Wagamama owner TRG shrugs off heatwave slump as gross sales jump

Shares in the restaurant group rose on Thursday as the owner of Wagamama and Frankie & Benny’s confirmed full-year guidance following a jump in gross sales.

London-based TRG revealed that Wagamama’s overall gross sales rose 5 percent in the quarter ended July 2, excluding locations affected by the unusually hot climate.

Four new Wagamama chains have been launched earlier this 12 months and are performing above expectations.

Shares in the London-based company rose 8 percent in premarket trading after the group revealed Wagamama’s gross sales rose 5 percent in the quarter ended July 2.

The report’s hottest June weighed on buying and selling at Wagamama, although the group’s gross sales rose 21% in the two weeks ending July 16.

The information will come as a welcome reduction to the TRG it has dealt with the growing stress of traders due to the effectiveness of the last months.

The company posted an £86.8m shortfall in the last 12 months, its fourth annual loss in a row, and its shares have fallen 80% since its acquisition by Wagamama 5 years earlier.

More than 45 per cent of voting traders, along with activists Oasis Management and Irenic Capital, objected to TRG’s pay report for the past 12 months, which saw former HBOS chief executive Andy Hornby hand over £792,000.

Daniel Vosner, head of Europe at Oasis, said: “The numbers tell the story.

“We will continue to seek constructive dialogue with the company to strengthen governance and enable it to better align the interests of all shareholders.”

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