Wagamama reports full-year UK like-for-likes up 7.4%
Wagamama has reported UK like-for-like sales increased 7.4% for the year ending 29 April 2018. Group turnover increased 13.0% to £300.6m. Adjusted Ebitda was up 0.4% to £45.7m compared with £45.5m the previous year. The group refinanced its bond debt in July 2017 resulting in a new bond issue of £225m with coupon of 4.125%. In the fourth quarter, UK like-for-like sales rose 7.7%. Group turnover in the quarter increased 11.1% to £71.1m. The company said its UK like-for-like sales in the quarter were a 10.3% UK outperformance over the competitive set. It has traded “ahead of the competition consistently for more than four years (220 weeks)”. During the quarter, one UK restaurant opened, in Colchester, while new franchise restaurants opened in Austria, Netherlands, Spain and Cyprus. Ten refurbishments were completed during the quarter. During the full-year, seven restaurants were opened in the UK – St Peters Manchester, Bedford, White Rose Leeds, Cheltenham, Bracknell, Reigate and Colchester – and two in the US – at Boston Seaport and East Village, New York City. A total of 31 refurbishments were made during the 12-month period, while 13 franchise restaurants opened – Madrid (four restaurants), Bergamo, Jeddah, Doha, Qurum, Malpensa, Dubai Mall, Parndorf, Utrecht and Larnaca. Chief executive Jane Holbrook (pictured) said: “We have continued to perform really strongly in the year, with 7.4% UK like-for-like sales growth. This strong trading performance allows us to invest further in innovation to strengthen our brand and differentiate ourselves over the longer term. Wagamama’s continued success is down to the amazing people that work in the business and I’d like to thank them for their passion and commitment to the Wagamama family.” Turnover in the US for the year increased 24.1% (increase of 27.9% in USD terms) to £10.3m ($13.8m) from £8.3m ($10.8m) the previous year. On a 52-week basis, turnover increased 21.7% (25.5% in USD terms) to £10.1m ($13.6m) compared with £8.3m ($10.8m) the previous year. This reflects 3.5% growth in like-for-like sales and the opening of two restaurants in New York City and Boston since FY 2016-17. Turnover from its international franchised restaurants increased 19.2% to £3.1m (15.4% to £3.0m on a 52-week basis) in the full year, compared with £2.6m the previous year due to the increase in the number of franchised restaurants opened from 44 at the end of FY 2016-17 to 56 open at the end of FY 2017-18.
Article Credit: Propel