Anyone holding this share, any comment? It recommended by few brokers.

This was on ADVFN

MS

Restaurant Group is cheap, but worth a taste

After a night at the cinema or bowling alley in an out-of-town leisure park, the choice of restaurants is usually limited. So much the better for The Restaurant Group, whose Frankie & Benny's Italian-American diner chain and Chiquito's outlets have this area pretty much sewn up.

It announced record interim results yesterday, with profits up 40 per cent to 9.8m for the first half. Trading is continuing to improve, with sales up 5 per cent in the second half, building on a 3.7 per cent rise at the end of June. This is thanks mainly to Frankie & Benny's, where sales were up 6.7 per cent, and its key positioning in leisure parks.

There is a similarly captive and hungry customer base at airports, where The Restaurant Group has a number of food concessions. Sales here were up 7.9 per cent and there are further airport developments planned. With increasing air passenger numbers, and the growth of no-frills carriers that do not offer in-flight meals, airport dining is growing fast.

Trading has been more difficult in the high street, where competition is fiercer. Sales here have been flat, with Garfunkels benefiting from a rebound in tourism in London. This has offset declines in sales at Est Est Est and Caffe Uno. A slowdown in consumer spending as rising interest rates cut back the disposable income of its customer base could be damaging, however, and the forthcoming rise in the minimum wage will put further cost pressure on the group.

But at 98.5p, it is still a reasonably cheap eat at around 14 times 2004 forecasted earnings, and its dividend yields 4 per cent and rising. Worth a taste.

Thanks mickeyskint I think it was Shares Mag that got me interested. After MYOR I got in at 98.35p on 23 Sep (just missed Ex Div date)

coming up to results again and still look worth a punt. Don't forget the perks with owning RTN aswell - can get 8 vouchers for 25% off food bill.

in the headlong rush for commodity shares, this one has badly slipped under everyone's radar, including my own ...... notwithstanding that sp has bolted in the last week or s, on the back of excellent results, the p/e does not look overdemanding ..... i like the look of this company, from its niche within the leisure (restaurant) sector, to its stable of restaurants and its focus and self-financing expansion plans, down to its excellently thought out and produced web site.

at the very least, put this one on your watch list

this is very annoying ...... sp has been pretty lively over the last couple of days, but all news comes up as for Raytheon, which is a US software company or similar with the same epic

something to remind the "rubbish addicts" that there are plenty of good quality shares which continue to perform ...... PFC is one; here is another (again!) ...... The chart has been consistently strong for some time; rsi is perhaps marginally overbought; company is first class and in the right sort of sector (leisure/restaurants) - i.e. all the exact opposite of the dodgy/flaky or even just plain doggy E&Ps

see also DOM (Domino Pizza) which I shall also now update





green = 200 dma
red = 50 dma

while all you guys, and to some extent myself, have been chasing after "flighty skirt", this share just keeps on performing ...... Told you in mid September when price was about 215; reminded you all again just before Christmas when sp was about 295; telling you again, though the price is now 318

here is a new chart covering just the last 3 months .... Have added in 25 dma as well worth watching in the event of a reaction.




red = 25 dma
green = 50 dma
black = 200 dma

latest trading update shown below, is exactly why this share continues to outperform .... with the bonus in the background that one of the big boys may decide to take it out.


The Restaurant Group has reported like-for-like sales up 5% for 2006, with strong trading in December.

The group, which operates the Garfunkel's and Chiquito brands, said it expects to report very satisfactory full year trading results on March 7th, 2007.

It added it has been awarded four units at the new Terminal 5 at Heathrow Airport, due to open in March 2008, including a large full-service restaurant occupying a very prominent position in the departures lounge.

The company opened 47 new restaurants, including 13 conversions of former Deep Pan Pizza sites. It said initial trading from the newly opened restaurants is good.

and another little bit ...... but you guys keep chasing the rubbish to the exclusion of quality; there must be gold at the end of the rainbow, mustn't there? ......

On the second line, Restaurant Group shares advanced 2.75p to 320.75p as the market welcomed an 'excellent' full-year pre-closing update, Dresdner Kleinwort hiking its target price to 360p from 290p.

if anyone interested, having taken profits here at 309 for no other reason than sp has probably run out of puff for a while and needs time to consolidate and pull back towards a more neutral rpi ....... for sure will stay on my watch list, and pretty certain that i shall back in due course

i missed it, but interesting to see immediate bounce off 25 dma

have just bought back in ...... got a bit greedy and ended up paying a little more than i hoped, but with UK economy still looking strong, leisure industry is not a bad place for some money ..... RTN, apart from being a company that has a proven track record of fine management and results, is also a potential t/o target (but don't buy for that reason!)

Tried to get into Frankie & Bennys at lunchtime. Full, 45 minute wait!! Went to Chiquito's in the next block, full, 30 minute wait!!!! Dresdner Kleinwort target at 360p looking good.

nice to see someone at least reads my advice occasionally! ..... your experience should tell you plenty, for i bet the likes of Wimpy or even Pizza Express had plenty of space

an aide memoire for me much as anything ..... figures due 7th March.
It's already flagged that they will be good ....... hope that they beat forecast too, which i have a sneaking suspicion they will

got onboard the other day, interesting to see, sells outweighing buys 4 - 1 today but price up 4/5p, level2 4v2...

Ted .... as you will see, i am very happy to keep my holding here ...... on the other hand, i have lightened my holding in DOM in which i had already done very well ..... their figures are alrrady out and outstanding

I sold out this morning only roughly at breakeven @336p, considered this one ripe for a sell off after performing so well recently, and looks a good call, now 318p approx to buy... I knew it was a gamble buying recently with the FTSE looking ripe for retracement, but nothing lost so no harm done, and will re purchase cheaper....

well Ted, I suggest you get back in this morning ...... figures are out tomorrow, and though already forecast to be good, sp has suffered in the general fallout and now look cheap ..... don't tell me; only budgerigars go cheep!! ...... rsi on the low side of neutral ..... sp bang on 25 dma and looking to bounce off it too