TGI Fridays owner posts flat earnings as Christmas holidays boost revenue amid cost-cutting drive
Owner of chain restaurant TGI Fridays said revenues were flat during the second half of the year, amid a cost-cutting drive for the group.
Hostmore, told markets this morning, that it was an improvement on the first half of the year which was down two per cent on the previous year’s earnings.
The casual dining chain has fallen on hard times in recent years and announced last year it would not open any more sites until 2025 in a scramble to save more money.
It also said it was mulling a decision to close more underperforming sites and was looking at ways to improve a further 20 restaurants.
However, customers treating themselves over the Christmas holidays helped drive revenue up four per cent on a like-for-like basis.
Julie McEwan, chief executive officer, said: “We have continued making good progress in executing our turnaround strategy, through disciplined capital allocation and the delivery of further cost reductions.
“Our organic growth initiatives, implemented through a strong and motivated operational platform, have improved the financial outlook of the business and continue into 2024.”
The business said its consolidated net bank debt at the year-end was £25.1m, an improvement in line with the forecast of £31.3m on 2 July 2023.
Shares were down over five per cent this morning as investors responded to the news.
It comes amid a challenging period for hospitality which has been battered by sky-high costs and a slowdown in consumer spending.