Wagamama owner TRG shrugs off heatwave slump as sales jump

The Restaurant Group shares soared on Thursday as the Wagamama and Frankie & Benny’s owner confirmed annual guidance after a jump in sales.

London-based TRG revealed that total like-for-like sales at Wagamama has risen by 5 per cent in the quarter ending 2 July, despite its venues being impacted by unusually warm weather. 

Four new Wagamama chains were launched earlier this year and are trading ahead of expectations. 

The London-based company shares was up by 8 per cent in early trading as the group revealed that total like-for-like sales at the Wagamama has risen by 5 per cent in the quarter ended 2 July 

The hottest June on record impacted trading for Wagamama, although group sales were still up by 21 per cent for the two weeks ending 16 July.

The news will come as a welcome relief for TRG, which has been facing mounting pressure from investors over its performance in recent months.

The company posted an £86.8million loss last year, its fourth annual loss in a row, and its shares have fallen 80 per cent since it bought Wagamama five years ago.

More than 45 per cent of voting investors – including activists Oasis Management and Irenic Capital – opposed TRG’s pay report for last year when ex-HBOS chief executive Andy Hornby was handed £792,000.

Daniel Wosner, head of Europe at Oasis, said: ‘The numbers tell the story.

‘We will continue to seek constructive engagement with the company to strengthen its governance and enable it to be better aligned with the interests of all shareholders.’