RTN

Restaurant GroupLSE:RTN Stock Report

Market Cap

UK£833.8m

7D

0.6%

1Y

128.2%

Updated

22 Sep, 2021

Data

Company Financials +
RTN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance2/6
Financial Health0/6
Dividends0/6

RTN Overview

The Restaurant Group plc operates restaurants and pubs in the United Kingdom.

Restaurant Group Competitors

SSP Group

LSE:SSPG

UK£2.2b

Mitchells & Butlers

LSE:MAB

UK£1.6b

J D Wetherspoon

LSE:JDW

UK£1.3b

Marston's

LSE:MARS

UK£495.8m

Price History & Performance

Summary of all time highs, changes and price drops for Restaurant Group
Historical stock prices
Current Share PriceUK£1.09
52 Week HighUK£0.36
52 Week LowUK£1.40
Beta2.58
1 Month Change-7.16%
3 Month Change-15.90%
1 Year Change128.22%
3 Year Change-63.86%
5 Year Change-71.41%
Change since IPO76.16%

Recent News & Updates

Shareholder Returns

RTNGB HospitalityGB Market
7D0.6%7.0%0.6%
1Y128.2%56.5%23.1%

Return vs Industry: RTN exceeded the UK Hospitality industry which returned 56.3% over the past year.

Return vs Market: RTN exceeded the UK Market which returned 22.6% over the past year.

Price Volatility

Is RTN's price volatile compared to industry and market?
RTN volatility
RTN Beta2.58
Industry Beta1.21
Market Beta1

Stable Share Price: RTN is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RTN's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
195414,000Andy Hornbyhttps://www.trgplc.com

The Restaurant Group plc operates restaurants and pubs in the United Kingdom. Its brands include Wagamama, Frankie & Benny’s, Brunning & Price, Chiquito, Coast to Coast, Firejacks, Garfunkel’s, and Joe’s Kitchen. The company also operates TRG concessions that provide table and counter services, as well as sandwich shops, pubs, and bars.

Restaurant Group Fundamentals Summary

How do Restaurant Group's earnings and revenue compare to its market cap?
RTN fundamental statistics
Market CapUK£833.82m
Earnings (TTM)UK£31.60m
Revenue (TTM)UK£449.40m

26.4x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RTN income statement (TTM)
RevenueUK£449.40m
Cost of RevenueUK£436.26m
Gross ProfitUK£13.14m
Expenses-UK£18.45m
EarningsUK£31.60m

Last Reported Earnings

Jul 04, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.049
Gross Margin2.92%
Net Profit Margin7.03%
Debt/Equity Ratio74.5%

How did RTN perform over the long term?

See historical performance and comparison

Valuation

Is Restaurant Group undervalued compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RTN (£1.09) is trading below our estimate of fair value (£1.81)

Significantly Below Fair Value: RTN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RTN is good value based on its PE Ratio (26.4x) compared to the UK Hospitality industry average (35.2x).

PE vs Market: RTN is poor value based on its PE Ratio (26.4x) compared to the UK market (23.2x).


Price to Earnings Growth Ratio

PEG Ratio: RTN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: RTN is good value based on its PB Ratio (2x) compared to the GB Hospitality industry average (2.6x).


Future Growth

How is Restaurant Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

58.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RTN's forecast earnings growth (58.4% per year) is above the savings rate (0.9%).

Earnings vs Market: RTN's earnings (58.4% per year) are forecast to grow faster than the UK market (13.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RTN's revenue (17.8% per year) is forecast to grow faster than the UK market (5.5% per year).

High Growth Revenue: RTN's revenue (17.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RTN's Return on Equity is forecast to be low in 3 years time (7.4%).


Past Performance

How has Restaurant Group performed over the past 5 years?

-38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RTN has a large one-off gain of £113.7M impacting its July 4 2021 financial results.

Growing Profit Margin: RTN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RTN has become profitable over the past 5 years, growing earnings by -38.3% per year.

Accelerating Growth: RTN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RTN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (11.2%).


Return on Equity

High ROE: RTN's Return on Equity (7.5%) is considered low.


Financial Health

How is Restaurant Group's financial position?


Financial Position Analysis

Short Term Liabilities: RTN's short term assets (£150.3M) do not cover its short term liabilities (£191.2M).

Long Term Liabilities: RTN's short term assets (£150.3M) do not cover its long term liabilities (£735.5M).


Debt to Equity History and Analysis

Debt Level: RTN's debt to equity ratio (74.5%) is considered high.

Reducing Debt: RTN's debt to equity ratio has increased from 17.5% to 74.5% over the past 5 years.

Debt Coverage: RTN's debt is not well covered by operating cash flow (2.8%).

Interest Coverage: Insufficient data to determine if RTN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Restaurant Group current dividend yield, its reliability and sustainability?

0.41%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RTN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RTN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RTN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RTN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RTN is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RTN's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Andy Hornby

2.08yrs

Tenure

UK£518,000

Compensation

Mr. Andy Hornby has been Chief Executive Officer and Director of The Restaurant Group plc since August 1, 2019. Mr. Hornby served as Chief Operating Officer of Ladbrokes Coral Group plc. Mr. Hornby serves...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD707.58K) is about average for companies of similar size in the UK market ($USD968.75K).

Compensation vs Earnings: Insufficient data to compare Andy's compensation with company performance.


Leadership Team

Experienced Management: RTN's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: RTN's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.7%.


Top Shareholders

Company Information

The Restaurant Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: The Restaurant Group plc
  • Ticker: RTN
  • Exchange: LSE
  • Founded: 1954
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£833.817m
  • Shares outstanding: 764.97m
  • Website: https://www.trgplc.com

Number of Employees


Location

  • The Restaurant Group plc
  • 5-7 Marshalsea Road
  • London
  • Greater London
  • SE1 1EP
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 21:15
End of Day Share Price2021/09/22 00:00
Earnings2021/07/04
Annual Earnings2020/12/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.