Wagamama owner TRG shrugs off heatwave slump as sales jump
Wagamama owner TRG is shaking off the heat wave as sales soar
- The total like-for-like turnover at Wagamama increased by 5 percent
Shares of the Restaurant Group rose Thursday as the owner of Wagamama and Frankie & Benny’s confirmed annual expectations following a jump in sales.
London-based TRG revealed that total like-for-like sales at Wagamama rose 5 percent in the quarter ended July 2, despite the locations being impacted by unusually warm weather.
Four new Wagamama chains were launched earlier this year and are performing above expectations.
Shares of the London-based company rose 8 percent in early trading as the group revealed total like-for-like sales at the Wagamama rose 5 percent in the quarter ended July 2
The hottest June on record impacted trading for Wagamama, although group sales were still up 21 percent in the two weeks ending July 16.
The news will come as a welcome relief to TRG, which it has been dealing with increasing pressure from investors due to the performance of recent months.
The company posted a loss of £86.8 million last year, its fourth annual loss in a row, and its shares are down 80 per cent since it bought Wagamama five years ago.
More than 45 percent of voting investors — including activists Oasis Management and Irenic Capital — opposed TRG’s salary report for last year, when ex-HBOS chief executive Andy Hornby handed over £792,000.
Daniel Wosner, Head of Europe at Oasis, said: “The numbers tell the story.
“We will continue to seek constructive dialogue with the company to strengthen governance and enable it to better align with the interests of all shareholders.”