THE RESTAURANT Group has suspended its dividend as it announced plans to ramp up Frankie & Benny's and Chiquito site closures to focus on its Asian-fusion chain Wagamama.

Restaurant Group's shares fell 7.23 per cent yesterday as it announced it will scrap its dividend to focus on a new strategic plan.

The casual dining chain said it will downsize its leisure estate from 350 sites to a target of 260 to 275 sites by the end of 2021. Last year the company reduced its overall estate size by 18 sites via closures and conversions to Wagamama. Over the next two years it will continue to grow its Wagamama, concessions and pubs division.

Chief executive Andy Hornby, who joined the company in August, said: "I am... acutely aware of the challenges facing our leisure business and the wider casual dining sector.

"It is therefore clear that our strategic priorities need to evolve in order to maximise shareholder value in the medium term," he added.

Group like-for-like sales were up 2.7 per cent last year, with total sales up 56.4 per cent to £1.07bn.

It reported a loss before tax of £37.3m, compared to a £13.9m profit the previous year.

Adjusted profit before tax was £74.5m, up from £53.2m the previous year.

(c) 2020 City A.M., source Newspaper