These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.

3.    The Group's next trading update is expected to be the interim results announcement in mid-September 2021.