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The Expert View: Ashmore, Workspace, Restaurant Group
by Chris Marshall on Sep 23, 2013 at 05:01
Restaurant Group: big pipeline, ‘strong buy’
While other eateries still struggle with ‘large debt piles and under-invested estates’, Restaurant Group (RTN.L) is a ‘strong buy’, according to Canaccord Genuity analyst Wayne Brown.
After a recent visit to the group’s Coast to Coast and Frankie & Benny restaurants in Brighton – two of several brands that also include Garfunkels and constitute its more than 400 restaurants and pub restaurants – Brown reported back that his ‘confidence in the group’s outlook and in its market positioning is significantly enhanced’.
He reiterated his 650p share price target.
‘We feel the combination of many macro-signals, market share movements and the investment in its new brand and management structures bodes well for growth to accelerate over the next few years’.
That investment includes 65 new sites that are signed up and a further 70 that are at ‘advanced stages of negotiations’. This adds up to a ‘very strong pipeline’.
Restaurant Group shares fell 0.2% to 540p on Friday.
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