Wagamama owner hikes full-year estimates after sales surge
Wagamama’s owner has upgraded its estimates for the financial year, forecasting adjusted EBITDA of up to £79m.
In a trading update published on Tuesday morning, The Restaurant Group said its venues had traded well with like-for-like sales outperforming the market.
There had been strong sales across the Wagamama brand, as well as its pubs and leisure arms.
A “minor improvement” in UK airport passenger volumes had led to a “partial recovery” in the sale run rates in the group’s concessions business.
The group has increased its adjusted EBITDA for the 2021 financial year to a range of £73m-£79m – providing hospitality continues to operate free of coronavirus restrictions for the rest of the period.
Net debt for the financial year-end was estimated to be less than £190m, mostly thanks to a “robust trading performance.”
Shares soared almost 19 per cent on Tuesday morning, following the update.
Following an update in May, the group said: “The board has been very encouraged by the trading performance seen so far in 2021.
“While the environment for the remainder of the year continues to remain uncertain, the group is well positioned across its diversified brand portfolio to benefit from the sustained removal of government restrictions.”