WAGAMAMA owner The Restaurant Group has seen sales surge in its halfyear results, pushing shares up yesterday afternoon.

In results posted yesterday, The Restaurant Group, which also owns Frankie and Benny's, said total sales hit £423.4m in the 26-week period to 3 July, almost double its £216.8m intake in 2021. Compared to 2019, like for like sales were up 11 per cent.

The group was boosted by diners returning to restaurants and pubs after the easing of Covid-19 restrictions, with increased sales pushing the group's adjusted ebitda up to £41.7m, up from £11.2m in 2021 when hospitality venues were forced to close their doors.

The business also swung back into profit, posting an adjusted profit before tax of £10.2m versus a loss of £19.9m in 2021.

The rosy results come at a difficult time for hospitality, with businesses facing increased costs, rising energy bills and consumers pulling back their spending.

The Restaurant Group acknowledged it was facing "ongoing significant cost pressures", but said it was well-positioned looking ahead, having taken "decisive management actions" including hedging all of its utilities for the next three years.

"Whilst the uncertain consumer environment presents challenges for the hospitality sector, the group is well positioned to further develop our brands to deliver long-term growth for all stakeholders underpinned by our strong balance sheet," Andy Hornby, chief executive officer, said.

Shares closed up almost three per cent yesterday.

(c) 2022 City A.M., source Newspaper