Restaurant Group enjoys growth hike

RESTAURANT Group, the owner of the Frankie & Benny's and Garfunkels chains, said it has seen like-for-like sales grow at a faster rate than earlier in the year.

The group said same-outlet sales improved by five per cent in the 18 weeks to May 4 – up from four per cent in the first nine weeks of the year.

New openings meant total revenues were 21 per cent ahead of the same period of 2007.

The company said its "value-for-money offerings" positioned it well during tougher economic times.

It added: "This is a solid start to 2008 and represents very satisfactory progress compared with the same period last year."

But analysts at Panmure Gordon said it was too soon to upgrade profit forecasts given that year-on-year comparatives would toughen in the second and third quarters.

In March, the company said it increased pre-tax profits by 24 per cent to £43.5 million in 2007, with revenues ahead 17 per cent at £367m.

Restaurant Group, which has more than 280 sites and 50 concession outlets, said it opened seven new sites so far this year, including four in Heathrow Terminal 5.