OTCPK:RSTG.F

Stock Analysis Report

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Executive Summary

The Restaurant Group plc operates restaurants and pub restaurants in the United Kingdom. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Restaurant Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RSTG.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

RSTG.F

-2.5%

US Hospitality

-2.4%

US Market


1 Year Return

-57.7%

RSTG.F

-16.2%

US Hospitality

18.2%

US Market

Return vs Industry: RSTG.F underperformed the US Hospitality industry which returned -15.7% over the past year.

Return vs Market: RSTG.F underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

RSTG.FIndustryMarket
7 Day0%-2.5%-2.4%
30 Dayn/a-1.9%4.2%
90 Dayn/a11.3%6.3%
1 Year-57.7%-57.7%-14.9%-16.2%20.9%18.2%
3 Year-81.2%-81.2%-12.1%-17.7%41.2%31.8%
5 Yearn/a14.7%2.7%84.8%63.9%

Price Volatility Vs. Market

How volatile is Restaurant Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RSTG.F ($0.74) is trading below our estimate of fair value ($2.08)

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


Price To Earnings Ratio

PE vs Industry: RSTG.F is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.

PE vs Market: RSTG.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RSTG.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RSTG.F is good value based on its PB Ratio (1x) compared to the US Hospitality industry average (2.4x).


Next Steps

Future Growth

How is Restaurant Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

73.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RSTG.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: RSTG.F is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RSTG.F's is expected to become profitable in the next 3 years.

Revenue vs Market: RSTG.F's revenue (12.4% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: RSTG.F's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RSTG.F's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Restaurant Group performed over the past 5 years?

-66.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSTG.F is currently unprofitable.

Growing Profit Margin: RSTG.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RSTG.F is unprofitable, and losses have increased over the past 5 years at a rate of 66.5% per year.

Accelerating Growth: Unable to compare RSTG.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RSTG.F is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-49.7%).


Return on Equity

High ROE: RSTG.F has a negative Return on Equity (-75.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is Restaurant Group's financial position?


Financial Position Analysis

Short Term Liabilities: RSTG.F's short term assets (£176.9M) do not cover its short term liabilities (£257.3M).

Long Term Liabilities: RSTG.F's short term assets (£176.9M) do not cover its long term liabilities (£1.2B).


Debt to Equity History and Analysis

Debt Level: RSTG.F's debt to equity ratio (196.4%) is considered high.

Reducing Debt: RSTG.F's debt to equity ratio has increased from 8.6% to 196.4% over the past 5 years.

Debt Coverage: RSTG.F's debt is not well covered by operating cash flow (3.8%).

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


Balance Sheet


Next Steps

Dividend

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

0.59%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate RSTG.F'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 RSTG.F's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: RSTG.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Andy Hornby

1.17yrs

Tenure

UK£739,200

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 ($USD959.93K) is below average for companies of similar size in the US market ($USD1.91M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andy Hornby
CEO & Director1.17yrsUK£739.20k0.049%
£ 161.3k
Kirk Davis
CFO & Director2.67yrsUK£560.00k0.079%
£ 260.0k
Debbie Moore
Group HR Directorno datano datano data
Nick Ayerst
Managing Director of TRG Concessions7.75yrsno datano data
Angelo Gabrilatsou
Managing Director of Coast to Coastno datano datano data
Mark Chambers
Chief Executive Officer of Leisure Businessno datano datano data
Jean-Paul Rabin
Company Secretaryno datano datano data
Mary Willcock
Managing Director of Brunning & Priceno datano datano data
Crispin Holder
Director of Finance4.42yrsno datano data

3.5yrs

Average Tenure

Experienced Management: RSTG.F's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andy Hornby
CEO & Director1.17yrsUK£739.20k0.049%
£ 161.3k
Kirk Davis
CFO & Director2.67yrsUK£560.00k0.079%
£ 260.0k
Graham Clemett
Independent Non-Executive Director4.33yrsUK£61.00k0.0076%
£ 25.0k
Zoe Morgan
Independent Non-Executive Director0.75yrno data0.0017%
£ 5.6k
Alison Digges
Independent Non-Executive Director0.75yrno data0.00077%
£ 2.5k
Debbie Hewitt
Independent Non-Executive Chairman4.42yrsUK£219.00k0.033%
£ 107.6k
Allan Leighton
Senior Independent Director1.42yrsUK£61.00kno data

1.4yrs

Average Tenure

57yo

Average Age

Experienced Board: RSTG.F's board of directors are not considered experienced ( 1.4 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: The Restaurant Group plc
  • Ticker: RSTG.F
  • Exchange: OTCPK
  • Founded: 1954
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: UK£253.465m
  • Listing Market Cap: UK£329.150m
  • Shares outstanding: 589.73m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTNLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
RSTG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
RTNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
R2KDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

The Restaurant Group plc operates restaurants and pub restaurants in the United Kingdom. Its brands include Frankie & Benny’s, Chiquito, Coast to Coast, Brunning & Price, Garfunkel’s, Firejacks, Wagamama, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:10
End of Day Share Price2020/10/07 00:00
Earnings2020/06/28
Annual Earnings2019/12/29


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.