Restaurant Group cautious on consumer confidence

11th May 2011 09:03

Garfunkel's and Frankie & Benny's owner The Restaurant Group said it is trading 'in line' after a "satisfactory" performance in the first 18 weeks of 2011, but has expressed its caution in regards to the full year as consumer spending remains restricted."Trading conditions during 2011 look set to continue to be similarly challenging to those we experienced during 2010, with consumer sentiment remaining cautious and household inflation and disposable income still under pressure," said chairman Alan Jackson.Total sales during the first 18 weeks were 5.5% ahead of last year, while like-for-like sales increased by just 0.5%.Over the past eight weeks, the pub restaurant division has performed strongly, while its "restaurants located at cinema and retail parks have traded satisfactorily, although footfall at these locations has been more variable," said Jackson.The firm opened two new Frankie & Benny's restaurants and one new Chiquito restaurant during the period, which are said to be trading ahead of expectations. The firm is on track to open between 22 and 27 new restaurants during 2011.Shares fell lower on Wednesday as a number of brokers downgraded their rating s: Peel Hunt cut its recommendation to 'hold', from 'buy'; while Evolution reduced its rating from 'buy' to 'neutral'.---BC