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The Restaurant Group’s profits fall

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The Restaurant Group’s annual profits have dropped the company booked higher costs to store closures and the recent acquisition of Wagamama costing £559m.

The group who owns Garfunkel’s and Chiquito posted pre-tax profits of £13.9m for 2018 compared to £28.2m the previous year.

The company closed 28 sites with a charge of £39.2m.

After the completion of the Wagamama deal in December, the group has almost 200 branches to their portfolio.

Revenue rose 1% to £686m however, like-for-like sales dropped 2%, the group said this was due to adverse weather and the World Cup.

Andy McCue, the outgoing chief executive said, “We have made significant progress in 2018, acquiring a differentiated, high-growth business in Wagamama, opening a record number of new sites in both our pubs and concessions businesses, and driving improved like-for-like sales momentum in the leisure business throughout 2018.

“We now have a business that is orientated strongly towards growth and we continue to focus on delivering shareholder value.”




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