Shares climb higher for Franco Manca’s owner as sales heat up
Shares in Franco Manca owner The Fulham Shore are trading higher this morning after the company struck a more positive note in its latest trading update.
The company, which also owns The Real Greek, has previously warned of a dip in sales at some of its sites and taken action to slow down its rate of expansion.
But this morning in a statement ahead of the AGM, The Fulham Shore said that a slightly higher number of transactions at its restaurants had boosted revenue at both brands in the first 21 weeks of the financial year.
Shares jumped more than 11 per cent in early trading.
The group has taken action to close underperforming sites, most recently the Franco Manca in Brighton Marina. Meanwhile new openings such as Bath and Cambridge are mostly being funded by internally generated cash flow.
Overexpansion in the restaurant industry, largely fuelled by large cash injections from private equity firms, has been partly blamed for the casual dining crunch which has seen chains like Jamie's Italian and Prezzo axe stores.
The Fulham Shore's chairman David Page said that the recent spate of closures in both restaurants and retail is now putting a wider range of properties on the market, creating potential new opportunities.
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