(Reuters) – Restaurant Group, the owner of Wagamama restaurants and Frankie & Benny’s, said on Wednesday it was on track to deliver on its annual expectations, helped by strong dine-out sales in the second quarter despite a hit from hot weather conditions.
Total like-for-like sales at its Wagamama noodle chain rose 5% in the quarter ended July 2, the company said, adding that four new Wagamama sites launched this year were trading ahead of its expectations.
Shares in the London-based company were up 10% in early trade.
Restaurant Group has been facing pressure from investors over the last few months to increase profitability and more recently to replace its chairman.
The board is still reviewing its wider strategic options, including potential disposals, with the help of independent advisers, the group said.
Britain experienced its hottest June on record that temporarily impacted trading for Wagamama.
Still, Wagamama has been trading ahead with total sales up 21% for the two weeks ended July 16.
(Reporting by Yadarisa Shabong and Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips)
